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4 Answers

I haven’t paid taxes but I live abroad, can you help with my questions?

Asked by: bustermcleod 364 views YA Discussion

After hours (all day) of researching I realize that not only do I have to pay taxes but I should have also reported any foreign bank accounts if ever the amount exceeded 10,000(U.S) among other things like exemption forms etc.

I moved out of the United States in December 2008 and have been in this country (Asia) since that time.

I have worked and paid taxes for 2 years now. I have that record and could get documents if anything as far as records of what was payed from my employer. (if needed)

My problem is, I am planning on moving back USA in about 5 1/2-6 months.Since I haven’t lived in the United States I had(have) no bank accounts. I decided (agree’d) with my best friend to use her information to that the money could get from one continent to the other. (Again it’s completely for my use but I just don’t have another place to put it and I want to pre plan things..I hope there are things(something) I can do to fix this situation

The total amount of transfer(s) is about 63-66,000 dollars (per form 2555 on the IRS website I am tax exempt up to 95,100) but I don’t get what I do AT THIS POINT noting the details above etc. I am currently in contact with 2 different tax services ….I need to see who will be more accurate with processing all that needs to be done.

in the mean time am I in trouble? Tell me how to fix this. I am 26 (not really experienced) but DO pay taxes and work legally in this country.

I really just never thought that I had to file taxes because to me I always thought the point of filing taxes was to get money back (but since I didn’t even live/work in that country it just came to my mind that I didn’t need to) now that I have transfered a large amount I BELIEVE maybe her bank may report this to the IRS? if they do what do WE do ?

and please read this message twice it’s a complicated situation. I really need advice. I am not trying to cheat paying taxes it’s just now I feel rushed and don’t know where to start. I have available cash to pay a CPA or something but I live in Asia so I am in contacts(initial calls)

I know about form 2555 (exempt for foreign income up to 95,100)
I never knew to file before so this would be my first time 2012(if I can still file? is it to late? I have been in Asia mode and haven’t even given any thought to anything in USA as I have no debt,homes, credit cards etc ( I am 26 years old.)

PLEASE HELP.


4 Answers



  1. Rob on Dec 20, 2012 Reply

    visit IRS.gov and get in contact
    with real IRS agents.

    that transfer may have cost u and friend
    much money.

    do get everything in writing from IRS.

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  2. Bobbie on Dec 20, 2012 Reply

    Publication 54 (2012), Tax Guide for US Citizens and …

    http://www.irs.gov/publications/p54/index.html

    Filing Requirements

    http://www.irs.gov/publications/p54/ch01.html#en_US_2012_publink100047318

    If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and for paying estimated tax are generally the same whether you are in the United States or abroad.
    Gross income. This includes all income you receive in the form of money, goods, property, and services that is not exempt from tax.

    For purposes of determining whether you must file a return, gross income includes any income that you can exclude as foreign earned income or as a foreign housing amount.

    If you are self-employed, your gross income includes the amount on Part I, line 7 of Schedule C (Form 1040), Profit or Loss From Business, or line 1d of Schedule C-EZ (Form 1040), Net Profit From Business.
    Self-employed individuals. If your net earnings from self-employment are $ 400 or more, you must file a return even if your gross income is below the amount listed for your filing status in the table shown earlier. Net earnings from self-employment are defined in Publication 334, Tax Guide for Small Business.

    Chapter 4. Foreign Earned Income and Housing: Exclusion – Deduction

    http://www.irs.gov/publications/p54/ch04.html

    Hope that you find the above enclosed information useful. 12/20/2012

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  3. Cathi K on Dec 20, 2012 Reply

    File your past tax returns. IF you owe money pay it. You will be fine.

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  4. tro on Dec 20, 2012 Reply

    back again? I guess you are not getting the responses you want, and the IRS rules don’t work that way
    if you are a US citizen you are taxed on world wide income, yes, you apparently are aware of the exclusions and residency requirements for those exclusions
    and yes, reporting foreign earned income is on form 2555, even if you paid taxes in that country which you would get credit for on form 1116
    reporting on the FBAR is for people in the US who have signatory authority over a foreign bank account
    you were not in the US during those years when you had this money in a foreign bank account
    your situation and your lack of knowledge would probably do well to contact an EA in the US or a CPA who specializes in taxes to get the right information about these missing years of filing if this be the case
    asking the same question again here unless some new contributor shows up will not result in a different answer that might be to your liking

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