Magazine article The CPA Journal

Rules Eased for Taxpayers Abroad

Magazine article The CPA Journal

Rules Eased for Taxpayers Abroad

Article excerpt

Those taxpayers living abroad who missed the deadline for claiming an exclusion of foreign-owned income up to $70,000 on prior year tax returns may now claim the exclusion without requesting a special ruling. This was announced by the IRS in a news release dated September 7, 1993.

The change was made in June in final regulations (TD 8480) according to the IRS as part of its effort to bring non-filers back into the tax system. The new regulations eliminated the private letter ruling requirement for most taxpayers seeking to claim the foreign-earned income exclusion on a Federal income tax return filed later than the due date for electing the exclusion. Those individuals who come forward to claim the exclusion before the IRS discovers their failure to elect the exclusion will no longer need to apply for a private letter ruling. Additionally, where a taxpayer owes no tax after the exclusion, that taxpayer qualifies for the exclusion whether or not the IRS first discovers their failure to elect the exclusion. …

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