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Archive for Expatriate

U.S. Expats In The UK And Brexit

In a referendum in June 2016, the UK voted to leave the European Union (EU). The result was a surprise to many, as experts had been lining up to say that the UK would be worse off economically if it left. Just over a year on, it’s still a divisive issue in the UK. However the government formally triggered the start of the two year leaving process in March 2017, so it’s definitely going to happen. While heated debate on the pros and cons of staying and leaving still rages among the Brits, many U.S. expats are wondering what the implications for them are. Read more

U.S. Expat Mistakes: Part II

I have been on many online forums, message boards, and groups for U.S. citizen expats over the past few years. Most posts you see are ones with frantic U.S. citizens overwhelmed with U.S. tax rules & regulations they have to keep up with. This, in addition to keeping up with their resident country’s tax laws, must drive one crazy. These forums provide quick answers; no wonder they are so popular! Read more

Reasons Not To Worry If You’re Behind With Your Expat Filing

There are lots of scare stories going around about the possible consequences for not filing U.S. taxes as an expat. You may have heard for example about U.S. passports being revoked, sizable FBAR penalties, and banks closing expats’ accounts because of FATCA. So if you’re an expat who’s behind with their U.S. tax filing, you may well be at least a little bit concerned. Read more

FBAR Instructions For U.S. Expats Filing FinCEN Form 114

Hugo Lesser

Americans living abroad are still required to file a U.S. tax return, and furthermore they may have to report their foreign bank and investment accounts by filing a Foreign Bank Account Report, or FBAR.

Due to the 2010 Foreign Account Tax Compliance Act (FATCA), most foreign banks and other financial firms are now reporting their American account holders account balance and contact details to the IRS. Read more

IRS Form 5472 – What Expats Need To Know

IRS form 5472 is a U.S. filing requirement that affects some Americans living abroad who own or part-own corporations.

Form 5472 must be filed by U.S.-registered corporations that are 25% or more owned by a foreigner, and foreign corporations that trade in the U.S., that make any ‘reportable transactions’ during the filing period. A ‘reportable transaction’ typically means that they have received or transferred any money or assets. Read more

The Tax Digi-Nomad Series – How To Set Up A Virtual Mail Box

This is Olivier Wagner writing about the life of a Tax Digi-Nomad. As a tax advisor who travels the world with my tax practice, one of the questions that often arise is how to receive mail as I travel from country to country with my tax practice. When I moved to Montreal, I opened a mailbox in Walnut, CA that scans mail for you. In most cases, I just receive the pdf and ask to destroy the original. It works like magic to have your mail scanned daily and emailed to you.

Read more

Will The IRS Streamlined Procedure For Expats Be Revoked?

Hugo Lesser

For decades, U.S. expats lived in peace, beyond the reach of the American tax system, despite being theoretically obligated to file U.S. taxes on their worldwide income from abroad by American’s citizenship based taxation regime.

Then came FATCA, the 2010 Foreign Account Tax Compliance Act. Designed to address tax evasion in the wake of the 2008 financial crisis, FATCA requires all foreign banks and investment firms to provide details of their American account holders to the IRS. Read more

U.S. Expat Mistakes: Part I

Manasa Nadig

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

Weaker British Pound Reduces Adverse PFIC implications

Ephraim Moss

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.?

Read more

Selling Foreign Residence – Expat Tax Filing Considerations

Ephraim Moss

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

Turbo Tax Defense Fails Again in Tax Court

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.

Read more

Do Tax Treaties Protect Expats From Double Taxation?

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.

Read more

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