In one of our most recent articles, we gave an overview of Form 3520-A. Associated with Form 3520-A is the is the Hiring Incentives to
Taxpayers who filed an extension to file their 2011 tax returns in April 2012 should file their returns by October 15 2012 to avoid the following penalties:
The US reduces your income tax liability dollar for dollar for any taxes paid to a foreign government. This comes in especially handy when your wages exceed the foreign earned income exclusion, but there are several points to keep in mind, as the “dollar for dollar” part of the definition can’t unfortunately be taken verbatim. It was intended to avoid double taxation of US taxpayers.