Contractors Reporting ‘Foreign Taxes Paid’ Not Shown On W-2′s

According to Fairfield Hughes a CPA with experience in doing taxes for Overseas Contractors,  AEGIS employees who worked in Afghanistan this last tax year has reported there Foreign Tax Credit is not shown on there W-2's for the 2012 tax season.

Here's the letter from Fairfield Hughes:

TO ALL AEGIS EMPLOYEES WHO WORKED IN AFGHANISTAN IN 2012: FOREIGN TAXES PAID NOT SHOWN ON W2’S

Fairfield Hughes, CPA’s, prepares and files the taxes for a large number of security contractors working in various combat zones. We understand that Aegis has issued W2’s without including the amount of foreign taxes paid to Afghanistan on behalf of their employees working in the country on the W2 Form. These foreign taxes paid represent a very large tax benefit called the “Foreign Tax Credit”. If an individual sends their W2 to their CPA or tax preparer and that person is not aware of the foreign taxes paid, the employee could potentially miss out on the benefit. We are asking our clients to send their final pay stub from Aegis (which reports the Afghanistan tax paid) along with their Aegis W2 to make sure they receive the tax savings.