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scot47 · Joined: 10 Jan 2003 Posts: 15343

I still sometimes feel astounded that I get paid so much for doing so little.

007 · Posted: Mon Sep 27, 2010 4:05 pm Post subject:

scot47 · Joined: 10 Jan 2003 Posts: 15343

So why are you hiding in Lancashire, pussycat ? Come and join us in Arabia !

007 · Posted: Mon Sep 27, 2010 6:00 pm Post subject:

Well, Uncle Scott, I have to wait until 2012, the date of your retirement, to go to the Magic Kingdom to take up the golden baton from you! Laughing

Cats and dogs shoul not be in one place. Laughing

Never Ceased To Be Amazed · Posted: Mon Sep 27, 2010 7:13 pm Post subject:

It's a real BIG sandbox...

NCTBA

johnslat · Posted: Mon Sep 27, 2010 7:40 pm Post subject:

Dear 007,

"Cats and dogs shoul not be in one place."

Any yet, here in my house in Santa Fe, they (two dogs, one cat) coexist quite comfortably.

Regards,
John

lazycomputerkids · Joined: 22 Sep 2009 Posts: 360 Location: Tabuk

johnslat · Posted: Mon Sep 27, 2010 9:29 pm Post subject:

Dear lck,

"If you fail to file that return for any tax year (whether a return is required or not), the statute of limitations on tax assessments for that year will never run out. Therefore, if you live abroad for 10 years, and then return to the United States, the IRS may question your failure to file returns for those ten years and later make assessments based on their best estimate you're your income. The interest and penalties on any old tax amounts owed grows faster than you can imagine and after 4-5 years may exceed the amount of the original taxes owed.
If you do file your tax return each tax year while living abroad, the statute of limitations in most situations for IRS audits will expire three years after you file those returns. That means the IRS cannot go back (absent fraud) and try to audit or change those returns later. Therefore, you should file your return even if you have no income or don't owe taxes in order to force the statute of limitations to run and eliminate future problems when you decide to return to the U.S."

http://www.taxmeless.com/page4.html

"I am a U.S. citizen but had little income, must I file a return?

In general, ALL US citizens (and green card holders) living and working abroad are required by law to file an annual US tax return, irregardless of whether or not they owe any taxes. If you are supposed to file and do not, you could be subject to civil penalties or criminal prosecution under U.S. federal law.
If you would be required to file if you were living in the US, then you are required to file while living overseas. If your income is below the amounts listed in the chart below, you are not required to file.

See the amounts listed below to determine if you have a filing requirement for tax year 2007:

IF your filing status is...
AND at the end of 2008 you were...
THEN file a return if your gross income was at least...
single under 65 $8,950
65 or older $10,300
married filing jointly under 65 (both spouses) $17,900
65 or older (one spouse) $18,950
5 or older (both spouses) $20,000"

I suppose it depends on how one defines "pittance."

"U.S. Citizens and Resident Aliens Abroad

If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income tax, regardless of where you reside.

When to File

If you reside overseas, or are in the military on duty outside the U.S., you are allowed an automatic 2-month extension to file your return until June 15. However, any tax due must be paid by the original return due date (April 15) to avoid interest charges.

If you are unable to file your return by the due date, you can request an additional extension to October 15 by filing Form 4868 before the return due date. However, any payments made after June 15 would be subject to both interest charges and failure to pay penalties."

http://www.irs.gov/businesses/small/international/article/0,,id=97324,00.html

Regards,
John

lazycomputerkids · Joined: 22 Sep 2009 Posts: 360 Location: Tabuk

johnslat · Posted: Mon Sep 27, 2010 9:59 pm Post subject:

Dear lct,

Unless I'm looking in the wrong place, I believe the quote from the IRS tax page says, "regardless."
But I'm with you on the "In general" and "all"

I hadn't known that bit about the statute of limitations, either:

"If you fail to file that return for any tax year (whether a return is required or not), the statute of limitations on tax assessments for that year will never run out. Therefore, if you live abroad for 10 years, and then return to the United States, the IRS may question your failure to file returns for those ten years and later make assessments based on their best estimate you're your income. The interest and penalties on any old tax amounts owed grows faster than you can imagine and after 4-5 years may exceed the amount of the original taxes owed.
If you do file your tax return each tax year while living abroad, the statute of limitations in most situations for IRS audits will expire three years after you file those returns. That means the IRS cannot go back (absent fraud) and try to audit or change those returns later. Therefore, you should file your return even if you have no income or don't owe taxes in order to force the statute of limitations to run and eliminate future problems when you decide to return to the U.S."

I filed every year, paid nothing every time. Of course, now, my Social Security checks ARE "a pittance" - but that's the price one pays.

Regards,
John