Expat entrepreneurs are facing some unfavorable tax changes. Offshore corporations will no longer take advantage of their retained earnings in excess of the FEIE or Foreign Earned Income Exclusion of the corporation’s tax-deferred. Although the IRS did not provide specific guidelines on how President Trump’s tax reforms may affect US expats, tax experts agree that […]
There are two camps for the IRS streamlined program. These are the SFOP (Streamlined Foreign Offshore Program) and the SDOP (Streamlined Domestic Offshore Program). Both the SFOP and SDOP has the following benefits: amnesty from FBAR penalties, accuracy-related penalties, and failure to file penalties. Differences between the SFOP and SDOP The differences between the two […]
Freelancing is among the global trends in businesses and the economy. Along with it are the issues related to taxes. Among these issues are the tax considerations when a US company makes payments to a non-US independent contractor, the need or the exemption of the company in terms of withholding taxes, the requirement for a […]
FBAR or FinCEN Form 114 requires a declaration of all non-US financial accounts, including the highest balance for each account in a year. Also, the due dates for this form are moved from June 30 to April 15. If there are transfers of accounts during the year, this process can be a complicated process. There […]
Recent expatriated individuals and non-citizens can still be subject to the United States government. Becoming a non-US person does not mean you are entirely out of reach of the US tax returns. The following are the possible ways you might get the government’s attention and put you under scrutiny for tax-related issues: United States LLC […]
As a U.S. citizen, no matter what country you live, you have tax duties. IRS requires all U.S. citizens, including expats, to submit standard income taxes. Expats must also file an informational return on their assets for their foreign bank accounts through FinCEN Form 114 or the FBAR (Foreign Bank Account Report). Wages and self-employment […]
Many expats can use the FEIE or the Foreign Earned Income Exclusion as one of the tax money-saving devices. If you want to take advantage of the FEIE, you have to use either the physical presence test or the bona fide residence test. Although many expats consider the bona fide residence test as a natural […]
New tax filing and tax payment guidelines are to be set by the IRS. The revised Internal Revenue Code section 965 can potentially affect US expats. Get to know more about section 965 and how it affects you. What is Section 965 United States shareholders defined under section 951 must pay a transition tax […]
Wherever an expat lives around the world, as a green card holder and a U.S. citizen, he must file the U.S. tax returns. Considering between the U.S. and your local country’s tax returns, you might think that filing one first over the other is essential. In reality, no matter which tax return you file has […]
Each year, between Thanksgiving and New Year, IRS uses the “offseason” to update tax forms. Hence, the e-filing services are shut down each mid-November. Usually, the changes refer to the form design and other aesthetic factors. The recent tax form was not the usual. An evidence of this one is the lengthy “What’s New” section […]
