US Expat Tax Compliance and Repatriation Planning

US citizens abroad must file returns on worldwide income and comply with FBAR/FATCA reporting, creating a parallel tax universe most domestic CPAs never encounter. International tax expertise becomes essential.

Why it matters for finding a CPA. The United States taxes citizens on worldwide income regardless of where they live. This creates a parallel tax universe that most domestic CPAs never encounter:

• FBAR and FATCA reporting require disclosure of foreign financial accounts, with penalties starting at $10,000 per violation for non-filing and escalating to $100,000+ for willful failures
• Foreign Earned Income Exclusion vs. Foreign Tax Credit are two different mechanisms for avoiding double taxation, and the wrong choice can cost thousands per year
• Foreign retirement accounts (overseas pensions, foreign mutual funds) often trigger punitive PFIC taxation or complex trust reporting that general practitioners have never handled

A CPA with genuine international tax expertise handles these forms routinely. A generalist will either miss required filings or spend billable hours learning the rules on your return.

The tradeoff: International tax specialists typically charge more and may have less bandwidth during peak filing season. But FBAR penalties alone can dwarf any fee savings from using a cheaper generalist.