{"id":1296,"date":"2021-03-04T15:53:54","date_gmt":"2021-03-04T15:53:54","guid":{"rendered":"https:\/\/www.expattaxcpas.com\/new\/?page_id=1296"},"modified":"2021-10-11T07:01:17","modified_gmt":"2021-10-11T07:01:17","slug":"faqs","status":"publish","type":"page","link":"https:\/\/www.expattaxcpas.com\/new\/faqs\/","title":{"rendered":"FAQ"},"content":{"rendered":"\t\t
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FAQs<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Jump to the topic you are looking for<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tExpat tax info<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tFBAR<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tFATCA<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tITIN<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tForeign Corporations<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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Expat tax info & FAQs<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tI am a us citizen but no longer live in the united states; what income do I have to report to the IRS?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

Although you are no longer a resident of the United States, as a US citizen you are required to report all sources of worldwide income to the IRS. This includes but is not limited to employee wages; interest and dividends (schedule B); self-employment income (Schedule C); capital gains and losses (Schedule D and Form 8949); rental real estate, royalties, partnership, S corporations, estates, trusts, REMICs and other supplemental income (Schedule E).<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tI am a us citizen but my income is earned in my foreign place of residence. Who gets first dibs on taxes?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

To answer this question, an examination of the US tax-treaty with your foreign country of residence is required. However, generally speaking, the country where the income is earned has first rights to taxation. In that case, you can either exclude your foreign earned income, or use your foreign taxes paid as a credit to offset your US tax liability.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tHow much of my foreign earned income is excludable in the United States?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

Up to $105,900 is excludable for tax year 2019, and up to $107,600 for 2020. If filing a joint tax return with your spouse, then each spouse can exclude up to this amount.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tAre there any conditions that need to be met in order to be eligible for the foreign earned income exclusion?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

Yes. To qualify for the exclusion, you must satisfy the bona fide residence test or the physical presence test. See income tax returns\/foreign earned income exclusion<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tMy spouse is a non-resident alien; can I file a joint return?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

Yes. You can file jointly provided that your spouse receives an individual taxpayer identification number (ITIN) and a section 6013(g) election is timely made. See ITIN application process and election to treat non-resident alien spouse as a US resident.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tIf my spouse makes a section 6013 (g) election, does he\/she have to be included on my income tax return?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

Yes, once the election is made it remains in effect for all subsequent tax years except for years in which the election is suspended or terminated. If neither spouse is a US citizen or resident during any given tax year, the election is automatically suspended for that tax year. Termination of the election occurs when either spouse files a statement of revocation on or before the filing due date of that year\u2019s tax return. The election is automatically terminated with the death of either spouse or legal separation under divorce or separate maintenance decree.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tIf I do not include my non-resident alien spouse on my us tax return, can I still claim my children as dependents?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

Yes. Provided your children are U.S. citizens during the tax year at hand and their social security numbers were issued before the filing deadline of the return. If you provide over half of your child\u2019s support you can file as head of household, which may provide additional tax relief.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tI am a us citizen and my spouse is a non-resident alien, can my children qualify me for the refundable additional child tax credit?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

Yes, as long as your children are US citizens. See child tax credit.<\/strong><\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tDo I have to pay us social security tax on self-employment income earned in my foreign country of residence?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

Yes, unless the US signed a Totalization agreement with your country of residence, whereupon you are not required to pay social security tax on foreign earned self-employment income. Countries that have signed such agreements with the US are Australia, Austria, Belgium, Canada, Chile, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovak Republic, South Korea, Spain, Sweden, Switzerland and the United Kingdom<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tMy child studies in a post-secondary education institution in a foreign country. Am I still able to apply for the american opportunity refundable credit?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

Yes, provided that it is an educational institution eligible to participate in the US Department of Education\u2019s student aid program. A list of recognized foreign institutions can be found on the federal student aid website. See \u201cIncome tax returns<\/strong><\/a>\u201d for more info.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tWhen is the due date to file my return?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

