If you move overseas and owe back taxes, you may be wondering:

• Can the IRS still collect from me?
• Does moving out of the U.S. stop tax collection?
• Can they garnish foreign wages?
• Will the debt just go away?

The short answer: Yes, the IRS can still pursue you — even if you live abroad.

Here’s how it works.

U.S. Tax Obligations Follow You

Unlike many countries, the United States taxes citizens and permanent residents on worldwide income.

That means:

• You must file U.S. tax returns even if you live overseas.
• Existing tax debt does not disappear when you move.
• Interest and penalties continue to accrue.

Moving abroad does not eliminate federal tax liability.

How Can the IRS Collect If I’m Overseas?

The IRS has several collection tools, including:

• Bank levies (if you maintain U.S. accounts)
• Federal tax liens
• Passport restrictions for seriously delinquent tax debt
• Wage garnishment (for U.S.-based income)
• Offsets against tax refunds

If you have U.S. assets, they remain vulnerable.

Can the IRS Seize Foreign Assets?

This depends on:

• The country you move to
• Whether the U.S. has a tax treaty or collection agreement
• The nature of your assets

In some cases, the IRS can coordinate with foreign governments under treaty provisions.

While cross-border enforcement is more complex, it is not impossible.

What About the Statute of Limitations?

The IRS generally has 10 years to collect from the date of assessment.

However:

• Certain actions can extend this period.
• Living abroad may suspend collection timelines in some circumstances.

This is highly fact-specific.

Can Bankruptcy Eliminate Tax Debt?

Sometimes.

Income taxes may be dischargeable if:

• The tax return was due at least three years ago.
• The return was filed at least two years ago.
• The tax was assessed at least 240 days ago.
• There was no fraud or willful evasion.

Payroll taxes and trust fund taxes are generally not dischargeable.

The Bottom Line

Moving abroad does not stop the IRS.

If you owe significant tax debt, addressing it before relocating may prevent future complications — including passport restrictions or cross-border enforcement issues.