Expat Tax Services

Tax Briefing

Expatriates are subject to U.S. tax on their worldwide income and, as such, must file a U.S. return for all the years they are residing abroad. However, an expatriate may be able to reduce U.S. taxable income by claiming foreign earned income and housing exclusions or reduce U.S. tax liability by application of foreign tax credits.

Tax Highlights

• U.S. citizens and resident aliens who maintain a tax home outside the U.S. and its territories are still subject to tax on worldwide income and must file a tax return.
• Taxpayers who maintain a tax home outside the U.S. and its territories may be eligible to exclude all or a portion of their earned income from U.S. taxable income.
• Taxpayers who relinquish their U.S. citizenship or permanent residency may be subject to expatriation tax.
• If you receive a notice from the IRS, do not panic as most matters are resolved simply and painlessly.
• Remember the IRS never initiates contact through email.
• Normally, tax records should be kept for three years but some documents — such as records relating to a home purchase or sale, stock transactions, IRA and business or rental property — should be kept longer.

Filing Late U.S. Tax Returns

It is never too late filing your prior tax returns. USTaxCentral Australia can assist you on filing your prior tax return. This helps you to become compliant with the IRS and giving you peace of mind.

 There is no statute of limitation to unfiled tax returns and it is important that you contact us to help you catch up with your tax return.

Why Should I File My Tax Return as Soon as Possible?

There are two advantages to filing as soon as possible:

1. Generally, if a taxpayer is due a refund for withholding or estimated taxes paid, it must be claimed within 3 years of the return due date or risk losing the right to it. The same rule applies to a right to claim a tax credit such as the Earned Income Tax Credit.
2. Self-employed persons who do not file a return will not receive credits toward Social Security retirement or disability benefits. Failure to file tax returns can have undesirable outcomes.

What If I Owe More Than I Can Pay?

Even if a taxpayer doesn't have enough money to pay, returns should be filed to avoid further penalties for failure to file. Contact us and we can assist in finding a solution to the problem.

What If I Don't File Voluntarily?

The IRS is taking enforcement steps for those who repeatedly choose not to comply with the law. Why wait until there is a problem that can result in a tax due, plus penalties and interest. Contact us and we can help you catch up.
People who repeatedly don't comply with the law are subject to additional enforcement measures.

Will I Go to Jail?

A long-standing practice of the IRS has been not to recommend criminal prosecution of individuals for failure to file tax returns, provided they voluntarily file, or make arrangements to file, before being notified they are under criminal investigation. The taxpayer must make an honest effort to file a correct return and have income from all sources. A letter from the IRS concerning taxes is not a notice that a taxpayer is under criminal investigation.

The IRS helps to get people back into the system as part of its long-term plan to improve voluntary tax compliance. The IRS wants to get people back into the system, not prosecute ordinary people who made a mistake. However, flagrant cases involving criminal violations of tax laws will continue to be investigated.

But people have gone to jail for failing to file their taxes.