Korean Job Discussion Forums

[CeleryMan]

Folks,

I imagine most of the US expats on this forum are taking advantage of the 'foreign income exlusion provision.' This benefit only applies to those who pass the 'bonafide resident' test (330 days).

How does the US IRS monitor or validate this? In other words, if one exceeds the 35 day repatration allowance period how would this data be reported to the IRS, if at all? Does Uncle Sam have a connection with Homeland Security?

I hold an F-4 visa however, I can't recall ever disclosing my social security # anytime throughout the process?

Comments, thoughts?

[jmbran11]

My guess is that they don't verify it, unless you get audited. They are not automatically connected with Homeland Security, but I bet they could subpoena your passport if necessary. Once again, it's probably unlikely unless you set off some red flags, but it would be the basis for a tax fraud criminal charge, as well as some hefty fines, if you get caught.

I suggest you consider whether or not you can meet the 330 requirement any time during the 2006 year. See if you can some start/finish dates that would make you eligible. Otherwise, you may just use the foreign income tax credit and end up not owing anything anyway. Your income is only whatever you say it is, and it is more difficult to verify than your travel dates.