Expatfile, a taxtech startup, announced on Wednesday, October 12, that it raised €1.3M in a fresh round of funding. The startup’s automated technology helps Americans living overseas to electronically file their tax forms with the IRS in as little as ten minutes.
According to Expatfile, while 99.9 per cent of the nations in the world base their taxation on residency, the United States bases its taxation on citizenship. As a result, all Americans living abroad are still obligated to file their annual tax returns with the IRS. Additionally, foreign-based Americans view filing from overseas as a challenging and stressful procedure. For instance, the US government relies on the usage of third-party software or conventional tax preparers because it does not provide a (free) internet platform.
Moreover, because the current software in the market is not designed for this particular population, there are sometimes problems with e-filing or even a shortage of forms, specifically for expats. This might potentially increase the cost of engaging a skilled tax preparer to complete the task for $400 to $1,500.
Authorised IRS e-file provider
Though Americans abroad can prepare their returns manually and mail it to the IRS, the given specific expat forms and the IRS’ guideline of 12.5 hours per return is a very time-consuming and complex alternative. This is where Expatfile looks to make a difference.
Founded by Jeroen Kooimans, an international tax lawyer, and Giuseppe Salvaggio, a digital marketing strategist, Expatfile claims to offer a solution that was missing on the market before: an advanced do-it-yourself platform specifically built for American expats and “accidental Americans”.
By using this platform, Americans abroad can submit their tax returns in as quick as ten minutes. The certified connection to the IRS platform is what distinguishes Expatfile. This enables customers to submit their tax returns to the IRS online right away and receive notification of the IRS’s decision.
In case a user’s tax return is refused, Expatfile’s platform notifies them of the reason and provides instructions on how to fix the problem so that their return is ultimately accepted. Expatfile says that because its platform is simple to use, there’s no longer any need to engage a tax preparer, which cuts expenses by at least 75 per cent.
Capital utilisation
The raised capital will help the company to grow and further scale its team and marketing activities globally. Since Expatfile’s official launch in February 2021, the platform has already saved more than 10,000 Americans abroad in terms of stress, time, and money.
Kooimans says, “You cannot imagine how difficult and costly it is for Americans abroad to satisfy their annual US tax filing requirement. When designing our product, we really wanted to build a product that is stress-free and where a user can do it all by himself, without any tax expertise and without the help of middlemen. Although nobody will eventually like doing their taxes, I think we have proven by now that filing your taxes can be painless.”
Expatfile aims to become the go-to platform for all Americans abroad and expand its offerings with other services, not limited to only taxes.
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