Posted by Common Right Group on March 31, 1998 at 16:39:47:
In Reply to: Re: Notice 609 in the 1040 Instruction Booklet !! posted by heidi barnes on March 31, 1998 at 14:01:52:
: : Notice 609 says in the IRS handbook, that you must(MANDITORY)file
: : a return or "STATEMENT" for any tax you are MADE LIABLE FOR. We all
: : know what a return is, but what is a statement and who does it apply
: : to? I realise that you must obey the law, so as not to be hit with a
: : "Wilfull Failure To File" charge. I also realise that we don't want
: : to give up any of our rights as American Citizens. Can anyone help
: : to understand this "Statement" issue??
Heidi and others,
You might also check out http://members.tripoli.com/fedinfo/tax_page.html and http://www.taxgate.com
It seems the question of liability is based on duties, imposts, and *excises* to create a liability. It also seems someone has found Treasury Directive #2313 (1916) that mandated the Form 1040 for agents for foreign principals who get income from within these united States (See Brushaber v. U.P. Railroad Co.). If, as an American, you have foreign earned income, you are relying the govamint to protect your overseas interests and get to fill out form 2555.
Are you an agent for foreign principals? Do you derive a substantial portion of your "income" from foreign sources? Check yourself on this. Many people have mutual funds that are "Foreign Investment Funds" and stuff like that. Can't say whether that makes you liable or not. You decide whether you are doing overseas business or doing business with a domestic fund manager. This one could get tricky, in our guestimation.
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