If you moved to Ecuador and stopped filing US taxes, you’re not alone. About half the Americans I talk to in Cuenca think living abroad means they don’t owe anything.
They’re wrong. And the penalties aren’t small.
The IRS requires every US citizen to file a federal return regardless of where they live. If you have foreign bank accounts over $10,000 combined — and if you have a Banco del Austro account plus a JEP account, you probably do — you also owe an FBAR. The penalty for not filing that single form can be $16,500 per account per year. I’ve seen people discover six-figure exposure they didn’t know existed.
The good news: most expats in Ecuador owe zero federal tax. The Foreign Earned Income Exclusion, Foreign Tax Credit, and treaty provisions usually eliminate your bill entirely. But you have to actually file to claim them. Not filing isn’t a strategy. It’s a ticking clock.
Here’s what I handle:
• Federal return with all expat-specific forms
• FBAR (FinCEN 114) for foreign accounts
• FATCA compliance (Form 8938)
• State return or state decoupling analysis
• Back filings if you’re behind (Streamlined Procedures — no penalties if you qualify)
My name is Chip Moreno. I’m an American living in Cuenca, and I built FileAbroad specifically for expats like us. Not a big tax factory — I work with a small number of clients and actually understand the Ecuador-specific situations: Foreign Earned Income Exclusion while W-2 abroad, rental income from US property, Social Security while abroad, Ecuadorian bank account reporting.
Filing deadline for 2025 returns is June 16, 2026 (automatic extension for Americans abroad). But if you’re behind on prior years, the best time to start is now.
Chip, WhatsApp: +593 96 284 8410 Website: FileAbroad.com
Address: Paseo 3 de Noviembre, El Sagrario, Cuenca, Azuay, Ecuador
