6/12/2015

File Your U.S. Taxes in Korea: Earned Income Tax Exclusion/FBAR

Most Americans/American permanent residents living abroad are required to file a U.S. Income Tax Return in order to avail themselves of the Foreign Earned Income Tax Exclusion.  The Exclusion allows a taxpayer not to pay U.S. taxes on all of one's earning under a specific threshold.    You may lose the Exclusion if you do not file the return. 

The Earn Income Tax Exclusion may be filed via IRS Forms 2555 or 2555-EZ.  Additionally, Americans/American permanent residents must report certain assets above a specific reporting monetary threshold.  Additional information may be found at: IRS

Additionally, if a United States person (defined as citizen; resident; entity including but not limited to, corporations, partnerships, or limited liability) has a financial interest in/ signature authority over a foreign financial account then the electronic filing of the Report of Foreign Bank and Financial Accounts (FBAR) is required if the aggregate value of the foreign accounts exceed $10,000 at any time during the calendar year.

The FBAR must be received by the Department of Treasury on or before June 30th of the year immediately following the calendar year being reported.

For more information on FBAR please see: FBAR Reporting.

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Sean Hayes may be contacted at: SeanHayes@ipglegal.com.
 
Sean Hayes is co-chair of the Korea Practice Team at IPG Legal. He is the first non-Korean attorney to have worked for the Korean court system (Constitutional Court of Korea) and one of the first non-Koreans to be a regular member of a Korean law faculty. Sean is ranked, for Korea, as one of only two non-Korean lawyers as a Top Attorney by AsiaLaw. Sean profile may be found at: Sean C. Hayes