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New FATCA GuideLines
New FATCA guidelines requiring foreign banks to report information to the IRS regarding financial accounts held by American Clients came in effect in July, 2014. Even if you recently closed your foreign financial account, your foreign bank must still report your information to the United States.
The long arm of FATCA is reaching into over 200 countries in which agreements have been made with participating Foreign Financial Institutions (FFIs) to share information regarding foreign financial accounts held by American Citizens. The initial reporting phase began last year (2014) in July, and the IRS now has more information than ever Americans’ foreign bank accounts.
Reporting guidelines also apply to accounts which have been recently closed. If you held one or more foreign financial accounts with a balance of $10K or more (however briefly the limit might have been exceeded) in recent years and you failed to file an FBAR for one or more years, you are in a state of noncompliance, and it’s very likely that your FFI will be reporting you to the IRS. This page lists the countries that have already signed or are in the process of signing on to FATCA.
You Must Be Compliant With The IRS
Banks are reaching out to their American clients to ensure that all US tax obligations are met. If you fail to provide proof of your compliance with the IRS and Department of Treasury, your foreign financial account(s) could be frozen or closed.
Banks across the globe are interested in remaining in good standing with the U.S. Treasury by remaining compliant with FATCA guidelines (as noncompliance means huge fines – see $2.6Bn CSFB, $1.9Bn HSBC, Swiss bank Wegelin closed due to fine).
Many of are starting to requesting proof from American Citizens that they are current on their FBAR (Foreign Bank Accounts Report) reporting and tax filing obligations. American Taxpayers who were unable to provide this proof to their foreign banks have had their foreign financial accounts frozen until such proof is available (we helped numerous individuals who faced this situation in Switzerland last year). Other taxpayers have had their accounts closed by FFIs who refuse to do business with non-compliant American Citizens.
If you are not currently compliant, the IRS is offering a way of becoming compliant with your US tax and financial account reporting obligations via the Streamlined Filing Procedures.
If you haven’t yet been contacted by your foreign bank to ensure your compliance with US tax laws, it may is a matter of time before you receive the notice from either your bank or the Internal Revenue Service.
If you are still in a state of noncompliance, now is the time to take action by taking advantage of the Streamlined Filing Procedures currently being offered by the IRS. The Streamlined Filing Procedures include filing 3 years of delinquent tax returns and up to 6 years of missing FBARs.
Taxes for Expats can help you file the overdue U.S. tax returns & bank disclosure forms – bringing you into compliance.
Filing back taxes and missing FBARs can be a daunting task when approached solo – but this is something we specialize in and have helped hundreds of clients since the program was announced. We offer a special package that includes 3 years of tax returns & 6 years of FBAR for $1,200 (or $1,400 if your annual income is over $100,000).
If you are not currently compliant with the U.S. tax and reporting obligations, the window of opportunity is closing. The age of financial privacy is over. If you have been contacted by either your FFI(s) or the IRS about your noncompliance, be sure to contact Taxes for Expats as soon as possible to avoid potential complications.
If you are already compliant – you might consider working with us on your 2014 tax return:
- With over 23 years of experience dealing with US expat taxes you will be hard-pressed to find anyone matching our level of expertise or professionalism.
- We offer a flat and transparent price structure: $350 for Federal Tax return ($450 if income above $100k). Full fee schedule: www.taxesforexpats.com/fees.
- All our prices are in USD and as an American company we do not charge VAT.
- Hassle Free Process – you provide us with an overview of your financial situation, we prepare and file the return.
- Our sole focus are the US citizens living outside the United States.
- We are the best-rated tax firm with the independent review website TrustPilot.com: https://www.trustpilot.com/review/www.taxesforexpats.com
Disclosure of Material Connection: This is a “sponsored post.” The company who sponsored it is an affiliate partner of SMG and has agreed to compensate me via a cash payment, gift, or something else of value with each referral through Sydney Moving Guide. Regardless, I only recommend products or services I use personally and believe will be good for my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”