U.S. Resident Alien, living and running his business in Germany. Filing taxes.
I have a client who became a U.S. lawful permanent resident (green card holder) in March 2025. Since receiving his green card, he has traveled to the U.S. periodically for vacations while continuing to live in Germany, where he actively operates his business.
He is now preparing to file his 2025 U.S. individual income tax return. However, his German business accountant has not yet finalized his business income and profit figures. Under German law, he has until the fall of 2027 to file his German tax return, but waiting that long is obviously not an option for U.S. filing purposes.
In this situation, would it be appropriate for him to file his U.S. Form 1040 using reasonable estimates for his business income and claim the Foreign Tax Credit (if applicable) based on those estimated amounts, then file an amended return once the final German tax information becomes available? Or is there a better approach that would be recommended to remain compliant with U.S. tax law?
I would appreciate any guidance or best practices from those who have dealt with similar situations.
