Financial Services
Information on Federal Income Tax Forms
All U.S. citizens and green-card holders are required to file a U.S. Income Tax Return each year regardless of where they are living and paying taxes. There are, however, provisions to avoid double taxation.
TAX FORMS: By the beginning of February, some Federal Tax Forms are available at the Embassy. We can mail you any forms we have if you call, email or mail us your request. Your request should include your name, address and number and type of tax forms needed.
Current and prior year Federal Income Tax forms are also available on the IRS website, www.irs.gov.
STATE TAX FORMS: The IRS does not accept state tax forms nor does it stock tax forms. Write or call your individual State Tax Authority for their required forms.
TAXPAYER IDENTIFICATION NUMBERS (ITIN) FOR ALIENS:
For answers to your U.S. income tax questions contact the IRS office in London, http://www.usembassy.org.uk/irs/index.htm
Internal Revenue Service, Customer Service Division, London, UK
Telephone Assistance for Overseas Callers now Available 20 Hours a day - Mondays to Fridays
Call 001-215-516-2000 from 6 am to 2am US east time zone (11 am to 7 am UK time; not a toll-free call)
Internal Revenue Service Office
There is an Internal Revenue Service (IRS) office in the U.S. Embassy in London. The staff is available to assist American citizens as well as foreign nationals regarding U.S. tax filing requirements and information on tax treaty benefits.
Federal income tax returns can be sent directly to the London Embassy IRS office. If you would like a date-stamped acknowledgement, include a copy of the first page of the tax return along with a self-addressed envelope to be sent to: Internal Revenue Service, 24 Grosvenor Square, London W1A 1AE, United Kingdom.
The address for sending income tax returns directly to the US is: Internal Revenue Service Center, Austin, TX 73301-0215, USA.
Anyone with a Federal income tax question may call the IRS office at the Embassy. There is a local automated telephone system. Callers can choose to leave form or publication orders and obtain information on filing requirements and other general information. By choosing these options, callers can avoid delays in receiving answers to their questions. Callers can also choose to speak to a Tax Assistor. Telephone assistance hours are 9:00 a.m. to 12.00 noon (GMT) Monday through Friday. Telephone: +44 20 7894-0477; FAX: +44 20 7495-4224. In addition, information and answers to individual tax questions are available through the International Customer Service Tax Assistance lines in Philadelphia. Telephone: (215) 516-2000.
Visit the IRS website at www.irs.gov to access tax forms and publications. There is also an IRS link on the London Embassy web site with specific information for overseas taxpayers. Use of these sites can save you time and money.
Alert: U.S. citizens and resident aliens are taxed on their world-wide income and are generally required to file income tax returns even though they may owe little or no tax after considering foreign tax credits and the foreign earned income exclusion.
Extensions of Time to File: Beginning with 2005 income tax returns due in 2006, individuals can use a single IRS form (Form 4868) to get an automatic six-month extension of time to file. The due date without extension for individual income tax returns is April 15. Taxpayers residing overseas are allowed an automatic extension to June 15 without filing Form 4868. A tax-filing extension does not extend the tax-payment deadline. Visit the IRS website for more information.
State Tax: State income tax forms cannot be filed with the IRS office. For state income tax information, visit www.taxadmin.org
FOREIGN EARNED INCOME EXCLUSION
11-2006 - New Law
The Tax Increase Prevention and Reconciliation Act of 2005 made changes to the foreign income exclusion provisions for U.S. citizens living abroad. The changes are effective for taxable years beginning after December 31, 2005.
The three changes in the law affecting foreign income exclusions are summarized below:
- The foreign earned-income exclusion was maintained and will be indexed to U.S. inflation as of the 2006 tax year. That means U.S. taxpayers will owe no tax on their first $82,400 of income earned abroad this year, up from $80,000 in 2005. Indexing had previously been scheduled to start in the 2008 tax year.
- The new law caps the exclusion for housing allowances. The cap is calculated as 30 percent of the foreign earned-income exclusion, minus the 16 percent that it is assumed would be paid in the United States. For 2006, it is set at $11,586. However, the law authorizes the Secretary of the Treasury to issue regulations or other guidance to adjust the percentages based on geographic differences in housing costs relative to housing costs in the United States. The information was published by the Internal Revenue Service in Notice 2006-87 on October 23, 2006. Check www.irs.gov for the table which provides the 2006 limitations on housing expenses for locations within countries with high housing costs.
