The IRS has been taking comprehensive steps toward stricter tax policy implementation lately. Many of its new regulations have been directed toward Americans with overseas accounts and sources of income. Stiff penalties—from steep fines to jail time—await those who fail to comply.
Fortunately, we can help if you have questions about foreign account tax compliance as we serve clients in Tysons, VA, the greater Metro DC area, nationally and worldwide. If you’re an American working abroad getting ready to file your taxes with the U.S. government, here are three basic things you shouldn’t do:
1. Postponing Tax Filing
First rule: Don’t wait too long to pay your taxes! After all, the IRS is serious on cracking down on tax evaders. Make sure you file by the deadline. Don’t procrastinate as you may find you need help to prepare your taxes and waiting to the last minute could result stress and additional expenses.
2. Leaving Out Some Accounts
The Foreign Account Tax Compliance Act (FATCA) passed by the U.S. Congress in 2010 requires you to report your foreign bank accounts, as well as any other overseas assets. If you have income earned in a foreign country, you need to include it in your report as well. If you’re qualified for a foreign income tax exclusion, make sure to file your Form 2555 as soon as you can. Keep in mind that failure to include some accounts or assets in the necessary forms is a serious offense.
3. Doing it All on Your Own
Taxes are complicated. If you have lived or worked overseas, filing your taxes become more complicated. Plus, foreign tax reporting rules and regulations change from tax year to tax year. If you’re not up to date on the latest rules and regulations, you might not even know the FATCA and foreign tax reporting latest updates. To avoid mishaps, we don’t recommend you to take on the filing process on your own. Your best course of action is to ask help from experts in foreign account tax compliance serving clients in Fairfax, VA and the Metro DC area.
US International Tax Advisors can help you with the necessary documentation for the filing of your foreign accounts. You can have us represent you to the IRS in case of a tax controversy as well. We are here to help and can help take away the worry if you’ve made tax mistakes.
Give us a call at (844) 796-8565 or fill out our convenient contact form to get started.
