United States is one of the few countries in the world in its Citizen-Based-Taxation format. This means that no matter where you live, you need to be current on your U.S. tax filing if you are a U.S. Citizen or Green Card Holder. You are known as an Expatriate or Expat (for short) if you are a U.S. citizen or green card holder living outside the United States. Read more
Archive for Expatriate
One of the major economic fallouts of last year’s Brexit referendum was the sudden and significant depreciation of the British pound. Over the past week, the pound fell sharply again following the unexpected results of the most recent U.K. election.
What does this mean from a tax perspective for U.S. expats living in the U.K.?
One of the more common issues that our clients face in their expat tax filings is determining the proper tax treatment of the sale of their personal residence abroad. The following are some of the key U.S. tax considerations when selling a foreign residence. Read more
Self-preparing your tax return can be a risky endeavor, especially for U.S. expats with heightened reporting obligations.
Expat taxpayers are particularly susceptible to errors because of the complex international tax issues and additional reporting requirements that can significantly affect the tax return of a U.S. citizen living abroad.
American citizens and green card holders, including people who have the right to U.S. citizenship, are required to file a federal income tax return each year declaring their worldwide income, wherever in the world they live. They may also have to pay U.S. taxes.
The numbers are in from the Treasury Department, and 2016 easily broke the record for U.S. citizenship renunciations. 2016 saw a total of 5,411 renunciations, well above 2015’s previous record of 4,279.
Renunciation of U.S. citizenship is an expatriation event requiring the filing of IRS Form 8854 with your tax return for year of expatriation. Renunciation has a fee of US $2,350.
Renunciation is voluntary and requires an appointment for receiving a certificate of loss of nationality.
In a new decision, the Tax Court upheld heavy penalties imposed by the IRS on a U.S. expat taxpayer who failed to report his ownership in two foreign corporations. The decision certainly serves as a cautionary tale for expats – the IRS is serious about foreign reporting and the U.S. court system has its back.
Yesterday, we started this blog post to hopefully encourage those with U.S. tax issues to consider whether they can deal with minor/unintentional FBAR violations as a “stand alone single problem”. There may be no need to escalate and expand one single problem into a multi-dimensional full blown tax problem that may end up with unintended and unanticipated costly professional fees as well as undue time spent! Read on and learn why. Keeping a calm head is most important, even if it is most difficult to do in the face of the scary situation of not being in compliance with the U.S. tax and regulatory regime.
We’ve blogged a number of times in the past about the foreign earned income exclusion (“FEIE”), because it is one of the main tax relief measures available to expats filing U.S. tax returns. Expats qualifying for the FEIE may be able to exclude all or part of their foreign salary or wages from their income when filing their return – so its importance can’t be overstated.
For this blog post, we bring an interview with Keith Redmond, a Multi-Cultural Global Management Executive working with cross cultural issues for over 20 years, who is currently the International Senior Consultant at Leaders Across Borders.
Keith is an American overseas, based in France. He has strong views about the harm of FATCA unfairly punishing a large group of Americans who are living overseas. He is fighting for these views by testifying in Congress in January.
As this year’s tax season heads towards its end, we continue to see more and more self-filers who have received notices from the IRS reassessing their tax liabilities due to mistakes or miscalculations on their original returns. In many cases, the filers should have no tax liability, but a missing form or incorrect information triggers a hefty IRS tax bill.