Reporting Foreign Earned Income to the IRS
foreign earned income filing requirements
If you are a U.S. citizen or resident alien, you are subject to U.S. income tax on your income, regardless of where you are living or where you received the income. While foreign income is not subject to U.S. tax if you meet certain specific time requirements outside the U.S., you still need to report the income on your personal income tax return.
The only method to exclude any foreign income from U.S. tax is to file a tax return and claim the foreign earned income exclusion. It is possible to pay no tax on foreign earned income for as many years as you choose to live out of the U.S. by meeting certain time requirements for being outside the U.S. and filing the correct IRS forms.
It is also possible to offset U.S. income tax by applying the The Foreign Tax Credit for any taxes paid to a foreign country.
Please contact me (Nick) and I will help get your taxes squared away.
Areas of Practice
expat tax preparation
Foreign earned income and housing exclusions for both federal and state income tax returns. Foreign bank account reporting (FBARs), Statement of Specified Foreign Financial Assets, Tax Treaties, Application for IRS Individual Taxpayer Identification Number,etc.
business tax debt representation
We will file a power of attorney with the IRS and State Taxing Authority to negotiate a hold on all enforcement action such as bank and account receivable levies while we work on an appropriate resolution including Installment Agreements, Company Restructuring, Penalty Abatements, Offer in Compromises, and Currently Not Collectible Status. We will also advise you if bankruptcy is an option.
irs and state tax debt representation
We will file a power of attorney with the IRS and State Taxing Authorities to negotiate an appropriate resolution for back tax debt including Installment Agreements, Penalty Abatements, Offer in Compromises, Innocent Spouse Requests, and Currently Not Collectible Status. We will also advise you if bankruptcy is a option.
new business entity formation
We will educate you of the pros and cons of organizing an Limited Liability Company versus a Corporation, S-Corp., Limited Partnership, etc. and assist in the formation of the entity of your choosing.
previous years tax returns
We will prepare your previous years tax returns to bring you back into compliance with the IRS and State.
business tax return preparation
Whether you have a sole proprietorship with a Schedule C or a 1120 Corporate return we will prepare any business return.
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For job opportunities, please email us your resume. We’re always looking for new and exceptional talent to lead the firm into uncharted fields of practice.