Tuesday February 19, 2019
Tax Scams Go International
Many U.S. citizens are employed overseas. They may qualify for the Foreign Earned Income Exclusion (FEIE). In 2018, the FEIE is $104,100. With this exclusion and, for some taxpayers, an added housing exclusion, they may not have a U.S. tax obligation.
However, the tax fraudster will claim the taxpayer still needs to file Form W-8BEN. In addition, the fraudsters may ask for passport numbers and bank PIN codes.
The Service urges all taxpayers to be cautious if they receive a letter claiming to be from the IRS or a tax software company. Tax fraudsters will use personal information to steal funds from bank accounts or other property.
The IRS published three "will nots" that are designed to protect taxpayers.
- Payments The IRS will not demand payment with a specific method such as a prepaid debit card.
- Immediate The IRS will not demand immediate payment. Taxpayers have the right to administrative appeals with the IRS and even an appeal to the Tax Court.
- Arrest The IRS will not threaten immediate arrest by local police, immigration officers or other law enforcement personnel.