- Get the Tax Refund You're Owed
- The Happy Taxpayer: Simple Tax Tips For The Rest of Us | Lit Blogger
- Taxes for US Expats Explained - Japan
Whether you go alone or hire a representative to go with you or in your place depends primarily on the issues involved. If they're relatively simple, cut-and-dried matters, you may be able to settle things without help. When matters are more technical or require interpretation of the law, however, it's more likely you'll need assistance. You have to make this judgment, and it will turn in part on how you feel about going head to head with the IRS.
If you're scared, by all means get someone to go with you or in your place. If someone else prepared your return, let him or her know about the audit and ask for tips on how to get ready for it. Whether you want this person to go along may depend on how much that would cost. Although the IRS prefers to wrap up cases with one meeting, if you don't agree with the auditor's conclusions or need time to round up extra evidence, you can schedule a follow-up meeting.
Unless you fear you might capitulate if you go to the audit alone, you may want to try to settle as many issues as you can by yourself. If disagreements remain and the amount of money at stake justifies the expense, you can take an adviser along to the next session. That way you'll have help when you really need it but won't have to pay for hand-holding while you clear up routine matters.
And note this: The Taxpayer Bill of Rights gives you the right to stop an audit in its tracks if you decide you want representation. If the audit begins to veer off of the topics you are prepared to discuss, for example, you can call a halt to the proceedings and seek help if you need it. The key to success is being well prepared. Forget the old slapstick routine of dumping a box of canceled checks and ratty receipts on the auditor's desk.
That suggests your records are sloppy, and that's the last impression you want to give. Remember, it's up to you to back up the information on your return. The better organized your records, the more smoothly things will go. Establish credibility right from the start. If you do, there's a better chance a gap later may be overlooked. Say that the audit notice states that your interest deductions, charitable contributions, and travel write-offs will be reviewed.
If you're solid on interest and contributions but shaky on travel, try to steer the audit to your strong suits first. Don't go into the session looking for a fight, but don't equate being cooperative with giving in whenever the auditor raises an eyebrow, either. If the agent tells you your records don't substantiate a deduction, for example, ask what might suffice.
Get the Tax Refund You're Owed
Perhaps you can mail it in later. Don't chat your way into a problem. Keep in mind that the agent is trained to zero in on tax issues. A comment you consider totally unrelated to your return might lead you into a thicket. Fear that taxpayers will talk themselves into trouble is the key reason many advisers recommend sending a representative to the audit rather than showing up in person. If you do go, above all, keep your wits about you. Don't be pressured into settling an issue just to bring the audit to an end.
The IRS argues strenuously that it doesn't judge its agents on how much extra money their audits produce.
The Happy Taxpayer: Simple Tax Tips For The Rest of Us | Lit Blogger
Americans living abroad are still required to file US taxes though, reporting their worldwide income. So the IRS knows which expats should be filing and reporting, meaning it makes sense to catch up voluntarily before they come to you. Expats can simply back-file up to 2 years of tax returns and FBARs. If you check "married filing jointly", your spouse becomes a US taxpayer.
Taxes for US Expats Explained - Japan
This is sometimes advantageous and sometimes not. Expat specialist CPA firms typically save expats more money than they charge. Dealing with the ins and outs of expat taxes every day, they know how to file most beneficially for each situation. Hugo Lesser works at Bright! Tax , a leading provider of US tax services to Americans living abroad.
If you have any questions regarding your situation, don't hesitate to get in touch and Hugo and the Bright! Tax team will be happy to help. Spanish tax residents pay tax on their income worldwide at the personal tax rates, which are progressive. Rates are:. Additional information can be obtained from the web site for Agencia Tributaria.
Tax residents of Spain are eligible to take some deductions, including:. There are special tax considerations for expatriates who are on a temporary assignment. There is a treaty between Spain and the United States, which helps determine which country to pay taxes to, and when the taxes must be paid. This treaty will help make sure you pay taxes to the proper country.
It is always best to consult a professional tax advisor for help in understanding the treaty. Tax returns are required to be submitted between the 1st of May and the 30th of June. There is no option for extensions to the deadline. Foreign workers in Spain must pay taxes into the Spanish social security program unless they obtain a coverage certificate from their native country showing that they are continuing to make contributions to that system.
For Spanish residents, their contributions can be deducted on their taxes.