April 15th is a very important deadline for U.S. citizens living here in Colombia because they have to file their taxes with the US government. Let's bring in Pat Parsons, a CPA from the United States who now lives in Bogota, to explain why this deadline is important. Actually, the deadline is June 15th for all Americans living outside of the US. If I were living back home, it would be April 15th, but because I'm abroad, I have a little more time, and it's automatic, so I don't have to do anything. Failing to file taxes now results in penalties, which were not calculated before 2008. The past penalties were based on the tax due, but starting in 2008, it will be at least $138, and then interest will accrue indefinitely. So, if you're living here and thinking you can skip filing, the least of your worries is the $138 penalty. As an American citizen living abroad, you can take advantage of the foreign earned income exclusion, which allows you to exclude a certain amount of foreign income from taxation. However, if you don't file your taxes, you risk losing this exclusion. For example, if you make $60,000 outside of Colombia and don't file your taxes, the IRS can come looking for you in the future and demand payment. If you wait for the IRS to come looking for you instead of filing your taxes first, there will be no statute of limitations. If they discover that you made $60,000 in previous years, they can come back to you and demand payment. Filing your taxes is relatively easy for the average American living in Colombia. It just involves filling out a form or getting an accountant who knows what they're doing. The amount of paperwork depends on your specific...
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Video instructions and help with filling out and completing What Form 8865 Expats
