Expat Services

Palazzo & Company, LLC serves Expat Clients working around the world. We are committed to providing the highest level of service to our Expat Clients. The list below is just a sample of the value-added services we provide.

  • Federal and State Tax Return Preparation on a fixed-fee level
  • Amended Returns
  • Tax organizers to help make filing as convenient as possible for taxpayers working away from home
  • Simple and easy communications – contact us by phone, email, fax, or traditional mail
  • Extensions and special form filing
  • Experienced Expat CPA review and preparation of all returns – we will never outsource any of our work
  • IRS representation and correspondence
  • Informative newsletters and updates for Expats
  • Personal on-site visits if permissible by employer
  • Prior-year preparation of all returns
  • Review of previously prepared returns for new clients
  • Year-round planning and support

We know that tax issues do not just arise during tax season. That is why Expats can depend on our services year round. We provide many services in addition to Expat tax return preparation, such as answering your questions, assisting in tax planning and advising you on ways to maximize tax savings.

Because of the time zones and distance between us, we strive to make our services as convenient for you as possible. We offer various ways of communicating with us and provide you with the resources to help you efficiently gather the information we will need to better serve you.

Foreign Earned Income Exclusion

As an Expat working in a foreign country, you may be eligible to exclude up to a certain amount of your foreign earned income from your taxable income. You may also be eligible to deduct certain qualified housing costs. A foreign country is any country that is not the United States, or a territory or possession of the United States. The foreign earned income exclusion is not available to Expats working in a restricted country, unless the company you work for has a license under the Office of Foreign Asset Control to do so. To receive the exclusion of income, an Expat must qualify for the physical presence test or bona fide residence test.

Physical Presence Test – The physical presence test requires a taxpayer to be overseas for a full 330 days during a 12-month period. This can be any 12-month period that is most beneficial to the taxpayer. A full day begins at midnight and runs 24 hours. The 12-month period can slide backwards or forwards as long as the Expat meets the 330-day test.

Bona Fide Residence Test – Expats who work in foreign countries may be eligible for the bona fide residence test. To qualify, you must be a bona fide resident of a foreign country for a full calendar year and expect to be overseas indefinitely. When in doubt, an Expat should plan to use the physical presence test until a bona fide residence determination can be made. The presence test is especially important in case of the calendar year requirement not being met. In addition, to qualify for this test you must never declare yourself a nonresident of the foreign country; you must also be subject to that country’s income tax, unless the country does not have a personal income tax (such as UAE, Kuwait, Saudi Arabia, etc.).

Combat Zone – There is no IRS benefit for Expats working in a combat zone. This is reserved for the US Military. In some circumstances, additional time to file may be granted but there is not a combat zone tax exclusion.

Waivers of Test Requirements – The only waiver of the time requirements is if a taxpayer has to leave a foreign country due to hostile actions, adverse conditions, or war. Note: see the IRS notice that declares such areas available for a waiver. To even be considered for this waiver, your tax home must have been established in the foreign country prior to the hostility or war.

Caution: Do not try to interpret the IRS regulations on your own or use inexperienced local firms or franchise tax partners. Use only professional Expat Tax Firms.