Expat Tax Online

03/06/2026

🤔 Are you an American living abroad? Your taxes are more complicated than you think.

Most Americans overseas assume their tax situation is simple — until it isn't.

The truth? The US taxes based on citizenship, not residency. That means even if you owe nothing, you may still have filing obligations — including FBAR, FATCA, foreign pensions, and more.

Here's what the guide covers:
✅ When DIY software is enough and when it becomes risky
✅ What expat tax services actually cost in 2026
✅ The red flags to watch for before hiring anyone
✅ Which situations require a specialist (and which don't)

Whether you're a freelancer abroad, a foreign business owner, or someone who hasn't filed in years, the right service depends on your situation.

Read the full guide here 👇
🔗 https://www.expattaxonline.com/best-expat-tax-services-for-americans-abroad-in-2026/

03/06/2026

A funny for Wednesday

An Ode to FATCA (Or: Why Being Born American is Ruining My Wednesday) I moved to the UK when I was just three, I've got a British passport, I drink PG Tips tea. I pay my UK taxes, I queue without complaint, But one thing keeps haunting me — and it's driving me quite faint. I was born in Boston. Ju...

02/06/2026

🇺🇸 🇬🇧 Allison's US tax story...

"I'm Allison, born in the US. Left at age 3.

Nobody told me about the tax returns.

𝗧𝗵𝗶𝘀 𝘁𝗼𝗼𝗸 𝗺𝗲 𝘄𝗲𝗲𝗸𝘀 𝘁𝗼 𝗳𝗶𝗴𝘂𝗿𝗲𝘀 𝗼𝘂𝘁...

I'm what the US tax industry calls an "Accidental American".

Born in Boston.
Moved to the UK aged 3.

British passport.
British pension.
British ISA.

When I found out I should have been filing US tax returns my whole adult life, I didn't know I had three problems.

1. I had a SIPP.
2. I had a Stocks and Shares ISA with seven funds.
3. And I had no Social Security Number.

I assumed that last one meant I couldn't even engage with the US tax system.

I was wrong. And the way I was wrong was entirely in my favour.

𝗡𝗼 𝗦𝗦𝗡? 𝗡𝗼𝘁 𝗮 𝗽𝗿𝗼𝗯𝗹𝗲𝗺.
The IRS Relief Procedure doesn't require one. Built specifically for people like me — left as infants, never worked in the US, never had reason to get one.

𝗧𝗵𝗲 𝗦𝗜𝗣𝗣 𝗽𝗿𝗼𝗯𝗹𝗲𝗺
To the IRS, a SIPP is a foreign grantor trust. That means Form 3520 and Form 3520-A — filed separately, every year.

Miss Form 3520-A and the penalty is $10,000 per year or 5% of the account value — whichever is greater.
Almost impossible to remove through normal routes.

Six years of missed forms = 𝗽𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹𝗹𝘆 $𝟲𝟬,𝟬𝟬𝟬+ 𝗶𝗻 𝗽𝗲𝗻𝗮𝗹𝘁𝗶𝗲𝘀.
Under the Relief Procedure: every penny waived.

𝗧𝗵𝗲 𝗜𝗦𝗔 𝗽𝗿𝗼𝗯𝗹𝗲𝗺
Seven funds in a Stocks and Shares ISA.
To the IRS, every fund is a PFIC.
Each one needs its own Form 8621, every year it's held.
Seven funds. Six years. Forty-two forms.
$15,840 tax due to the IRS.

𝗧𝗵𝗲 $𝟮𝟱,𝟬𝟬𝟬 𝘄𝗿𝗶𝘁𝗲-𝗼𝗳𝗳
My correctly calculated tax liability across six years: $15,840.
If your total liability is $25,000 or less — the IRS writes it off. Entirely.
My $15,840: gone.

✅ No SSN required
✅ 3520-A penalties waived
✅ PFIC penalties eliminated
✅ $15,840 tax liability written off
✅ Clean exit. No covered expatriate status. No risk to my children.

The Relief Procedure was built for accidental Americans. But only works if the returns are prepared accurately enough to qualify.

𝗧𝗵𝗶𝘀 𝗶𝘀 𝗻𝗼𝘁 𝗮 𝗗𝗜𝗬 𝗮𝗻𝗱 𝘀𝗮𝘃𝗲 𝗷𝗼𝗯. 𝗚𝗲𝘁 𝗮 𝗽𝗿𝗼𝗳𝗲𝘀𝘀𝗶𝗼𝗻𝗮𝗹."

👉 Learn more
https://www.expattaxonline.com/renounce-us-citizenship-uk/

01/06/2026

Did you pay IRS penalties during the COVID-19 disaster period?

Some US taxpayers may now qualify for refunds of IRS penalties and related interest connected to filing or payment delays during the COVID-19 disaster period, following the 2025 Kwong v. United States ruling.

