September 30, 2017
September 15, 2017
Tax Must Be Imposed on You
Tax Must Be Paid Or Accrued
Mutual Fund Shareholder
Tax Must Be the Legal and Actual Foreign Tax Liability
Tax Must Be an Income Tax or Tax In Lieu of Income Tax
Foreign Taxes for Which You Cannot Take a Credit
Reduction in Total Foreign Taxes Available for Credit
September 12, 2017
Determining if FBARS (forms 114, TDF 90-22.1) were filed for Prior Years or Securing Copy of Prior Year Filed FBARS
September 7, 2017
August 31, 2017
Criteria IRS uses for FOREIGN EARNED INCOME EXCLUSION - IRS NOW FORCING YOU FOLLOW RULES (FORM 2555)
If you need help because the IRS has disallowed your expat foreign earned income exclusion we may be able to help. Email us at firstname.lastname@example.org
July 26, 2017
One Financial Mistake That Can Cost Expats Living Abroad Millions - and We See This All Too Often When We do Tax Returns
Too many expats and others living abroad keep all of their savings and investments in low interest paying bank or savings accounts in the USA. This is historically a big mistake. It is understandable that you want to keep your funds in the USA, because the banks and currency in your country of location may not be stable or safe. However, other than some reserves a US bank account is not the answer.
Investing in the stock market (over the long run and in good conservative companies) and real estate (in areas where history shows the values will increase significantly in the future - Such as California) will give you a nest egg on retirement of 3 to 4 times the amount you will have if you just keep it all in a bank earning interest. The worst place to keep it as you can see in the following article is under your mattress.
Read More in the following Washington Post article http://wapo.st/2ucJSBq
Remember also, investments in stocks and real estate abroad is mostly treated the same for US tax purposes as investing in US stocks and bonds. However, investing in foreign mutual funds can result in you having to pay higher taxes (thanks to the US Mutual Fund Lobby). Want to discuss your investment and tax strategy. Email Don at email@example.com. We have assisted hundreds of clients on their way to accumulating retirement wealth.
July 12, 2017
Tips on How to Handle an IRS Letter or Notice
The IRS mails millions of letters every year to taxpayers for a variety of reasons. Keep the following suggestions in mind on how to best handle a letter or notice from the IRS:
Do not panic. Simply responding will take care of most IRS letters and notices.Do not ignore the letter. Most IRS notices are about federal tax returns or tax accounts. Each notice deals with a specific issue and includes specific instructions on what to do. Read the letter carefully; some notices or letters require a response by a specific date.Respond timely. A notice may likely be about changes to a taxpayer’s account, taxes owed or a payment request. Sometimes a notice may ask for more information about a specific issue or item on a tax return.
A timely response could minimize additional interest and penalty charges.If a notice indicates a changed or corrected tax return, review the information and compare it with your original return. If the taxpayer agrees, they should note the corrections on their copy of the tax return for their records. There is usually no need to reply to a notice unless specifically instructed to do so, or to make a payment.Taxpayers must respond to a notice they do not agree with. They should mail a letter explaining why they disagree to the address on the contact stub at the bottom of the notice. Include information and documents for the IRS to consider and allow at least 30 days for a response.
There is no need to call the IRS or make an appointment at a taxpayer assistance center for most notices. If a call seems necessary, use the phone number in the upper right-hand corner of the notice. Be sure to have a copy of the related tax return and notice when calling.Always keep copies of any notices received with tax records. The IRS and its authorized private collection agency will send letters and notices by mail. The IRS will not demand payment a certain way, such as prepaid debit or credit card. Taxpayers have several payment options for taxes owed.
Need help understanding a notice or responding to the IRS (or state tax agency). Email us at firstname.lastname@example.org and attach a copy.
July 8, 2017
Good News - You do get foreign tax credits for income taxes paid in foreign countries which will offset your US taxes on the same income dollar for dollar. Other taxes you pay may be deductible as rental expenses. Most states do not allow a foriegn tax credit on state returns.
- Tax Topic 415 – Renting Residential and Vacation Property
- Rental Income and Expenses – Real Estate Tax Tips
- Is My Residential Rental Income Taxable and/or Are My Expenses Deductible? IRS
Email us for US tax and legal planning for the rental of your foreign property or its sale or purchase. Planning ahead can often avoid tax problems later. email@example.com Also visit our website at www.taxmeless.com