Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

The Unknown Military Veteran Civilian Contractor War Casualties

They too are the

BEST KEPT SECRET OF THE WARS

The Majority of ExPat Civilian Contractor Casualties first served their country in the military.  

Many of them gave twenty and more years of service before deploying in a civilian capacity.

Many of them were buried with military honors.

Yet we are not supposed to know their names or even that they died in our wars.

Defense Base Act War Profiteers are encouraged to abuse the families they leave behind

You can see some of these nameless hero’s at

Our Fallen Contractors Memorial

Please keep them and their  families in your thoughts today and everyday

May 28, 2012 Posted by | Civilian Contractors, Contingency Contracting, Contractor Casualties, Defense Base Act, ExPats, Friendly Fire, Veterans, Wartime Contracting | , , , , , , , , , , | Leave a comment

Security is nationalised in Afghanistan – but will expats feel any safer?

France 24 International News FOCUS  May 16, 2012

18 months after Hamid Karzai vowed to shut down private security firms in Afghanistan, it’s finally happening.

By July, all security contracts will have been handed over to the Interior Ministry-owned Private Protection Force, or APPF.

Despite the upcoming deadline, many foreign companies still haven’t made the switch.

Poorly trained and barely equipped, the new guard force is perceived as an additional security threat to expats, already working in an increasingly hostile environment

Please see the video of program here

May 16, 2012 Posted by | Afghanistan, Civilian Contractors, ExPats, NGO's, Private Security Contractor, Safety and Security Issues | , , , , | Leave a comment

IRS Targets US ExPats

Updates to our ExPat Tax Page

For years companies like Blackwater and Ronco Consulting  have Misrepresented their employees as Consultants or Independent Contractors to the IRS to escape having to pay Social Security and Medicare payroll taxes.

Thank you Blackwater and Ronco Consulting

At the same time these same companies represented these same consultants and Independent Contractors to be employees for the purpose of purchasing the mandated Defense Base Act Worker’s Comp Insurance.  Even going so far as to have contractors sign new backdated employment contracts AFTER they were injured.

Fraudulent activity of this nature has garnered the full attention of the IRS to the Contract Employee much more so than it has the Contract Company.  Blackwater even continued to do this after the IRS busted them.

Bob Powers of Power Tax sends us this and asks that we warn all ExPats to be prepared.

Pursuant to an IRS internal memo Memorandum Number: AM2009-0003

This link IRS  has an important note regarding the definition of a foreign tax home (which is necessary to claim the Sec 911 benefit).

The IRS has been using this in somewhat of a distorted way to deny the FEIE to contractors working in Iraq and Afghanistan,, not only those who have families in the U.S., but also single people who left home, joined the military and then were hired as contractors.

If they did not plan in advance and take all the steps necessary to show that their abode was in a foreign country and not in the U.S. they are disallowing the exclusion.

Many have had inexperienced tax preparers or did their own tax return and the case dragged on so long that they lost their administrative appeals rights and facing a substantial tax bill plus penalties cannot afford a good tax attorney to take it to Tax Court.

As a result, the IRS is using their muscle to claim that these workers were living on a base and had no contact with the local community and therefore their “abode-which is not clearly defined anywhere) was in the U.S.

This is the quote from the IRS page:

Tax Home
Your tax home is the general area of your main place of business, employment, or post of duty, regardless of where you maintain your family home.
Your tax home is the place where you are permanently or indefinitely engaged to work as an employee or self-employed individual. Having a “tax home” in a given location does not necessarily mean that the given location is your residence or domicile for tax purposes.

If you do not have a regular or main place of business because of the nature of your work, your tax home may be the place where you regularly live. If you have neither a regular or main place of business nor a place where you regularly live, you are considered an itinerant and your tax home is wherever you work.

You are not considered to have a tax home in a foreign country for any period in which your abode is in the United States . However, your abode is not necessarily in the States while you are temporarily in the United States .

Your abode is also not necessarily in the United States merely because you maintain a dwelling in the United
States , whether or not your spouse or dependents use the dwelling.

“Abode” has been variously defined as one’s home, habitation, residence, domicile, or place of dwelling. It does not mean your principal place of business. “Abode” has a domestic rather than a vocational meaning and does not mean the same as “tax home.”
The location of your abode often will depend on where you maintain your economic,
family, and personal ties.

Example 1.
You are employed on an offshore oil rig in the territorial waters of a foreign country and work a 28-day on/28-day off schedule. You return to your family residence in the United States during your off periods. You are considered to have an abode in the United States and do not satisfy the tax home test in the foreign country. You cannot claim
either of the exclusions or the housing deduction.

Example 2.
For several years, you were a marketing executive with a producer of machine tools in Toledo , Ohio . In November of last year, your employer transferred you to London , England , for a minimum of 18 months to set up a sales operation for Europe . Before you left, you distributed business cards showing your business and home addresses in London .

You kept ownership of your home in Toledo but rented it to another family. You placed your car in storage. In November of last year, you moved your spouse, children, furniture, and family pets to a home your employer rented for you in London .

Shortly after moving, you leased a car and you and your spouse got British driving licenses. Your entire family got library cards for the local public library. You and your spouse opened bank accounts with a London bank and secured consumer credit. You joined a local business league and both you and your spouse became active in the
neighborhood civic association and worked with a local charity.

Your abode is in London for the time you live there. You satisfy the tax home test in the foreign country.

Note that the IRS agents examining these returns are not seasoned international agents and their internal directive is to disallow the exclusion regardless of the taxpayer’s defenses and force it to go to Tax Court.

We recommend you check out Power Taxes pages before you deploy.

U.S. Expatriate Tax & Business Solutions

January 12, 2012 Posted by | Blackwater, Civilian Contractors, Defense Base Act, ExPats, Follow the Money, Legal Jurisdictions, Ronco, Ronco Consulting Corporation, Taxes, Uncategorized, War Hazards Act | , , , , , , , , , , , | 2 Comments