April 17 is just a few days away, and we are working hard to ensure that all of our clients are served.  Read on for information about extensions, in-process returns, and completed returns.

Extensions

Prior clients:  If we prepared and filed your 2010 tax return, and we have not yet heard from you regarding your 2011 tax return, we will file a Federal extension for you on April 17.  Please contact us as soon as possible to begin processing your 2011 tax return.

New clients: If we did not prepare your 2010 tax return and you have not submitted your tax information, please complete the attached Extension Information form, and return to us as soon as possible.  For new clients, we require pre-payment for your tax preparation to file an extension.  Our base fee for an Expat return is $450 and can be paid online at http://palazzotax.com/payonline/ or over the phone by calling the number below.  If you do not need an Expat return for 2011, please call us for a quote.

Note: If you have reason to believe you will owe either Federal or State taxes and would like to make a payment with your extension, please contact us and one of our Expat Tax Professionals will assist you with preparing an estimated tax voucher.  Remember, paying your estimated taxes by April 17 will prevent penalties and interest from being assessed on your balance due!

In-Process Returns

Information received by March 16:  If we received all of your information before March 16, we have already guaranteed that you will receive your tax return by April 17 (barring any unforeseen circumstances involving your specific return).  If you have not received your return yet, you’ll be happy to know that we are working diligently to complete it.  We will be in touch with you shortly if any additional information is needed to complete your return.

Information received after March 16:  If you sent us your tax return information after March 16, we are working hard to complete you tax return by April 17 as well.  However, please note that we most likely will have to file an extension for you – see the extension notes above for further information.

Completed and Filed Returns

If we have already completed your 2011 tax return and you have returned your signed EFile forms, you can check the status of your Federal and State refunds by visiting our website at http://palazzotax.com/irs/, where you’ll find links to the IRS and State Taxing Authority websites.

If you have not yet received your EFile confirmation letter (by email), we will be sending those out as soon as possible.

Contact Us

We stand ready to serve at your Expat Tax Professionals.  If there is anything that we can do to assist, please do not hesitate to ask.  We look forward to hearing from you soon!

USPS:
Palazzo & Company, LLC
PO Box 6888
Gulfport, MS 39506

Private Delivery:
Palazzo & Company LLC
13155 Highway 67, Suite B
Biloxi, MS 39532

Email
expattax@palazzotax.com

Website
www.palazzotax.com

Fax
(305) 768-0483
(228) 396-8866

Phone
(866) 272-9224
(228) 396-8800

The first deadline for filing your 2011 tax return is April 17, 2012 – that is just over a month away! If you have already submitted your tax information, you can rest assured that we are working diligently to complete your tax return as soon as possible. Read on for information about submitting your tax documents, filing an extension, and other helpful tax tips.

To File by April 17

In order to guarantee that your tax return is finalized by April 17, we must receive your complete tax information no later than Friday, March 16. To ensure that you submit complete information, please review the attached Client Tax Organizer. Complete any sections of the Organizer that apply to you, and return to us with copies of your W2s, 1099s, and any other tax information you have received. For your convenience, you can send your tax information by email, fax, and traditional mail (see below for our contact information). To further expedite the process, you can pre-pay your tax preparation fees online at http://palazzotax.com/payonline/. Once we have received your information, one of our Expat Tax Professionals will contact you to finalize your return.

Extensions

If you submit your tax information to us after March 16 and we are unable to complete your return by April 17, or if we have prepared your return in the past and have not heard from you by April 17, we will automatically file a Federal extension for you. This extension will give you until October 15 to file your tax return. Keep in mind that this is an extension of time to file only, NOT an extension of time to pay any taxes due. If you owe with your Federal or State tax return and pay after April 17, you will be subject to penalties and interest.

Estimated Tax Payments

If you owed with your 2010 tax return and your circumstances in 2011 did not change, or if you have reason to believe that you will owe with your 2011 tax return, we recommend that you make an estimated tax payment with your extension. If you are interested in doing so, please contact us immediately for further instruction.

