Home » Expat Tax Solutions: Your Guide to Hassle-Free Tax Preparation and Compliance

‘’But in this world, nothing can be certain, except death and taxes.’’

— Benjamin Franklin

Expats face unique issues when it comes to tax preparation and regulatory compliance. For this reason, attempting to file tax returns on your own is not recommended. To ensure that you always meet all of your legal requirements while simultaneously paying as little tax as possible, you need to consult a professional tax preparer specializing in expat tax solutions.

Unique Tax Challenges for Expats

The expat tax filing requirements for filing a U.S. tax return and paying estimated taxes are the same when living abroad. Your worldwide income is subject to U.S. income tax. The U.S. imposes an expatriate tax filing requirement irrespective of where you reside. Most overseas taxpayers have no idea they need to file U.S. taxes. If this applies to you, you are not alone.

Living overseas generates many unique tax opportunities as well as expat tax risks. However, many American expats are often unaware of the requirement to file an expat tax return while living abroad. Even when there was no tax liability.

Tax Samaritan offers professional expat tax solutions to American taxpayers living abroad. Our Enrolled Agents (EAs) and CPAs have the experience and training to help you through this process.

Reporting Foreign Income 

Many U.S.  citizens and resident aliens receive foreign earned income. Moreover, there have been recent reports about the interest of the IRS in taxpayers with accounts overseas. The interest of the IRS covers accounts anywhere in the world. You must report your worldwide income on your U.S. expat tax return and ensure that you have an accurate and complete disclosure.

You must report income from all sources within and outside of the U.S. Above all, this is true whether or not you receive a Form W-2 Wage and Tax Statement, a Form 1099 (Information Return), the foreign equivalents, or no statement at all.

Not reporting income from foreign sources may be a crime.  Consequently, the IRS and its international partners actively pursue those who hide income or assets offshore to evade taxes. The goal is to ensure U.S. citizens and residents accurately report their income and comply with their U.S. expatriate tax obligations.

You will face severe consequences if the IRS finds you have unreported income or undisclosed foreign financial accounts.  In addition, these consequences can include not just additional taxes, but also substantial penalties, interest, fines, and even imprisonment.

Generally, the statute of limitations for an expat tax return is three years after you file your return. However, if you do not file an expatriate tax return, the statute of limitations does not expire.

Our Expat Tax Solutions 

The cornerstone of Tax Samaritan is our tax preparation and tax problem resolution practice. As seasoned tax professionals, we can draw on our many years of formal education and practical tax experience to identify and seek out cost-effective and practical tax savings opportunities for taxpayers.

• Expat Tax Preparation

Our team of Enrolled Agents and CPAs is dedicated to accurately preparing U.S. expat tax returns, ensuring that you claim all eligible deductions and exclusions, such as the Foreign Earned Income Exclusion and Foreign Tax Credit. We focus on providing personalized tax strategies tailored to your specific circumstances, whether you are an employee, self-employed, or a business owner living abroad.

• Tax Resolution & Representation

If you face issues like unfiled tax returns, unpaid taxes, or IRS audits, our tax resolution services are designed to help you resolve these problems efficiently. We offer a range of solutions, including offers in compromise, installment agreements, and innocent spouse relief, to negotiate with the IRS on your behalf and protect your financial interests. Our experts are skilled in IRS representation, ensuring your case is handled professionally and carefully.

• FBAR Compliance

Complying with FBAR (Foreign Bank Account Report) requirements for U.S. expats with foreign financial accounts is crucial to avoid severe penalties. We guide you through reporting your foreign accounts to the IRS, whether through standard filings or delinquent submission procedures for those behind on their reporting. We aim to ensure that your international financial activities are fully compliant with U.S. tax laws.

What to Expect from Our Expat Tax Solutions Services

Here’s a closer look at what you can expect from Tax Samaritan’s services:

1. Year-Round Support

We pride ourselves on the business and personal relationships we have developed with our clients over the years. Tax Samaritan strives to address both very complex individual tax issues and simple issues that face our clients equally and explain those technical issues in a manner a non-tax professional can clearly understand. Over the years, our clients have welcomed and grown accustomed to this approach.

We provide you with effective year-round tax services and the assurance of meeting all tax compliance responsibilities accurately and timely. Our goal is to help you minimize your taxes in an efficient and tax-smart way.

2. A Client-Centric Tax Preparation Approach

Our approach to providing tax services focuses on protecting our client’s financial interests. We recognize that you work hard for your money, and we take pride in using our in-depth knowledge of tax law to help you minimize your tax liability. Our approach to tax preparation is not simply to enter your data into tax software programs – you could do that yourself if you wanted. Instead, it’s a time for us to help you keep more of what you earn – through our knowledge of tax law and many years of experience.

