Rumors swirl regarding US expats’ US filing obligations, some of which are true, and many of which aren’t. In this article we’ll separate the facts from the fiction. So without further ado, here are the top 20 things that you need to know about US expatriate taxation. 1 – Expats have to file The American […]
Category Archives: Blog
03
May
May
Purpose of Program The IRS amnesty program, known officially as the “Streamlined Foreign Offshore Procedures,” was established 2012 to encourage U.S. citizens/green card holders living abroad to come into full compliance on their delinquent or incomplete U.S. tax returns and FBARs. No Penalties A taxpayer who files via the Streamlined Foreign Offshore Procedures will […]
03
May
May
Purpose of the FBAR The FBAR is used by the United States government to identify persons who may be using foreign financial accounts to circumvent United States law. Information contained in FBARs can be used to identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad. Who […]
03
May
May
So why is the IRS so concerned with US Expats? Well the US has the highest tax avoidance cost (circa $200 billion) in the world. So it makes sense that the IRS is continuously trying to find new ways, means, and methods to track US citizens who live or work abroad to make sure they […]
03
May
May
As a US American abroad, you may have heard a tax term called a “foreign source income” before. Perhaps you’ve even asked the question “What is foreign source income?” while reading one of our tax guides. Don’t worry – we’re going to make sure we will lay this all out for you. Foreign source income […]
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Apr
Apr
Living Outside the United States If you are a U.S. citizen or resident alien and if you meet the following tests, you can elect the “foreign earned income exclusion.” First, you must have a “tax home” in a foreign country. This means your main place of business or employment must be in a foreign country […]
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Apr
Apr
Resident or Non-Resident United States citizens living abroad generally must file a U.S. income tax return each year, even if they may exclude their income pursuant to the Earned Income Exclusion. In fact, timely filing of tax returns ensures that the benefits of the exclusion may be claimed. If you are a U.S. citizen living […]
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Apr
Apr
Receiving a Bequest from Abroad If the value of aggregate foreign gifts that you receive during any year exceeds $10,000, you must report each foreign gift to the IRS. (The $10,000 figure will be increased for inflation after 1996.) A foreign gift is any amount you receive from a non-US person, which you treat as […]
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Apr
Apr
Controlled Foreign Corporations (CFC’s) U.S. Citizens and Lawful Permanent Residents (i.e. Green Card holders) have unique income tax obligations, regardless of their country of residence, they must file United States income tax returns and international information returns annually. The U.S. income tax system is based on citizenship and lawful permanent resident status not just on […]
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Apr
Apr
Tax Treatment for Persons Giving Up U.S. Citizenship to Avoid Taxation Internal Revenue Code – Section 877A The Heroes Earnings Assistance and Relief Tax Act of 2008 (P.L. 110-245) fundamentally changed the rules aimed at preventing expatriations in order to avoid U.S. tax by passing Code Sec. 877A. Unlike the old regime, which tracked an […]