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Subsidiary of EtaxService.com | Support Hotline: 877-ETAX-123 | 877-382-9123

Expatriate Tax Returns

Diane Siriani

Generosity Extended: The IRS Mileage Rate

The IRS is looking out for American taxpayers. For the remainder of 2022, the optional standard mileage rate has been increased by the IRS. For the rest of the year, taxpayers can receive reimbursement for using their automobiles for business travel and other similar purposes. Once mileage is calculated, drivers can determine what they’ll receive for their business travel expenses.

Taxpayers driving for business trips have a new reason to be excited! The standard mileage rate, once initiated, will be 62.5 cents per mile. The updated rate for moving (sector for active-duty people in the military) and medical reimbursement is 22 cents per mile. Both rates were increased by 4 cents per mile. These increases will be put in place on July 1, 2022, and will last for the rest of 2022. The only rate that did not receive an increase is the rate for charitable organizations, which remains at 14 cents per mile.

2022 has introduced all kinds of challenges worldwide. One of the main challenges America has been facing this year is inflated gas prices. The American average price for fuel is $4-$5 per gallon. Nationwide, all drivers must deal with the inflated prices to be on the road.

Out of generosity, the IRS adjusted the optional standard mileage rate for taxpayers. According to Chuck Rettig, the IRS Commissioner, the IRS made this increase to shine a light on the challenging circumstance of high gas prices. This change is unique because the IRS consistently updates these rates yearly. Any previous business travel costs should be calculated using the former rates before the increase. This information can be found in Notice 2022-03.

The IRS is not only generous but also flexible. If taxpayers would like an alternative to the business travel reimbursement, they can calculate the vehicle cost instead of the optional standard mileage rates. If you have questions, call us or visit www.irs.gov for more information.

Refund Myths

As you await your tax refund, we would like to debunk some common myths via information directly from the IRS.

  • Myth #1 Reaching out to the IRS will increase your refund speed. Utilize the Where’s My Refund? tool to check the status of your refund. An IRS representative cannot get your refund to you faster.
  • Myth #2 Visting Wheres My Refund many times a day will keep me updated.
  • The website updates once a day, and delays may occur.
  • Myth #3 Tax Professionals Can Speed Up Your Return

Although we would love to, our team has no impact on the speed at which your return is processed. We can guarantee accurate and fast filing of your returns but cannot handle speed once your return is submitted. Be diligent in researching tax information. A tax professional or the IRS website is your best bet for accurate information. As always, contact us with any questions or concerns you may have. 

Filing an Extension

Tax Day 2022 is not a done deal! If you filed an extension by April 18, you have until October 17 to file your 2021 return. If you are an expat, you get an automatic extension until June 15, which means that it’s not too late to extend to October 17. Keep in mind that extensions only apply to filing, not paying! If you owe tax it was due by April 18…interest and penalties apply to all payments owed to the IRS after that date.

Gig Economy Income

The IRS recently sent a news release reminding taxpayers that all income must be reported, including such from the gig economy. The gig economy is where workers earn money from on-demand roles, services, or goods.
Gig economy jobs include grocery delivery, creative or professional services, or transportation.
Taxpayers may find that jobs in the gig economy provide more flexibility, allow for additional pay, and provide a better work-life balance. In the last few years, these types of roles have become more common, although the process of declaring the income may be confusing.
These jobs are often short-term and can be performed via an app or website. Employers from these roles will issue a  Form 1099-K or 1099-MISC. This income must be noted on your tax return. Provide all income to our tax professionals, and we will ensure that it is correctly recorded and submitted as required by the IRS.

Protect Your Information Online

The IRS urges everyone to dedicate time to securing and storing their personal information to avoid becoming a victim of cybersecurity scams. As Tax Day approaches, many of us are sending and storing information on our personal computers or other devices. 
We ensure that any information sent to Expatriate Tax Services is stored safely and securely. Before the data reaches us, it is imperative to review the safeguards you have in place.
Passwords: Be sure to use unique passwords across all your online profiles. Use special characters or numbers to make your password more complex.
Be Aware of Phishing Scams: Pay attention to the emails you receive. The IRS notes that it will never contact its customers via email. Review any email to ensure that the email address is attached to a real domain. Delete any potential scams immediately and do not respond.
Utilize Anti-Virus Software: Be sure your personal computer is equipped with an anti-virus program. These programs scan your device for potential threats and keep your personal information secure.
Expatriate Tax Services stays up to date with security measures and requirements provided by the IRS. You can trust us with your personal information. 

How We Can Help

We are your one-stop shop for all things expatriate taxes, but that doesn’t mean you should wait until it is time to file to reach out. Our clients live all around the world and contact us during every stage of their journey. We are available to discuss your tax preparation, get you all set to file in a timely fashion, and assist with the actual filing process giving you peace of mind that your taxes are done right. We are also experts in audits. We can work with you through the audit process and communicate with the IRS to handle your audit as quickly as possible. We are up to date on the latest tax news and laws, ensuring you have the information necessary to get your best refund. We don’t need much to get started, and all information is available on our website. Take a look at our offerings, and let us know how we can work for you.