American Citizen in Romania

[The_Architect]

Hello guys. I'm an American Citizen living in Romania. I would like to know if I would get in any trouble by simply not filing my taxes. I guess it would be OK since I am kind of out of reach, but the IRS does have a tax treaty with Romania. I'm wondering what kind of trouble I can get into by not filing them for the first time. I don't know anyone who can help me filing so I am practically f**ked. Anyone with any words to add to this? Thanks!

 

[writt]

Why would you not want to file? Just curious.

 

[The_Architect]

It seems rather confusing to file the taxes myself. To begin with, I am not even aware of what form to file. I'd love to be in good terms with the IRS, but heck... It seems to me a rather confusing thing. A CPA costs money, and I wouldn't mind paying, but I only have a Romanian bank account, and I also am left with nothing because I had to help my damn sister in law because I live with my wife's grandparents and they are using me as a money machine. I have a son that was born recently as well, go figure.

 

[MrDoru]

f*** taxes

 

[The_Architect]

Yes. That advice is very helpful. I would love to do that, but the laws in America are not the same as in Romania unfortunately. These guys WILL send a representative from the embassy to my house if I am in any trouble.

 

[The_Architect]

OK. I found out that the form I have to file is the same as in any other case I guess, according to http://www.taxmeless.com/page4.html. It says I have to file a form 1040 (US Tax Return). The embassy tells me I have to file it through the German embassy. OK.... Now what the hell are all those damn complicated terms on the form? I would like a CPA to help me, but I don't have the cash to pay it (I will next week). But can't I just get off by not filing one year and file the next? I have too many troubles at this time to be dealing with bullshit from a government I really didn't want much to do with in the first place anymore. I don't use any of their public services. I do read also that up to about 94000 dollars can be exempted from my payment (I earn much less than that anyhow). So I guess I have to file, but not pay, my taxes.

 

[Razvan]

do not worry my friend, i live in romania and from what I've heard there is no way to pay your takes from your internet business unless you have a legit company .
Tough I'm not sure....

 

[keverone]

Hey keep it real. just because it seems to complicated doenst get you off the hook, it is good that you are trying to get the answers

 

[Porno5tar]

what city you live dude?

 

[imperial109]

The IRS office serving US taxpayers living or working in Romania is located in Frankfurt, Germany. It provides US federal tax assistance to Americans in Romania. There is no IRS office at the American embassy in Bucharest. There is an office in Cluj that handles Romanian taxes, so they should be able to point you in the right direction.

Their information:

Republicii, Nr 24
400 015 Cluj-Napoca
Romania

Tel: +40-264-591-297
Green Line(toll free): 0800-842-842
Fax: +40-264-593-973

Don't avoid your taxes, it's too much trouble. The IRS already knows of your bank account in Romania, and if you do not file your taxes for it, you will be taken into Romanian custody. Tried there, and relocated accordingly, which is a completely different process....bottom line, it will take forever.

You would normally fill out the 1040, but get instructions from the Cluj office, or the IRS center in Germany. There are requirements that you need to fulfill to complete your form the right way.
Also ask about form 2555 which includes deductions and exclusions, but I don't know if you are entitled to them since I don't know your whole story, but explain it to whom ever you end up talking to regarding your taxes.

 

[The_Architect]

Would the average CPA from USA have any idea how this would work? I know one already from Miami (my home town). The only problem is that I don't know how to make an international payment without it costing me a shitload. I suppose I would be able to use PayPal to pay my CPA, but I don't know shit about paying the taxes I owe. I don't really think I actually have to, since I have seen that expatriates have a 94000 USD exclusion on paid taxes anyhow. All I guess I have to do is file file file each year

 

[The_Architect]

do not worry my friend, i live in romania and from what I've heard there is no way to pay your takes from your internet business unless you have a legit company .
Tough I'm not sure....

I don't have an Internet business. I work in Demand Media, meaning that I already have a status as an independent contractor. This makes me unable to avoid filing my taxes without the IRS knowing that I was supposed to and didn't. By the way, to answer the question of another fellow poster, I live in a region called Bihor, in a village where my address is not exactly obvious, with a phone number that is not registered under any name, but that, I suppose, isn't enough.

 

[The_Architect]

Just one more question (I am already talking to a CPA probably tomorrow or the day after and will be filing my taxes soon)... What are the chances that the IRS will seize the house I live in, get me fired from my job, and close my bank account if I decide not to pay the $150 or so that I owe in taxes for this year? I'm having a tough year (not that I totally cannot pay them without being able to feed my family) and I don't use ANY american services whatsoever except the telephone system (paid for by the customers) and embassy services which I will use only once in my life to legalize some documents that I will never need to legalize ever again after that (which I pay for nevertheless... shouldn't they be free if they'd be paid by taxpayer money?).

 

[vasilicaciortan]

Look man, I am a romanian citizen and I will the taxes stuff works. u don't have to worry that IRS will give a shit that you don't pay your 150 bucks. There are thousands or even tens of thousands of people out there who don't pay their taxes( and I mean big taxes) and nobody does a damn thing. The law in Romania is such a mess. I am not sure what is your exact situation. If someone from IRS will say that there is something going wrong with your taxes just "share" with him and everything will be just fine. Take care man.

 

[neuromancerx]

my parents are americans who live in canada. they still have to file every year, but don't have to pay any US taxes. if you don't file, you could have problems upon re-entry into the US but there's tons of dirt-hippies around the world who never file taxes and live offshore for years then come back from Thailand and nobody says anything. http://www.escapeartist.com/efam5/expat_tax_2.html

you could also register an offshore company in Delaware, or Seychelles/Belize, which comes with company bank accounts. then you are 100% tax protected no matter where you live.

 

[superspiderman]

Dude unless you are making 7 figures the IRS are not going to chase you halfway across the globe for their $1.50. Plead ignorance

 

[drdoc]

VERY SIMPLE: YOU HAVE TO FILE. end of story. Remember the ditty about "world wide income".
You are going to pay underpayment penalties, late filing penalties, interest in the penalties and of course the taxes and the interest on the taxes.

(I know a reliable CPA specializing in international taxation for individuals, PM me if you are interested. No I am not getting a commission, but next time I travel to AZ I am going to ask him for a beer)

 

[madoctopus]

Just one thing: the Romanian dudes who gave you advice thought you're wondering about paying taxes to the Romanian IRS. I think you're talking about the USA IRS. The Romanian IRS from what I have heard is not as nosy as the USA one, especially if you're not flipping lots of money. However, for your piece of mind, you probably want to make things clear and take a decision based on accurate information not assumptions.

 

[Mike CPA]

Hi, as an american you have a responsibility to file your taxes annually wherever you are in the world. The problem gets a bit more complicated as you deal with international issues, for example foreign taxes paid in Romania, tax treaties etc.

I found that there is no tax practitioner in Romania and I have opened a US tax office there. As a CPA, I know the importance of filing tax returns timely. However, if you can`t file your taxes by April 15th, you can file for an extension.

There is a fear of extending a tax return, but it shouldn`t be, as long as you pay any tax due by April 15th. The actual filing (either e-file or on paper) is accepted after the April 15th deadline. If you have a question, let me know.

Mike CPA

 

[nanavlad]

Seriously
Make sure you pay your taxes in Romania, Ive lived there and I Know what a shit place it is and how hard to get anything done.
Someday you wil want to return to USA, so file your returns or have major problems later
You can more or less write of any earnings
so your tax bill will be zero.

Also the fines for not paying taxes in Romania are huge.
compared to the actual taxes.
file for an extension in frankfurt
then sort it out.
In the end it will save you lots of trouble