Primary residence

[ER@40]

Anyone ever get quizzed by uncle Sam about a past (overseas) primary-residence and have to produce receipts?
Would welcome suggestions for IRS record keeping to aid proof of primary residence plus use of clauses.
Much of their paperwork list below doesn't apply, i.e. don't drive/vote/pray, and usually pay online & bank online, so there's not much of a paperwork trail to rely on :-

1. Your place of employment.
2. The location of your family members main home.
3. Your mailing address for bills and correspondence.
4. The address listed on your:
a. Federal and state tax returns,
b. Driver s license,
c. Car registration, and
d. Voter registration card.
5. The location of the banks you use.
6. The location of recreational clubs and religious organizations you
are a member of.

 

[preben]

An important document would be a declaration from your embassy in the respective country. Since you probably registred there they should still be able to make it. Most embassies makes the declaration for a fee. Reminds me to get one here now. Cheers!

 

[ER@40]

An important document would be a declaration from your embassy in the respective country. Since you probably registred there they should still be able to make it. Most embassies makes the declaration for a fee. Reminds me to get one here now. Cheers!

Interesting . .
However how would you envisage the letter(s) being worded to completely cover a ‘term of residence’ i.e. two years? Embassies may not always monitor the exact in and out dates of residents . . ? It also doesn’t guarantee that one lived at the aforementioned primary residence address being claimed, only the country . . . Any thoughts?

 

[preben]

I am not sure I can envision the wording but the standard certificat I have seen for my country only stated that you have been registred at the embassy as a resident in this and this period with the specific address.
It will certainly not be 100% "proof" but it does add some credibility to a stack of old rental bills and your membership card to Atomic a-go-go Boy Bar in Bangkok.

 

[eridanus]

Passport stamps?

 

[preben]

Passport stamps are fine too. The problem with that (same as with my certificate) is that what the tax authorities really want is proof of where your "life center" is - I.e. you could live abroad most of the year but if your "life center" is still USA (or whatever country) you are still fully taxable to that country.

How they decide on where your "life center" is, is then the great mystery...

 

[LiveWell]

Passport stamps are fine too. The problem with that (same as with my certificate) is that what the tax authorities really want is proof of where your "life center" is - I.e. you could live abroad most of the year but if your "life center" is still USA (or whatever country) you are still fully taxable to that country.

How they decide on where your "life center" is, is then the great mystery...

Could you explain this ben? I always thought it was quite straightforward to determine whether or not you are a resident of a particular country. For example, in the US they use the Substantial Presence Test ( 183 days during the 3-year period that includes the current calendar year and the 2 preceding calendar years... ).

 

[preben]

I am naturally not an expert on the USA rules but there have been several cases in Europe where the 183 day rule was overruled based on other paragraphs in the IRS(or whatever tax authority) rules. Things like; owning a house in original home country, doing business in home country, having a wife/girl friend/kids in home country Etc. have all been used to over rule the 183 day rule. For USA I am sure that a google search as well as a visit to the IRS homepage will show the same.

In reality the IRS hates anybody getting out of the tax-net and will go to extremes to "catch" people with their pants down....

Just look at the list ER@40 need to prove himself - if passport stamps were enuff (less than 183 days) then why does that list exist...?

Cheers!

Could you explain this ben?  I always thought it was quite straightforward to determine whether or not you are a resident of a particular country.  For example, in the US they use the Substantial Presence Test ( 183 days during the 3-year period that includes the current calendar year and the 2 preceding calendar years... ).

 

[ER@40]

I always thought it was quite straightforward to determine whether or not you are a resident of a particular country.  For example, in the US they use the Substantial Presence Test ( 183 days during the 3-year period that includes the current calendar year and the 2 preceding calendar years... )

Surprisingly, prior to 911 the US authorities did not have any single tracking system to prove residency, particularly with regards to outbound dates - out of the US.

It was up to the resident to keep good and accurate records. Now though, airline passenger data is archived, and the INS(UCSIS) & IRS probably have direct or indirect access.

However the IRS generally still relies on the tax payer to come up with proof through good record keeping. Its the same in Europe. Its also widely known, that millionaire Executives with private jets, are able to sieve though many of the nets supposed to track movements.