Becoming Compliant with FBAR (And Why You Should)

In recent years, the IRS has been taking a closer look at Form TD F 90-22.1, otherwise known as FBAR. The filing requirements for FBAR are confusing, but it is important to meet those requirements in order to help avoid an audit. Here are some of the guidelines you should follow when you are filling out your annual report of foreign financial accounts. Who FBAR applies to All U.S. persons - … [Read more...]

Obtaining a Copy of your Federal Tax Return

There are many occasions when you need a copy of your filed tax return, for example, when applying for a loan, or taking out a mortgage on a property. If the IRS make any inquiries you will also need this information to hand. If you cannot find the return in question, you can ask the IRS to send you a copy (or transcript) of the relevant information. Here’s how it works - 1) Transcripts … [Read more...]

Eight Things You Need To Know If You Receive An IRS Tax Notice

Eight Things You Need To Know If You Receive An IRS Tax Notice: Getting a notice from the IRS can cause panic. But don’t worry. Every single year millions of these notices are sent out to taxpayers. Here are the guidelines for what to do. 1. Keep your head on your shoulders. A large portion of IRS letters can be dealt with very easily. 2. Most IRS notices are extremely specific. They … [Read more...]

Basic Tax Guide for Green Card Holders


If you have a Green Card, then you are legally considered a permanent resident of the United States even if you live in a different country. Because of this you are responsible for paying US income tax, no matter where you earned the income. As a green card holder, it is a requirement that you file a United States tax return unless you meet one of the following conditions. You no longer have … [Read more...]

PFIC or Passive Foreign Investment Company

WHAT IS FORM 8621, WHO SHOULD FILE AND HOW IS IT FILED What is Form 8621? This form is an information return by a shareholder of a PFIC or Passive Foreign Investment Company or QEF or Qualified Electing Fund. The form is intended to be filed to calculate the tax that is due on any “excess distribution” coming from a PFIC. Excess distribution is distribution following the first year that is more … [Read more...]

Are Expatriates Exempt from United States Taxes?

No They Are Not. Don’t Fall Behind on your Tax Reports! Many expatriates operate under the misconception that because they are not living within US boundaries, they are not required to pay US income taxes. If only escaping from taxation were so easy. Expatriates will typically pay the normal taxes required by their host country and assume, incorrectly, that US taxes no longer apply to them. … [Read more...]

US Tax Filing Requirement

All US citizens, tax residents and green card holders are required to file tax returns and pay their taxes to the United States of America. If you belong to any of these categories, regardless of your place of residence and where you receive your income, then you are covered by this US IRS directive. You are a tax resident if you measure up to the test on substantial presence for every … [Read more...]

A Warning to All Americans Living Abroad

There has been a new law enacted by the IRS that is putting a heavy burden on American’s living abroad. If you are an American living abroad, whether you are a citizen or a green card holder, you are to file your tax form on April 15, 2012. This new IRS ruling results from a FATCA law that also require you to use Form 8938,  where you will list down all your foreign stocks, … [Read more...]

Form 8865 – IRS Form for Foreign Partnership Ownership

If you are a US tax payer who owns 10% or more of a foreign flow through a Limited Liability Company (LLC) or a foreign partnership, you should file Form 8865 together with your Individual Income Tax Returns. Form 8865 will indicate the annual Balance Sheet and the Income and Expense Statements of the foreign partnership. This report will also show the details of the partnership including your … [Read more...]