Archive: May, 2015
There are two filing deadline dates rapidly approaching that certain taxpayers need to be aware of: June 15 and June 30.
U.S. citizens and residents living abroad have until June 15 to file their individual income tax return, Form 1040. These individuals receive an automatic extension of two months past the normal April 15 deadline to file their taxes (no form required to be filed). If by June 15 they still need additional time to file, an additional four-month extension can be filed with Form 4868.
Filing your taxes with the IRS has only ever been trivial in the simplest of cases, such as is possible with a 1040EZ. However, for U.S. citizens and green card holders living overseas especially those with undisclosed income and assets, the task has become onerous since FATCA (the Foreign Account Tax Compliance Act) was enacted by the U.S. congress more than four years ago.
Since FATCA (Foreign Account Tax Compliance Act) was approved by the U.S. congress in 2010, the Internal Revenue Service (IRS) has launched a multi-front assault against major international banks and their large account holders in an effort to recoup previously unreported income. Recent implementation of FATCA legislation has increased automatic reporting and put the pressure on people to self-report their income and asset balances more completely and accurately (see my “Ten Quick Tips” article). While it is thought that all these efforts by the IRS are targeted toward high-wealth individuals, we are starting to see many ordinary citizens and green-card holders with modest incomes being swept up in this dragnet.