FAQ's

Tax FAQ

1. Is there an office located in Germany, which provides assistance on American tax obligations?
2. What countries fall under the jurisdiction of the IRS office in Frankfurt, Germany?
3. How can I find tax advisors in Germany?
4. Where should I file my tax return?
5. What was the average exchange rate for the Euro to the Dollar to be used when filing the yearly tax return?
6. When is my tax return required to be filed?
7. Can I pay my taxes in other than American dollars?
8. I am a U.S. citizen living overseas with no U.S. income but substantial foreign income. Must I file a U.S. tax return?
9. I am a U.S. citizen but had little income. Must I file a return?
10. I was transferred overseas by my employer and am filing a tax return for the first time from an overseas location. What is my tax situation?
11. I am a U.S. citizen who has lived abroad for several years and didn't know I had to file a U.S. tax return. What do I do now?
12. I am a U.S. citizen living overseas with U.S. investments. Do I need to do anything special about them?
13. I am a German citizen who recently sold U.S. real estate and a 10% amount was withheld in the U.S. from the selling price. What do I need to do now?
14. I am a German citizen who will be sent by my German company to work in the United States. What are my U.S. tax obligations?
15. I am a German citizen who has interest income from the U.S. Am I supposed to file a U.S. tax return and report this interest income?
16. I am not an American and live outside the U.S., but I have U.S. investment income. Do I need a Social Security number?
17. I am a non-resident alien but own U.S. rental income. What is my U.S. tax situation?
18. I purchased goods in the United States. Can I get the sales tax refunded?

1. Is there an office located in Germany, which provides assistance on American tax obligations?

The IRS office in Frankfurt will accept tax returns, tax payments, W-7 applications, and taxpayer correspondence. Our mailing address is:

U.S. Consular General Frankfurt
Internal Revenue Service
Giessener Str. 30
60435 Frankfurt/Main
Tel: 49 69 7535-3834 or 3823
Fax: 49 69 7535-3803
Email: IRS.Frankfurt@irs.gov

Please note the following alternative resources for solving your tax issue. All inquiries must be in the English language.

For immediate assistance from a taxpayer specialist, you can call, fax or email the International Customer Service Site located in Philadelphia. The Service Site is open Monday through Friday, for 17 hours each day, from 6:00 AM to 11 PM, Eastern Time. The customer service representatives there can be contacted as follows:

Tel: 001 215 516 2000
Fax: 001 215 516 2555
E-mail inquiries: http://www.irs.gov/help/page/0,,id+133197,00.html

Inquiries regarding taxpayer identification numbers should be made at
Tel: 001 215 516 4846
Fax: 001 215 516 3271

2. What countries fall under the jurisdiction of the IRS office in Frankfurt, Germany?

The IRS office in Frankfurt, Germany is responsible for the following countries: Germany, Austria, Hungary, The Netherlands, Romania, Poland, Czech Republic, Slovak Republic, Estonia, Latvia, Lichtenstein, Lithuania, Former Soviet Republics (Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Turkey, Ukraine, Uzbekistan), Lebanon, Iraq, Qatar, Syria, Iran, and Yemen.

3. How can I find tax advisors in Germany?

• Berlin Embassy District: Berlin | Hamburg
• Frankfurt Consular District
• Munich Consular District

4. Where should I file my tax return?

All U.S. taxpayers residing outside the United States should mail their tax returns to:

Internal Revenue Service Center
Austin, TX 73301-0215
USA

5. What is the average exchange rate for the Euro to the Dollar for the tax year 2008?

The IRS has NO official exchange rate. Taxpayers have always been required by Internal Revenue regulations 1.905-3 and 1.988 to translate foreign income into dollars on the date of payment. As a practical matter, a wage earner can use a yearly average with no problem. A self-employed individual usually benefits by converting at the date of payment. The IRS accepts any posted exchange rate that is used consistently.

The following are average Dollar – Euro exchange rates for 2008:

Yearly Average for 2008: $1 = Euro 0.683
Monthly Averages for 2008
January	0.680	July	0.634
February	0.679	August	0.667
March	0.646	September	0.695
April	0.635	October	0.749
May	0.643	November	0.787
June	0.642	December	0.744
December 31, 2008: $1= Euro 0.710

Note that the exchange rates for previous tax years were as follows:
2007: 1$ = Euro 0.731
2006: $1 = Euro 0.797
2005: $1 = Euro 0.805
2004: $1 = Euro 0.804
2003: $1 = Euro 0.885

For additional exchange rates, check the U.S. Treasury website www.fms.treas.gov/intn.html or other commercial sites such as www.oanda.com.

6. When is my 2008 tax return required to be filed?

- U.S. citizens and resident aliens - April 16th, 2009
- U.S. citizens residing outside the United States on April 16th - June 15th, 2009
Write across the top of the front page of the return "residing outside the United States"
- Non-resident alien with U.S. wage income - April 16th, 2009
- Non-resident alien with no U.S. wage income - June 15th, 2009

Extensions of time to file can be requested by filing the proper extension request form.
Please remember: Extensions of time to file are not extensions of time to pay. IRS must receive payment of tax due by 16 April 2009.

7. Can I pay my taxes in other than American dollars?

No. Tax payments must be made in U.S. currency, using a check or money order. German banks will issue bank checks in U.S. dollar denominations.

8. I am a U.S. citizen living overseas with no U.S. income but substantial foreign income. Must I file a U.S. tax return?

