US: American Expatriates May Face Delay In Tax Refunds
The US government has absorbed much of the world’s press in recent months. From Trump and trade deals to Hell-ish weather, one of the biggest stories is the government’s 35-day partial shutdown – one of the longest closures in US governmental history. Officially ending Friday 25th January, the government’s reopening seemed in timely fashion with it just ahead of the Internal Revenue Service ( IRS)’s opening of its annual tax filing system. Though lucky for the majority of US citizens, the fortunes of US expatriates not currently residing in their home country, are not-so favourable. Advised they must wait to submit their tax returns and subsequently receive their refunds.
During the shutdown period, the IRS were represented by only a limited skeleton team. As reported by International Investment, the IRS were forced to deprioritise the compilation of their standard annual average exchange rates. As a result of IRS only working with US dollars, taxpayers paid in a foreign currency who require these calculations to complete and file their returns, may suffer the brunt.
In the event the IRS were not able to complete 2018’s exchange rates, many US expatriates will be required to request a six-month extension to file their taxes. It has since transpired the list has in fact been updated and that despite this setback, the IRS will commence release refunds this month.
“With the US one of the only countries requiring its citizens to pay US income taxes, this recent hurdle is undoubtedly another ache in the bodily pains that be US taxation for expatriates”, comments Geraint Davies, founder and managing director at Montfort.
Such individuals are however able to apply for deductions or tax credits based upon levies they may pay in their country of residence. In line with the Trump presidency, this may soon be reviewed.
Should the events surrounding the US government shutdown and IRS process of US expatriate tax returns concern you, and you may be a US expatriate seeking US-Anglo financial planning and taxation advice, contact Montfort to speak to one our leading US-Anglo specialists. Call +44 (0)1483 202072 or email email@example.com; montfort-intl.comBack to all posts