May 10, 2006 -- Two Internal Revenue Service officials cautioned that the agency is stepping up its audits of U.S. taxpayers living abroad and claiming residency tax breaks and foreign tax credits, among other transactions. The IRS claims that an increase of upward of 10,000 audits will be completed this year alone.

Did you know that the IRS is hiring 100 more individuals just to handle their international case load due to an increase of as many as 4 million individuals who claim foreign tax credits?

Did you know that as a U.S. Citizen or Green Card holder when you transfer or move overseas regardless of the length of your transfer that you are still responsible for U.S.taxes on all of your worldwide income and must file a U.S. tax return for all the years you are living outside the U.S.?

If you have recently taken up on international assignment, or been on assignment, then you may be subject to an audit from the IRS?

The IRS recommends immediate compliance for those individuals who have not completed their income tax returns to avoid a potential audit.

Let our qualified team of Expatriate and Foreign National Tax practitioners assist you.

If you are interested in learning more about this issue, please contact Bill Burns at 215-564-1900.

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