Our Firm has extensive experience in preparing tax returns for foreign earned income for American Expats in countries like, Switzerland, Jordan, Saudi Arabia, Qatar.....
Some of the forms that we prepare and relate to expats and forign transactions are form 2555, 5471, 5472, 8938, 8865, 3520, 926 and FBAR
Foreign Earned Income Exclusion
If you meet certain requirements, you may qualify for the foreign earned income and foreign housing exclusions and the foreign housing deduction. If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income for 2015 $100,800. In addition, you can exclude or deduct certain foreign housing amounts.
FBAR (Report of Foreign Bank and Financial Account): A United States person must file an FBAR if that person has a financial interest in or signature authority over any financial account(s) outside of the United States and the aggregate maximum value of the account(s) exceeds $10,000 at any time during the calendar year.
FATCA ( Foreign Account Tax Compliance Act): US Individual taxpayers must report information about certain foreign financial assets on form 8938 and attache it to their income tax return, if the total assets value exceeds the appropriate reporting threshold. Form 8938 is in addition to FBAR reporting.
Streamlined Filing Compliance Procedures
Purpose of the streamlined procedures
The streamlined filing compliance procedures describe below are available to taxpayers certifying
that their failure to report foreign financial assets and pay all tax due in respect of those assets did
not result from willful conduct on their part. The streamlined procedures are designed to provide to
taxpayers in such situations with
• a streamlined procedure for fling amended or delinquent returns, and • terms for resolving their tax and penalty procedure for filing amended or delinquent returns, and • terms for resolving their tax and penalty obligations. As reflected below, the streamlined filing procedures that were first offered on September 1, 2012 have been expanded and modified to accommodate a broader group of U.S. taxpayers. Major changes to the streamlined procedures include:
• extension of eligibility to U.S. taxpayers residing in the United States
• Elimination of the $1,500 tax threshold, and
• elimination of the risk assessment process associated with the streamlined filing compliance
procedure announced in 2012.
Eligibility criteria for the streamlined procedures
The modified streamlined filing compliance procedures are designed only for individual taxpayers,
including estates of individual taxpayers. The streamlined procedures are available to both U.S.
individual taxpayers residing outside the United States and U.S. individual taxpayers residing in the
United States. Descriptions of the specific eligibility requirements for the streamlined procedures for
both non-U.S. residents (the "Streamlined Foreign Offshore Procedures") and U.S. residents
("Streamlined Domestic Offshore Procedures") are set forth below.
Taxpayers must certify that conduct was not willful.
Taxpayers using either the Streamlined Foreign Offshore Procedures or the Streamlined Domestic Offshore Procedures, will be required to certify, in accordance with the specific instructions set forth below, that the failure to report all income, pay all tax and submit all required information returns, including FBARs (FinCEN Form 114, previously Form TD F 90-22,1) was due to non-willful conduct.
IRS has initiated a civil examination of taxpayer's returns for any taxable year.
If the IRS has initiated a civil examination of taxpayer's returns for any taxable year, regardless of whether the examination relates to undisclosed foreign financial assets, the taxpayer will not be eligible to use the streamlined procedures. Taxpayers under examination may consult with their agent. Similarly, a taxpayer under criminal investigation by IRS Criminal Investigation is also ineligible to use the streamlined procedures.
Taxpayers eligible to use streamlined procedures who have previously filed delinquent or amended returns must pay previous penalty assessments.
Taxpayers eligible to use the streamlined procedures who have previously filed delinquent or amended returns in a attempt to
address U.S. tax and information reporting obligations with respect to foreign financial assets (socalled "quiet disclosures" made outside of the Offshore Voluntary Disclosure Program (OVDP) or its predecessor programs) may still use the streamlined procedures by following the instructions set forth below. However, any penalty assessments previously made with respect to those filing will not be abated.
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