The case may extend the deadline for filing refund claims until July 10, 2026, potentially affecting late filing penalties, late payment penalties, interest charges, and certain other IRS assessments tied to the COVID disaster period.

Key things to know:

• This is not a new stimulus check

• This is not an automatic IRS refund

• This is not guaranteed relief

• This is not a blanket refund for every IRS penalty

• You should not assume the IRS will protect your refund rights automatically if you take no action

Who may qualify for IRS COVID penalty refunds? Check out the full guide to learn more 👇
https://www.expattaxonline.com/covid-penalty-refund/

Some US taxpayers may qualify for COVID-era IRS penalty refunds tied to penalties and interest paid between January 20, 2020, and July 10, 2023.

01/06/2026

From a client that recently renounced...

"𝗜 𝘁𝗿𝗶𝗲𝗱 𝘁𝗼 𝗱𝗼 𝗺𝘆 𝗼𝘄𝗻 𝗿𝗲𝗻𝘂𝗻𝗰𝗶𝗮𝘁𝗶𝗼𝗻 𝘁𝗮𝘅 𝗿𝗲𝘁𝘂𝗿𝗻𝘀. 𝗜𝘁 𝗮𝗹𝗺𝗼𝘀𝘁 𝗰𝗼𝘀𝘁 𝗺𝗲 $𝟭𝟵,𝟬𝟬𝟬."

I'd made my decision. Ten years in London. Done with the US passport.

Hadn't lived in America since childhood.

I needed six years of back US tax returns to exit the US tax system properly.

So I looked for professional help.

The quotes came back: £2,500. £6,000. £8,500. £12,000. £20,000.

Five firms. Same job. £18,000 between cheapest and most expensive.

I thought — someone is taking the mick. It's a form-filling exercise.

So I did it myself.

Three evenings. Free software. One horrible number.

I found free US tax software online. Read the Reddit threads.
Gathered six years of P60s, pension records, bank statements.

The software gave me my answer.

$19,347 owed to the IRS.

Nearly £15,000. For a country I barely lived in. Having paid UK taxes the entire time.

I nearly just paid it.

Instead, I made one more call — to an international US tax specialist.

What they found changed everything.

The free software had missed things I didn't even know existed:

→ My Foreign Tax Credits hadn't been properly optimised

→ A pension contribution was wrongly treated as taxable income

→ One year had rental income counted twice due to currency conversion

Properly prepared, my bill dropped from $19,347 to $16,215.

Still too much. Still wrong.

Then the adviser asked: "Have you heard of the IRS Relief Procedure for Certain Former Citizens?"

I hadn't.

The programme almost nobody talks about.

Introduced in 2019, it was designed for people like me — grew up outside America, never filed US returns, genuinely didn't know I had to.

If you qualify, the IRS writes off your entire tax liability up to $25,000.

Completely. No payment plan. No negotiation. Gone.

I qualified on every count.

My $16,215 bill? Written off entirely.

I filed six years of properly prepared returns, my renunciation certificate, and a short non-wilful statement.

The IRS accepted it. I exited the US tax system permanently.

Zero exit tax.

Zero penalties.

Zero future obligations.

The final numbers:

DIY software said I owed: $19,347

Professionally prepared: $16,215

Paid to the IRS: $0

Specialist fees: ~$3,000

Total saving vs paying the DIY bill: $16,347

Red Adair put it best:

"If you think hiring a professional is expensive, wait until you hire an amateur."

In my case, the amateur was the software.

The right specialist — who actually knew this programme existed — saved me $16,000.

If you've renounced US citizenship, never filed US returns, and your assets are under $2 million — the Relief Procedure may apply to you too.

Learn More

https://www.expattaxonline.com/renounce-us-citizenship/

Over 10,000 five-star reviews from expats who thought this was going to cost a fortune.

It doesn't have to.

29/05/2026

Does a discretionary trust in Australia legally have an owner? The answer might surprise you.

From an Australian perspective, a discretionary trust is a separate legal entity. That means there is no real owner in the traditional sense. Different people play different roles with different levels of control over the trust, and the person who receives the ultimate benefit can be someone entirely different from the person who set it up.

The problem is that this concept can be misleading, especially for US tax advisors trying to classify the trust under US rules. Because the US absolutely needs to know who the owner is. The IRS looks at who controls the trust, who contributed to it, and who benefits from it to determine classification. That disconnect between how Australia and the US define ownership is where a lot of US expats run into serious tax complications.

Need help filing your US expat taxes while living in Australia? Expat Tax Online helps Americans abroad file accurately, maximize tax credits, and stay IRS-compliant without the hassle.

For more expat tax tips, find us on YouTube 👇 https://www.youtube.com/

Grab a free copy of our 2026 US-Australia Tax Filing Guide 👇
https://www.expattaxonline.com/how-to-file-us-taxes-from-australia/

29/05/2026

🇺🇸 𝗥𝗲𝗻𝗼𝘂𝗻𝗰𝗶𝗻𝗴 𝗨𝗦 𝗰𝗶𝘁𝗶𝘇𝗲𝗻𝘀𝗵𝗶𝗽?

