One of the things many United States citizens (or Green Card holders) don’t realise when they move overseas is that they still need to fill out US tax returns. There are also plenty of people who have foreign incomes and accountants that do not realise this income needs to be declared in the United States as well.
To deal with this problem, the IRS provides amnesty for those needing to catch up with these overdue tax returns. Firms like Bambridge Accountants are especially helpful for those who want to engage a streamlined, easy-to-understand process for getting up-to-date with their US tax compliance.
There are two different streamlines procedures for ensuring tax compliance that firms like Bambridge help their clients with. One is for US taxpayers outside the United States, and one if for US taxpayers within the United States who need to declare foreign income.
It is essential to engage this process as early as possible after discovering that you have not been compliant with tax requirements. The amnesty offered by the IRS looks for non-wilful conduct, implying there was an honest mistake as to why tax returns were not filed.
The IRS requires that the last 3 tax returns that are overdue are filed in good faith during this process. In doing this, all tax returns before this that were missed will be waived.
To be eligible to engage the streamlined offshore tax compliance procedure, you need to have at least 1 year of the last 3 years that you spend less than 35 days within the United States.
For those that do use a firm like Bambridge Accountants to help them catch up, they need to remember to file US tax returns from that point on.
To get this process right and benefit from the IRS amnesty, expat Americans or those with a foreign income they have not reported should engage the expertise of consultants like those from Bambridge Accountants.
Cameron Dickerson is a seasoned journalist with nearly 10 years experience. While studying journalism at the University of Missouri, Cameron found a passion for finding engaging stories. As a contributor to Kev’s Best, Cameron mostly covers state and national developments.