Americans who live abroad have a number choices for saving on their taxes that aren’t available to taxpayers “back home,” but the rules as well as governing these tax-saving provisions are detailed and complex.
For this reason IRS tax lawyer is increasingly turning to tax professionals with international experience for help, including through an experienced international tax attorney on their own tax planning team.
A tax attorney with experience of expat tax issues can offer the legal perspective on any tax strategy a foreign US taxpayer might develop together with his or her US CPA.
Ideally need legal advice IRS tax lawyer; an expat may have an CPA and a tax attorney who have international taxation experience.
Pro-active tax planning American expats requires a working understanding of the foreign earned income exclusion, foreign tax credits, and foreign housing deduction along with other elements exclusive to expat tax preparation. An accountant los angels and tax attorney well-versed in the IRS rules for overseas taxpayers can best advice on factors that US taxes for expats. For instance, an expat being employed as an independent professional abroad doesn’t have to pay US self-employment tax that is 13.3% for 2011, if they set up and are paid by a foreign legal entity. If the IRS tax lawyer or review results in a bill for unpaid taxes, an expat’s most effective ally is definitely an international tax attorney with experience preparing an offer in compromise (OIC) who knows the IRS statutes of limitations and also the thresholds within which the tax agency is probably to simply accept an OIC.
One more reason that savvy expats select a tax preparation firm by having an internationally skilled tax attorney is because it offers the peace of mind that is included with performing a form of “due diligence.” If an omission or a miscalculation results in a threat of law suit from the taxpayer, the only fact of having were built with a tax attorney involved in the tax return’s preparation demonstrates “due diligence” on the part of the taxpayer, which can positively influence the IRS.