You live outside the US.

You pay tax where you live.

You do not use US services.

You especially do not want to keep filing US tax returns!

So surely you just hand in your passport and move on?

Sadly, no.

Because renouncing US citizenship is not one exit.

It is two.

The first exit is with the State Department via a US embassy.

The second exit is with the IRS.

And if nobody explains that properly, it is very easy to walk out of the embassy thinking you are done, when the tax side is still sitting there waiting for you.

The US embassy and State Department handle the citizenship side.

The forms.

The oath.

The fee.

The Certificate of Loss of Nationality.

That is the part most people understand and frankly, the easier of the two steps.

The IRS side is different.

The IRS does not automatically say:

“Ah, I see you renounced. No problem. We’ll close your file and wish you all the best.”

Lovely idea.

That’s not how it works.

Not even close.

The IRS wants to make sure you’re leaving the US tax system cleanly.

Every i dotted.

Every t crossed.

The devil is in the detail.

That usually means filing Form 8854 and certifying that you have been US tax compliant for the 5 years before renouncing, among other things.

This is where people get caught out.

Not because they are trying to hide anything.

Not because they’re being reckless.

But because the system is confusing, poorly explained, and very easy to misunderstand.

And the consequences can be outrageous.

If you cannot certify 5 years of US tax compliance, you may become a “covered expatriate.”

Being a covered expatriate is not good news.

Not one bit.

It can affect whether exit tax rules apply.

It can also create problems later if you gift assets to US family members, or leave assets to them when you die, because Section 2801 can potentially tax certain gifts or inheritances received by US persons from covered expatriates.

In plain English:

Renouncing is not just about handing back your passport.

It is about leaving cleanly.

The embassy handles your citizenship exit.

The IRS handles your tax exit.

You need both sides dealt with properly.

For many Americans abroad, this really does feel like David v Goliath.

You are just trying to move on with your life.

The US tax system is standing there with forms, thresholds, rules, and
consequences that nobody clearly explained at the start.

Get qualified, experienced advice.

Plan it like a prison escape.

Because if you get it wrong, your family could inherit far less than expected.

27/05/2026

Michelle has been with us for a few years and this one means a lot. 🧡

Clear communication. Timely updates. Efficient work. That is what we show up to deliver for every client every year.

If you are looking for a US expat tax service that keeps you in the loop from start to finish, we would love to help.

Get in touch today and let us take it from here 👇
https://www.expattaxonline.com/contact/

26/05/2026

Thinking about moving to a tax haven as a US citizen? Here's what you need to know.

In 2026, popular tax-friendly destinations for US expats include the UAE, Singapore, the Bahamas, and Panama, mainly due to their low or zero income tax systems. That said, Americans are taxed on worldwide income, so the real benefit depends on how these systems interact with US rules such as the Foreign Earned Income Exclusion (FEIE) and the Foreign Tax Credit (FTC).

What is a tax haven?
A country that charges little or no tax on income, often combined with rules that favor foreign income or make residency easier for non-citizens.

How do tax havens work for US expats?
Moving to a low-tax country does not automatically eliminate your US tax bill. The US taxes based on citizenship, not residency. So even if you live in a zero-tax country, you still file a US tax return, you still report worldwide income, and you may still owe US tax.

How do you choose the right tax haven?
The best tax haven for US expats depends on your income type, residency goals, and how your situation fits with US tax rules like the FEIE and Foreign Tax Credit. A country that works for a freelancer may not work for an investor.

Read the full 2026 breakdown here 👇
https://www.expattaxonline.com/tax-haven-countries/

The top tax haven countries for individuals in 2026 include the UAE, Singapore, the Bahamas, and Panama due to low or zero income taxes.

25/05/2026

Do you have an Australian trust? Here's what the IRS needs to know.

Trusts are common in Australia, especially if you run a business or hold family wealth. But most US expats don't realize they create a US tax obligation too.

Are Australian trusts common? More than you'd think. If you have a business or investment structure in Australia, there's a good chance a trust is involved.

Why is this a problem for US taxes? The two systems treat trusts completely differently. Unless your advisor knows both, things fall through the cracks fast.

What do most advisors get wrong? They classify the trust through a US lens without understanding how it works under Australian law first. That's where mistakes happen.

What should I do? Get it reviewed by someone who knows both systems. The wrong classification can mean missed reporting and IRS penalties.

Need help filing your U.S. expat taxes while living in Australia? Expat Tax Online helps Americans abroad file accurately, maximize tax credits, and stay IRS-compliant without the hassle.

For more expat tax tips, find us on YouTube 👇
https://www.youtube.com//featured

Grab a free copy of our 2026 US-Australia Tax Filing Guide 👇
https://www.expattaxonline.com/how-to-file-us-taxes-from-australia/