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Expatriate Tax Returns

Expat Tax Audit

Making Sense of the Options Available For U.S. Taxpayers with Undisclosed Foreign Financial Assets

Last week the Internal Revenue Service announced some major changes in its offshore voluntary compliance programs, providing new options to help both U.S. taxpayers residing overseas and those residing in the United States. The changes should provide thousands of people with new ways to come into compliance with their U.S. tax obligations.

The changes include an expansion of the streamlined filing compliance procedures announced in 2012 and important modifications to the 2012 Offshore Voluntary Disclosure Program (OVDP). The expanded streamlined procedures are intended for U.S. taxpayers whose failure to disclose their offshore assets was non-willful.

 

IRS Help for Expatriates
The implementation of FATCA and the ongoing efforts of the IRS and the Department of Justice to ensure compliance by those with U.S. tax obligations have raised awareness of U.S. tax and information reporting obligations with respect to non-U.S. investments. Because the circumstances of taxpayers with non-U.S. investments vary widely, the IRS offers the following options for addressing previous failures to comply with U.S. tax and information return obligations with respect to those investments:
  1. Offshore Voluntary Disclosure Program;
  2. Streamlined Filing Compliance Procedures;
  3. Delinquent FBAR submission procedures; and
  4. Delinquent international information return submission procedures.
Since the IRS encourages taxpayers to consult with professional tax advisers regarding these changes, Expatriate Tax Returns is encouraging current clients as well as potential expatriate clients to contact us to determine which option is the most appropriate for you. Visit our website today at www.expatriatetaxreturns.com or call toll-free (877)-382-9123.

The World’s Flat, but Expatriate Taxes are Still a Reality

In the book “The World is Flat” by the award-winning New York Times columnist Thomas Friedman, the author demystifies the brave new world for readers, allowing them to make sense of the often bewildering global scene unfolding before their eyes. He explains how globalization has made the borders between nations virtually disappear and make us feel as if the world is a much smaller place.

For the many expats who are currently living and working outside of the United States, you know this to be true. The world really does seem smaller thanks to the Internet and globalization. Decades ago if you moved away from the United States, you’d be lucky to arrange for a phone call back to the States once a week or so. Today, you can text and video chat with friends, family and colleagues across the globe at any time of the day with perfect reception.

world-is-flat

With the advances in technology, it’s nothing to wire money or do any type of commerce between your current country and the U.S. Perhaps we take this for granted at times because it has become so easy to communicate back home. However, there is one thing that hasn’t changed over time. No matter how advanced our technology has become and much those virtual borders have disappeared, Americans living abroad still have to file their United States tax returns. Thankfully though, you’re not on your own. The tax experts at Expatriate Tax Returns are here to handle that responsibility on your behalf. So contact us today and let us take care of the rest. Simply fill out the form on our homepage and we’ll get the process started. We have YOUR best interests in mind.

Expat Taxes: Being Audited

The “A” word – I’m being AUDITED, now what?!

The “A” word may be in the top 10 of scariest words ever!

Am I in trouble? Was I flagged? Not necessarily. Some reasons your return could be picked for an audit include: random sampling, computation errors, computer screening, excessive deductions, and large charitable contributions. Respond as quickly as possible. Ignorance is not bliss! If you ignore the notice, the IRS will not go away. Keep in mind, the audit process can be a lengthy one for people living abroad, so be patient.

Do not panic. If you have good records to substantiate your information and are honest, an audit should be of little concern.

Be organized. Ordinarily, you are asked to support specific items reported on your return. Have all of your original documents organized by each item called into question. However, there is no need to provide more information than what was requested of you.

Be polite. The old saying, “you catch more bees with honey…” may apply. No need upsetting the IRS agent that is reviewing your information.

Contact a tax professional. If you prepared your own return, you should contact a tax professional to see if your return was properly prepared. If not, they can help you deal with the IRS and solve the issue reasonably. If you choose, your tax professional can deal directly with the IRS agent on your behalf.