Re: Comment
Posted: Sat Mar 02, 2013 7:16 am
[quote="PsyGuy"]@wrldtrvlr123
Thats why my example of technical and practical. So technically there is a penalty, but if i owe zero taxes then any percentage of zero, is (drum roll): zero. Thats not anywhere near a lot of money, its "no" money.
Yes technically again you owe taxes on your world wide income, but practically that amount is whatever I say it is, if i even acknowledge im working. The IRS isnt getting a W-2 from my IS.
---------------------------------------------------
Possibly, but you ignored the fact that it is not uncommon for the IRS to file for you and assign you income/taxes if you do not file. The onus would then be on you to prove their version is not accurate.
Also, if you do not apply for the foreign exclusion, you owe tax on the entire amount you earn. Maybe the IRS never has a way of finding out, maybe they do.
And, you can still get a refund, depending on whether you have some type of US based income. We got a nice refund this year since we had partial overseas income and partial US based taxable income.
Obviously some people are comfortable taking their chances with the IRS coming after them. We prefer to have one less thing to worry in life if it can be avoided with a few minutes work and very little cost.
Thats why my example of technical and practical. So technically there is a penalty, but if i owe zero taxes then any percentage of zero, is (drum roll): zero. Thats not anywhere near a lot of money, its "no" money.
Yes technically again you owe taxes on your world wide income, but practically that amount is whatever I say it is, if i even acknowledge im working. The IRS isnt getting a W-2 from my IS.
---------------------------------------------------
Possibly, but you ignored the fact that it is not uncommon for the IRS to file for you and assign you income/taxes if you do not file. The onus would then be on you to prove their version is not accurate.
Also, if you do not apply for the foreign exclusion, you owe tax on the entire amount you earn. Maybe the IRS never has a way of finding out, maybe they do.
And, you can still get a refund, depending on whether you have some type of US based income. We got a nice refund this year since we had partial overseas income and partial US based taxable income.
Obviously some people are comfortable taking their chances with the IRS coming after them. We prefer to have one less thing to worry in life if it can be avoided with a few minutes work and very little cost.