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Expatriate Tax Return Audits

Audit of Form 2555 – Foreign Earned Income Exclusion

Most people call an audit of your form 2555, the Foreign Earned Income Exclusion form, an expatriate audit. We feel that an audit of the above form can, and may, lead to auditing other areas of your return. It can lead to auditing other tax years as well.

Form 9209 – Bona fide Residence/Physical Presence Questionnaire

In this form, the IRS gathers information to help determine if you meet their tests. Meeting these tests were essential in determining if you qualified for the Foreign Earned Income Exclusion ($91,400 maximum for 2009) when you filed form 2555. The IRS may also send you other questions concerning residency, payment of foreign taxes, etc. In this way, they gather information to assist in probing areas to help them disallow the exclusion. They will also have written statements, which can be used as evidence against you.
We can represent you by first gathering the evidence in your favor that supports the Foreign Earned Income Exclusion. Then, we can fill out any questionnaire in a manner that supports your ability to keep the exclusion. As you representatives, we can attempt to narrow the scope of the audit. We can assist you in getting the proper documents to support any expenses you claim or other items on your return. We can slow down their process of auditing every year and item they can find. We can assist you in reducing the liabilities, the penalties, etc., by negotiating a settlement more in your favor. Please consider our audit knowledge and experience. As always, contact us before you contact the IRS.