Living and working in a foreign shore is a dream come true for many adventurous souls. But the flowery dream may end up in dark for some unfortunate ones, the ones who sooner or later find themselves 'out of compliance' with the Internal Revenue Service (IRS) according to the United States income tax laws. The question that many may ask at this point is why USA bothers to go after expats? Well because a whooping billion are collected by expatriate taxes. This revenue is generated after the government spends mere $5 billion in enforcement activity, including discovery, auditing, collections and prosecutions from tax-delinquents. Also, under the framework of new laws, it becomes very easy for the government to trace where Americans reside. So what happens once I’m discovered as a non-compliant by the IRS? Well the worst way to find out that you’re being found is by discovering that your accounts are now FROZEN. Another shock might come from your bank itself via a letter explaining that your accounts are seized by the IRS. They'll give you a number you can call and a case number and thus the seemingly endless nightmare begins. The first step you need to take when caught in this dilemma is contact an individual tax service. You may find yourself in the following situations for not filing US income taxes as an American expatriate- • You may lose your passport. • You might lose tax refunds that were owed to you by the IRS but not claimed. • You might not be able to claim the Foreign Earned Income Exclusion, currently at $95 thousand dollars per year or $190 thousand if married. • Your financial accounts might be seized or frozen often without warning or prior notice. • Your earned salary can be withheld to contribute toward your obligation to the US government. • Automatic imposition of 30% withholding on transfers between financial institutions (FBAR). • Should one need to file bankruptcy, IRS assessed taxes are non-dischargeable. They never go away. In a normal bankruptcy, personal tax obligations are forgiven. • Jail or imprisonment is seen in some obscure cases. • International tax attorneys generally charge over $300 to 400/hour. Why choose us for expert Expatriate Tax Services and Individual Tax Services? United States Australia Tax Service is a boutique international tax firm which focuses on Expatriate Tax Services and Individual Tax Services. We assist individuals, expatriates, and businesses with US, AU, and NZ tax planning, consulting, and return preparation where there is a connection with either the United States, Australia, and/or New Zealand. For expert Expatriate Tax Services or Individual Tax Service, contact us at http://www.usautax.com/.
Related Articles -
Expat Tax, Expatriate Tax Service, Australia Tax,
|