I published a letter that I sent with my 2009 tax, which was late because of sheer frustration about what to do. In the letter, I explained that I had relinquished my US citizenship. Yet the IRS seems to think that I do not qualify for the Foreign Earned Income Exclusion. If you will recall, they sent me a threatening letter asking for more information, to which I replied about a month ago, possibly with insufficient time for them to take it into account (though I don’t see how they could not have received it before June 12, as it was sent in early May). The original 2555, filled out by my cheap tax preparer (no longer qualified according to the new rules), did not include the dates of my residence abroad. Thus, I amended that form and resent it. This shows the problem of finding a good tax preparer. If one is cheap, he will make mistakes. If a tax preparer makes no mistakes, expect to pay over a thousand dollars for a simple return. In any case, I will appeal this decision within the 60 days.
Here is the important bit of the IRS bill explaining the changes:
I would appreciate any input from readers. It seems they lowered my total taxable income due to a calculation error, then disallowed the FEIE, and reassessed the taxes based on there being no FEIE.
Even though the IRS knows I am no longer a citizen, this is likely not malice but merely incompetence. I have lived outside the United States since 1986, and this is not my first return. My story has always been consistently the same. And they have flimsy grounds on which to charge my “account” (which I consider a dead issue, as I am NOT AN AMERICAN–I said that in my accompanying letter).
Hey IRS stupid people! Good luck collecting this bill! I will not be paying it–you are wasting your time and other taxpayers’ money. I AM NOT LOW HANGING FRUIT!
I was hoping that this divorce could be painless. But I guess the IRS, the stalking ex-spouse, has other plans.