E-Filing US Tax Returns with the IRS

Phinch is now authorised to electronically file US tax returns directly with the Internal Revenue Service (IRS), right here from our UK office!

The United States is one of only two countries in the world that taxes its citizens on worldwide income regardless of where they live. That means American expats in the UK, dual nationals, and US Green Card holders are legally required to file a US federal tax return every year, even if they have no income from American sources whatsoever.

US tax returns can be complicated, and although Phinch accountants have a tried and tested process to handle paper returns for our clients, we believe e-filing the returns will have many benefits.

What E-Filing With The IRS Actually Means

E-filing (electronic filing) is the IRS's preferred and fastest method for submitting tax returns. As an IRS-authorised e-file provider, we can now submit returns digitally on behalf of our clients, directly to the IRS's secure systems. This brings several immediate benefits, including:

Speed: E-filed returns are processed significantly faster than paper returns, which can often take up to 8 weeks or longer for initial processing. Refunds are issued more quickly, and any issues are flagged much sooner. If there are issues with paper returns, it may take 12+ weeks for the IRS to send notification of errors or request additional information.

Confirmation and security: The IRS issues an electronic acknowledgement when a return is successfully received. There's no uncertainty about whether your return arrived. You get peace of mind from day one.

Convenience: You don't need to be in the United States, visit an embassy, or arrange for documents to be couriered across the Atlantic. Everything is handled from our UK offices, on your behalf. Submitting paper returns can be time-consuming due to printing, signing and posting back and forth, whereas uploading to an online portal and using an electronic signature platform to collect signatures can be completed in a few clicks.

The Unique Advantage of Having a UK Based Provider

If you are living in the UK and need to file US returns, there is a crucial reason why working with a UK firm authorised to e-file with the IRS is preferable to working with a US-based preparer: we understand both sides of the equation.

US-UK tax compliance is not simply a matter of filing two sets of returns independently.

The two systems interact in ways that require careful consideration:

• The Foreign Tax Credit and the Foreign Earned Income Exclusion must be applied strategically to avoid double taxation — but the wrong choice can result in an unnecessarily high tax bill.
• The UK/US Double Taxation Treaty contains provisions that affect how certain income types are reported.
• FBAR and FATCA (Form 8938) require reporting foreign financial accounts and assets, including standard UK bank accounts and ISAs. Getting this wrong can cause severe penalties.
• State-level obligations can linger even after leaving the US, depending on your domicile history.

A purely US-based preparer may have limited understanding of UK tax law, HMRC requirements, and how UK income is structured.

Who Will Benefit?

This service is particularly valuable for:

• American expats living in the UK who are required to file US returns annually
• Dual US/UK nationals managing income and assets in both countries
• US Green Card holders residing in the UK who remain subject to US taxation
• UK business owners with US operations, partnerships, or LLCs
• British nationals who have spent time working in the United States and may have residual filing obligations
• Families with mixed US/UK tax status, including those with US-born children

If you are unsure whether you have a US filing obligation, or if you have been managing it yourself and want professional support, our accountants at Phinch can help – please get in touch. A free, no-obligation conversation can clarify exactly where you stand.

Our team can handle everything from straightforward expat returns to complex multi-jurisdictional situations involving business income, trust interests, pension planning, and estate considerations.