The financial issues faced by American expatriates differ from those of Americans living in the U.S. in many important aspects, especially in respect to taxation and estate planning issues.
U.S. expatriates remain subject to the basic tax rules while abroad but are also impacted by rules specific to their status as expatriates, in addition to being subject to foreign tax laws, which often means they are faced with an array of tax planning and compliance dilemmas.
Understanding the interaction of U.S. and the various foreign tax rules is critical in managing tax exposure and avoiding double taxation and U.S. expatriates should be aware of simple yet effective year-end planning to minimize their U.S. tax liabilities as President Trump announces his tax reform package and 2017 draws to a close.
A significant impact of FATCA has led to many U.S. citizens and green card holders residing outside the U.S. not realizing until recently that they have historic tax return and/or information reporting requirements. Fortunately, there is an IRS program for people with inadvertent arrears to rectify matters allowing for significant penalties to be waived. There is no guarantee that this program will continue to exist in its current format beyond 2017 and consequently now is the time to get compliant with the IRS.
U.S. expatriates need to plan their estates carefully. A Will or, if applicable a trust, in the country in which you live (or own assets) should be considered, as well as guardianships. U.S. expatriates also need to determine what type of foreign taxes (inheritance or transfer tax) their heirs may incur upon their death on assets located outside of the U.S. Having a proper estate plan in place can often minimize or even eliminate estate taxes and probate costs.
Please join us on November 30th as Jessica Cutrera from The Capital Company and Ishali Patel from Buzzacott Expatriate Tax Services share with us important information on year-end tax planning, IRS Streamlined Filing Compliance Procedures, and strategies in which American expatriates can use to address their unique estate planning needs.
First 15-20 minutes is for networking
Sandwiches and beverages included
Hosted by the Taxation Committee