Hi, I’m Gary Bode, CPA. One surprise result from running this website? The calls for help on international expat tax issues. Which is why we developed a Virtual CPA office to serve you or your company no matter where you live. Here are the issues we deal with most often.
- Form 2555, the Foreign Earned Income Exclusion. This affects US citizens living and working abroad. The IRS demand s you report worldwide income but then allows you to exclude over $100,000 of it (this figure includes the standard deduction and exemption on Form 1040).
- Form 5471. If you have an interest in a foreign corporation, you must report your dealings with it to the IRS. With the recent IRS emphasis on foreign financial transactions, the $10,000 late fee is now enforced. There are currency exchange issues and accounting conversion issues.
- OVDI: Offshore Voluntary Disclosure Initiative. We prepare the required back tax returns, like Form 5471, FBAR and 1040, and the actual application.
- Form 1116. You get a tax credit, not just a deduction, on Form 1040 for foreign taxes paid. Sounds simple, but Form 1116 snarls things up nicely - go figure.
- Form 8938, Statement of Foreign Financial Assets.
- FBAR: reports foreign bank accounts that pass certain thresholds to the IRS.
This website has dozens of posts on the above expat issues. Of course we offer a free initial phone consult. (910) 840-3858.