The deadline for entering the IRS 2011 Voluntary Offshore Disclosure Program has been extended until September 9, 2011. The procedures for entering the program are complex and must be followed carefully. You can also prior to the previous mentioned date obtain an additional 90 day extension of time to file all of your past tax returns including the special foreign reporting forms such as 5471, 8865, 5472, 3520 and TDF 90-22.1 (FBAR).
You can read all of the details and latest developments concerning the Voluntary Offshore Disclosure Program at our sister blog:
www.usexpatriate.blogspot.com . You can read more about the special forms required at our website at
www.taxmeless.com.
Remember, if you have failed to file required forms 3520 and 3520A for your Mexican Fideicomiso that means you have until 9/9/11 to file all past forms (if the real property has not produced revenue) without penalty under FAQ 18 in the rule to the program.
You also have until that date to file all past forms for your Mexican Corporation (form 5471) if you have reported all taxable income from that corporation on your personal tax return without risk of penalty.
For 2011, the foreign earned income exclusion for wages earned while working and living abroad will be $92,900. That is a $1,400 increase from that allowed for 2010. If both spouses work abroad, each can exclude their earned income from US taxes up to that amount. One spouse cannot use the other spouses unused portion of that exclusion.
