If you live outside the US and have not fulfilled your obligations to the IRS, learn about the Streamlined Foreign Offshore Filing Compliance program that can help you.

As we know, the United States is one of the few countries in the world that requires its permanent residents and American citizens to continue declaring their taxes even if they live in other countries, and many people, unaware of this obligation, end up never sending their taxes to Uncle Sam's Land, thus becoming delinquent with the Internal Revenue Service - IRS and subject to penalties, including criminal ones.

If you were born in the USA or have a greencard and live in another country and didn't know you had such obligations to the country, the good news is that you may be eligible for the "IRS Streamlined Filing Compliance Procedure". This program allows you to submit your obligations without receiving late filing penalties, but of course, this program is only valid for those who, due to lack of knowledge of the obligation, have failed to comply with it.

But exactly what obligations does an American citizen or greencard holder living abroad have to fulfill with the US tax authorities?

• Submit your annual income tax return on your worldwide income.
• Submit FACTA, Form 8938 annually if you have financial accounts abroad within certain limits.
• Send Form 5471 annually to report companies abroad in which you have holdings above 10%.
• Submit Form 8621 annually to report investments in Investment Funds outside the USA.
• Submit Form 3520 annually if you have received donations from third parties in excess of $100,000.
• Submit Form 114 - FBAR (Foreign Bank Account Report) annually if you have deposits or investments in banks outside the USA in excess of $10,000.    

And who qualifies for the Streamlined Foreign Offshore Procedure?

• Anyone who has lived outside the USA for 330 days in at least one of the last three years.
• Who can certify that the failure to file income tax and FBAR was for an honest reason of ignorance of American legislation.

If you qualify for the program you will need to send the following documents:

• 03 most recent years of income tax, including extensions.
• 06 last years of Form 114 - FBAR.
• A complete declaration detailing how you earned your wealth and the reasons why you didn't file your taxes on time.
• Payment of income tax due and calculated on these 03 years and the interest accrued.

Need help with Streamlined Foreign Offshore Procedures? Contact us now to start your process.