3. Tax-Saving Opportunities

As an overseas resident, there are many opportunities for tax savings but also many risks. Most importantly, Tax Samaritan has the experience and knowledge of the tax code to guide you through the complex expatriate tax preparation process. This includes, but is not limited to, the following areas that may be utilized to maximize your tax savings:

• Foreign Earned Income Exclusion

The Foreign Earned Income Exclusion (FEIE) is the largest expatriate tax advantage available to you.

If you meet certain requirements, you may qualify for the foreign earned income exclusion and foreign housing exclusions. Most importantly, it applies only when filing an expat tax return and claiming the exclusion with the requisite forms.

The IRS adjusts the maximum exclusion amount annually for inflation.

Earned income is income that you earn from work and does not include passive income. For instance, passive income includes interest and dividends, rental, and other income that does not come from labor.

In addition, you may also be able to claim an additional foreign housing exclusion or housing deduction for your housing expenses that exceed a standard amount established by the U.S.

Tax Samaritan can help you claim the foreign earned income exclusion, which can partially or completely reduce your taxable foreign earned income.

• Foreign Tax Credit

If you paid or accrued foreign taxes to a foreign country on foreign source income and are subject to U.S. tax on the same income, you may take either a foreign tax credit or an itemized deduction for those taxes. Taken as a deduction, foreign income taxes reduce your U.S. taxable income. Taken as a credit, foreign income taxes reduce your U.S. tax liability. In most cases, it is to your advantage to take foreign income taxes as a credit.

We can help you claim the foreign tax credit and ensure you pay the least amount of expat taxes legally possible.

• FBAR – Reporting Foreign Assets

If you have a financial interest in or signature authority over a foreign financial account. Including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to the IRS. In short, this is done by filing a Report of Foreign Bank and Financial Accounts (FBAR) on the FinCen Form 114.

• Form 5471 – Controlled Foreign Corporation

U.S. citizens and residents who are officers, directors, or shareholders in certain foreign corporations are responsible for filing Form 5471 Information Return of U.S. Persons With Respect to Certain Foreign Corporations. The reporting requirements of transactions between foreign corporations and U.S. persons are satisfied by filing Form 5471 and associated schedules. Consequently, substantial penalties exist for U.S. taxpayers liable for filing Form 5471 and failing to do so.

The filing requirements for Form 5471 relate to persons with a certain level of control in certain foreign corporations. So, let Tax Samaritan put your mind at ease by having one of our experts prepare Form 5471.

The Form 5471 is filed as an attachment to your expat tax return.

• Totalization Agreements

International Social Security agreements, often called “Totalization agreements,” serve to eliminate dual Social Security taxation (to both countries) on self-employment income. We will review to determine whether you can benefit from a totalization agreement and assist you with the presentation of the required documentation for your return.

Expatriate Tax Return Due Date

When residing overseas on the regular due date of your return (April 15), you are allowed an automatic 2-month extension to file your return (until June 15) without requesting an extension.

Why Choose Tax Samaritan for Your Expat Tax Needs?

At Tax Samaritan, we specialize in providing tailored tax solutions for U.S. expats. We ensure that your unique tax situation is handled with the utmost care and expertise. Our team is well-versed in the complex laws that apply to expats, including the intricacies of the Foreign Earned Income Exclusion, Foreign Tax Credit, and other critical tax benefits. We stay current with all changes in tax regulations, allowing us to minimize your tax liability legally and effectively.

We have extensive experience working with overseas clients and understand the unique communication challenges that can arise. Unlike many tax preparers who may struggle with these complexities, we are dedicated to being accessible and supportive throughout the entire process. Whether you own a business, have foreign investments, or face complicated tax issues like unfiled returns or unpaid taxes, we offer comprehensive solutions to meet your needs.

Choosing Tax Samaritan means gaining an experienced advocate dedicated to seeking out your best interests. We work to secure the largest possible refunds and reduce your tax liabilities to the smallest amount legally allowed. We offer the confidence and precision of working with certified tax professionals, combined with the convenience of online tax preparation. This ensures a seamless and efficient experience for you. With years of experience in expat tax planning and solutions, we support you every step of the way. Our goal is to help you stay compliant with IRS regulations while planning for a prosperous future.

Get Expert U.S. Expatriate Tax Return Preparation Wherever You Live

Handling U.S. taxes while living abroad doesn’t have to be a headache. Tax Samaritan is here to make the process straightforward and stress-free. Our team understands the ins and outs of expat tax laws, so you can feel confident your taxes are in good hands. 

Do you need help filing your US expat taxes? Schedule a call using the button below.

You Will Always Get

Accuracy

Support

Simplicity

Security