Expats who live outside the United States and establish their main place of business outside the United States are entitled to an automatic two-month extension. Therefore, their tax returns are due on June 15th instead of April 15th. A statement stating that an individual meets the requirement for the automatic two-month extension should be included with the return. An additional four-month extension of time to file can be requested using Form 4868.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tI sold my house, located outside the united states. Am I still eligible to exclude the gain on my us return?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

Yes. Up to $250,000 from the sale of your primary residence (if married filing jointly the exclusion is $500,000) can be excluded, provided you meet the ownership and use tests. However, gains in excess of the excludable amount are taxable in the United States and cannot be excluded with the foreign income exclusion. Foreign taxes paid on the sale of the asset can be used to offset US taxes via the foreign tax credit (form 1116). However, such gains may be subject to the 3.8% Net Investment Income Tax (form 8960) which cannot be offset by foreign tax credits.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tI have an interest in a foreign corporation; do I need to file any additional forms?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

If you own 10% or more of the total value of the corporation\u2019s stock or the combined voting power of stock, you may need to file Form 5471, report of US person with interest in foreign corporations. There is a $10,000 penalty imposed for each annual accounting period whereupon the information is not provided on time. However, the IRS has certain programs\/procedures that may be followed to absolve the taxpayer from penalties. See Streamlined Filing Procedures <\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tMy father, a us citizen, passed away. Are assets located outside the United States, subject to us estate tax?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

Although you are no longer a resident of the United States, as a US citizen you are required to report all sources of worldwide income to the IRS. This includes but is not limited to employee wages; interest and dividends (schedule B); self-employment income (Schedule C); capital gains and losses (Schedule D and Form 8949); rental real estate, royalties, partnership, S corporations, estates, trusts, REMICs and other supplemental income (Schedule E).<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tI am fed up with filing my us tax return every year. Maybe I should hand in my passport and renounce my citizenship?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

This is an option but beware of the exit tax. Individuals with a net worth of over $2,000,000, an average net annual income tax liability of over $162,000 over the last five years or individuals that do not certify their tax compliance over the past five years, will be subject to the exit tax. The Tax Code (Under Section 877A) stipulates that all assets owned by an individual are deemed to be sold on the day the US citizen surrenders his citizenship. Any gain on the sale of the assets will be taxed as a US capital gain. The payment of tax can be deferred until the asset is actually sold. However, this deferment of tax will result in interest accrual.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tI live abroad but want to open a business in the united states, which business structure should I use?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

Please refer to business entities, where we outline possible business structures to consider. We highly recommend consulting with an experienced professional to choose which business entity will be most tax advantageous and also give a level of liability protection. Tax treaties must be considered to determine the tax consequences in your specific foreign residence.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tI was eligible for tax refunds in past years that I never claimed. Is it too late to file to claim my refunds?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

A tax return that is being filed to claim a tax refund, whether due to over-withheld taxes or tax credits, can be filed up to three years after the original due date of the tax return.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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FBAR<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tDo I need to report an account in an overseas branch of an American bank?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

The status of the account (i.e. Foreign or not) is dependent on the physical location of the account; therefore, this account would be considered foreign. In the same vein, if you own an account in a branch of a foreign bank that is physically located in the United States, the account is not considered foreign.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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Yes. If, for whatever reason, the child is unable to file his\/her own FBAR, the person who is legally responsible for the child (i.e. Parent, legal guardian) must file for the child.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tWhat if I filed an FBAR and then I realized that I mistakenly left out some information?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

The filer always has the option to file an amended FBAR.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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If the failure to file was due to a non-willful cause (for example, you did not know about your obligation to file this form), you can face a penalty of up to $10,000 per instance of noncompliance (i.e. for each yearly FBAR not filed). If the failure to file was willful, you can face a penalty of the greater of 50% of the total balances in your foreign bank accounts at the time of noncompliance or $100,000. There is a separate penalty for each year in which there was a failure to file. Additionally, it is also considered a criminal offence and can result in criminal proceedings.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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The filing of the FBAR does not impact your taxes\/refund in any way; the purpose of the FBAR is merely to show the U.S. government that U.S. citizens are not hiding money abroad, and the report is not connected to the tax return at all.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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FATCA<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tIf I file an fbar, does that fulfill my fatca filing requirements?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