Waiver of Time Requirement

On March 12, 2012, the IRS released an Internal Revenue Bulletin for certain individuals that failed to meet the requirements of the physical presence test for foreign income exclusion. A waiver of the time requirement for the physical presence test was issued for individuals working in the following countries:

• Egypt (departing on or after February 1, 2011)
• Libya (departing on or after February 21, 2011)
• Syria (departing on or after April 25, 2011)
• Yemen (departing on or after May 25, 2011)

If you were working in any of the countries listed above during 2011, and did not meet your physical presence test because you were forced to leave due to civil unrest, you may still qualify for some foreign income exclusion.

Foreign Bank Accounts

If during 2011 you owned a foreign bank account or other investment, and the value of that investment was at least $10,000 at any point during the year, you are required to file a report with the US Department of the Treasury. The form TDF 90-22.1 must be received by the Department of the Treasury no later than June 30, 2012, even if you have not yet filed your 2011 tax return. To file it yourself, you can download the form at http://www.irs.gov/pub/irs-pdf/f90221.pdf. If you need assistance with this form, please let us know as soon as possible.

Contact Us

We stand ready to serve at your Expat Tax Professionals. If there is anything that we can do to assist, please do not hesitate to ask. We look forward to hearing from you soon!

USPS:
Palazzo & Company, LLC
PO Box 6888
Gulfport, MS 39506

Private Delivery:
Palazzo & Company LLC
13155 Highway 67, Suite B
Biloxi, MS 39532

Email
expattax@palazzotax.com

Website
www.palazzotax.com

Fax
(305) 768-0483
(228) 396-8866

Phone
(866) 272-9224
(228) 396-8800

If you want to speed up the process even more, you can submit your payment for your tax return with your Organizer.  The base fee for Expat returns is $450 again this year (no fee increase from last year!).  For your convenience, we offer several payment options:

• Credit or Debit Card:  visit our website at http://palazzotax.com/payonline or call us at the number below
• Check or Money Order: mail to us at the address below

Remember, we are here to serve you, so email or call us any time with your tax questions. We look forward to working with you this year.

Best regards,

Lisa Palazzo

Happy Holidays from Palazzo & Company!

As we reach the end of another year, we want to wish you and your family the happiest of holiday seasons.  Whether you are celebrating at home or abroad, we hope the New Year brings you a world of happiness and success.

Today’s newsletter will be brief, with just a few updates for the end of the year.  Read on for details.

2011 Client Tax Organizer:

Attached to this email you will find a copy of our 2011 Client Tax Organizer.  If you have never used our Organizer before, you will find it a useful tool in gathering your tax information for the year.  To use the Organizer, download it and save a copy to your computer, complete any sections that apply to you, and return to us with copies of your W2s, 1099s, and any other tax pertinent information you have received.  A copy of the organizer will also be available at all times on our website at http://palazzotax.com/forms/.

As always, we are truly grateful for your business.  If you have any questions, comments, or suggestions for us, please feel free to let us know.

Best regards,

Palazzo & Company

Update on Iraq Shutdown:

We have recently learned that several sites in Iraq will remain open for civilian contractors.  Keep in mind that even though the military will no longer be present in Iraq, civilians must still meet a presence test in order to qualify for foreign income exclusion.  You still have the option of using a calendar-year or contract-year presence test; just remember that the calendar-year presence test is the most beneficial, as it allows you to take the full exclusion in each calendar year. 

Since civilians in Iraq will no longer be working in direct support of the US military, the 180-day combat zone extension of time to file and pay taxes will no longer apply.  If you are in Iraq, you should file your 2011 tax return no later than April 16, 2012. 

Best regards,

Palazzo & Company, LLC 

Date: January 9, 2012
To: US Expats
From: Palazzo & Company
Re: $25 – New Client Referral Fee

Good news just keeps getting better. No fee increase for 2011, and now you have a chance to earn cash just for doing what many of you already do: referring Palazzo & Company to your coworkers.

It’s truly quite simple to earn the $25. All you have to do is refer an Expat to us and if he or she becomes a current tax year client, we will credit your account for $25 for each referral.  Any Expat can earn the referral fee; just have the referral mention your name at tax time and we will record it.

PS – Please don’t send us the project roster and claim them all as referrals or a mass email. The person referred must provide us with your name through email, website, or client organizer.

One of the most easy ways for them to learn about us and see why we are the preferred provider of Expat tax services is to browse our website.

This is just another way Palazzo & Company can show our gratitude for all that you do.

Please contact us if you have any questions.

Regards,
Palazzo & Company