Here There and Everywhere

Expat wanderer

Warning for American Expat Taxpayers

Many American expats working in the Gulf put off filing taxes because they are working so hard they don’t have the time or energy to pull it all together.

We received a bulletin from our tax preparer today saying the following:

IRS CRACKS DOWN ON LATE FILING EXPATS – To receive the FEI exclusion, the IRS requires that you file within 1 year from the original due date of the return (determined without regard to any extensions). The IRS has recently issued guidance to begin enforcing this long overlooked tax rule. If you have not filed your Expat tax returns for 2006 and earlier years, please contact us ASAP to discuss your options. Worse case scenario – if you owe taxes the IRS can disallow your FEI exclusion, even if you have earned it, thus making 100% of all of your earnings taxable without any benefit of the FEI exclusion. Working in a combat zone does not guarantee Expats any relief from the IRS.

Our tax preparer specializes in expat taxes. He has a thriving business, and really knows our unique situation.

Steven Palazzo, CPA
Palazzo & Co, CPA
PO Box 4634
Biloxi, MS 39535
228-396-8800 – Office
866-272-9224 – Toll Free
305-768-0483 – Fax
WWW.PALAZZOCPA.COM
spalazzo@palazzocpa.com

I publish this because the earned income exclusion is probably the best tax deduction most of us will ever have. You don’t want to lose the exclusion, and your hard earned money, by failing to file in a timely manner.

October 10, 2008 - Posted by | Bureaucracy, ExPat Life, Family Issues, Financial Issues, Living Conditions | ,

1 Comment »

  1. Greetings intxpatr,

    Great post and important information!

    Here are some recent blog posts on expat tax issues for Americans – the articles were written by a int’l tax expert. They might be of interest to your American readers.

    http://www.careerbychoiceblog.com/career_by_choice/2008/09/expat-tax-bona.html

    http://www.careerbychoiceblog.com/career_by_choice/2008/09/expat-tax-forei.html

    http://www.careerbychoiceblog.com/career_by_choice/2008/10/expat-tax-us-ta.html

    Bon weekend!

    Megan

    Comment by megan | October 10, 2008 | Reply


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