U.S. taxpayers living abroad are not excused from their U.S. tax obligations simply because they are outside of the country or not working in the United States. The United States is the only developed nation in the world that taxes on the basis of citizenship rather than on the basis of physical presence or economic activity. That is, even if you live and work in a foreign nation like China, Ecuador, Australia, or the U.K. you will still have a U.S. tax obligation. Furthermore, there is a high likelihood that you may qualify for some form of tax relief to help offset the potential burden created by double-taxation.
Aside from the duty to pay taxes, international taxpayers and expatriates also have a number of disclosure obligations as set forth in Foreign Account and Tax Compliance Act (FATCA) and Report of Foreign Bank Accounts (FBAR). Under these laws, all taxpayers must disclose the existence of covered foreign financial accounts and assets provided that these assets exceed certain thresholds. In other words, living abroad can actually result in a heightened tax compliance obligation that many taxpayers find to be particularly overwhelming.
Taxpayers living and working in the United States also have tax filing and potentially foreign disclosure obligations. Other taxpayers have questions and concerns regarding audits and tax enforcement actions. Still other taxpayers may wonder why they should hire a tax attorney and if there are potential strategies to defend against an IRS examination.
Perhaps in anticipation of a proposed IRS plan to further defund and degrade phone support and move taxpayer questions on to the Internet, the IRS has prepared and uploaded a number of videos to address common taxpayer questions. To supplement these videos and answer further concerns commonly expressed by taxpayers, the experienced tax lawyers of Tax Law Offices of David W. Klasing have taken the liberty of addressing additional tax concerns on the Tax Law Office of David W. Klasing’s YouTube channel. While the IRS may fail to answer the phone, disconnect callers, or ask taxpayers to wait on hold for 20 minutes or more our legal team is always available to answer your tax questions and concerns. Call us today at 800-861-1295 or contact us online.
The videos provided by the IRS are chiefly focused on the concerns faced by taxpayers living and working outside of the United States. For instance, one video sets forth a step-by-step process to help U.S. persons living abroad determine if they are required to file a tax return. Another video explains the purpose and use of an individual taxpayer identification number (ITIN). Taxpayers who are uncertain regarding their filing status when their spouse in not a U.S. resident, may have questions regarding the foreign tax credit or foreign earned income exclusions can also find information to help get them started researching these questions.
The videos provided by the IRS provide a good start for individuals performing international tax obligation and foreign disclosure research. However, these videos produced by the IRS only cover a small area of potential tax concerns. As such, the Tax Law Offices of David W. Klasing have launched an official YouTube channel where we will post videos addressing an array of taxpayer concerns. We have already produced videos answering questions concerning what an eggshell audit is, effective eggshell audit strategies, and what happens if you are less than forthcoming during an examination. If you do happen to present a falsehood during an audit or engage in other questionable conduct, we have also prepared a video that discusses the warning signs you might notice if your audit has resulted in a criminal referral to IRS Criminal Investigations (IRS CI). We plan to continue to produce videos addressing common taxpayer concerns and encourage all interested parties to subscribe to our channel.
The Tax Law Offices of David W. Klasing provide experienced representation including the benefits of attorney-client privilege for tax audits and criminal tax matters. David Klasing is a tax attorney and a CPA which provides h additional insight into how to approach audits and criminal investigations. To schedule a confidential reduced-rate tax consultation call our firm at 800-861-1295 or contact us online.