Did you know that the US taxes its citizens on worldwide income regardless of where they live? They are one of only two countries in the world to do so. And for the estimated 5-9 million Americans not residing within the United States of America, it means dealing with the IRS every single year, and navigating forms that most accountants in other countries are likely to never see. So what does that mean for you when you want to get expert help to file taxes?

It means you need to find the firms that are built exactly for this type of scenario. Below are five of the best expat tax services for Americans living abroad, so you can rest assured that come tax season, your taxes are filed correctly.

Universal Tax Professionals

Universal Tax Professionals has been handling US expat taxes since 2014, building a client base of over 4,000 across more than 100 countries. And to reinforce how effective they are in this area, over 30% of their clients come from referrals. That's nothing to be sniffed at.

This Ohio-based firm operates with a team of CPAs and Enrolled Agents; all work is done in-house and never outsourced. The pricing is an easy flat rate with a full price list, so you know exactly what you're paying and what you get before you agree to any services. On top of this, clients receive a completed draft return for review before paying a cent.

The difference that makes Universal Tax Professionals stand out for internationally mobile Americans is the depth of their capabilities at the genuinely complex end of international reporting.

Form 5471 for Americans with foreign corporate ownership, PFIV reporting under Form 8621 for those holding non-US investment funds, FATC, FBAR, and the full IRS Streamlined Filing compliance Procedures for back filers. These are the forms that eliminate most generalist accountants from contention. And they're the exact ones Universal Tax Professionals handle every day.

On top of this, you get year-round support, global partnerships with foreign tax firms, and legal advisors, too.

Taxes for Expats

At Taxes for Expats, you can expect a wealth of experience on your side. With over 25 years and 50,000+ clients across 193 countries, if you're after an extensive history in expat taxes,s you won't have a many more established choices. Every return here is prepared by a licensed CPA or with at least a decade of expert tax experience. It is then reviewed by a supervisor before the client sees it.

There are over 80 accredited professionals on the team, and turnaround is generally 15 business days. Plus, for those using the services for 3+ years, there's a discount on offer too for simultaneous years' filings.

Bright!Tax

Bright!Tax has been named Global US Expat Tax Providers five times now at the EMMA Awards, so it's a worthy inclusion in this list. Bright! Tax serves clients across the globe, currently standing in over 200 countries.

The team deals exclusively in  US Expat Tax, meaning you get complete and full dedication to this area and highly trained and skilled professionals. Services include Expat Tax Preparation, an IRS Streamlined Procedure, and CPA Consultations as well as FBAR filing and FATCA Reporting. It doesn't matter how simple or complex your filing needs are, Bright!Tax are fully equipped to handle it all.

Greenback Expat Tax Services

Greenback operates with VPA and Enrolled agents only. They offer a published flat rate fee for their work and a “Make It Right" guarantee. This covers you for any IRS penalties or interest resulting from a firm error for added peace of mind.

Services include, but are not limited to, FATCA Reporting, UK Tax Services, Small Business Tax Return Prep, and Late Tax Return Prep. It doesn't matter where you are located or how often you travel around without returning to the US; Greenback Expat Tax Services has you covered.

MyExpatTaxes

MyExpatTaxes is a software-first platform that was awarded Best Expat Tax Software Service by The Balance. It's built for expats who want a more hands-on, affordable approach to straightforward fixings.

There is free human support included with every plan and a full service CPA preparation available on upgraded tiers, as well as the Streamlined Procedure for back filers. This is more suited towards those with salary-only situations as opposed to foreign corporations or PFIC investments.

Why Every American Abroad Needs a Specialist?

The US tax code does not simplify itself for people who leave the country. And FBAR penalties for non-filing start at $10,000 per year. Form 5471 non-filing also carries the same starting penalty. This is a significant fine for those who might not understand the process. An expat tax specialist helps you remove the worry about filing incorrectly or not filing at all because you were unaware.

And this is where many general accountants are excluded. You need someone who understands the IRS laws explicitly and can help you ensure you're not missing anything come tax season, not simply because you aren't living in the US anymore.

Frequently Asked Questions

Do Americans abroad have to file US taxes? 

Yes, they do. The IRS requires all US citizens across the world, regardless of income or residence, to file. The Foreign Earned Income Exclusion can reduce the bill, but the obligation to file remains.

What is the IRS Streamlined Procedure?

It is an amnesty programme for expats behind on filings without wilful intent. It covers three years of returns and six years of FBARs with penalty relief and qualifying submissions.

What is FBAR?

FBAR is the Foreign Bank Account Report, FinCEN Form 114. It is required for every American with foreign accounts totaling over $10,000 at any point in the year. It is filed separately from the tax return directly with FinCEN.

What is PFIC Reporting?

Passive Foreign Investment Company reporting applies to Americans holding shares in non-U.S. funds or EFTS. The default tax is punitive; specialist handling of Form 8621 is strongly advisable here.

CPA or Enrolled agent — what is the difference?

A CPA is stately incensed. An enrolled agent is federally licensed by the IRS. Both are fully qualified for expat returns. The key question here is whether whoever processes your return is licensed at all.