A security worker based in Iraq was a bona fide resident entitled to the foreign earned income exclusion. The U.S. Tax Court determined that the taxpayer was a “qualified individual” entitled to the exclusion for the years at issue. His overall course of conduct, including that he repeatedly sought employment opportunities in Iraq, returned to the U.S. only as required by his employer, and had very limited ties to the U.S., showed he was a bona fide resident of Iraq. As a result, his “tax home” was in Iraq.
Thousands of disabled veterans have had taxes mistakenly withheld from their lump-sum disability severance pay and are due refunds. In a recent blog post, National Taxpayer Advocate Nina Olson addressed the issue. She stated that “the aggregate amount of taxes improperly withheld from active-duty veterans” reached nearly $717 million. The IRS has sent letters to affected veterans with instructions for submitting refund or credit claims. But there are deadlines that must be met. To learn more, read the blog post: https://bit.ly/2AZcdgQ