What the US Expat Tax Means to You

If you are an American Citizen, you are required to pay taxes to the IRS. If you are an American Citizen living outside of the United States of America, you are still required to pay taxes. This type of tax is called an expat tax.  It is a mandatory tax that must be paid by every American Citizen living abroad.

The IRS has agreements with a large number countries. They share financial information on their citizens, allowing the IRS to track Americans and their tax or lack of tax payments.  Avoiding this tax is not advised and failure to file can result with dire consequences Integrating highly skilled tax preparation with reliable and personalized service, Unidos Tax & Immigration Services helps Visalia residents achieve their financial goals.Des – Managing your business or personal tax file successfully is best handled with the assistance of competent professionals for maximum financial benefit. Protect your assets against unnecessary tax penalties. Remain informed on the latest tax incentives.

tax preparation

No matter what country you live in, your taxes must be reported in US dollars.  As you can imagine, a currency conversion error can hold you liable for improperly filing your taxes. In addition to this, there are deadlines that must be adhered to in order to avoid late filing penalties. Certain citizens, such as those in the army, are allowed a slight filing extension, however, should you use it, your tax payment must be paid on time without further extensions permitted.

Proper forms and paperwork will make the difference between a simple filing and a complicated situation.  If you moved from America after 2006, you have very different expat tax requirements than those who moved prior to that year.  The Government made some big changes in 2006 in order to better capture the expat citizens and their tax situations. This tax is not a suggestion or guideline, it is a requirement and a very well enforced one.  You cannot assume that since you are out of the country you are not locatable.  Even though you may not communicate with the IRS on a regular basis, the government still has agreements in place to be able to locate you should they need to.  Failure to report and pay your expat tax will result in everything from fines to the seizure of your passport and even jail time, in some instances.

Each individual will have their own situation, therefore their own tax requirements and exclusions.  One of the ways to make this tax more affordable to is to know your own personal exclusions. Similarly to those living in the United States of America, your personal lifestyle and profession will affect how much tax, if any that you have to pay. While it is very possible to file your own taxes, it is best to consult the help of a registered professional or corporation. The intricate laws of expat tax can leave a lot to question on where you stand and the proper way to file.  Talk to a specialist to ensure you have not missed any details, forms or even fields on your paperwork. Take the time to discuss your personal living situation to see if you are applicable for any cost savings exclusions or deductions. Even if you choose to file to file your expat tax on your own, the advice you receive from your international accounting specialist can save you both time and money.