Glendale Expat Tax Attorney

For many, the tax season is a period of stress and anxiety, a sentiment amplified for U.S. citizens and Green Card holders living and working overseas. Filing taxes from abroad presents intricate challenges, with individuals dedicating weeks to ensure adherence to both IRS regulations and their host country’s tax requirements. This complex process can be daunting for expats to handle alone, but our team of seasoned expat tax attorneys is here to ease the burden during tax season.

Why Hire Evolution Tax and Legal for Your Expat Taxes?

At Evolution, our attorney-CPAs boast a unique skill set, offering the best of both worlds – the tax expertise of a CPA and the legal acumen of an attorney. When partnering with our expat tax attorneys, you can expect:

• The fusion of CPA proficiency with legal knowledge delivers top-notch international tax accounting, advisory, and legal services.
• A streamlined online system ensures accessibility for clients regardless of their geographical location, whether they are filing in Glendale or thousands of miles away from the U.S.
• A team of experts with a broad spectrum of experience, serving individuals and businesses worldwide, comprehends the intricacies involved in various tax situations.

Our capacity to provide the services of both tax attorneys and CPAs under one roof empowers us to offer unique cost savings and expertise. Our proposition is to combine the proficiency of a Big 4 accounting firm with the personalized care and meticulous attention to detail of a smaller accounting firm. We prioritize transparency and responsiveness, eagerly welcoming new clients to experience the value Evolution Tax and Legal can bring.

Expat Tax Services We Offer in Glendale, CA

Our team of expatriate tax attorneys offers a comprehensive array of expat tax services, including:

• U.S. Federal Tax Return Preparation: A seamless process to help you gather the necessary financial information and file your income tax return, along with any required supplementary forms.
• State Tax Returns: Assessment of your financial and residential ties to determine the necessity of filing a state tax return.
• Tax Planning Analysis: Optimization of your tax strategy for short-term and long-term savings, ensuring IRS compliance.
• Federal and State Audit Representation: Expert representation for both federal and state tax audits.
• Non-Filers and Delinquent Filings: Assistance in rectifying tax compliance issues, correcting missed filings, and avoiding penalties.
• Reviewing Prior Returns: A meticulous review of past tax filings will identify and address errors, optimizing savings for the future.

How Do Expats File Taxes?

The U.S. stands out globally as one of the few countries taxing based on citizenship rather than residency. American citizens and Green Card holders working abroad are obligated to pay taxes on their income if they meet specific income thresholds. Taxable foreign income includes earnings like wages and passive income from investments, interest, and retirement plans. Reporting of foreign accounts and assets is also mandatory. Expatriate tax filing follows a similar schedule as filing within the U.S., with the tax year running from January 1 to December 31. Federal income tax returns and additional forms are typically due by April 15, with an automatic extension for expats until June 15. For individuals still having financial or residential ties to certain U.S. states, filing a state income tax return may also be necessary.

Do Expats Pay Double Taxes?

To prevent double taxation for U.S. citizens and Green Card holders living abroad, the U.S. has established tax treaties with numerous countries. These treaties define tax obligations, helping individuals determine which country they should pay taxes to and ensuring they are not taxed in both countries. While the U.S. has tax treaties with 68 countries, the specifics can vary, necessitating a careful review of the tax treaty in your country of residence. Collaborating with a tax professional is advised to navigate these intricacies and ensure compliance while avoiding double taxation. 

When To File Taxes as an Expat

Expats are granted an automatic two-month extension for filing their U.S. income tax return. The deadline for individuals residing in the United States is April 15, and for expats, the extension extends the filing date to June 15. However, taxes owed must still be paid by the original deadline of April 15, with daily penalties incurred for late payments. 

FBAR Filing

It is common for U.S. citizens living and working abroad to maintain financial assets in foreign bank accounts. To ensure tax compliance for expats, the U.S. government mandates sharing foreign bank account information. If you hold over $10,000 in a foreign bank account at any point during the year, filing an FBAR (Foreign Bank Account Report) is mandatory. The FBAR should accompany your U.S. federal income tax return annually. An extension is available, moving the deadline for both forms to October 15. Neglecting to file the FBAR can result in substantial financial penalties.

FATCA Filing

For individuals with over $50,000 in foreign assets or property during the tax year, Form 8938, the Statement of Specified Foreign Financial Assets, is required. This form is submitted with the federal income tax return and aids in tracking foreign assets held by U.S. citizens and Green Card holders. If you possess over $50,000 in foreign assets but do not meet foreign income filing requirements, consult a tax attorney, as failure to file FATCA may incur costly penalties.

FBAR, FATCA & Offshore Disclosure Obligations for Expats

As previously discussed, U.S. citizens and Green Card holders must comply with offshore account disclosure obligations, filing FBAR and FATCA forms when necessary. The thresholds for these forms vary, but generally, if you held over $10,000 in a foreign bank account or over $50,000 in foreign assets throughout the year, filing these forms is obligatory. Adhering to these filing requirements is crucial, as failure to file or delinquent filings can result in substantial financial penalties.

Common U.S. Expat Filing Mistakes in Glendale, CA

A few common expat tax filing errors worth noting include:

• Omitting Form 2555 or Form 1116 in your filing, leading to potential overpayment.
• Neglecting to claim the child tax credit means missing out on potential savings.
• Failing to file an extension past June 15 will incur unnecessary penalties.
• Forgetting to include an FBAR with your tax return for accounts exceeding $10,000 results in significant financial penalties.

These mistakes, though seemingly small, can be financially burdensome. Partnering with a tax professional is a reliable way to optimize tax payments and eliminate these pitfalls.

What Happens if You Don’t File Taxes While Living Abroad?

The most significant mistake expats can make is failing to file taxes altogether. The IRS imposes substantial penalties on individuals living and working abroad who neglect to file or have delinquent filings. These penalties include hefty fines and potential legal action. Failure to file taxes on time can result in three different types of penalties, depending on your circumstances:

• Failure to File: The costliest penalty, amounting to a 5% fine on the unpaid taxes, with an additional 5% penalty for each month of delay, up to a maximum of 25% of taxes owed, along with full tax payment.
• Failure to Pay: A less severe penalty, at 0.5%, increases monthly if taxes remain unpaid.
• Missed Payments: Accumulation of interest over time.
• Failure to file FATCA or FBAR carries even more substantial penalties: a $10,000 fine for FATCA and potential penalties of up to $87,000 for FBAR non-compliance.

These penalties can be financially burdensome and avoidable. To ensure compliance and prevent costly errors, consult with an expat tax attorney in Glendale.

Schedule a Free Consultation With a Glendale Expat Tax Lawyer Today

Each year, even experienced expat taxpayers must navigate the complexities of filing taxes from abroad. However, this process need not be overwhelming, especially with the assistance of an expat tax lawyer. This professional guidance ensures a smooth filing process, offering strategies for tax savings and optimization. Schedule a free consultation with our Glendale expat tax lawyers at Evolution to discover how we can simplify the process for you.