Job Discussion Forums

Lei Feng · Joined: 28 Feb 2006 Posts: 59

I haven't set foot in the US in 7 years and never thought I would. Now things have changed and I am considering returning to America.

My question is that since I haven't paid or even filed taxes in over 7 years what should I do? I have no investments in America or China. My salary in China has been around 7-12K a month for the last 7 years. I have no documentation to prove that I paid taxes in China and other than stamps in my passport, ATM charges to my American bank account, I don't know how to prove that I have been outside of America and haven't been earning vast sums.

Anybody been in a similiar situation? Any solutions?

Glenski · Joined: 15 Jan 2003 Posts: 12844 Location: Hokkaido, JAPAN

Since you are required by law to file, even if you don't end up paying, you'd better see what forms are available for filing retroactively.

I don't know what the agreement is between the US and China, but the IRS doesn't care what you have to pay outside the USA. Anything you make over $85,000 (this year) abroad is taxable.

ecocks · Joined: 06 Nov 2007 Posts: 899 Location: Gdansk, Poland

that I know of.

Generally, even the IRS has to have reason to start an investigation like that. An English teacher is going to be pretty low on the radar. When you start back to work in the US you'll do all the SS number sign up things, 401's, etc. and that is that. No one cares.

arioch36 · Joined: 21 Jan 2003 Posts: 3589

My first year or two I made several calls to the IRS regarding this issue. All were in agreement that I did not have an obligation to file. But, it might be a good idea. A copy of my contract for each year, the front page in China, and a stamp by the college testifying that I worked here for the year, and was paid the amount agreed to, was acceptable proof.

Now, if you have been making 7-12 k RMB then you should have been paying taxes to the Chinese government, and should have your receipts, or at least a stamped lettter from the accounting dep't of the college. But I don't if the IRS cares much whether you have paid your Chinese taxes

If you had no documentation, the IRS would have to find the evidence that you have been cheating (such as your ownership of the new BMW and a 70 ft yacht)

Hiawatha · Joined: 09 Jun 2007 Posts: 62 Location: Oman

to the original poster: Would like to know how you make 7 to 12 thousand a month?

Justin Trullinger · Posted: Sat Jan 12, 2008 4:13 pm Post subject:

I think that's 7 to 12k in RMB

Though I've never been to China, I have a close friend who's just returned, doesn't seem to think those numbers were a fortune...

Best,
justin

naturegirl321 · Joined: 04 May 2003 Posts: 9041 Location: home sweet home

I was told that they trust us and we don't have to show proof of what we earn, just file the 2555ez

tedkarma · Posted: Sun Jan 13, 2008 1:46 am Post subject:

Go see an accountant/CPA - not all that expensive really - and you can easily file for those past years. Not a big deal, not a problem - it's done all the time. Then the problem is solved. All the people here will have an opinion, but a good CPA will know what to do.

Not filing can always come back and bite you in the b*utt. I had a friend who hadn't filed for 20+ years as he was living in Bangkok - wife, family the whole deal. But . . . his kids started university in the States - and guess who needed copies of tax filings to qualify for financial aid . . . yeah.

So - all I am saying is that is quite worth getting it straightened out - and not all that difficult to do. The IRS isn't going to bother you - but you never know when you might need to prove something to someone.

Just do it - as they say.

moonshine · Joined: 11 Jan 2008 Posts: 60

tedkarma is right - you should definitely file - it doesn't matter whether or not you owe - you can actually be penalized for not filing

i've done it every year via email with the same cpa i had when i lived stateside - H&R block has offices globally - check them out or contact one back where you used to live and see if they can refer you to someone

don't think just because you don't earn much the irs isn't interested - they actually go after the middle and working class a heck of a lot harder than they do anyone else - keep your ducks in order, you don't want the irs on your back. Shocked

Glenski · Joined: 15 Jan 2003 Posts: 12844 Location: Hokkaido, JAPAN

arioch36 · Joined: 21 Jan 2003 Posts: 3589

Glenski

naturegirl321 · Joined: 04 May 2003 Posts: 9041 Location: home sweet home

I say just file, there's no negaitve side to filing, but there is a negative side to not filing.

arioch36 · Joined: 21 Jan 2003 Posts: 3589

Nature

naturegirl321 · Joined: 04 May 2003 Posts: 9041 Location: home sweet home

unless your wife is a citizen or resident, nyou can't get a SSN, you can't get a SSN

You have get an ,ITIN, I'm still waiting itafter a year.

arioch36 · Joined: 21 Jan 2003 Posts: 3589

right, that thingy. a laowai SSN

If we happen to go back to the states for a year or two, I guess it's handy