We specialize in preparing Income Tax Returns for Americans living abroad (U.S. Expats).
Understanding U.S. tax reporting obligations can be overwhelming. Even more so when living abroad. The filing deadlines, tax reduction strategies, and preparation needs are considerably different as a U.S. Expat than for most taxpayers. Our expertise in this area will ensure you remain compliant while avoiding double taxation.
USA Federal Tax Return
Filing taxes is required even if when living abroad. As an American or ‘Green Card’ holder, expats have the legal obligation to report on their worldwide income. In fact, this responsibility is outlined in all U.S. passports. In recent years, IRS enforcement efforts have increased dramatically and delinquent tax debt may now prevent a passport from being renewed or cause it to be revoked.
USA State Tax Return
Some expats are required to file a state tax return. For those states with income taxes, expats may be required to file a state tax return when first moving to Colombia (part-year resident) or if income is earned within a state (e.g. rental property in California).
Reporting Foreign Bank Accounts
FinCEN Form 114 is required when a U.S. Expat has $10,000 or more, at any point during a year, in foreign bank accounts. This reporting requirement is in addition to filing a tax return which may provide similar information.
USA Tax Consultation
The decision to move abroad generates many questions about U.S. tax and reporting obligations. A consultation is a great first step in developing an understanding of international tax law and how those laws impact individual taxpayers superficially.
Past Due Tax Return
It’s never too late for a U.S. Expat to get caught up with late tax returns. In fact, in recent years the IRS has shown increased flexibility with American taxpayers living abroad who demonstrate a willingness to become tax compliant. Since the penalties associated with not filing taxes can become increasingly harsh, it’s a great time for one to get caught up.