Can I access Pro Series and efile client returns from the Philippines?

[Just-Lisa-Now-]

@itonewbie  works from outside the US, Im sure they can shed a little light on how this works.

[itonewbie]

Thanks, @Just-Lisa-Now-!

@victor_david You can, so long as you have a valid EFIN.

[itonewbie]

But if your focus is International returns, PS will fall short in many respects and would not be your best choice.

[itonewbie]

Just saw your post on another thread.

So, just to be clear, if your EFIN is for your practice in the US, you can't use that EFIN for a practice you may set up in the Philippines.  You will need to apply for and use the EFIN issued for the Philippines.

Intuit's server will not block your access just because you're based outside the US.  But they will need to set up your overseas address and verify your EFIN manually since their system cannot accommodate frontend entries for foreign countries and phone numbers.

[victor_david]

Thanks for the quick response. I plan to run a "virtual" office servicing people in the US and possibly other expats. Is that considered practicing in the US or in the Philippines?

[itonewbie]

You will be practicing in the Philippines. When all origination of electronic submission is customary from the location (or jurisdiction) where you operate the virtual office, that location could be deemed a fixed business location for EFIN purposes.

Not only will you need an EFIN for your location in the Philippines, you will likely need to register your business locally in the Philippines.

US tax clarification for foreign entities (and CTB election, if made) will then determine what US information return requirements you will need to meet (even for FDE, not to mention CFC) and how the income will need to be reported for US tax purposes.

Your ability to legally work in a virtual tax practice in the Philippines will depend on your immigration status there.  For example, tourist and business visa holders could breach the conditions of their visa if they operate a virtual office in the country they are "visiting".  So could employment visa holders whose visas may restrict their enjoyment to only that of their sponsor's.  Unless you are a citizen or a legal permanent resident of the Philippines, it would be advisable to consult an immigration attorney there.

Regardless of one's immigration status and whether one has a legally registered business in the country, income derived from services performed in that location is generally sourced to and taxable in that jurisdiction, unless exempt by treaty.  If one resides in that jurisdiction and operates the business virtually from a home there, even without a physical office, that home could constitute a PE for domestic tax law and treaty purposes.

This is not unique to any country - US also has very strict rules for foreigners engaging in business activities in the US and segregates tax from immigration compliance so that they can nail people either way.

People (especially non-tax bloggers) on the Internet tend to romanticize and oversimplify the ease of being a digital nomad, oblivious to a lot of the tax and immigration compliance issues that could get complicated and land unsuspecting folks in hot water.

VPN can help obscure the visibility of your business activities and presence but doesn't solve any of the compliance issues outlined above.

Hope this helps.

[itonewbie]

One more point... you should also check with the underwriter of your E&O insurance as they may not be able to provide coverage if the physical location of your operation is in a foreign country.

[victor_david]

Thanks. I have a lot of research to do. One more question. What do CTB and PE stand for?

[itonewbie]

CTB = Check-the-box

PE = Permanent establishment (which is a defined term of art)