Current legislation has authorized penalties on individual taxpayers for non-compliance from $10,000 to 50% of foreign account balances. Owners of unreported foreign corporations face similar penalties. If the IRS believes you to be seriously delinquent they can revoke your passport.
American citizens and former residents are required to file a tax return each year they receive the equivalent of $10,400 in regular income, or $400 in self-employment income. Additional FATCA reporting requirements must also 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 foreign investment funds.
Citizens and Permanent Residents qualify for a special deadline if both their tax home and abode are outside of the United States. (IR-2017-105)
June 15th, 2018. US citizens living overseas receive an automatic two month extension to file their taxes.
Foreign account holders who crossed the $10,000 FBAR threshold are required to file a separate report with the US Treasury by June 15th, 2018.
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
An overwhelming majority of citizens living abroad will pay no US tax on their foreign income. You just have to file.
Our workflow is entirely electronic. Regardless of your location, everything can be completed entirely online.
Call, email, or book an appointment in one of our offices to get more information. Communication will be protected by attorney-client privilege.
Michael de Sarro, E.A., C.A.A.
Member: American Chamber of Commerce Working Committee in Taxation, 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
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UNITED STATES TAX AND FATCA COMPLIANCE FOR ANY BUSINESS OR INDIVIDUAL SUBJECT TO THE US TAX SYSTEM
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