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Old 12-08-2015, 10:34 PM
  #10  
NEDude
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Joined APC: Mar 2007
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Originally Posted by Probe View Post
I worked with about 30 american pilots at 2 different foreign airlines from 2008-2012. As far as I know, only a couple of us DIDN'T get audited. Several of us, including me, have been audited twice.

We had to provide copies of our logbooks, and calculate the overwater time for each leg. Luckily, there were only a few legs, and they were always the same amount.

Most of us also got hit with a claim that we were contractors and not employees, and owed self-employment tax. As far as I know, all of us won this as well. I am fighting this one for the second time. I should win as well this time

A few had their "bonifide residence" claim challenged, and they had to provide proof of apartment lease, drivers license, etc, to prove they passed that test.

Apparently the IRS doesn't like expat pilots. Here is the painful part. They don't audit you right away. They wait 3 years. Then, they apply a penalty starting 3 years ago, and charge 40% interest per year on the tax and penalty. Your bill gets really big, really quick.
Just curious, how does the auditing process work when you are resident overseas? Do they come to you, do you have to travel someplace to meet with them, or is it all done by email/snailmail?
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