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Marcoregano · Joined: 19 May 2003 Posts: 872 Location: Hong Kong

Has anyone here had experience of dealing with the local US embassy on tax issues? Any comments? Specifically, filing late tax returns. Is the embassy helpful on such a matter? Etc. Tks.

kowlooner · Joined: 24 Jun 2004 Posts: 230 Location: HK, BCC (former)

Can't talk about experience with the consulate here (no embassy in HK) on IRS issues, but as for late filing, how late is late? You realize you do get an automatic extension when filing from abroad, right? So even though it's after April 15, you're not late. In any case, the consulate is pretty helpful generally, so give them a call and find out. You'll need an appointment if you have to actually go over there. The website is: http://hongkong.usconsulate.gov/ Look under "citizen services". Sorry I couldn't help more.

mcgillaa · Joined: 06 Apr 2009 Posts: 14

Marcoregano,

I've some friends in the State Dept. and I have forwarded your request to them, if they have any contacts at the HK consulate, I'll pass along information to you. Are there specific issues at hand? With more information I could give the embassy people I know likely scenarios and they could give me responses.

Let me know if you need information still.

Marcoregano · Joined: 19 May 2003 Posts: 872 Location: Hong Kong

Hi Kowlooner and Mcgillaa, many thanks. The problem is that she hasn't filed since she came to Asia 12 years ago! She wants to get it cleared up but think the Feds will come and get her, plus filling out he right forms seems far from strightforward. Tks again.

Yes Sir I Can Bogey · Joined: 23 Mar 2009 Posts: 201

I dare say she may well experience a few difficulties then! I know of a US citizen who did not file his tax returns for just a few years and was fined and had to pay interest on tax owed, and he was lucky to narrowly escape prosecution. What is she going to say? That she forgot? For 12 consecutive years?

Marcoregano · Joined: 19 May 2003 Posts: 872 Location: Hong Kong

Many overseas Americans are unaware they are supposed to file tax returns, and therein lies the excuse. Add to that the fact that her salary has always been under the threshold (currently US$87K p/a) and I don't think she will have too much trouble, but we shall see.

Yes Sir I Can Bogey · Joined: 23 Mar 2009 Posts: 201

As I understand it, in US law as in UK law, ignorance is no defense/defence. Also, are you absolutely sure about that threshold? It was my understanding that the US authorities determine who is exempt; people cannot take it upon themselves to decree that they need not pay tax. They must still ultimately file their return and await to be told whether they have any overseas US tax liability.

kowlooner · Joined: 24 Jun 2004 Posts: 230 Location: HK, BCC (former)

YSICB is right that ignorance is no defense, but Marco's also right as to the automatic foreign earned income exclusion. If she's been under the amount all these years, there should be no taxes to pay. It's not a matter of owing back-taxes (like, say, the guy now in charge of the IRS itself!). The IRS I don't believe is in a position to determine who is exempt. The rules on that are pretty clear. I am interested to see how this will play out, though! Your friend really does need to contact the consulate here and get the advice of their IRS guy. Let us know how this turns out and what she's required to do!

EDIT: Adding info ...

Found a site that says something about the issue:

http://www.overseastaxservices.com/

Look up their FAQ, and it gives some info for those who haven't filed in a few years.

Marcoregano · Joined: 19 May 2003 Posts: 872 Location: Hong Kong

southerngirl · Joined: 30 Aug 2006 Posts: 53 Location: Sunny beaches

Marcoregano:

As long as your wife doesn't make above the 87K threshold (this is to include her SALARY AND INVESTMENTS OF ANY SORT, ie a rental home or
a non-retirement investment account w/ earned dividends) she should be just fine -save for the inconvenience.

I myself have had to file for three consecutive years last year and had no problem.

If, however, the two of you are planning to return to the USA "together", there might be problems for a spousal visa for you.

Someone I worked with here in Korea (another US citizen) had not filed for 7 years as he was below the income threshold. Yet when he was preparing to return home to enter graduate school AND BRING HIS KOREAN WIFE ALONG, he was 'CAUGHT WITH HIS PANTS DOWN". He had to scramble and hire an accountant when the US embassy declared he needed to "DEMONSTRATE PROOF OF SUPPORT"

She almost didn't get to leave on the same flight.

As it has been 12 years, your wife might be well served to hire and accountant who practices in the state where her residency is declared for two reasons:

1. It has been so long since she filed

2. Every state is different in terms of it's OWN TAX LAWS. If she's
a resident of a state that has STATE INCOME TAXES, she might
have to file state returns as well as federal.