TaxConnections


 

Tag Archive for Americans Abroad

The Child Tax Credit For Americans Living Abroad

American Expat parents can potentially take advantage of not just one but three U.S. Child Tax Credits, depending on their circumstances: the Child Tax Credit, the Additional Child Tax Credit, and the Child and Dependent Care Credit. In this article we outline when and how all three can be used, and what conditions need to be fulfilled to claim them. Read more

Tax Burdens Prompt More Americans To Ditch Citizenship

Americans abroad have just about had it with Uncle Sam’s tax filing requirements.

Those were the findings from a recent survey of more than 2,100 U.S. expatriates, according to Greenback Expat Tax Services, which specializes in working with American taxpayers residing overseas.

Just over 4 in 10 respondents said that while they aren’t planning to renounce their U.S. citizenship, they wouldn’t rule it out, and 19% said they’re seriously considering it. Read more

2017 Residence Based Taxation Request To Chairman Hatch

It’s tax reform season and Senator Orrin Hatch wants to hear from you (again).

As reported on the Isaac Brock Society and other digital resources for those impacted by U.S. taxes, you have until July 17, 2017 to tell Senator Hatch what you think needs to be changed in the Internal Revenue Code. After great deliberation, it occurred to me that people who either are (or are accused of being) U.S. citizens or Green Card holders living outside the United States, might want the USA to stop taxing them. After all, they already pay taxes to the countries where they reside. This is your opportunity to “Let your voices be heard” (well maybe). 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

Roth IRA Taxation For Expats In Canada

The importance of income tax treaties should not be underestimated when considering the U.S. tax implications of living abroad. U.S. and foreign tax laws often fall short of ensuring that U.S. expats are on equal tax footing with their non-expat counterparts. In such case, a relevant tax treaty may be available to pick up the slack. Read more

U.S. Culture Of Penalty And Inflation

John Richardson

The purpose of this post is to explore how inflation results in the facilitation of enhanced penalty collection in America today.

What is inflation? “Inflation is defined as a sustained increase in the general level of prices for goods and services in a county, and is measured as an annual percentage change. Under conditions of inflation, the prices of things rise over time. Put differently, as inflation rises, every dollar you own buys a smaller percentage of a good or service. When prices rise, and alternatively when the value of money falls you have inflation.” Read more

Accounts U.S. Expats Have to Report In An FBAR

The U.S. tax system is different to every other developed country’s, in that America taxes based on citizenship rather than on residence. That means that whereas most countries only tax residents (and non-residents who have income arising in the country), the U.S. taxes all U.S. citizens wherever in the world they live. Read more

How Can American Expats Reduce Their IRS Taxes?

Hugo Lesser

Americans living abroad are still required to file U.S. taxes. The U.S. is the only country that requires its expats to file. It is because the U.S. taxes based on citizenship rather than on residence. Read more

Exposé On The Cost For An Accidental American Under FATCA

William Byrnes

An interesting read by the Telegraph that walks an Accidental American through the process of renunciation of American citizenship to avoid paying a life time of US taxes, penalties, interest, and potentially criminal offences for non-filing. Read it here. Excerpts below:

Read more

How To Live Outside The United States In An FBAR And FATCA World

When in Rome, live as a Homelander” does, when elsewhere, live as they live elsewhere.
Introduction:

Americans abroad are constantly told that they should “come clean”. They should file their U.S. taxes. This assumes that they are somehow “unclean” or perhaps “dirty”. The life of an “American abroad” is about three things:

1. “Thinking Clean” – The importance of “thinking clean” while living abroad. Read more

Got’cha! Delinquent Taxes Owed to IRS, Now Owed Indefinitely? What About Tax Non-Compliant Expatriates?

It was recently reported in the press that the Social Security Administration was collecting old debts of many deceased persons by intercepting the tax refunds of their children. After much unwanted publicity, the Social Security Administration announced it would stop doing this with regard to debts that were over ten years old. What implications does this case raise for tax noncompliant expatriates?

The case of the Social Security Administration is quite alarming and raises serious concerns for persons with unpaid US tax liabilities. It is widely reported and recognized that there has been a vast increase in expatriations. I suspect that some expatriations will involve taxpayers who were not fully tax compliant and I foresee that this area is ripe for IRS audit and controversy. Read more

TaxConnections