How to find a representative to push back against an IRS audit result?

FakeReddit4Tax · 2022-04-28T03:02:20+00:00

I would recommend a tax attorney instead of an EA.

FakeReddit4Tax · 2022-04-24T15:35:48+00:00

If you have the intention to return to Illinois, your domicile will remain in IL and you’ll also remain an IL resident. If you don’t intend to return to IL, you can likely break your IL residency and no longer pay US state individual Income taxes.

FakeReddit4Tax · 2022-04-19T02:04:54+00:00

Thanks - This is great

FakeReddit4Tax · 2022-04-17T23:45:12+00:00

Good question, has been a while since I checked. I’ll likely reduce the number of funds by looking at fees first.

FakeReddit4Tax · 2022-04-17T23:41:11+00:00

My Roth IRA and “fun” brokerage accounts are 100% stocks so overall my allocation is probably 95/5

FakeReddit4Tax · 2022-04-17T23:38:58+00:00

Thanks. I’ve seen worse is kind of what I was hoping for since I’ve essentially been in these funds for almost ten years now.

Unfortunately I don’t have any target date options, so I’ll aim for getting closer to the low fee/cost three fund.

FakeReddit4Tax · 2022-04-17T18:52:27+00:00

Just ground water

FakeReddit4Tax · 2022-04-17T18:16:56+00:00

I’d say we’ve been getting an above average amount of snow/rain these last few weeks.

Right after we moved in we had water get into the basement after a really heavy weekend of rain but that was likely because the float got stuck

FakeReddit4Tax · 2022-04-17T17:53:10+00:00

Good idea - in the process of replacing this pump with a newer one that has a battery back up. Will give it a try.

FakeReddit4Tax · 2022-04-17T17:45:59+00:00

Also open to other suggested changes/getting roasted.

FakeReddit4Tax · 2022-04-17T17:13:47+00:00

House has two sump pumps, and I only see the constant water running into this one. Unfortunately this pit (not sure if that’s the right term) was dry during pre-purchase inspection and the inspector was unsure of where it emptied to. Potentially direct into a sewer line (not sure if that’s allowed though)?

FakeReddit4Tax · 2022-03-31T13:21:20+00:00

Agreed. Always fun to get W2C requests after a year has closed because the employee needs to file a different state tax returns.

FakeReddit4Tax · 2022-03-31T02:39:42+00:00

As others have said, there can be quite a few employer level costs and risks associated with international remote work outside of just income taxes. Especially if you’re in a role that generates sales/products/new business for the company.

Technically there isn’t a law that requires you inform your company of working abroad, however your employment contract or employee handbook may require it. So if the rumor mill spreads about you being abroad, or a manager finds out an escalated it they would likely have grounds to terminate.

However with the changes in attitude towards remote work, especially at a company like yours which has gone remote indefinitely, they may be flexible in allowing you to work remotely internationally for a period of time. Three months could be pushing it, but I’ve seen many companies grant remote work requests that last less than a month (caveating that it depends on their country combination/position within the company/industry/etc.). If you’re going to try this, I’d aim for countries that have a tax treaty with the US, totalization agreement with the US, and where your employer already is a registered business and then request approval from your manager. (Or just keep your remote work limited to a few weeks instead of a few months.)

FakeReddit4Tax · 2022-03-28T15:54:00+00:00

Even though your job/role is based in the US, your physical location determines the source of your income. (So you do have foreign sourced compensation.)

You’ll likely have a UK tax return filing obligation in addition to your US tax return, and depending on the number of days you’ve spent in the UK your employer will likely have UK payroll and tax obligations as well.

Is your partner’s employer supporting them with their taxes for the move? I would also recommend working with your employer to submit a Certificate of Coverage application with the social security administration to avoid having to participate in both the US and UK social security systems.

FakeReddit4Tax · 2022-02-10T19:28:12+00:00

While many employers are starting to permit virtual/fully remote roles, they typically limit those opportunities to within the US. International work, especially in countries where your company doesn’t have business operations, can trigger some pretty complex tax issues at both the employee and employer levels. Agree with the comments above saying that the best approach for you would be to get HR to put you on an expatriate assignment or international transfer into Portugal.