No; if you are not required to file an income tax return for a specific year, then the requirement to file Form 8938 also falls away, no matter what foreign assets you held during the year.
IF I FILE AN FBAR, DOES THAT FULFILL MY FATCA FILING REQUIREMENTS?
No; although some of the reporting requirements of the two forms overlap, the FBAR and the Form 8938 have different rules, and you may be required to file both.
Following is an outline of the differences between the FBAR and the FATCA requirements, if you meet the requirement for both forms, then both forms need to be filed.<\/p>

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FORM 8938, STATEMENT OF SPECIFIED FINANCIAL ASSETS <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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FORM 114 REPORT OF FOREIGN BANK AND FINANCIAL ACCOUNTS (FBAR)<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Reporting Threshold
(Total Value of Assets)<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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$200,000 on the last day of the tax year or $300,000 at any time during the tax year (for single taxpayers living outside the US)<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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$10,000 equivalent at any time during the calendar year<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Reportable Financial Assets <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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Include also foreign stock or securities not held in a financial accounts, foreign partnership\/
corporation interests, foreign hedge funds and foreign private equity funds.<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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Include also Foreign financial account over which you have signature authority but no financial interest and indirect interest in foreign financial assets through an entity.<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Method of filing <\/span><\/span><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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Filed together with the income tax return. <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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Filed electronically through the FinCEN’s BSA e-filing system<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Due date <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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$25,700aThe filing deadline of the income tax return.<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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April 15th with an automatic extension until Oct 15th. <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/p>

See <\/span>FBAR<\/span> and <\/span>FATCA<\/span> for further information.<\/span><\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

\n\t\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tFollowing is a chart published by the irs to help taxpayers understand the differences and similarities between the fbar and fatca requirements. If you meet the requirements for both forms, then you must file both.<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t
<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tIf I am not required to file an income tax return for a specific year, do I have to still file the form 8938 (fatca requirement)?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t
<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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ITIN<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tDoes my itin authorize me to work in the us or make me eligible for social security benefits orthe earned income credit?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

None of the above; the ITIN is used for reporting and filing federal taxes only.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tDoes immigration status affect my need to obtain an itin?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

No; An ITIN is needed to fulfill reporting and filing requirements and is not related to immigration status.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tDo I have to be nervous to send my original id documents to the itin operation unit of the irs?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

Yes, you may have your documents approved by a Certified Acceptance Agent. The CAA will review the document proving the identity and the foreign status and will sign form W-7 COA. The COA is sent to the ITIN unit with a copy of the certified ID documents.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Foreign corporations<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tWhat would require me to file a form 5471?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

The most common situation that requires US citizens and resident to file Form 5471 is a 10% or more ownership in a foreign corporation.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tHow could the irs know about my shares in a foreign corporation?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

The IRS has been cracking down on US owners of foreign assets; many financial institutions are reporting information on their US shareholders and account holders. The penalties for failing to file are too high ($10,000 per year per foreign corporation) to risk not filing.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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FAQs Jump to the topic you are looking for Expat tax info FBAR FATCA ITIN Foreign Corporations Expat tax info & FAQs I am a us citizen but no longer live in the united states; what income do I have to report to the IRS? Although you are no longer a resident of the United […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"nf_dc_page":"","inline_featured_image":false,"footnotes":""},"class_list":["post-1296","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.expattaxcpas.com\/new\/wp-json\/wp\/v2\/pages\/1296","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.expattaxcpas.com\/new\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.expattaxcpas.com\/new\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.expattaxcpas.com\/new\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.expattaxcpas.com\/new\/wp-json\/wp\/v2\/comments?post=1296"}],"version-history":[{"count":5,"href":"https:\/\/www.expattaxcpas.com\/new\/wp-json\/wp\/v2\/pages\/1296\/revisions"}],"predecessor-version":[{"id":9181,"href":"https:\/\/www.expattaxcpas.com\/new\/wp-json\/wp\/v2\/pages\/1296\/revisions\/9181"}],"wp:attachment":[{"href":"https:\/\/www.expattaxcpas.com\/new\/wp-json\/wp\/v2\/media?parent=1296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}