Fatca and US Tax

FATCA & U.S. TAXES

ALL U.S. citizens working and residing abroad are required to file and report on their worldwide income. More information to be found in IRS Publication 54, “tax Guide for U.S. Citizens and Resident Aliens Abroad”

FATCA law is designed to improve tax compliance involving foreign financial assets and offshore accounts. Penalties for non-compliance are potentially severe. Under FATCA, U.S. taxpayers with specified foreign financial assets that exceed certain thresholds must report those assets to the IRS.

USFAAF provides full tax services for individuals, SMEs and large enterprises. Aside from offering conventional Tax Filing services, we also provide Tax Planning services to better optimize your tax status, as well as providing Tax Dispute Litigation and Resolution, which you will not find easily in the middle east.

WHAT ELSE?

Our Consultants have extensive experience helping individuals and companies filing their FBAR and reporting their Foreign Financial Assets annually with the United States Department of Treasury.

In addition, FATCA will require foreign financial institutions to report directly to the IRS information about financial accounts held by U.S. taxpayers, or held by foreign entities in which U.S. taxpayers hold a substantial ownership interest.

Report of Foreign Bank and Financial Accounts (FBAR) – FinCEN Form 114

U.S. persons, which include U.S. citizens, resident aliens, trusts, estates, and domestic entities that have an interest in foreign financial accounts and meet the reporting threshold. Reporting Threshold (Total Value of Assets) Aggregate value of financial accounts exceeds $10,000 at any time during the calendar year. This is a cumulative balance, meaning if you have a combined account balance of $12,000 at any one time (but divided between 2 accounts), both accounts would have to be reported.

Streamlined Procedures - slp

If you are a non-resident U.S. taxpayer who wishes to come into compliance with your U.S. filing obligations, you may be eligible for special IRS procedures. On June 26, 2012, the IRS announced new streamlined filing compliance procedures for non-resident U.S. taxpayers. These procedures recognize that some U.S. taxpayers living abroad have failed to timely file U.S. federal income tax returns or FBARs, but have recently become aware of their filing obligations and now seek to come into compliance with the law. These new procedures are for non-residents including, but not limited to, dual citizens who have not filed U.S. income tax and information returns.

U.S. Tax Penalties

Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution.