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Expatriate Tax Returns

Expatriates

Storing Tax Related Documents

Keeping your tax-related documents is extremely important in the digital age. If you are storing your tax documentation on a computer, be sure that the computer itself is protected. Use lengthy and unique passwords and restrict access to only those necessary. We recommend changing your passwords frequently for maximum security. Additionally, consider keeping the information on an external hard drive should your computer crash. When access your tax files or filing your taxes, be sure you are doing so over a secure network. Avoid using public wi-fi as those around you may be able to access your information more easily. If you are keeping paper copies of your tax information, ensure they are stored safely and securely. The IRS recommends storing the information under lock and key, and ideally in a waterproof container. The IRS generally recommends keeping your tax return documents for three years. After that time, shred any paper documentation and permanently erase the files from your computer. If you are getting rid of an old computer entirely, ensure that tax and other personal data have been removed. We are constantly working to stay on top of the latest safety and security recommendations, and you can trust that your information is safe in our hands.

Tax Related Identity Theft

Identity theft occurs when a piece of your personal information is stolen and used to commit fraud. If your information is accessed, it could be used to open new accounts, make unauthorized purchases, or file taxes for a fraudulent refund.The IRS may reach out to you via mail should there be any suspicious activity related to your Social Security Number. A few other instances may lead to you believe that your identity was compromised. If you attempt to file your taxes and encounter an error that you have already made, you should contact the IRS right away.
In most cases, you will receive some mail notification from the IRS with information that you did not request. This communication is a good indication of identity theft. If it is confirmed that your identity has been compromised, no matter the cause, the IRS recommends IDentityTheft.gov to report the information and work to get your identity back. As tax professionals, if the information breach occurs on our end, we will work with you to ensure your data is retrieved and safe. To protect yourself from tax-related identity theft, ensure that you are using secure methods of communication to file your taxes. Protect your personal information at all times, do not give out your Social Security Number unless necessary.

IRS Amnesty Program: Streamlined Filing and How It Helps Expats Pay Taxes

Expatriate Tax Returns IRS Amnesty Program 2018

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.

Understanding the Tax Fairness for Americans Abroad Act of 2018

Expatriate Tax Returns Tax Fairness for Americans Abroad Act

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.

Here Comes August 8th… HAPPINESS HAPPENS DAY!

Expatriate Tax Returns Happiness Happens Day 2019

2019 marks the twentieth year anniversary of this exuberant holiday, so get ready to put that smile on your face!

This holiday is based on the premise that happiness is unlimited and contagious. It can bring a lot of joy to you and others.

While being happy can mean different things to different people, Happiness Happens Day encourages people to take stock of their lives and try to do or think about things that make them happy.

Here ‘s a few ways to celebrate this happy day:

  • Do something nice for yourself. Happiness begins at home.
  • Do something nice for others such as donating your time or money to your favorite charity.
  • Do something that is helpful to your community like volunteering to pick up trash, weeding, or mowing lawns.

During this time of strong political differences and a world of unrest, join us at Expatriate Tax Returns celebrating happiness every day. As we all know, a smile is worth a thousand words!