Streamlined Tax Amnesty
Streamlined Tax Amnesty
We would like to begin by confirming four points –
- If you are US exposed (citizen, green card or substantial presence), you are usually taxed on your worldwide income;
- These tax obligations do not stop because you reside outside of the US;
- Even if your earnings are under the threshold of the foreign earned income exclusion, and you reside outside of the US, you may still have to file US tax returns;
- Since the early 1970s, US persons have been obligated to report any foreign financial assets once the maximum aggregate balance exceeds a certain threshold.
Most professionals agree on three things –
- It is critical to contact the IRS before they contact you.
- The idea of a “quiet disclosure” involves quietly filing prior year returns outside of any amnesty program. This is not advisable.
- Technology means that it is both possible and probable that any “quiet disclosure” will not go unnoticed.
Nanette Davis, a Department of Justice (DOJ), Tax senior litigation counsel, is on record cautioning taxpayers about quiet disclosures, with the threat that additional enforcement action may follow because
- (i) the DOJ program is helping identify quiet disclosures and
- (ii) “the patterns of late returns and FBARs are clear in the data.”
The ‘data’ referenced in that quote is apparently the data in the IRS records when entering the filing of delinquent or amended income tax returns and delinquent FBARs. Whether or not the streamlined procedures are right for your case depends on a number of factors. One of these factors is willfulness. Read more here https://htj.tax/willfulness
First, we would like to thank you for taking the time to get to know us. We are Hayden T Joseph & Co (https://www.htj.tax/) and we are an independent member firm of the Moores Rowland Asia Pacific Network (http://mooresrowland-asiapac.com/). The group has over 30 offices in 11 countries.
We work on International Tax in general, and United States International Tax in particular.
- We can help your family or your firm with international tax planning as well as international tax compliance. Especially within –
- The UK
- The USA
- Parts of the Caribbean and
Hayden T Joseph & Co does business as (DBA) Advanced American Tax and here is our US Tax brochure – https://htj.tax/usabrochure.pdf
• We are listed in the IRS directory here (it is a searchable database) – https://irs.treasury.gov/rpo/rpo.jsf
• We are also listed on the US Embassy website – https://sg.usembassy.gov/tax-preparer-in-singapore/
Now let us talk more about the streamlined procedures in another article that we wrote – https://htj.tax/streamlined-foreign-offshore-procedures
- We would need to prepare 3 years of Federal returns. The most recent 3 years for which the due date has already passed.
- We would need to prepare 6 years of FBARs https://htj.tax/fbars-and-form-8938
- If you have more than 10% in any non-US entities, we would need to prepare an information return such as Form 5471 declaring your interest https://htj.tax/the-scariest-us-tax-form-ever
- A cover letter is also required. 95% of our clients write it themselves but if you require an attorney to assist, we can recommend accordingly.
- Investments outside of the US may be classified as PFICs and require special treatment – https://htj.tax/what-is-pfic
- Here is the tax team working on your US returns – https://htj.tax/moores-rowland-tax-team-in-singapore
- Derren Joseph leads the US Tax Team – https://mooresrowland.sg/DerrenJoseph.htm
Headquartered in Singapore, Moores Rowland Tax Consultants is a member of Moores Rowland Asia Pacific with over 30 offices, we offer a level of flexibility, responsiveness and customer-centricity that larger practices cannot. We have close relationships within our network which means, clients can easily be connected to a like-minded firm of professionals in another country, they can be assured that we’ll have their business interests at heart – no matter what services are required or where they are needed.
MOORES ROWLAND ASIA PACIFIC
With economies rather stagnating in much of the western world outside the US, a new dawn has broken in Asia raising fresh hopes that having learned the bitter lessons of fiscal prudence the region is finally ready to fulfil its promise to make this century ‘the Asian century’. True there is much to do, but the introduction of major political and economic reforms across the region augurs well for the future, particularly in the medium term, especially as a new more vibrant leadership has come to the fore. That is not to say everything will be plain sailing, of course, but the prospects for a prosperous journey look fair indeed. To help guide you along the way, the Moores Rowland firms across Asia combine global knowledge and best practices with core Asian values to produce seasoned yet individually tailored courses of action to best suit your needs.
Moores Rowland Asia firms provide a range of professional services with a focus on audit, tax, accounting, payroll, risk advisory, IFRS, restructuring and transaction support. Beyond these, our member firms also offer a wide range of specialist services from expatriate advice to human resource consulting. Moores Rowland clients are increasingly looking beyond their national borders for new opportunities. The close relationships within the network mean that clients can easily be connected to a like-minded firm of professionals in another country, that they can be assured will have their business interests at heart – no matter what services are required or where they are needed.