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Tax FAQs & Resources
The U.S. Internal Revenue Service relies upon a self-assessment system that requires U.S. citizens to report their worldwide income annually.
Fortunately, international tax treaties with dozens of countries protect you from double taxation
and can eliminate any U.S.-imposed tax on your foreign-sourced income.
For example, if you are single and your foreign-sourced income is less than the combined standard deduction, basic exemption, and foreign income exclusion, or less than around $88,000, you pay no U.S. tax on that income. But, you are still required to file a tax return to report your worldwide income.
You are also required to report foreign bank accounts under your fiduciary control. Failure to meet this filing requirement is subject to stiffer penalties in 2005: a minimum $10,000 fine, up to the balance in the account to $100,000. Not a small price to pay!
Besides reducing your risk of criminal penalties, other good reasons to file your tax return annually are to support your financial credit history and to reduce the chance of a
costly IRS audit in the future. Most Americans living abroad eventually return home to pursue the American dream and personal wealth tied up in a house is difficult to hide from the IRS.
At US-TaxCPA.com our mission is to take the pain out of U.S. tax compliance so you can feel good about yourself and your country.
We offer fast, convenient service at a globally competitive price. Use a qualified CPA and tax professional for reliable service, expert advice, and your peace of mind.
Have a tax question and enjoy doing the research yourself? Go online to thousands of pages of U.S. Tax Code.
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