Streamlined Filing Procedure - Catching Up With US Returns 2020, Published by Bambridge Accountants
· Explanation of the two types of streamlined filing compliance
· How to catch up with U.S. tax returns without penalties
· Amending U.S. tax returns if you have not been reporting foreign income
· Foreign bank account reporting (FBAR) for U.S. citizens
The firm, which specializes in handling the tax affairs of U.S. expats in London and UK expats in New York and California, has issued a detailed tax guide for U.S. citizens and Green Card holders to help if they have not been filing U.S. tax returns, foreign income or foreign financial accounts.
There are three parts to the streamlined filing procedure - (1) filing the last three overdue tax returns with worldwide taxable income, (2) the disclosure document, form 14653, (3) six years of foreign bank account reporting (FBAR).
The Streamlined Filing Procedure - Catching Up With U.S. Returns Guide explains in detail what needs to be included in the streamlined filing compliance for 2020, the foreign earned income exclusion, foreign tax credits and the additional forms and details that need to be filed for foreign financial accounts, FATCA.
The tax guide also contains guidance on the disclosure form 14653 to explain why you have not been filing and why your conduct is non-willful.
Alistair Bambridge, partner at Bambridge Accountants, explains: “Many U.S. expats do not realize that they still need to file U.S. tax returns once they leave the United States. The IRS amnesty for U.S. expats, the streamlined foreign offshore procedure, allows expats to catch up with their U.S. taxes without penalties.
“Additionally, U.S. citizens are required to report all foreign financial accounts each year on a separate form, the FBAR (Fincen 114). Compliance with the FBAR regime is low, many U.S. citizens are unaware of the separate report. The streamlined filing compliance procedures allow for U.S. citizens to catch up and report their foreign bank and financial accounts to the U.S. Treasury.
"These accounts are reported using the Foreign Bank Account Reporting. It is intrusive, but there is nothing to pay as long as the FBAR forms are filed – if not, the penalties can be severe.”
Contact Alistair Bambridge, firstname.lastname@example.org, +1 646 956 5566.
Bambridge Accountants has offices in London and New York, specializing in U.S. expats around the world.
Source: Bambridge Accountants New York
Categories: Personal and Family Finances