US Tax Income Return

The US Expat Obligation

Every person that is either a citizen of the United States by way of birth or naturalization or is a holder of a valid Green Card that has not been given up must file an annual US tax returns. It does not matter that the person is an expat living abroad in France or any other country. Even if the person has tax requirements to the country that they are living in, they must still file a US tax return. The federal tax return must state all sources of income whether the income is generated in the United States or abroad. Furthermore, an expat living abroad will generally hold a foreign bank account and can be obligated to file an FBAR or FATCA report in addition to the tax return. There are additional filing obligations for an expat who has control over a foreign corporation. Failure to file these reports can be severe and can generate fines of many tens of thousands of dollars.

A non US citizen who has US source income must also file a US tax return.

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Are you an American citizen living in France or considering relocation? Are you looking for American or French tax assistance? Our team provides American and French tax services of the highest quality to clients who are a good match for our services.

What to file ?

A US person or a Green Card holder is required to file Form 1040a. Depending on the type of income generated, such as rental, dividend, interest or capital gains additional forms might be necessary. In some cases a US person can receive a refund such as Child Tax Credit or credit for college.

A Non US person with US source income, for example rental, partnership or other income, will need to file a Form 1040NR.

Depending on the situation there might be only an obligation to file a Federal return. A state return might be necessary, usually with rental income.

Filing a return can be a complicated process, especially when filing as an Expat. Using a CPA who is expert in expat filings will ensure that your return is filed free of any errors. Our firm has many years of experience serving expats all over Europe.

Your Situation : Individual

A US individual is considered a US tax resident even if they are currently living abroad such as in France. Every US person must file an annual income tax return (Form 1040) even if they file in their country of residence. Often taxes are not required to be paid because of treaties that reduce taxes. The tax return can be filed jointly with a spouse which can help the tax situation. A spouse can be a common law spouse or a same sex spouse. The annual return is filed with the IRS.

A person who holds a Green Card is likewise obligated to file a federal tax return with the IRS until they have surrendered the card to the nearest US embassy.

We can help you meet your tax obligation by preparation of the necessary tax forms as well as provide you with other tax help and advice.

Your Situation : Partnership

A Partnership is considered a flow-through and any income earned is subject to taxation that is reported by each individual partner. Many partnerships are formed as LLCs due to the simplicity of this format.

Anyone who has an interest in a US partnership must be included in the federal and state partnership return.

Any US person who has a sufficiently large stake in a foreign partnership must also file a return.

Your Situation : Corporation

A US corporation must file an annual tax return (generally from 1120). Even if the corporation has a loss it musts till file a tax return (the loss carries forward and can be used to offset income in future years).

A US person who has more than 10% stake in a foreign corporation may need to report the foreign activity to the IRS.

Business returns are quite complex and requires a lot of technical expertise. We recommend that you consult us if you have such a situation. We can guide you through the complexities of business laws and can provide you with business tax services including estimated taxes and quarterly obligations.

Your Situation : Trusts

Trusts are complex legal structures that can be used to minimize estate and other transition taxes. Every trust needs beneficiaries, settlors and an administrator. Often a spouse can fill any of those roles.

Trusts are very useful when you want assets to skip generations and go directly to grandchildren.

There are many times of trusts and you can easily find a type that suits your situation.

We can help you with all your filing obligations in addition to assisting you create the best trust structure that meets your needs.

Tax Return Calendar

The individual return (series 1040) is generally due by April 15th of following calendar year. If the filer is living outside the US the date is automatically extended to June 15th. An extension can be filed to extend the filing date to October 15th and, in certain circumstances can even be extended until December 15th.

If taxes are owed, they must be paid by April 15th!

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A partnership return (1065) must be filed by March 15th of the following calendar year and can be extended until September 15.

A corporate return (1120) must be filed by April 15th of the following calendar year and can be extended until October 15.

How Can We Help You ?

Our firm can provide you with the right level of service to fulfill all your filing obligations. We are expert in expat filings and understand your needs. Our team is multi lingual and will answer all your questions. We pride ourselves in our quality work and we will prepare your returns competently. We communicate via phone, email or if needed via Zoom or other face-to-face communications. In almost all cases we can file all returns electronically and we provide you a secure portal to transmit your information in a safe manner. We can provide you tax advice personalized to your needs and circumstances.

Aron Epstein, CPA has many decades of state tax preparation experience. His emphasis has been on expat taxes with an eye to the complexities inherent in foreign tax filings. He has given seminars in tax planning for expats and has saved his clients many thousands of dollars in taxes and fines. Aron studied accounting at Cleveland State University and passed the CPA exam in 1995.

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We know that the accounting needs for each business or family are unique. Use our form to tell us more about your needs, and concerns, and we will give you a free quote on regular or one-time accounting services.