Reference
Glossary
Plain-English definitions of the IRS forms, elections, and tax concepts US expats run into. Every entry links to deeper context and the related terms you usually encounter together.
Bona fide residence test
One of the two ways to qualify for the FEIE: being a genuine resident of a foreign country for an uninterrupted period that includes a full tax year.
FATCA (Foreign Account Tax Compliance Act)
The 2010 law behind two separate things: foreign banks reporting US account holders, and US persons filing Form 8938.
FBAR (FinCEN Form 114)
An annual report of foreign financial accounts whose aggregate value exceeded $10,000 at any point during the year.
FEIE (Foreign Earned Income Exclusion, Form 2555)
Excludes up to a per-year cap of foreign-earned income (and a housing amount) from US federal tax — bona fide residence or physical presence required.
Foreign tax credit carryover
Unused foreign tax credit carries back one year and forward ten — but only within the same income category.
Form 14653
The non-wilfulness certification that carries the Streamlined Foreign Offshore Procedure — signed under penalties of perjury.
Form 2350
A special extension for expats who need more time to meet the FEIE residence or presence test — not a general extension.
Form 3520
Reports foreign trust transactions and large gifts or bequests from foreign persons. It is an information return, not a tax.
Form 3520-A
The annual return of a foreign trust with a US owner — due 15 March, and the owner is on the hook if the trust does not file it.
Form 4868
Extends the filing deadline to 15 October. It does not extend the deadline to pay.
Form 5471
Information return for US persons who are officers, directors or shareholders of a foreign corporation — including a one-person consulting company.
Form 8621
The IRS information return used for PFIC reporting. A separate form is generally prepared for each PFIC with a reporting trigger in the filing year, subject to the instructions and applicable exceptions.
Form 8833 (treaty-based return position disclosure)
Discloses that you are taking a treaty position that overrides or modifies a provision of US tax law.
Form 8854 (expatriation statement)
Filed when you renounce US citizenship or give up a long-term green card — it determines whether you are a covered expatriate.
Form 8858
Information return for foreign disregarded entities and foreign branches — including, easily missed, an unincorporated business abroad.
Form 8865
The partnership counterpart to Form 5471 — for US persons with an interest in a foreign partnership.
Form 8938 (FATCA)
IRS report of specified foreign financial assets filed with your 1040 — threshold-driven, separate from FBAR.
Form 926
Reports a transfer of property by a US person to a foreign corporation — including capitalising your own company abroad.
Form W-8BEN
The certificate of foreign status — which means a US citizen must never sign one.
Form W-9
Given to a payer, not the IRS — it certifies that you are a US person and states your taxpayer ID.
FTC (Foreign Tax Credit, Form 1116)
Dollar-for-dollar credit (up to a per-category limit) for income tax paid to a foreign country.
Income Tax Treaty
Bilateral agreement between the US and another country that allocates taxing rights and provides relief from double taxation.
ITIN (Individual Taxpayer Identification Number)
A US tax ID for someone who must appear on a US return but cannot get a Social Security number — typically a non-US spouse or dependent.
Mark-to-Market (MtM) election under §1296
A PFIC election available only for publicly-traded PFICs — taxes annual fair-value change as ordinary income.
PFIC (Passive Foreign Investment Company)
A non-US pooled investment vehicle (most foreign mutual funds and ETFs) the IRS treats with a punitive default tax regime under IRC §1291.
Physical presence test
The other route to the FEIE, and a pure day count: 330 full days in a foreign country within any 12 consecutive months.
QEF (Qualified Electing Fund) election
A PFIC election that taxes you currently on your pro-rata share of the fund's earnings — avoiding the §1291 regime.
Section 1291 (PFIC excess-distribution regime)
The punitive default regime that applies to a PFIC when no QEF or mark-to-market election is in place.
Streamlined Foreign Offshore Procedure
IRS procedure for non-wilful US persons abroad to come into compliance: three years of returns + six years of FBAR.
Totalization agreement
A bilateral social-security treaty that stops the same earnings being taxed for social security in two countries.
Treaty tie-breaker
The cascade in a treaty's residence article that assigns a dual-resident individual to one country.
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