Tag Archive for American Citizens Abroad

State Tax Considerations For American Expats

One of the more common tax questions from American Expats is do I have to file a State return?

Unfortunately, there is not an easy answer to that question, as it depends on the State and your personal situation… but you may have to file a return. There are a few factors that you need to look at first.

• Do you still own property in the State? Some expats keep their home and rent it out. In that case a return must be filed.

• Are you still receiving income from the State? Interest, dividends, bank accounts, mailing address and other types of State sourced income may trigger a need to file. Read more

At Last – Great News From The IRS For US Expat Tax Filers Who Are Late Or Non-Compliant

IRS Building in WashingtonThe IRS has declared filing three years back taxes is adequate for most US expat tax filers who are delinquent and there shall be no penalties for late FBARs (Foreign Bank Account Reports) from those who were unaware of the requirement to file.

This brings a clarity and welcome relief to many American expats who in the past may have been reluctant to file US income taxes because there was no assurance that they would not be further harassed (or assessed exorbitant penalties and fees) because they simply didn’t know – or they didn’t trust the potential outcome if they did attempt to come forward and become compliant with US tax laws…

As an online tax accounting firm which exclusively serves Americans living abroad, we had originally interpreted the three year rule as the best option for its clients and that opinion is now fully endorsed by the IRS itself. The IRS has clarified that, for Americans living overseas who are delinquent in filing their US income taxes, filing three years back taxes will bring the vast majority (those who owed less than $1500 per year) into full compliance with new IRS rules.  This is confirmed on the IRS website itself.Additionally, the IRS goes on to state that for those who need to file FBARs (Foreign Bank Account Reports), filing 6 years is sufficient and that that late filers who were not aware of the requirement will not be penalized for making quiet disclosures in this manner. Read more
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