For my American expat readers - expat professionals and entrepreneurs alike - today is a dreaded day for many. Taxes are due. Some of you may still be scrambling to get something out. Others comforted in knowing you've gotten it all in on time and are looking forward to those refund checks (hopefully).
In honor of this day, I decided to conduct an interview with a taxes expert who caters to the unique tax challenges of expats, Vincenzo Villamena of onlinetaxman.com.
I'd first like to thank Vincenzo for taking the time to answer a few questions.
Vincenzo, can you tell us a little bit about yourself and how onlinetaxman.com came to be?
I worked at PwC and private equity firm for 6+ years before teaming up with some other CPA's to start the business. The choice of starting it was easy - I didn't want to deal with the life of finance (sleepless nights, intense work environment and other negative factors that just arent worth the money in my book). That being said, I teamed with a group of other CPA's who have expatriate backgrounds to start a venture doing tax preparation - www.onlinetaxman.com.
Having lived in Buenos Aires personally, I knew about the life of an expat and also the lack of information there is about tax filing if you are out of the country (people tend not to think about it since they are out of the U.S. and not constantly reminded of these obligations) I came to realize that not only expats but anyone who has to file US taxes, would rather do it comfortably and easily from their home as opposed to going to an office.
People just want great service, even better advice and everything done in a timely manner. It beats struggling with the countless questions of TurboTax and the long lines and HR block, and offers an easy solution to expats who don't even have the luxury of walking into a local office to get their taxes done. Most importantly is also being able to add value to clients by getting them the deductions they qualify for and asking the right questions, especially for expats given the complexities of these returns.
What does onlinetaxman.com do and how do your services work?
Online Taxman is a licensed CPA firm with a specialized practice for US expatriate tax returns. Everything in the tax preparation process is handled online, from document upload to payment, but with the personalized touch of having a CPA assigned to each client for questions and assurances.
Users start by receiving a quote through an online questionnaire (which takes under 2 minutes). Following, users upload their documents and speak to a CPA about their tax situation before payment is even made, giving them the peace of mind that a qualified individual is handling their needs accordingly. Once the return is finished, it is reviewed by the client and e-filed by the OnlineTaxman.
Each person is assigned an individual CPA so that people don't feel like just another number and get the personal attention they deserve. Our commitment to clients is clear - To make this process easy and painless (especially with the complexities and logistical issues of living abroad) while giving them a personal experience of having your own CPA to talk to, not just during tax season, but throughout the year.
What is it that the onlinetaxman.com offers expats that they can't get anywhere else?
Customer service and expertise while benefitting from the technology and backend that is found at the Big 4 firms. We have had a number of clients that have come to us after getting their taxes prepared at the Big 4 firms and many have complained about the lack of response and personalized service. They felt as if they were just getting herded through the process like cattle. Since most of our CPA's do have a Big 4 background, we feel as that we can offer the quality and expertise of a big accounting firm while offering better service and followup.
One of your expat clients living in Australia indicated that your services are extremely efficient, "turning around my tax info in just a few short days". She was so pleased with the prompt nature of your services that you now do her significant other's and multiple friends' taxes. How do you manage to provide such quick turn around?
Its a matter of being organized and making responsiveness and customer service a top priority. The organization and systematic part of our process is due to the backend we built for the customer portal.
We have created a culture at Online Taxman where the customer comes first and foremost, for a few reasons:
1. People can get accounting services at many different places, so it is important to demonstrate value and service to people
2. Many people are not satisfied with their accountant, they are just not comfortable switching due to the close and personal nature of the relationship. We want people to genuinely like to work with us because we understand the sensitive and serious nature of the relationship and referrals will naturally come as the client is happy and sees the value we add.
3. You only have one chance per year to prove to the client the value of our services so we want to make sure they walk away happy.
Another one of your clients, an expat business owner in Buenos Aires, appreciates how "involved and responsive" you are and the ease of engaging in a "seamless process" that is all done online. How you do leverage technology to streamline your processes while still being so involved and responsive to client needs and questions?
The backend of the website makes it very easy for us to identify client issues based on the questionnaire and organize client files accordingly. We had it custom built for our business to tailor it to our needs, based off our experiences with other CRM systems, tax softwares and Big 4 experiences. I also use different macros to have my email sorted related to questions or comments from my clients.
We also make sure not overextend ourselves and assign too many clients for each CPA. Too many clients not only makes my life extremely difficult to organize but just isn't fair to the client if they are stressing out about their taxes and I don't respond to them for a few days. At Online Taxman, we assign new clients based on the availability of our team to make sure that each client is handled fast and accurately. At the same time, we make sure the clients are using the same CPA year after year so it is important to communicate with existing clients to know which clients will be returning and push them to give us their documents instead of waiting to the last minute.
What is the biggest piece of advice you can give expats who are struggling to deal with managing their taxes abroad?
Seek professional help in this area if you feel like you are in over your head. US expatriation treaties and taxes can be complex and time consuming. There are lots of rules about living situations and taxes paid abroad that vary by country, so make sure you see someone who is knowledgable in this area not just a regular accountant.
If you are working abroad, monitor your income, expenses and taxes paid so you can full deductions and credit, many people wait to the last minute to get this together and might miss a valuable deduction which would lower their tax liability because they forgot.
If you own a business in another country, monitor your sources of income (whether the source of the income is from the US or a different country) and keep your expenses on paper (preferably via a credit card or bank account, because there are a lot of countries where "Cash is King", unfortunately that methodology does not work for the IRS.
Also to note is that if you are living abroad and receiving income, you should file your taxes. Most people make the mistake of ignoring them for years and it comes back to haunt them either while entering the US or via the US government reaching out to them.
If there are expats with more questions, how can they contact you?
They can reach me directly at [email protected] and go to my website to find out more information about how we can help them - www.onlinetaxman.com.
I am happy to answer any questions and speak to them about their situation. US expats should also note that they have an automatic extension until June 15, so there is still time to follow 2010!
Thanks Vincenzo for taking the time to share on what I'm sure is a busy day for you!
EXPAT CAREER & BUSINESS SUCCESS TIP: Are you an American expat professional or entrepreneur struggling to deal with paying taxes while abroad? Are you unclear about how tax laws affect your income and hence your quality of life overseas? Consider searching out assistance to insure that you're not putting yourself or your business at risk while living overseas.
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