# FEIC question



## berniej (Mar 5, 2012)

Is there a risk that the IRS would tell you that you don't qualify and had to pay taxes on your foreign pay and what would cause them to do that.Can you fight this type of discision.
I thought I read somewhere that someone made a mistake on there forms and the IRS said he had to pay taxes on all his pay.
Just curious as I just sent my daughters in.

Thanks 

Bernie


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## Bevdeforges (Nov 16, 2007)

There shouldn't be any problem with the FEIE as long as you meet the requirements for claiming it - i.e. bona fide residence or physical presence test and you claim it only for what the IRS defines as foreign "earned" income.

The IRS can always challenge your foreign residence or physical presence, and might potentially challenge whether or not the income you excluded was, in fact, earned income. But unless they have some reason to doubt you or if they simply pick your returns for audit, why would they bother?
Cheers,
Bev


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## berniej (Mar 5, 2012)

Thank you

Bernie



Bevdeforges said:


> There shouldn't be any problem with the FEIE as long as you meet the requirements for claiming it - i.e. bona fide residence or physical presence test and you claim it only for what the IRS defines as foreign "earned" income.
> 
> The IRS can always challenge your foreign residence or physical presence, and might potentially challenge whether or not the income you excluded was, in fact, earned income. But unless they have some reason to doubt you or if they simply pick your returns for audit, why would they bother?
> Cheers,
> Bev


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