Federal tax code provisions that apply exclusively to US citizens living overseas offer money-saving exclusions and deductions but they also have rigorous qualifying and reporting requirements.
Failure to comply with some of these regulations or misinterpreting a requirement for a hefty tax write-off could prove costly, both by incurring a higher bill and facing stiff penalties. This is where a US tax accountant with international tributary experience can provide not only professional expertise but also peace of mind.
The IRS is interested in whether US citizens who miscalculate their taxes did so intentionally or not, since tax fraud is a serious criminal offense. By hiring a reputable US tax accountant with international tributary experience, an expat demonstrates a measure of good intent and desire to be thorough and honest in calculating his or her income and expenses.
A US tax accountant Tax Accountants specializing in expat tax preparation service is familiar with the detailed criteria that qualify an overseas US citizen to take advantage of money saving provisions such as the foreign earned income exclusion, credits and the foreign housing deduction. Without a qualified international US tax accountant, an expat who self-prepares a return, or hires a preparer without international experience, might miss out on significant savings or, worse, under-calculate and thus attract IRS scrutiny.
An American living abroad must file US tax returns and pay any tariffs due for as long as they keep their US citizenship (or green card, for US resident aliens living abroad). This is why it makes sense for expats not just to pay their taxes on time, but to develop an overall strategy that makes the most of applicable tributary provisions of both the US and the country of residence.
A US tax accountant with international experience can provide a level of expertise that a preparer in the US with no international experience would be hard-pressed to match. The provisions of the US tax code that apply exclusively to expats take hours just to read, and a full understanding of many of the sections requires several readings.