- Another significant change is the treatment of foreign income and of ordinary income from U.S. sources, which includes Social Security, pension income, interest income, income from U.S. partnerships and other investment income, but does not include capital gains and qualified dividends. The change, known as the “stacking provision”, will tax any income beyond the foreign earned-income and housing exclusions at rates that would apply if the exclusion did not exist. Previously, any income beyond the exclusions was taxed as if it were the first dollar earned, and therefore at the lowest tax rate.
Refer to the 2006 edition of Publication 54 for details.
U.S. Citizens and Resident Aliens Must Report Worldwide Income (See Pub. 54)
Please ensure that:
- Your Name, Address, and Social Security Number or Taxpayer Identification Number are correct (Use the printed label, if available. Check to see all information is correct on the label and/or the return)
- Your Return is Signed
- Your Payment is made by U. S. Dollar Check (Payable to the "UNITED STATES TREASURY", not " U.S. Treasury" or "IRS")
Common Mistakes:
Overseas, an Automatic Extension to file is available to June 15th
(Make sure your return states "Taxpayer Abroad" in the top margin when this benefit is used)
- Extensions of Time to File are not Extensions of Time to Pay
(If you expect to owe tax with the return, the payment must be made by April 16, 2007 to avoid penalties and interest charges)
Use Forms 4868, 2688 or 2350 if more time is needed beyond June 15th
(Read the instructions to determine which form to use and when to use it)
- A Tax Return is due if you exceed the filing requirement
(This is true even if you qualify to exclude a portion of your income) - Mathematical Errors in income, deductions, and tax computations
(For taxpayers residing overseas, returns can become very complex and should be given an extra check for additions and subtractions) - Alternative Minimum Tax was not correctly considered
(The tax laws give special treatment to some items, e.g. Foreign Tax Credits. Taxpayers who benefit from these special laws may have to pay at least a minimum amount)
Address of IRS office in London:
Internal Revenue Service
American Embassy
24 Grosvenor Square
London W1A 1AE
United Kingdom
Phone: [44] (0)20 7408-8077
Fax: [44] (0)20 7495-4224
Phone enquiries Monday through Friday 9.00 a.m. to 12.00 p.m.
DO YOU KNOW ANYONE ELSE WHO NEEDS OUR ASSISTANCE?
(another U.S. Citizen, a U.S. Resident Alien, or a person who worked in the U.S. during the year?) If so, please share this information with them.
FREE TAX ASSISTANCE: The IRS has trained a group of volunteers that will be available during the tax season for assistance on less complicated questions. Please contact the following Embassy or Consulate for further information regarding the dates and times these volunteers are available: Copenhagen, Denmark; Oslo, Norway; Dublin, Republic of Ireland; Edinburgh, Scotland; Stockholm, Sweden, Johannesburg, South Africa.
TAX FORMS: Current and prior year Federal Income Tax forms are available on the World Wide Web at http://www.irs.gov. Additionally, you may obtain certain forms and instructions through International Forms Faxback by using the handset of your fax machine to call ( Berlin, Germany) at 49 228 339 2822/2834.
STATE TAX FORMS: The IRS does not accept state tax forms nor does it stock state tax forms. Write or call your individual State Tax Authority for their required forms.
STATE SALES TAXES: The IRS does not refund state sales taxes. You must write or call the individual State Tax Authority to ask if they refund sales taxes and the procedures to follow to receive the refunds.
TAXPAYER IDENTIFICATION NUMBERS (ITIN) FOR ALIENS: If you, or your dependent, is a nonresident or resident alien who does not have - and is not eligible to get - a Social Security Number, file FORM W-7 with the IRS to apply for an ITIN. You enter this number wherever the SSN is requested - it is used for tax purposes only.
YEAR ROUND SERVICE: The IRS at the American Embassies in London, Paris, Berlin, Rome, Singapore, Tokyo and Mexico City provide the following services throughout the year:
- Receive payments and tax returns
- Provide current & some previous year tax forms
- Assist with payment plans & installment agreements
- Resolve account problems & refund inquiries
- Assist in tax return preparation
- Answer technical questions
- Process W-7 supporting documentation