Description:

The Understanding and Optimizing the Foreign Earned Income Exclusion (FEIE) course is designed to provide tax professionals, expatriates, and individuals living or working abroad with comprehensive knowledge and practical strategies to navigate the complexities of the FEIE. This course will equip participants with a thorough understanding of the eligibility requirements, calculation methods, and reporting obligations related to the FEIE, allowing them to maximize tax savings and ensure compliance with U.S. tax laws.

The course will begin with an overview of the FEIE, its purpose, and the criteria for qualifying individuals. Participants will explore the two primary tests used to determine eligibility: the bona fide residence test and the physical presence test. We will delve into the nuances of each test, examining the factors that establish a tax home abroad, the requirements for residency, and the specific documentation needed to meet the IRS’s criteria.

In addition to the mechanics of claiming the FEIE, this course will provide a comprehensive understanding of the reporting requirements. Participants will learn how to properly complete Form 2555 or Form 2555-EZ, ensuring accurate and timely filing. We will discuss supporting documentation, record-keeping requirements, and common errors to avoid.

Session Highlights:

• Recall foreign earned income exclusion & demonstrate the tax home test
• Identify the bona fide residence test & the physical presence test
• Identify housing cost exclusions or deductions
• Determine how to complete Form 2555 & review issues with foreign tax credits
• Determine Form 114 FBAR and Form 8938 FATCA compliance
• Identify Social Security and totalization agreements

Learning Objective:

Participants will gain a deep understanding of the calculation methods used to determine the amount of foreign-earned income that can be excluded. Through real-world examples and case studies, attendees will learn how to identify and properly classify income that qualifies for the exclusion. We will cover various types of foreign-earned income, including wages, salaries, self-employment income, and other compensation, and clarify the treatment of fringe benefits, allowances, and reimbursements. Furthermore, the course will explore common challenges and pitfalls that individuals encounter when claiming the FEIE.

Who Should Attend:

• Attorney/Tax Preparer
• CPAs
• Accounting Professionals
• Payroll Managers
• Enrolled Agent
• Tax Manager/Analyst
• Financial Planner

Speaker Profile:

Nick Preusch’s primary focus is performing tax services for high-wealth individuals and mid-to-large business entities. Nick’s responsibilities include tax research related to complex business transactions and tax return preparation and review. He also works closely with businesses and individuals to find tax efficiencies through ever-changing tax legislation.

He was also an Internal Revenue Service (IRS) attorney at the IRS National Office in Washington, DC, where he was the lead attorney for several significant tax ethics cases.

Nick co-authored Tax Preparer Penalties and Circular 230 Enforcement, a textbook published by Thomson Reuters. He has also been published in the AICPA’s Tax Advisor and Journal of Accountancy along with CCH’s Journal of Tax Practice and Procedure. In 2017, he was named one of the VSPCA’s Top 5 Under 35. In 2018, he was named to CPA Practice Advisor’s Top 40 Under 40. In 2018, he was part of the AICPA’s New Face of Tax ad campaign.

Nick is a licensed attorney in New York and a Certified Public Accountant in Virginia. He earned an LLM in Taxation from Georgetown University, a JD from Case Western Reserve University, and an MS in Accounting from the University of Connecticut.