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Tax Video Update - Streamlined US Tax Filing

16 August 2013 •

Warrener Stewart Tax Update

Streamlined US Tax Filing, August 2013

Need to file an old US Individual tax return?

The IRS has announced a new streamlined filing compliance procedure for non-resident U.S. taxpayers, put into effect from September 1, 2012.  The new streamlining has been introduced after recognizing that some U.S. taxpayers living abroad have failed to timely file U.S. federal income tax returns or Reports of Foreign Bank and Financial Accounts (FBARs).  The aim is to provide an efficient means for low compliance risk taxpayers to bring their US tax affairs to date.  

What is streamlining?

The streamlining procedure will bring taxpayers up to date with regards to the past 3 years of federal returns and the past 6 years of FBARs.  For those taxpayers presenting low compliance risk, review of the streamlined tax returns will be expedited by the IRS and no penalties or follow-up actions will be pursued.  If the submitted returns show less than $1,500 in tax due in each of the years, they will be treated as low risk and processed in a streamlined manner.   Taking advantage of streamlining is simple and can be obtained by simply sending your completed return and streamlining questionnaire to a specific filing address and noting on the return that the streamlining process is being used.

Eligibility

Streamlining is available for non-resident U.S. taxpayers who have resided outside of the U.S. since January 1, 2009 and who have not filed a U.S. tax return during this same period.

Conclusion

It is always advisable to keep on top of your US tax affairs to avoid penalties and administrative problems (e.g. obtaining passports).  With the new streamlining process in effect, there really is no excuse!

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