U.S. Citizens and green card holders that live abroad must file taxes even if there is no money owed. If you do not file, you may receive a penalty even if you did not originally owe taxes to the IRS or to the state. If you haven’t filed previously, we can help. Contact us to get started.
Expat Tax Returns
Starting in July, letters started being sent to expats who have not paid their taxes, stating that a request will be made to the U.S. State Department to revoke their passports. If you live abroad and received this letter, you have 90 days to set up a payment plan with the government, according to the IRS email. For domestic tax payers you have 30 days to respond. Read Bloomberg Article for more details.
Contact Expatriate Tax Returns to learn more and for help on your expat tax filings.
Hiring a professional expat tax preparer can save you stress, time and money. Our specialists know exactly what documents you need and how to minimize taxes. Most of our clients don’t even end up owing taxes BUT filing is a must to stay compliant with the U.S. government. Don’t fret or worry about tax filing, contact Expatriate Tax Returns. We do expat taxes for a living.
Moving to a foreign country can be exciting. During a time when many expats are learning a new way of life, they may forget about old responsibilities. This can lead to overdue taxes. The IRS’s Streamlined Filing Procedures may be able to help.
How Does Streamlined Filing Work?
Today’s Streamlined Filing Procedures were introduced in 2012. The new system was intended to provide an alternative to previous programs, which missed the mark by excluding many of the expats who needed them.
Streamlined Filing Procedures encourage expats to catch up on their taxes. To do this, the program reduced the number of previous years’ returns that are required. In order to use the new procedures, you will need:
- Federal Returns – You must submit three years’ worth of returns. These must be the most recent three years and can include amended returns.
- FBAR Forms – Six years of FBAR forms are required. The FBAR is usually only needed if your non-U.S. bank accounts total $10,000 or more. Streamlined Filing Procedures require FBAR forms even if you have less than $10,000.
- Signed Form 14653 – You must submit a Certification by U.S. Person Residing Outside of the U.S. statement that is signed. This will certify that you are eligible, have filed all FBAR forms, and that your failure to file taxes was not intentional.
Do I Qualify for Streamlined Tax Filing?
Restrictions were removed in 2014, which means that you may be eligible now even if you weren’t over five years ago. If you can produce the items listed above, you may qualify. You must show that you did not file because you were not aware that it was required.
If you have questions about using Streamlined Filing Procedures, let us know. Expatriate Tax Returns can help you navigate the U.S. tax system and get caught up on your financial responsibility.
The Tax Fairness for Americans Abroad Act of 2018 (H.R. 7358) was introduced last December. This legislation applies to anyone with a non-resident citizen status. Ending citizenship-based taxation would require rewriting almost all the current tax code. Instead, steps are being taken to help address issues for expats who live overseas.
What Does the Tax Fairness for Americans Abroad Act of 2018 Change?
If you qualify as a non-resident citizen, you are still expected to pay based on the core tax code. The Tax Fairness for Americans Abroad Act of 2018 changes the way your financial responsibility is calculated.
The Act adds Sec. 911A which amends the code to allow non-resident citizens to be taxed based on their United States-sourced income only. That means any income coming from foreign countries can be excluded.
Do I Qualify for Non-Resident Citizen Status?
You may qualify as a non-resident citizen if you meet the following requirements:
- You are a citizen of the United States
- You live in a foreign country which is your “tax home”
- You are fully compliant through the previous three tax years
- You are not a U.S. federal employee
You must also meet all requirements outlined by the bona fide residence or physical presence tests. If you meet the criteria, you can elect to receive non-resident citizen status. It’s important to remember that you must be in a non-resident citizen status to exclude the sale of personal property.
If you have questions about your status, let us know. Expatriate Tax Returns can help you learn more about your financial responsibility and U.S. taxes.