Form 675

[thomtax]

I have a client that worked in Iraq for part of the year, for a security contractor. He keeps saying the company told him, in a seminar, that all the income is exempt from income tax, regardless of the time spent there. He says that he signed a form 675 that was supposed to take care of it. I have looked all over the IRS website and in TTB and can find no reference to this form.

Can anyone shed any light on this for me?

Thanks
LT

[Black Bart]

Haven't a clue, but

I have a client that worked in Iraq for part of the year, for a security contractor. He keeps saying the company told him, in a seminar, that all the income is exempt from income tax, regardless of the time spent there. He says that he signed a form 675 that was supposed to take care of it. I have looked all over the IRS website and in TTB and can find no reference to this form.

Can anyone shed any light on this for me?

Thanks
LT

just rescuing you from that "no replies; nobody cares about me" syndrome. Besides, maybe a second go will produce an experienced 675er.

Best regards, BB

[thomtax]

Thanks, but it's probably true - Nobody loves me.:-)

I found out today that she gave me the wrong number. It was actually 673 and I found it.

LT

[Jesse]

Welcome back Black Bart!

Thormax, so if you don't mind me asking as I have not done any research, what is the Form 673?

[WhiteOleander]

I have a client that worked in Iraq for part of the year, for a security contractor. He keeps saying the company told him, in a seminar, that all the income is exempt from income tax, regardless of the time spent there. He says that he signed a form 675 that was supposed to take care of it. I have looked all over the IRS website and in TTB and can find no reference to this form.

Can anyone shed any light on this for me?

Thanks
LT

Looks like your client misunderstood what was said. The form allows t/p to be exempt from federal tax WITHHOLDING. T/P would still have to meet either the bonafide residence or physical presence test. And the form says you are signing under penalties of perjury that you will meet one of those tests. T/P would still have to file form 2555.

But, it was interesting to see that form. We have more and more clients that have gone overseas to work. Now I will be aware of this form if they bring it up.

[thomtax]

Welcome back Black Bart!

Thormax, so if you don't mind me asking as I have not done any research, what is the Form 673?

Jesse - I think WhiteOleander has already touched on this, but I will go a little further into detail.

The form is 673. The title of it is "Statement for Claiming Exemption From Withholding on Foreign Earned Income Eligible for the Exclusion(s) Provided by Section 911." How's that for a short title?

After completion, it basically gives the employer authorization to not withhold federal taxes from the pay check. The employee is vowing to be out of the country to qualify for this treatment. In this situation, he got mad and quit after 8 months and is trying to find a way around the time requirement.

LT

[Jesse]

Interesting, thanks for the info!