Korean Job Discussion Forums

[22tea77]

If we apply for the Residency Certification from the IRS and hand it in to the POE during the first month, we will be exempt from paying Korean Income Taxes (for the first 2 years). Understood!
Now, I was planning on filing for the Foreign Income Exclusion on my American taxes based on the physical presence test (330 days or more out of 365 out of the country) to avoid paying USA Taxes.
Called the IRS today to see if BOTH can be done...ie. by applying for exemption from Korean taxes will that in any way influence my eligibility for the Foreign Income Exclusion on my American Taxes.
The Gentlemen on the phone gave me an answer full of "probably", "I would imagine that.." and "Most likely".
Has anybody here dealt with this issue already that can give me a definitive answer?
If so, thanks for the info, and I will recommend you for a position with the IRS!

[Zaria32]

Unfortunately, it's a settled matter of law that you, the American taxpayer, cannot rely on advice given to you by the IRS about your taxes, no s**t this is the truth.

I've read many times (and I do not profess to know this for sure) that if you file for the exemption in Korean income taxes, you will NOT be able to get the $80,000+/- exclusion on your US taxes. Korean Income Tax is therefore, a bargain.

[boyne11]

[22tea77]

You are correct about the IRS. I just called again, got a different person, got a COMPLETELY different answer!
Surely someone on this board has been in the same situation and has somehow resolved all this confusion.

[Zaria32]

Boyne, I don't know which part of my post you were saying is not true.

If you meant that you can't avoid both Korean and US taxes, I most certainly could be wrong about that. And of course, you are correct not to expect tax advice from a bunch of ESL teachers.

However, if you meant that you CAN rely on advice from the IRS, on their helpline or whatever, you are absolutely in error. If you are given and follow inaccurate advice by an IRS employee, on the helpline or in a meeting, and the IRS rules that your return was incorrect, you pay the penalty, interest, whatever.

[dogshed]

I found it helpful to ask the advisor on the phone exactly where what
they are saying can be found in the documentation. They are usually
looking at the paper copy so downloading the pdf version will allow
you to refer to the same page numbers.

You can get both the Korean tax break and the US tax break as the original
poster said.

If you do a search for some of my previous posts hopefully you will find that
helpful.

[22tea77]