Why Americans Abroad Should File U S Tax Return

Why Americans Abroad Should File U S  Tax Return


If you have large federal tax debts the State Department may revoke your vaid passport Stay tuned [Music Playing in background] Hello, my friends this is BobbieD coming to you from Talamban Cebu Philippines having an awesome time in the Philippines today. Hope you are as well wherever you’re from. Hey I want to suggest that those of you that are here for the first time that you click on the subscribe button and the Bell notification Icon. So you can continue receiving fresh new Philippine videos motivational videos and World wide videos. Today, I want to talk to you about why every American abroad should file their US taxes in the Philippines, why every American abroad should file their taxes in the Philippines,,, Yahhhh, I got seven things for you today, here we go Number one It’s the law. First and foremost it’s the law. If you’re a US citizen, a resident alien, you must report income from all sources Within and outside the US. It’s that simple. Whether or not you end up paying tax on that income is irrelevant. The income itself must be reported. Number two. All foreign earned income will not be excluded If you fail to file you can’t claim foreign income exclusion and you may be liable for penalties you’re eligible to exclude up to a hundred thousand if you meet the qualifications for the FE ie or the federal earned income exclusion However, you must file in order to avail of the exclusion it’s not given automatically. Number three statue of limitations. There’s a three-year statute of limitations on filed tax returns. If you don’t file the statue of limitations never runs out, therefore it’s in your best interest to file to run the clock, and not leave yourself exposed to an audit down the road. Number 4. Most expats usually wind up not having to pay taxes. Most expats never actually have to pay anything to the IRS. The combination of taxes paid in the host country and various deductions Available to expats results and no cash outlays. But again you have to file in order to receive credits and deductions. Number five unreported income causes penalties If you owe money to the IRS and don’t report it you’re liable to pay penalties and interest which accrue in perpetuity. After about five years the amount of penalties accrued may be more than double the original tax bill. Number six. Your passport could be revoked. If you have large federal tax debts the State department may revoke your valid passport according to the IRS Under the law The IRS is required to notify the State Department of taxpayers who are certified as owing a seriously delinquent tax debt. And last number seven. Tax treaties with foreign governments And lastly the government is actively working with foreign countries that have large numbers of US expats in order to secure information about them. United States deaths is exploding and the government is doing all they can to improve collection. the IRS knows that over eight point seven million Americans are living abroad and only approximately 500,000 filed income taxes abroad their goal is to increase that number by any means. question for today what’s the one thing that’s preventing you from filing your taxes leave your comments for me in the comments section of this video and As always remember to Like share and subscribe This is BobbieD saying, take care, God Bless And Peace!! A towering presence. Run like the wind. Be a King or a Queen. Life in the Philippines!

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