US Expat Tax – IRS Notices FAQs
Frequently Asked Questions
Examples of reasons why you may have received the letter include the following:
•If you take the position that any item of income is exempt from U.S. tax or eligible for a lower tax rate under a U.S. income tax treaty (a treaty-based position), you generally must disclose that position on Form 8833 and attach it to your return. For exceptions to the disclosure requirement, see the Instructions attached to Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) (PDF).
•If you are a tax resident in both the United States and a foreign country based on each country’s laws, you must use the provisions of an income tax treaty to claim tax residence in only one country. If you claim tax residence in a country where you are not eligible to claim residence, or the information on your tax return does not appear to support this position, your treaty-based position may be denied.
The notice you receive covers a very specific issue about your account or tax return. Generally, the IRS will send a notice if it believes you owe additional tax, are due a larger refund, if there is a question about your tax return or a need for additional information.
There are different types of penalties and different methods to compute them. Please refer to Publication 17, Your Federal Income Tax, for more details