Many Americans and expats pay double taxes every year or forget to file an FBAR. Even hired professionals often have no knowledge of existing tax treaties or tax credits that can be used, resulting in overpayment or double taxation.
And admittedly, filing tax returns is inherently no fun. Especially when one has to declare one’s worldwide income twice a year. One is happy just to find someone willing to work on this. Anything better than doing your own research on the IRS site!
Tip #1: It is crucial that the tax advisor who prepares your U.S. tax return has the proper knowledge about preparing tax returns for Americans living and working abroad. In addition, experience, processing many returns for Americans abroad each year and continuing education is also important.
Tip 2: Verify that the tax professional (also known as a CPA or EA) is registered in the IRS’s Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. This way you can be sure that the professional has received the proper training.
Tip #3: Ask or verify that the tax preparer signed the final tax return with his or her own name and Tax Identification Number (PTIN).
Tip #4: Make sure communication with the tax preparer and his team is good. If not, we often see that the tax return is incomplete or even incorrect. In addition, you should be able to easily ask questions about your tax return, financial situation or other issues, such as the consequences of renouncing your U.S. citizenship.
The IRS has published a helpful explainer video in which an IRS employee provides tips. Please note with this video that many tax forms cannot be filed by Americans living abroad.
Are you looking for a tax advisor for your U.S. tax return or for more information? Contact Americans Overseas with no obligation.
We, the founders of Americans Overseas, were born in the Netherlands and obtained American nationality through our (American) mother. When we heard about this for the first time around 2013, we were in total disbelief (it can’t be true!), anger (how can they do this?), fear (am I going to get fined or pick up other problems?), and panic (what should I do?).
It is (unfortunately) true that there is an additional American tax levy. But there’s no information from the local government, and when approached, the consulate referred us to the IRS, and the IRS was impenetrable.
That’s why we started this initiative to help people from all over the world by providing proper information to avoid unnecessary panic and offering help free of obligation and free of charge. If needed, we have a network of affordable professionals (accountants) who can help you with your tax obligations.
If you have more questions about the US exit tax and the US tax obligation, you can contact us at Americans Overseas.
Americans Overseas’ network of affordable tax advisors is reviewed and updated annually based on client experiences. These experts have extensive experience in preparing U.S. tax returns and meet the above criteria.
Contact us for more information
Sources US tax return: