What to Do If You Receive an IRS Audit Notice as a US Expat
Receiving an IRS audit notice can be stressful, especially for US expats managing taxes across multiple countries. However, understanding the audit process and knowing how to respond can help protect your finances and minimize penalties.
Why Would an Expat Be Audited?
Expats are often audited due to unreported foreign income, missing FBAR (Foreign Bank Account Report) filings, or discrepancies in Foreign Earned Income Exclusion (FEIE) claims. Common audit triggers include:
- Large foreign income exclusions without documentation.
- Unreported foreign bank accounts exceeding $10,000.
- Incorrect Foreign Tax Credit (FTC) claims.
Steps to Take If You Get an IRS Audit Notice
- Do Not Panic: The IRS audit process is manageable with the right approach.
- Review the Notice Carefully: Determine the issue being audited and the requested documentation.
- Gather Supporting Documents: Collect tax returns, foreign income records, and proof of residency.
- Consult an Expat Tax Expert: Professional assistance can help you navigate audit defense and minimize penalties.
Expats facing audits should act quickly to protect their financial standing. If you need expert guidance, Expatriate Tax Returns provides experienced audit defense to ensure compliance and peace of mind.
👉 Need help with an IRS audit? Contact us today at (877) 382-9123 or visit www.ExpatriateTaxReturns.com.