Yes. U.S. citizens must report their worldwide income on their U.S. tax returns. If you paid income taxes to a foreign country, you may qualify for a foreign tax credit. IRS Publication 514 “Foreign Tax Credit for Individuals” explains how to calculate this credit. You may also qualify for a foreign earned income exclusion of up to $87,600 for 2008. Qualification requirements and forms to be completed are explained in IRS Publication 54 “Tax Guide for U.S. Citizens and Resident Aliens Abroad”.

9. I am a U.S. citizen but had little income, must I file a return?

That depends on the level of your income. Please see the amounts listed below to determine if you have a filing requirement or you may call IRS for assistance in determining if you are required to file.

Filing Status for 2008
Single Single	under 65 65 or older	$ 8,950 $10,300
Head of household Head of household	under 65 65 or older	$11,500 $12,850
Qualifying widow(er) Qualifying widow(er)	under 65 65 or older	$14,400 $15,450
Married filing jointly Married filing jointly Married filing jointly	both spouses under 65 one spouse 65 or older both spouses 65 or older	$17,900 $18,950 $20,000
Married filing separately	(any age)	$ 3,500

10. I was transferred overseas by my employer and am filing a tax return for the first time from an overseas location. What is my tax obligation?

Obtain and read Publication 54, "Tax Guide for U.S. Citizens and Resident Aliens Abroad". This publication explains your filing requirements. Forms and Publications are available on the IRS website www.irs.gov or from the IRS office in Frankfurt. Some forms and publications are also available at U.S. embassies and consulates.

11. I am a U.S. citizen who has lived abroad for several years and didn't know I had to file a U.S. tax return? What do I do now?

As a U.S. citizen or resident alien (valid green card holder), you are required to file a return for any year that your income exceeded the minimum income levels. If you had a filing requirement, your earned income is foreign sourced, and you choose the exclusion, you should begin by filing the current year’s tax return and the preceding two years. You can choose the exclusion on a return provided you owe no federal income tax after taking into account the exclusion. If you owe federal income tax after taking into account the exclusion, you can choose the exclusion on a return filed after the periods described above provided you file before IRS discovers that you failed to choose the exclusion. You must type or legibly print at the top of the first page of the Form 1040

"Filed pursuant to Section 1.911-7(a)(2)(i)(D)."

If you owe federal income tax after taking into account the foreign earned income exclusion and the IRS discovered that you failed to choose the exclusion, you must request a private letter ruling under Revenue Procedure 92-85 (as modified by Revenue Procedure 93-28).

If a tax liability is incurred for one of those years, then you should generally file returns for an additional two prior years (for a total of 5 tax years). Please go to www.irs.gov for prior year forms.

12. I am a U.S. citizen living overseas with U.S. investments. Do I need to do anything special about them?

Yes, since your investment institution may not know that you are a U.S. citizen living overseas, you must notify them of this fact, using Form W-9 “Request for Taxpayer Identification Number and Certification”. Otherwise, the investment institution may think you are a non-U.S. citizen and withhold taxes from your investment income.

13. I am a German citizen who recently sold U.S. real estate and a 10% amount was withheld in the U.S. from the selling price. What do I need to do now?

You must file Form 1040NR "U.S. Nonresident Alien Income Tax Return" with Schedule D for the year of the sale and attach Form 8288-A which documents the 10% tax withheld. If the sale involved a rental or business property, Form 4797 must also be completed. You must have a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) in order to file the 1040NR. If you do not have an ITIN, you must fill out the Form W-7, attach your certified documentation and income tax return to it and mail everything to the ITIN Unit address given in the Form W-7 instructions.

14. I am a German citizen who will be sent by my German company to work in the United States. What are my U.S. tax obligations?

IRS publication 519, "U.S. Tax Guide for Aliens", explains your situation. Contact IRS if you have further questions.

15. I am a German citizen who has interest income from the U.S. Am I supposed to file a U.S. tax return and report this interest income?

No. Interest income from the following sources paid to non-resident aliens is tax exempt from U.S. taxation. You do not need to file a U.S. tax return or pay U.S. income taxes on bank deposits, checking and savings accounts, certificates of deposit deposits at credit unions and savings association.

16. I am not an American and live outside the U.S., but I have U.S. investment income. Do I need a Social Security number?

No, not at present, but you must send Form W-8BEN “Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding” to the financial institution which holds your investment to notify them of your residency and citizenship so that they will withhold the correct U.S. income tax. If an Individual Taxpayer Identification Number (ITIN) is required and you do not have one, you must fill out the Form W-7 in order to receive one.

17. I am a non-resident alien but have U.S. rental income. What is my U.S. tax situation?

You have two choices. You can have your U.S. rental income subject to a 30% withholding tax and you have no further requirement to file a U.S. tax return or pay additional U.S. taxes.
You may, however, choose to consider your rental income as an effectively connected U.S. business activity. That requires you to file a U.S. tax return and itemize your rental income and expenses. See Publication 519, “Tax Guide for Aliens”, for information. Remember, filing a U.S. return requires an Individual Tax Identification Number (ITIN - Form W-7).

18. I purchased goods in the United States. Can I get the sales tax refunded?

There is no national sales tax system, such as Value Added Tax - VAT (Mehrwertsteuer) in the United States. Sales taxes are assessed by the individual states and cities, and as such each has complete autonomy in administering its taxes. Most states have no provision for sales tax refunds. There is no office in the U.S. Embassy which can provide any assistance in this matter.

We have been advised that Louisiana is the only state which provides a refund of sales tax for international visitors on goods purchased at participating stores. You may contact the State of Louisiana at:

Louisiana Tax Free shopping
P.O. Box 20125
New Orleans, LA 70141

Tel: 001 - (504) 467-0723
Fax: 001 - (504) 568-6670

Last modified: January 2009

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