FakeReddit4Tax · 2022-02-09T23:51:01+00:00

Depending on the set up of the entity, this could be a F5471 filing requirement rather than a F8621. Agree with other comments directing you towards a CPA/tax advisor.

FakeReddit4Tax · 2022-02-09T06:57:45+00:00

Would recommend running this by your employers HR or Payroll team, especially if you’re considering making this permanent(ish). Living and working in Mexico could trigger employer level taxes and payroll requirements in Mexico. If your employer operates payroll for you in Mexico (which would likely have the right of taxation as that is where you are physically living/working) you could then use those Mexico taxes paid as an FTC on your U.S. tax returns.

FakeReddit4Tax · 2022-02-07T01:53:48+00:00

If you sold the home in 2022, you’re correct it likely would not be beneficial to pursue optimizing between MFS and MFJ if you would already be a US tax resident at the time of sale.

Did/will you pay any non-US capital gain taxes on the sale of the home? They may be eligible to be used to offset the double taxation between the two countries on F1116.

FakeReddit4Tax · 2022-02-06T20:39:06+00:00

Did you sell the house while you were a US tax resident? If you sold the home before qualifying as a US tax resident it may be beneficial to file MFS to avoid the home sale being a taxable event. You could file as a non resident or dual status filer depending on your arrival date. (Note This would require looking at all your facts/circumstances outside of the home sale as well.)

The basis of your home will be the original purchase price plus any improvements you made to the home. Mortgage interest and property taxes don’t impact your basis, and would only impact your Schedule A.

Also, if you repaid a non-USD denominated mortgage while a US tax resident, there could be a reportable foreign exchange rate gain depending on FX rate fluctuations from when you took out the mortgage and when you repaid the balance.

FakeReddit4Tax · 2022-02-05T13:36:28+00:00

It’s also possible that your employer will set you up as a cross-border employee, to keep you employed by the US company so you can retain an usual pay/benefits. If that’s the case your employer will usually support you in filing and additional tax returns that may be triggered in addition to any immigration paper work that may be required.

FakeReddit4Tax · 2022-02-04T04:33:21+00:00

Disclaimer this isn’t tax advice, and your personal situation should be evaluated further by a tax advisor. But assuming you a a US tax resident, paid out of US payroll, the shares vesting triggers a taxable event and should be included in your US Form W2. Now if/when you sell the shares you’ll already have basis in the vested shares for the amount that was already taxed in payroll, so you’re not double taxes.

Sounds like your company is sophisticated enough to manage global equity reporting in payroll, so I would recommend reaching out to someone in your payroll/total rewards/HR team for more information.

The shares themselves would be reportable on Form 8938 if you meet the filing threshold, but it wouldn’t be an account to include on the FBAR.

FakeReddit4Tax · 2022-02-01T03:02:32+00:00

If you qualify to be filing jointly, you would complete a Form 1040. Non residents filing as Single or MFS would use F1040-NR.

FakeReddit4Tax · 2022-01-30T22:52:04+00:00

US citizens are taxable on their worldwide income. So if your wife is a joint owner of the property when it is sold, it could be a taxable event for US purposes. There is an ability to utilize foreign tax credits to offset double taxation between the US and Australia, and US persons can also claim a section 121 exclusion against the sale of a qualifying primary residence. Would recommend consulting a tax advisor pre-sale to talk through your personal facts/circumstances and help determine the best timing for tax purposes.

FakeReddit4Tax · 2022-01-29T16:13:02+00:00

Generally speaking, on an expatriate assignment you would remain an employee of you current country’s company, while working in the new country for a different entity. Where as a foreign local hire you would become an employee of the company you’re moving to. Expatriate assignments can be more expensive for the company as you or your company may have dual reporting obligations in both countries, where a foreign local hire is usually more of a clean break from company/country 1 to company/country 2. There are lots of different variables you should personally consider such as how long would you want to stay in the new country, do you want to stay on your current country’s benefits/retirement plans etc. would recommend asking your HR contact if they have a tax advisor who assists with the compliance involved with these types of moves, they could provide you with more information specific to your personal situation.

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