US Tax Accountant Demonstrates "Due Diligence" by Expats

Federal tax code provisions that apply exclusively to US citizens living overseas offer money-saving exclusions and deductions but they also have rigorous qualifying and reporting requirements.

Failure to comply with some of these regulations or misinterpreting a requirement for a hefty tax write-off could prove costly, both by incurring a higher bill and facing stiff penalties. This is where a US tax accountant with international tributary experience can provide not only professional expertise but also peace of mind.

The IRS is interested in whether US citizens who miscalculate their taxes did so intentionally or not, since tax fraud is a serious criminal offense. By hiring a reputable US tax accountant with international tributary experience, an expat demonstrates a measure of good intent and desire to be thorough and honest in calculating his or her income and expenses.

A US tax accountant specializing in expat tax preparation service is familiar with the detailed criteria that qualify an overseas US citizen to take advantage of money saving provisions such as the foreign earned income exclusion, credits and the foreign housing deduction. Without a qualified international US tax accountant, an expat who self-prepares a return, or hires a preparer without international experience, might miss out on significant savings or, worse, under-calculate and thus attract IRS scrutiny.

An American living abroad must file US tax returns and pay any tariffs due for as long as they keep their US citizenship (or green card, for US resident aliens living abroad). This is why it makes sense for expats not just to pay their taxes on time, but to develop an overall strategy that makes the most of applicable tributary provisions of both the US and the country of residence.

A US tax accountant with international experience can provide a level of expertise that a preparer in the US with no international experience would be hard-pressed to match. The provisions of the US tax code that apply exclusively to expats take hours just to read, and a full understanding of many of the sections requires several readings.

Real world experience in dealing with these complex provisions is another advantage that a US Tax Accountant with an expat clientele brings to the professional relationship. Knowing what to expect from the IRS is a valuable quality that an experienced international tax accountant develops over time.

Conducting business overseas, whether a solo professional practice or a small company, absolutely requires professional advice from a US tax accountant who has helped US entrepreneurs set up foreign legal entities.

Tax Planner CPA, a firm that specializes in expat tax planning, has a website that has a regularly updated collection of articles, blogs and Q&As addressing expat tax issues. The web site is http://www.taxplannercpa.com.

David Odom is a US Citizen who during his trip to India was informed about his requirement to still File US taxes in spite of not having US income.Since then, he began investigating expatriate taxation and now writes articles on the subject - so that fellow Americans don't run into the same issues as he did of US Tax Accountant.

Article Source: http://EzineArticles.com/expert/David_Smith_Odom/861561

When Can You Integrate Your Past Due Taxes in the Bankruptcy?

There are certain criteria that a person should meet before including the taxes in his or her bankruptcy filing. While it is possible for IRS taxes to be included in a bankruptcy, there are a number of factors that limit which taxes can or cannot be included. Here are the conditions that you meet before filing bankruptcy:

Notes:

1. Taxes voluntarily filed at least two years ago can be integrated in a bankruptcy

2. Payroll tax or fraud penalties can never be discharged

3. It is only allowed for chapter 7 and chapter 13: that is chapter 7 indicates total, chapter 13 indicates payment plans

4. Tax returns filed 2 years ago

5. Feeling not guilty of tax evasion

6. Taxes that are not fraudulent

7. You should file four previous tax returns: It should prove that it has been filed with the IRS and filed no later than date of first creditor's meeting

While it is possible for IRS taxes to be included in a bankruptcy, there are a number of factors that limit which ones can or cannot be included. Only federal income ones are eligible to be discharged in bankruptcy; payroll ones or fraud penalties can never be discharged. Prior filed ones are also not eligible for discharge. The discharge of federal income ones also depends on which type of bankruptcy is filed. Only chapter 7 and chapter 13 bankruptcies are eligible for federal income tax discharge. Chapter 7 bankruptcies give full discharge of allowable federal income tax debts while chapter 13 bankruptcies create a payment plan to repay a portion of the debt while the remainder is discharged.

There are five rules that assess whether income tax debts are capable of being discharged by bankruptcy. An income tax debt must meet all five of these criteria before it can be deemed to be discharged.

The first two of the five rules state that a debtor cannot include any taxes that are over three years old and that the tax returns must have been filed at least two years ago. This means that if a debtor files for bankruptcy in 2010, he cannot claim back tax debts from beyond 2006 and that the tax returns must have been filed at least in 2008.

The third criterion states that the taxes must have been assessed at least 240 days prior to bankruptcy filing. The tax return must not be fraudulent. If the debtor used a false Social security number on his/her income tax, the income tax debt will not be eligible for discharge.

Lastly, the taxpayer must not be guilty of tax evasion, meaning the taxpayer must not be guilty of any intentional acts of evading tax laws.

In addition, the bankruptcy petition is required to prove that his/her previous four income tax returns have been filed with the IRS. The four previous tax returns must be filed no later than the date of the first creditors' meeting. Petitioners must also provide a copy of their most recent tax returns to the bankruptcy court and creditors if a request is made.

Bankruptcy attorney Chino can offer you best legal services to satisfy your needs. To clear the doubts regarding your bankruptcy filing, you can make a free consultation with our bankruptcy lawyer Chino.

Article Source: http://EzineArticles.com/expert/Nancy_P_Shevell/597242

The Increase in House Repossession Due to Unpaid Property Taxes

House repossession due to non-payment of property taxes is on the rise in several municipalities in Michigan.

The economic downturn that has swept the country since December 2007 has severely affected Michigan's economy, leaving some of its communities scrambling to reduce their budgets, find additional revenue sources and implement measures to survive the current economic crisis.

Most local governments in Michigan derived their revenues from property taxes. The state's property tax revenues are based on millage rates and a property's taxable value. However, revenues from property taxes are slow to rise than they were used to because of the declining property values.

Non-payment of mortgages or property taxes by homeowners resulted in house repossession. As more and more house repossession occur in a neighborhood, the assessed home values of surrounding properties are lowered, thereby reducing the total tax revenue that local governments may collect.

Adding to the problem of dwindling revenues due to property tax declines, municipalities in Michigan are also experiencing difficulties due to reductions in the revenue sharing payment program of the state.

Under the revenue sharing program, the state distributes a share of the collected sales tax to local government in the form of unrestricted revenues. The constitutional portion of the revenue sharing accounted for 15 percent of the nearly 4 percent total state sales tax collections. In addition, the statutory revenue sharing is derived from 21.3 percent of the established 4 percent total state sales tax collections.

Under the current troubled economic times, consumers tend to spend less, yielding low revenue from sales tax and resulting to reductions in payments of statutory revenues to local municipalities. In addition, the state's financial difficulties have forced lawmakers to reduce revenue sharing payments given to local governments.

Meanwhile, Oakland County Treasurer Andy Meisner explained that reduced revenues may directly and severely affect the ability of the local community to provide necessary services for its residents.

Data released by the Oakland County Equalization Division showed that many communities in Michigan lost millions due to low taxable value of properties.

Currently, there are 550 properties that have reverted to county ownership because of non-payment of property taxes. However, the total number of house repossession due to unpaid property taxes represented only a small portion of the number of home loan foreclosures in Oakland County

Joseph B. Smith has been educating buyers on the finer points of House Repossession at Repo-Homes.com for over five years.

Article Source: http://EzineArticles.com/expert/Joseph_B._Smith/274799