When you move to a foreign country, you can easily get caught up with the change. Many expats decide to migrate to a different part of the country with an intention to never return. It is due to this reason that many US citizens embrace the new chapter in life and end up overlooking their responsibilities as a US citizen. Many US citizens are not aware of the fact that they still need to file their taxes. There are over 9 million US expats that are scattered around the globe. These US expats live in different parts of the world, from France to Pakistan.
US expats find it shocking that they still need to continue filing their tax with the IRS every year. The reason for this is that the US and Eritrea are the only countries in the world which tax their citizens on worldwide income no matter where the citizens might be located. Thus, it is common to find expats who have failed to submit their tax returns for a long time just because they did not know about their obligation to do so. If an expat finds himself or herself in such a situation where they have not filed their tax return in years, then, there is no need to worry because the IRS has created a streamlined filing compliance procedure which allows them to file their tax returns.
What Is the Streamlined Filing Compliance Procedure?
If you want to avoid facing harsh penalties for non-filing of your tax returns, then, you need to take advantage of the streamlined filing compliance procedure as it is the answer to your predicament. Created back in 2012, the streamlined filing compliance procedure offers an alternative to the disclosure programs of the IRS such as the close offshore voluntary disclosure program. Hence, US expats can now catch up with their taxes. The main aim of the program is to assist low risk individuals. It tends to be less burdensome. However, once the program was launched, it saw many expats outside of the low-risk category which meant that the intended targets were missed. The good news is that the IRS has removed those restrictions since 2014. Thus, the program is now opened to a much broader audience.
Who Would Qualify For the Streamlined Filing Compliance Procedure?
Ever since the removal of restrictions from the program in 2014, many US expats have been relieved to learn that they qualify for the program. In order to qualify for the program, one has to show that there was a valid reason for not having filed their tax return. You need to prove that you did not know that it was required for you to file the tax return once you moved to a different country. You will be required to sign the Form 14653 statement certifying the fact.
Catch Up On Your Taxes
Use the streamlined filing compliance procedure to catch up on your taxes and avoid hefty penalties. The procedure requires you to submit the latest federal returns for three years, foreign bank account reporting forms for the last six years, and a signed certification of residing abroad. Contact a specialist for compliance.