All posts in Taxes

IRS Finally Allows Americans Abroad to use Free File

Taxes

TaxesOn Friday, the IRS announced that Americans abroad can now use the IRS FreeFile system to file their tax returns. As we are one of the few countries that requires our citizens abroad to file taxes when they live abroad, this is a welcome — if long overdue — government service.

If you use this new government service, let us know how it goes.

Completing Tax Returns Online

Tax time is approaching again, and Americans abroad get a double-whammy as they have to file tax returns where they live and back home. And if the hassle and burden of filing taxes in two countries is not bad enough, the leading online tax preparation software in the US, TurboTax, hasn’t  allowed payment using foreign credit cards in years past. Will they pay attention to the 6 million plus Americans abroad who are customers or potential customers and allow international payments this year? Alternatively, are any of their competitors planning to target the market.

Right now, the strategy seems akin to ignoring a state with 6 million inhabitants and making it more difficult for the residents of that state to complete their taxes using the best software available. I don’t get it.

American Citizens Abroad Wants Your Taxation Testimonials

The Internal Revenue Service’s (IRS) Taxpayers Advocate Service (TAS) has developed an online service for reporting systematic tax filing problems, SAMS (Systemic Advocacy Management System). TAS cannot address tax policy issues, which is the domain of Congress, but can address practical issues related to filing which affect groups of taxpayers, Overseas Americans being one such group.

Comments submitted can only be submitted on behalf of a group of taxpayers and not by individual taxpayers.  American Citizens Abroad (ACA) has already submitted a report concerning the IRS’ across the board application of penalties with regard to omissions and errors in FBAR (FBAR stands for Report of Foreign Bank and Financial Accounts) filing ($10,000 per instance or 20% of the highest account value) regardless of whether of not taxes were owed.  This is a severe interpretation of the FBAR regulations that is causing catastrophic financial repercussions for some individuals.

It is important to register complaints with SAMS because these become official communication on which the NTA (National Taxpayers Association) can build a case with the IRS for modifications.

ACA is urging Americans overseas to contact us with their testimonials and stories related to overseas tax filing and problems related to IRS and Treasury reporting so that we can submit comments on behalf of overseas American taxpayers.  Please forward us your comments, problems and concerns on tax filing issues, increased costs and complexities of filing, inconsistencies in filing requirements, paperwork, as well as, cases of double taxation, levying of penalties and fees.

If you have a case to report please do so by visiting our website input page at http://www.aca.ch/persexp.php.  You will find a prompt for this link on the ACA homepage under “News Headlines,” Problems with banking and taxes.

ACA will all use these testimonials to advance this issue to the Americans Abroad Caucus and the US Congress.

This is Overseas Americans Week

This is  Overseas Americans Week (“OAW”) – the annual lobbying visit to Washington by the Association of Americans Resident Overseas‘ (AARO), American Citizens Abroad (ACA), and the Federation of American Women’s Clubs Overseas (FAWCO). Stay up-to-date with the latest developments through AARO-OAW blog, “Mr. Coyne Goes to Washington“. Launched today and running only until Friday, April 18, the blog will provide an inside look at OAW.

OAW is good opportunity to write to the members of of your Congressional delegation and enumerate the issues that concern you. While you’re at it, ask your Senators and Representative to join the Americans Abroad Caucus.

18 in ’08

If you’re under 25 and you’re apathetic about voting in the 2008 Presidential Election or if you’re having trouble getting your teenager interested in voting this year, check out 18 in ’08. David D. Burstein, a 19 year-old college student, has produced and directed this nonpartisan documentary aimed at getting 17-24 year-olds to vote. The two year long project features interviews with politicians, political activists, media, students, and pop culture icons. The site states:

18 in ‘08 explains what is at stake for youth in the 2008 election, how decisions made in Washington today will affect young people for years to come, the issues and ideas that engage our generation, what turns us off, why are we so cynical about politics, the role of new media in engaging young voters, and candidates who have inspired youth.

Check out the trailer here. If you haven’t registered to vote yet, go to Overseas Vote Foundation and you can complete the regsitration process in about 10 minutes.