IRS Offering Deal For Expats That Want To Comply

By: Pete
Date posted: 07.11.2012 (3:29 am) | Write a Comment  (0 Comments)

      Post a Comment

Clearly, the IRS continues to work hard on trying to get expats to comply both by filing its taxes but also report their financial assets held in foreign banks. The IRS announced a deal for such expats. Basically, individuals that have been non-compliant can use the terms of this deal by submitting:

-three years of back taxes
-six years of bank reporting forms – so-called Report of Foreign Bank and Financial Accounts, or FBARs –
-a signed letter explaining why they haven’t filed

Such individuals will see any amounts owed to the IRS (up to $1500 per year) waived. The IRS seems to estimate that 90% of such individuals fall within this range. Also, the IRS seems to be willing to exclude income from Canadian retirement accounts from the income calculation which will make life much easier for US citizens living in Canada.

Is It Working?

The IRS seems to be having decent success. In their press release they stated: “The IRS also announced its offshore voluntary disclosure programs have exceeded the $5 billion mark, released new details regarding the voluntary disclosure program announced in January and closed a loophole used by some U.S. citizens”

Hiding Will Become Increasingly Difficult For Expats

In Canada alone, there are around 1 million US citizens but all of the recent legal changes as well as the new agreements that will make it possible for the US government to get access to banking information from foreign (including Canadian) banks will make it very difficult to simply ignore the law as many seem to have tried to do in the past few years.

No Comments »

No comments yet.

RSS feed for comments on this post. TrackBack URL

Leave a comment