Tax Returns - It is really needed? - London DFC

[FlorRosa 0]

Hi all

I have filled for the I-130 in London, no news yet. I know that once the NOA2 is received I have to send some more paperwork (please correct me if I am wrong). Do I also need to send tax returns?

The thing is that we have been living in the UK since March 2008 and have never filled any taxes. I contacted an accountant here in England and for my surprise they are charging $476 for EACH year of taxes returns. I am astonished by this as we have been spending quite a lot of money on visas things and we also still have to go through the Waiver I-601.

Is the consulate is really going to need that? My husband just started to work for a company in America, is the paychecks will not be sufficient?

Thanks all again for your help!

[Harpa Timsah 13,258]

Yes, they are really going to need that! You must file taxes no matter where you live in the world. You can file your own back taxes for free.

[FlorRosa 0]

Yes, they are really going to need that! You must file taxes no matter where you live in the world. You can file your own back taxes for free.

Thanks for your reply.

I have looked into the paperwork to file taxes and it seems so complicated! I am really really panic now with this! I cannot afford to pay over $1500.00 just to file taxes!

[Harpa Timsah 13,258]

Well, I'd find a different accountant or start studying. Sorry.

[FlorRosa 0]

Well, I'd find a different accountant or start studying. Sorry.

I know. I read publication 54 and it is over 40 pages. Might should get into that! Will try to find another accountants as I think this guy is really trying to get the bucks!

[FlorRosa 0]

I have received another email from another accountant which want to charge me up to $11k, that's right! I didn't even bother to reply! How can someone on te right rate of mind want to charge $11k??? Unreal!!

[Angela Murray 4]

There's an IRS in the embassy in London. Have you inquired with them? They advised me through the process as I was completely unaware that despite the fact that I'd been living in the UK for nearly 3 years that I needed to file my returns for the USA. I had to do 3 at once.

[aaron2020 11,651]

$476 for a single year back tax return is a very reasonable rate for a professional CPA. Especially in a need it done immediately situation.

[FlorRosa 0]

Hi Angela. Have you done by yourself the taxe returns??

There's an IRS in the embassy in London. Have you inquired with them? They advised me through the process as I was completely unaware that despite the fact that I'd been living in the UK for nearly 3 years that I needed to file my returns for the USA. I had to do 3 at once.

Hi Angela. Have you done by yourself the taxe returns??

[LauraDP 10]

My husband has lived in the UK for 20 years (all his adult life basically) so also had no idea he should have been filing with the IRS. We only discovered his error when we began looking into relocating to the US. He has since filed three years' worth of taxes with the IRS. He would be able to cobble together more years if they require it but I am pretty sure they have enough to do without sorting through umpteen years of old tax returns when there is zero owed and zero to pay since it is a pointless use of their resources so we don't anticipate that request. There is a specific form to file for foreign earned income and my husband found it easy to complete. The only glitch we have had is that he failed to sign one paper so it was returned to him so it really was as easy to file as he thought. I would, therefore, recommend that you look into filing your own tax returns so as to cut out the expense of the Accountant.

Best wishes

Laura

[FlorRosa 0]

My husband has lived in the UK for 20 years (all his adult life basically) so also had no idea he should have been filing with the IRS. We only discovered his error when we began looking into relocating to the US. He has since filed three years' worth of taxes with the IRS. He would be able to cobble together more years if they require it but I am pretty sure they have enough to do without sorting through umpteen years of old tax returns when there is zero owed and zero to pay since it is a pointless use of their resources so we don't anticipate that request. There is a specific form to file for foreign earned income and my husband found it easy to complete. The only glitch we have had is that he failed to sign one paper so it was returned to him so it really was as easy to file as he thought. I would, therefore, recommend that you look into filing your own tax returns so as to cut out the expense of the Accountant.

Best wishes

Laura

Hi Laura

Thanks for your reply. Could you please let me know what form is that? I have been researching around and spoke with IRS in London and they were not very helpful at all. Just told me to look at publication 54 (which is over 40 pages) and a lot of information that I cant get into my head at all! Thanks for all your help!!

[LauraDP 10]

I have replied in a PM but will also state here for the sake of anyone searching for this topic in future that the relevant forms are 1040 and 2555-EZ, one of each being filled out for each relevant year. You can obtain the forms from the IRS website along with guidance notes for completing them. The 2555-EZ is the foreign income exclusion form.

Best wishes

Laura

[sandra68 10]

Hi,

try the turbotaxes software, through amazon.They sell the previous years at a low price and it will help you with your taxpapers.

and when you have questions call the irs helpline, they are very helpfull.

We did ours for the last 3 years this year, as we are getting things ready to file our papers at Frankfurt.

good luck,

Sandra

Edited November 19, 2012 by sandra68

[hlove 0]

No you don't! lol

You are exempted if:

1. You are a permanent resident

2. Lived abroad a year or more

3. Earn over $90,000

First of all, in number 3 I believe you meant to say under $90,000. Second of all, even if you are exempted from paying taxes, you are NOT exempted from filing them. This is a very common mistake for expats to make, including me. I thought I didn't have to file tax returns because I was living in Peru as a permanent resident. However, as we have been getting ready to move back to the States, I looked into it because it asked for my tax returns for the most recent year on the I-864. To my surprise, I was required to file my taxes, even though I was exempt from paying any taxes. I then had to file back taxes for two years. Nothing owed, nothing paid. But I will now no longer have problems with the IRS should they come knocking at my door once I return to the States.

[Dave&Roza 748]

True, they will need your previous year's taxes. However, you can just use a co-sponsor, and submit their taxes. I did that, and was never asked anything.

The USCIS will still want the lastest tax return from the USC sponsor OR a letter stating why the person was not REQUIRED to field a tax return. Go to the IRS and look at the REQUIRMENTS for filing a 1040. As has been stated, owing taxes is a different issue than filing taxes. The USCIS does not care whether you owe taxes or not, they just want to see your tax return. The IRS may elect to disregard that you did not file because you do not owe them. Two seperate government agencies looking at the same rules and enforcing them differently. The same issue comes up time and time again when people apply for a SSC and the SSA employee tells the applicant that there is something that USCIS needs to do. Most of the time that is completely false.

Bottom line is that USCIS will ask for the most recent year's tax return from the USC and if you do not have one how do you comply with the RFE? Not every employee at the USCIS does things the same way. That is why some people says they got an RFE for doing it this way and others do not.

Dave

Edited December 12, 2012 by Dave&Roza