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Expatriate Tax Returns

Expat Filing Requirements

2021 Tax Returns: File and Avoid These Mistakes

 

Don’t miss the deadline! People who have not filed their 2021 tax return have a limited time to complete filing. The extension deadline is October 17, 2022. Learn about the best way to file and how to avoid common mistakes when filing under an extension with Expatriate Tax Returns.

The best way to file tax returns is electronically. Filing electronically is the quickest and easiest way to file since the submission will be immediate, the electronic system can detect form errors, and calculates data. Instead of waiting on the postage system to deliver tax returns or for approval on the filing submission, taxpayers can depend on accuracy and effectiveness by filing online. Filing online helps taxpayers avoid these common mistakes:

Misspellings

Names used for filing should match the spelling on the taxpayer’s Social Security Card and ID. Misspellings could prolong filing time and could disqualify the filing submission.

Inaccurate Information

Information such as the SSN, taxpayer income, address, and other information should be accurate and the exact same as what is printed on the associated documents. Online filing could help prevent submission rejection since the system can prevent mathematical errors.

Missing Information

Provide as much information as possible, especially if the online system is requesting such information. If any data is missing from the submission, preparers will have to collect the information which prolongs the filing process time and can disqualify the submission.

Visit www.expatriatetaxreturns.com if you have any questions or concerns about electronically filing 2021 tax returns under the October 17, 2022 extension deadline.

Paying Interest to the IRS When They Could be Paying it to you?

$3.3 billion – the amount of refund interest the IRS paid to taxpayers in the fiscal year 2021.

Did you know that, by law, the IRS must pay you interest on your tax refund if it takes them longer than 45 days to process it? As of June 21, 2022, the IRS had more than twice as many returns waiting to be processed as it did the year before.

Even better news? As of July 2022, the guaranteed interest rate on unpaid refunds increased to 5%. Meanwhile, the national average interest rate on a savings account is a measly 1%.

With the average individual refund at $3,263, there could be an extra $163 in your pocket just for filing your 2021 tax return!

So how do you get it? The first step is to move to file your 2021 tax return with Expatriate Tax Returns to the top of your To Do list. Preparing your taxes can be stressful, time-intensive, and overwhelming. In addition to peace of mind, having a tax professional such as Expatriate Tax Returns in your corner can help you avoid making costly mistakes while maximizing tax breaks that you may not even be aware of. We’re here to help! 

Perhaps you decided to prepare your taxes this year and filed an extension, but now you have an aching sense of dread knowing it’s yet to be completed? Our professional tax experts can also help you take it over the finish line. It’s essential to find a tax professional that you trust.

As Benjamin Franklin famously wrote: “remember that time is money.”

Communication from the IRS

Now that Tax Day has passed, some consumers may open their mailbox to find a letter from the IRS. The IRS will always communicate via mail, so it is essential to read the letter carefully and in its entirety. The IRS may reach out for various reasons, including a change in your refund, a question regarding your tax return, a request for more information, or a balance is due.
If the request is for an audit, give our team a call, we are always available to assist you throughout the entire process.
It is important to respond timely to any request sent via the IRS and act accordingly. If a balance is requested, pay as soon as possible to avoid further issues. Options for payment installments can be found on the IRS website.
The IRS will only reach out via email, phone calls, or emails claiming to be the IRS should be considered fraudulent.

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. 

Recovering from Identity Theft

Identity theft can be prevented in many ways, but if you are a victim, there are a few ways to recover your information and ease the financial burden. Once you discover that your identity has been stolen, contact your local law enforcement, freeze your credit, and place a fraud alert on all accounts. Once all necessary parties have been contacted, review your credit and debit charges for anything fraudulent and report them to your financial institutions. Work to handle your disputes as quickly as possible to recover any changes to your credit score. Next, change login information on all websites that contain your personal information. Protecting your data is essential, and identity theft is likely to occur through an internet security breach. Stay on top of your credit reports and banking information for the next few months after the theft occurs. You will want to contact the credit bureaus and banks to ensure all fraudulent charges have been removed and any new accounts will be rejected as fraud.

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.