So, I filed my taxes for the third straight year as an American teaching in Taiwan. I met the requirements for foreign earned income tax exclusion (and filed the proper paperwork), but I recently got a letter saying I owe them $1,000 US.
Has anyone ever dealt with the IRS internationally? They left a number, but it would be a long distance call. Is there an easier way to tell them that they made a mistake and I’m not paying them a dime?
An even $1000 is an unusual amount for tax due, so it sounds like you’re being fined for some reason.
How do you know it’s their mistake? Perhaps there is something more that you’re not including? Did you have investment or savings income in the US that you didn’t claim? Were you late filing, beyond the normal extension for living overseas? Were there some missing years when you didn’t file?
I don’t know how you can find out if you don’t contact them. I’d call, but then again I use MagicJack so unlimited calls to/from the US are only US$20/year. I also have Google Voice on my cell phone for free calling. There are options, and I wouldn’t mess with the IRS.
Did you file late one year? Maybe the paperwork didn’t reach them in time.
Did you pay the US social security taxes? I think you are still required to pay those in Taiwan if you are a USC.
I don’t think you can TELL the IRS anything, and they can probably get a court order forcing you to pay as soon as you come under the US’ jurisdiction. I don’t know exactly how these things work, but it’s feasible that you return to the USA five years from now and get arrested at the airport.
I would try very hard to contact them and DISCUSS.