The U.S. is one of only two countries that taxes its citizens based on their citizenship, so what this means is that Americans must file taxes in the U.S. on their worldwide income, regardless of what country they reside in. This comes as a surprise to many Americans, especially to the ones who are living abroad because they realize that without knowing it they may be delinquent with the U.S. government.
This is where the SFOP comes to the rescue. The IRS created this program for U.S. expats who were unaware of their tax filing responsibilities in the U.S., to allow them to file their late tax returns, and get compliant with the U.S. laws and requirements penalty free, which means no accuracy penalty, no delinquency penalty and no miscellaneous penalty.
In order to file under this program, you must truthfully have been unaware of your duty to file your U.S. taxes. This is what is known as a non-willful lack of filing. It not fair to say that many U.S. expats are legitimately in this position. In order to proof this to the IRS, as part of this Amnesty Program, you need to sign a statement in which you certify your innocence. This part of the process is one of the most compelling aspects why U.S. expats feel more confident by having a U.S. certified Tax Attorney who can guide and help them through this process, because it is of the utmost important that your certification and your tax filing documents have no mistakes.
If you want to take advantage of this Procedure, it is encouraged you to act quickly. The IRS is lenient toward those who come forward voluntarily, but if they notice your non-compliance before you have taken action, they are much less sympathetic, and the consequences and penalties for not knowingly failing to file your U.S. taxes are costly and serious.
Amongst others, some of the penalties include:
When a tax issue arises, the guidance and negotiation skills of a n expert and licensed tax attorney are essential. Contact Attorney Alexandra Sabalier, Esq, today for a FREE Initial Legal Consultation so that we can discuss any question and concern you might have that can be addressed in a timely manner.