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Catching up with your US taxes
Everything you need to know about the streamlined filing procedure and FBAR penalties
With the US expatriate tax filing deadline (15th June 2018) approaching quickly, thousands of US expatriates will be left another year behind on their US tax filing obligations.
As an American Citizen living in the UK, it can be all too easy to fall short on your US tax filing obligations. Failing to meet your tax filing obligations can lead to hefty fines and unneeded stress.
If you’re an American living abroad and haven’t filed your US income tax returns all is not lost. The Streamlined Filing Procedure has been set up by the IRS to help US expat taxpayers get caught up on their delinquent taxes.
What is the Streamlined Filing Procedure?
The Streamlined Filing Procedure is a friendlier and less costly approach to getting non-compliant Americans up to date with the tax filing requirements. Under the procedure, taxpayers are required to file 3 years of backdated tax returns and 6 years of FBAR’s only.
Who qualifies for the US tax filing procedure?
In order to qualify for Streamlined Filing Procedure, you must show that your reason for failing to file was “non-willful”; meaning it was due to negligence, inadvertence, mistake or conduct that is the result of good faith misunderstanding of the requirements of the law.
Evidence of non-willful behaviour may include:
• An account on which no U.S. tax is due
• A foreign government-sponsored savings or pension account
• Minimal or no withdrawals
• No prior U.S. tax filings
Good news! If you qualify for the Streamlined Filing Procedure and comply with all the instructions for filing, you will not be subject to any failure-to-file/pay or FBAR penalties.
For expert accounting advice on the Streamlined Tax Filing Procedure contact Bambridge Accountants (www.BambridgeAccountants.com)