US Expat Tax Planning Services
The IRS doesn’t overlook the fact that you’re living abroad. Whether you’re in the UK or anywhere else in the world, you’ve likely faced the challenge of managing FATCA, FBAR, the Foreign Tax Credit (FTC), and the Foreign Earned Income Exclusion (FEIE), all while dealing with deadlines set by both the IRS and local tax authorities. At Pearl Lemon Accountants, we specialize in simplifying this process by managing the overlap of US and international tax laws, ensuring compliance and reducing your tax liability.
Our Services: Customized for Your Tax Needs
As a US expat earning income abroad, you may already face high local tax rates. Without proper planning, the IRS may still require additional payments under its global tax rules. We address this by applying relevant tax treaties, allowing you to offset foreign taxes with credits and deductions on your US returns.
1. Dual Tax Compliance
We handle your Form 1040, FBAR, and all necessary local tax filings to ensure compliance with both the IRS and your host country’s tax authority. By strategically applying foreign tax credits, we lower your US tax obligations and prevent double taxation.
How This Helps You: You won’t need to manage tax deadlines, forms, or conflicting regulations. We’ll take care of it all.
2. FATCA & FBAR Reporting
If you have foreign bank accounts, you must meet FATCA and FBAR requirements. Non-compliance can lead to severe penalties of up to 50% of the account’s value. We ensure your filings are accurate and penalty-free.
How This Helps You: Avoid penalties and audits by allowing us to handle your foreign account and investment reporting smoothly.
3. Tax Treaty Application and Management
International tax treaties, such as the US-UK treaty, aim to prevent double taxation. However, they involve complex rules for pensions, capital gains, and dividends. We’ll apply the treaty provisions that best suit your situation.
How This Helps You: Correctly applying treaty benefits lowers your taxable income and can potentially save you thousands of dollars.
4. Business Tax Planning for Expats
If you own a business abroad, we ensure your business structure limits your exposure to US corporate tax. Our expertise includes:
- Avoiding Subpart F Income
- Controlled Foreign Corporation (CFC) Compliance
- Transfer Pricing Strategies
How This Helps You: Keep more of your profits while staying compliant with international tax regulations.
5. IRS Representation and Audit Support
If you’re selected for an audit, we’ll represent you and ensure that your documentation for foreign exclusions, credits, and deductions is audit-ready.
How This Helps You: We provide expert representation to save you time, reduce stress, and minimize costly disputes with the IRS.
FAQs for US Expats
Yes, unless you qualify for specific exemptions. However, through the Foreign Earned Income Exclusion (FEIE) and Foreign Housing Deduction, we can exclude a significant portion of your foreign income from US taxation.
Missing the FBAR deadline can result in penalties of up to $10,000 for non-willful violations. We ensure your filings are submitted on time to prevent penalties.
Form 8833 is used to claim tax treaty benefits that reduce your US taxable income. Filing this form correctly is essential to apply treaty provisions.
Yes, but not on the same income. We carefully separate your income to maximize both benefits without overlap.
The IRS may classify foreign pensions as foreign trusts, requiring detailed reporting. We apply applicable treaty provisions to reduce both your tax and reporting obligations.
Let’s Address Your Tax Needs Before They Get Expensive
Time is valuable. Delays and mistakes in tax planning can lead to penalties, missed credits, and overpayments. We’re ready to manage your tax responsibilities, so you can enjoy life abroad with peace of mind.
Ready to move forward? Schedule your consultation today.
