Accountancy Saint Paul
United States Tax and FATCA Compliance
FBAR and FATCA
Implemented in 2014, FATCA requires that both Americans and their foreign banks update the US Treasury on their accounts each year. The penalties for non-compliance are high but staying current is easy. Foreign income and housing expenses can be excluded from taxable income and credits are available for foreign taxes.
Why FILE?
Annual penalties for failing to disclose foreign bank accounts start at $10,000 and increase to 50% of foreign account values. Owners of undeclared foreign corporations and business entities face similar civil penalties. If the IRS believes you owe more than $51,000 in unpaid tax your passport will be revoked and you could be detained at customs on re-entry.
Who?
American citizens and green card holders are required to file a tax return each year they receive the equivalent of $12,950 in regular income, or $400 in self-employment income.
Additional reporting requirements must be met if one's foreign account balances exceeded $10,000 at any point during the year, if one owned 10% or more of a corporation based outside of the United States, or if one held more than $25,000 in funds organized outside of the US.
When?
Citizens and Permanent Residents qualify for special deadlines if their tax residence is outside of the United States. (IR-2017-105)
June 15, 2023. US citizens living overseas receive an automatic two month extension to file their taxes.
Foreign account holders who cross the $10,000 FBAR reporting threshold are required to file a separate report with the US Treasury by October 15th, 2023.
What to do?
The IRS will not impose penalties when the absence of liability is properly reported on a late return. Even if you have never filed, we can in most cases eliminate your US tax liability retroactively by claiming unused exclusions and foreign tax credits.
If you haven't already been contacted by the IRS you may still qualify for tax amnesty programs such as the "Streamlined Foreign Offshore Procedure" which waives the accumulated penalties for eligible U.S. taxpayers.
All you have to do is file
The majority of Americans living abroad will pay no US tax on foreign income. You just have to file.
The Accountancy
Our workflow is entirely electronic. Regardless of your location, everything can be completed online.
Please send an email or use the contact form below to set up an appointment. Communication will be protected by attorney-client privilege.
Michael de Sarro, EA, CAA
Principal
Member: American Chamber of Commerce Working Committee in Taxation, National Association of Enrolled Agents, National Association of Tax Professionals
Registered: US Dept of Treasury, Internal Revenue Service, NY Dept of Taxation and Finance, Financial Industry Regulatory Authority
Alumnus: University of California at Berkeley
France
+33 1 87 65 01 00
by appointment
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16 Place de la Bourse
75002 Paris
Italy
+39 06 4754 2775
by appointment
via Olona, 7
00198 Rome
Netherlands
+31 35 369 0059
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Olympia 1B
1213 NS Hilversum
Belgium
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Avenue Marnix 13-17
1000 Brussels
Contact
In most cases we can provide a free tax and penalty estimate to new clients who can approximate their annual income by source.
Email: clientservices@accountancysaintpaul.com
or drop us a quick note using the form below.
We will be in touch the same or next business day.
English spoken.
Pricing
Pricing is by form and use of forms is kept to a minimum. We employ additional forms beyond those required only when their use activates additional tax deductions or credits and there is a net financial benefit to the client.
Clients of Accountancy Saint-Paul enjoy professional counsel throughout the year without additional fee. Representation before the IRS is billed hourly.
Services
UNITED STATES TAX AND FATCA COMPLIANCE FOR ANY BUSINESS OR INDIVIDUAL SUBJECT TO THE US TAX SYSTEM
INDIVIDUALS
BUSINESSES
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Equity favors the vigilant, not those who sleep on their rights.
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