AIReS wishes to inform all clients of recent legislation that may potentially impact  U.S. expatriate employees.

The Tax Increase Prevention and Reconciliation Act of 2005 (the Act) was
signed by President Bush.  The Act includes changes to the U.S. Foreign
Earned Income (FEI) exclusion, Housing exclusion, and the manner in
which income tax is computed for individuals entitled to these foreign
exclusions.  These changes are effective for tax years beginning after
December 31, 2005.  Attached is a summary that we have prepared that
outlines how these changes will impact international assignments, you
may use this to send to your clients.

Click on the link below to view a brief comparison between the previous and new law.

Tax Increase Prevention Act 2005

Should you have any questions please contact your AIReS Account Manager.