# Avis d'Impot 2019



## Wirges (Nov 12, 2016)

I am a US CPA living in France and have a problem with my tax filing every year since I moved here 10 years ago. Today I received my Avis d'Impot and the tax is normally a few hundred dollars and this year it is several thousand euros. My income remains relatively the same every year. In comparing this years to last years I find a new line item. My entire income is earned in the US except for a rental property in france that had a gross income of 495€. The "Impot avant reductions d'impot" is entirely reduced to zero by the "Total des reductions d'impot". There is however a plus amount below titled "Impot proportionnel" of 1.140€. That number is unknown to me. This has also effected my Prelevements Sociaux which a much reduced "Credit d'impot modern recouvrement. 
Any clue what happened? I file electronically and it drives me crazy that the program does not figure the tax so there might be a give-a-way that an error has been made.

Thank you.


----------



## cirrus (Aug 2, 2014)

If you file online there is a messaging service, you could ask them perhaps.
As far as the "Impot proportionnel" of 1.140€.” isn’t that the Euro/USD rate of exchange?
FWIW, my tax bill has gained quite a bit and for the moment I don’t know why.


----------



## Wirges (Nov 12, 2016)

Thanks for the reply but you must file your return in Euros. They do not do the calculation. My problem is my French is VERY limited and especially technical stuff either on line or over the telephone is almost impossible.


----------



## cirrus (Aug 2, 2014)

I have to say I sympathise with you regarding the language. It might be a whole lot easier to go to an accountant that speaks good English and is competent in overseas income.
I know the returns are filed in euros, the 1.140€ in question, did you mean 1,140€? Punctuation is different in France as you probably know but easily catches some out.

[I assumed the OP was writing in the English/US format.]


----------



## Bevdeforges (Nov 16, 2007)

Oh, I was going to suggest (for future reference) to get a copy of ClickImpot to do your taxes, since that at least generates a "pro forma" Avis d'Imposition so you can see how your various choices affects your end result. But the software is exclusively in French so could be a little tricky to use.

Re the 1.140 - that's not the exchange rate, since the exchange rate would have a comma rather than a period to designate the decimal.

I tried checking our pro forma avis to see if I could figure out what that is - obviously we haven't gotten our avis yet - but our tax declaration didn't generate a "Impot proportionnelle" line on the avis.

One possibility - you mention that "My entire income is earned in the US except for a rental property in france." It's not always just a matter of where the income is "earned" but rather the specific type of income involved. And, as some of our members have found out "the hard way" exactly how you report the income both on the basic form (2042) and on the form for foreign source income (2047). 

Then, to add to the "fun" this year, with the changeover to "prelevement à la source" there are all sorts of strange line items appearing for the first (and potentially only) time on this year's avis.

Will continue to watch out for any information on this item.


----------



## Wirges (Nov 12, 2016)

I have an appointment with the FISC on the 17th. They have made errors every year that I have filed and I have always had to pay a tax attorney in Paris 500€ per hour to straighten it out. My French is not good and at the Hyeres office there is evidently no one who admits they speak English and the rest are clueless. This is a nightmare every year. I thought the IRS was inept but from where I sit they're geniuses. The Paris attorney has told me that according to article 24 of the Franco-American Tax Treaty that income derived from the US is taken in account for the calculation of the French tax if their beneficiary is a resident of France, BUT in this case he is entitled to a tax credit equal to the amount of the French tax corresponding to that income. Therefore I should be only taxed on my French income which was only 495€ in 2018.


----------



## Bevdeforges (Nov 16, 2007)

See my reply to you on your thread on this matter. I admit it isn't simple.


----------



## Wirges (Nov 12, 2016)

Thanks Bev. I'll let you know what I find out and if worse comes to worse I'll contact the Paris lawyer that is really an expert on French/American taxation as she worked for one of the (used to be) big eight. It just costs a lot to involve her but she always gets them to back down.


----------



## Wirges (Nov 12, 2016)

I absolutely agree with your other post. And your example agrees with my understanding of the Tax Treaty and that is how the matter has been resolved in the past. Your worldwide income defines your French tax bracket but the credit clears any French tax on the US based income. This is exactly how it was figured this year and the credit equals the tax EXCEPT on the line below is the "Impôt proportionnel" 1 140€. Then under "Prelevements Sociaux" there is a "Crédit d'impôt modern recouvrement" which is about ten times less than the "Crédit d'impôt revenus étrangers" on the previous years form. This leaves a tax due of 2 706€ this year on the slightly less income than last year when the tax was 201€.


----------



## Bevdeforges (Nov 16, 2007)

Unfortunately we still don't have our Avis d'impôts so I can't check to see what any of these "new and improved" line items might be. (And they certainly don't appear on the pro forma avis that ClickImpots provides.)


----------



## Wirges (Nov 12, 2016)

Well I had my meeting with the FisK and they agreed to me and reversed most of the charges which left just slightly over 200 Euros. The problem was that they were not applying the double taxation credits to the estimated 2020 income which they call "Income Proportional". My understanding of the Franco/American Treaty is correct. We are required to report our income on our French return no matter where earned. However you should receive a credit on your French return equal to the French tax, regardless whether or not you had to pay any American tax. The requirement is that it is reported on the American tax return only. Because I had other losses that offset the tax I did not owe American tax but the fact that it was reported made it eligible for the French tax credit.


----------

