Expatriot Laws for Tax Filing and Understanding Who Must File and When

There is great confusion among expatriates about theA tax return filing is considered filed on the
requirements for filing a tax return from abroad. Manypostmarked date. But tax payments, incur no interest if
people believe if they are earning income under thereceived by the IRS on or before the due date.
exclusion level of $ 85,700 (for 2007) they are notExpatriates who have not been filing, but wish to
required to file. This is false. If your total income from allcommence filing and take advantage of exclusions
sources is in the range of $3,400 to $ 19,600 or over,and tax credits, can "come in from the cold" by writing
depending on your age and filing status, (e.g. single,a specific letter request. Even though it is criminal not
married, joint, separate, etc.) you must file an IRS return.to file, the IRS started this program to allow the many
Failure to file is criminal evasion.expatriate tax payers to get started filing before the
April 15th is the filing deadline when residing in the U.S.IRS finds them ! With your letter request, you must file
June 15th is the deadline for filing when residing abroad.the current year and two previous years if you owe
Also, deadlines can be automatically extended tono taxes, or file the current year and five previous
October 15th, without stating a reason, by filing a simpleyears if you owe taxes.
form before June 15th. A further extension for a validUnder the Dual Tax Treaty between the U.S. and
reason can be obtained by filing another form for ananother country (includes European countries)
additional time period. But this one requires permissionattempts are made to avoid double taxation by both
by return notification from the IRS, and must then becountries' tax regulations on the same income.
sent in with your tax return. Meeting the above datesNevertheless, one must file the proper documents to
relieves the expatriate from a late filing penalty, but ifgain exemption from U.S. taxes up to a certain income
there are taxes due for the previous year that arelevel, and credit for foreign taxes paid on excess
unpaid, or not covered by Estimated tax payments, theincome above the exclusion level, in order to avoid
amount due incurs interest from April 15th and a latedouble taxation.
payment penalty.