moving to BA; have some questions

[luddite]

Hi all,
I've been a member on this forum for about a year now and have travelled extensively throughout Argentina (I even own an apartment in Bs. As.). I've been trying to relocate to Argentina for some time and now I find out my job will transfer me there in January 2009. Does anybody have experience with working for an overseas (American) company and living in Argentina? I have questions about compensation, taxes, documentation, etc.
Thanks

 

[Niteman]

Hi all,
I've been a member on this forum for about a year now and have travelled extensively throughout Argentina (I even own an apartment in Bs. As.). I've been trying to relocate to Argentina for some time and now I find out my job will transfer me there in January 2009. Does anybody have experience with working for an overseas (American) company and living in Argentina? I have questions about compensation, taxes, documentation, etc.
Thanks

Hi there, Having a job for an American company in Argentina can be a very good thing, and if you get paid in dollars, even better... there are a lot of things you can really enjoy in Buenos Aires if you have good earnings, like great restaurants, bars, night clubs, shows, etc, etc, so Aside from your job, you will have a very good time here.Regarding taxes the only thing I know (I´m an Argentinian who lived 12 years in the US and is also an American citizen), as long as you don´t make more than... I think it is us$70,000 per year, you do not need to pay taxes in America (you do need to file every year though, in the American embassy)... keep in mind I´m not completely sure about the amount, but that can easily be found out in the Embassy... (I have been back for 2 years and I haven´t filed yet... I need to do it ASAP).Cheers

 

[amat]

HI,
From my knowledge, it's $82k+ (per person, if married) before you have to pay taxes in the US. You are supposed to file tax returns yearly, BUT nobody's going to come after you if you don't. The issue will be when you go back to the US - you'll have to do all the returns you didn't do while gone.

 

[steveinbsas]

HI,
From my knowledge, it's $82k+ (per person, if married) before you have to pay taxes in the US. You are supposed to file tax returns yearly, BUT nobody's going to come after you if you don't. The issue will be when you go back to the US - you'll have to do all the returns you didn't do while gone.

The income exemption applies to "active" earned income. Rent received here (passive income), for example, is subject to US taxation. The three year statute of limitations on tax collections does not begin until the date of filing for any given year and there is no statute of limitations for returns not filed. If you wait until after returning to the US to file and end up owing taxes in the US, penalties and interest can add up fast. If you are required to (and actually) pay into a government social security program abroad, you do not have to pay the social security tax in the US, either. In order to qualify for the foreign income exemption you must live outside the US at least 330 days of the tax year.

 

[igor]

HI,
From my knowledge, it's $82k+ (per person, if married) before you have to pay taxes in the US. You are supposed to file tax returns yearly, BUT nobody's going to come after you if you don't.

IMHO, if you don't properly request this 82k earned income exclusion in a year when you were eligible, you loose all rights for it. So, if IRS later will decide you owe them money, earned income exclusion will not be taken into consideration at all.

 

[amat]

ahhhh... I'm far off of making that much anyway, so i'm not too worried! I'm Irish, with US citizenship, but havent' lived in the US for 7 yrs or so and probably won't again unless something pops up. But - i do still pay my student loans..
Luddite - since it seems your ties are in the US and you plan to go back, it might be worthwhile getting a tax lawyer to advise you as a one off thing.. i'm sure sombody on this site knows one in BA that's familiar with US expats in these situations. It could save you in the long run...

 

[steveinbsas]

IMHO, if you don't properly request this 82k earned income exclusion in a year when you were eligible, you loose all rights for it. So, if IRS later will decide you owe them money, earned income exclusion will not be taken into consideration at all.

This site has some useful information:

www.taxmeless.com/page4.html

And includes the following:

"What About Returns Which Were not Filed for Years You Lived Abroad?

Though not required to by law, the IRS currently allows an expatriate to file past tax returns which were erroneously not previously filed and claim the foreign earned income exclusion and foreign tax credits as if the returns had been filed on a timely basis. That usually means most delinquent expatriates who file past returns owe little taxes or interest after claiming those benefits. It can easily be determined if returns are owed for past years by ordering a transcript from the IRS. This can be done by a tax professional without triggering any inquiry from the IRS concerning the taxpayer."

Also:

"The IRS usually has several agents attached to the U.S. Embassy in each country to assist U.S. Citizens and to search out and report to the IRS citizens who may not be filing their U.S. tax returns."

I think that filing on time, as Igor implies(with requested extensions if necessary), is the best approach. It would be interesting to know if there are any "tax lawyers" in BA who are familiar with US tax law...or who would be able to defend a US taxpayer in the event of an audit or dispute over taxes owed.

I have filed on line from BA without any problems. There are many websites that are approved by the IRS: www.irs.gov.

 

[igor]

One more link: http://aca.ch/nonfiler.htmIt looks like you are allowed to claim the exclusion for previous years, but there is a big difference depending on whether IRS discovered that you owe taxes or not.

 

[steveinbsas]

One more link: http://aca.ch/nonfiler.htmIt looks like you are allowed to claim the exclusion for previous years, but there is a big difference depending on whether IRS discovered that you owe taxes or not.

The sie I referred to (www.taxmeless.com/page4.html) also includes the following;

"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."