Foreign Income Tax Compliance & Foreign Earned Income Tax Exclusion

The U.S. tax law provides very strict foreign income tax compliance deadlines.

When dealing with International tax matters, various federal and state tax returns become due throughout the year. The penalties for failure to file can be harsh and get progressively worse when certain forms are not filed or when tax is not paid on time.

When a taxpayer has outstanding obligations from prior years, it is best to get back into compliance on a voluntary basis as soon as possible.  Increased monitoring by the IRS has made Foreign Income Tax Reporting essential now because the means now exist for the IRS to determine the foreign holdings of US citizens for tax purposes.

Foreign Income Tax Exclusion

Many foreign taxpayers are eligible for the exclusion of certain foreign income and reasonable housing expenses while working abroad. All taxpayers must remember that the exclusion benefits can only be claimed if a federal tax return is filed within certain deadlines. Many Americans incorrectly think they do not need to file returns if their income is below the exclusion thresholds, however in these cases they risk losing the benefits completely.

Foreign Tax Compliance Disputes

In other cases when a dispute develops, litigation may become necessary. For over 25 years Christopher J. Byrne has been assisting clients with their outstanding tax matters and representing them before the IRS and various states when audited.  The firm’s expertise in negotiating these matters is unparalleled and has saved clients significant sums which otherwise would have passed to the government.

The key to negotiating these disputes revolves around our knowledge of both Foreign Tax Compliance Law, and International Tax Accounting. Only by structuring your exposure in the proper way can you legally minimize your tax obligations under the many complex laws affecting you in the US and other countries.

For further information you can read our discussion of the complexities of structuring foreign investments for international tax compliance.

Not every international taxpayer needs the kind of service and attention to detail that Christopher J. Byrne offers, but if the stakes are high for you, we firmly believe you should contact us.

To contact Christopher J. Byrne PLLC

(212) 239-1931