Tag: US Expatriation Tax
As the IRS crackdown begins on Americans at home, so it goes with US Expatriation Tax for Americans living overseas and failing to satisfy their IRS Problems.
Are you an American living overseas with an IRS Problem?
U.S. citizens pay tax on their“worldwide income.” This means that if you aren’t even in the U.S. you get to pay taxes for the privilege of being an American.
Now don’t get me wrong, I do think it’s a both a privilege and a blessing to be an American. I just don’t necessarily agree that if you aren’t even in the U.S. that it makes sense for you to have to pay US Expatriation Tax on that income, but I digress.
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As a tax attorney, over the past year or so, I have consulted with U.S. taxpayers from Africa, Europe, South America, Australia and Asia. That’s the whole world, isn’t it? (except Antarctica). What typically happens is the taxpayer is overseas and neglects to file a form 1040 with the Internal Revenue Service. Maybe they are busy or it just slips their mind.
Eventually, the IRS files a return for the taxpayer, known as a Substitute for Return and assesses a large amount of tax. The IRS attempts to follow it’s noticed procedures but if the taxpayer is traipsing around the wilds of the bush in Africa or the steppes of Siberia, it’s pretty hard to reach the taxpayer to let them know they need to file a tax return.
Some time later, the taxpayer’s U.S. bank account is seized, their U.S.based wages are garnished or they are stopped at their next port of entry into the U.S. and gently “reminded” of their IRS Problem. This is when the need for IRS help comes in.
The minefield of IRS US Expatriation Tax practices and procedures can be maddening to someone who doesn’t deal with it on a daily basis. There are almost always ways to undo the damage caused by failing to file a tax return. U.S. based taxpayers living overseas even get a huge income exemption before they even have to pay any tax!
Often they are aware of this exemption and this causes them to believe that they don’t need to file. Big mistake. I have personally handled cases with mid six figure liabilities caused by this assumption. We were later able to reduce these liabilities incredibly and dramatically.
If a taxpayer is dealing with a balance that they don’t disagree with but they just can’t pay, we can discuss possible solutions to such an IRS Problem and get you the IRS help that you need.
The point is that it took quite some time and certainly caused a great deal of stress and anxiety in the client. What’s the point? If you need to file, get it done. If you have an IRS Problem of this nature though, we may be able to help.
We can schedule a telephone consultation to discuss your US Expatriation Tax Problem even if you are currently overseas. I’ll even pay for the phone call. We can assist you without ever meeting you face to face. Modern communication such as the internet and fax allow almost instant communications around the globe. Bottom line, if you”re an American living overseas and find yourself with a tax problem, we know how to help.