There is one basic obligation for US citizens and residents: file their income tax return by April 15. If you have a financial interest in another country other than the US, then two more obligations come to the picture: FBAR and FACTA. The former is attached and filed with your tax return and the latter is filed online separately up to June 30.
Now if you are an Expat having no income connected to US sources, perhaps you are off the hook of income tax reporting. But not so from FBAR and FACTA. If you hold assets over $10,000 in a bank account or any other kind of financial assets, you are subject to FACTA. If such amount increases to $50,000 in a year, you are also subject to FBAR.
If you find yourself in non-compliance with all of these regulations, which imply the reporting of any financial interest you hold in any country other that the US over $10,000 for FACTA and over $50,000 for FBAR, there are some remedies that you can use:
IRS streamlined Program: If you want to come up-to-date with your foreign holdings over $10,000 because you were unaware of the FBAR rules, this is the program for you: file 3 years back returns and file 6 years back FBAR reports, pay taxes. NO PENALTIES.
Offshore Voluntary Disclosure Program: If you have willfully hide funds in foreign accounts, then this is the best way to come clean. File 8 years back of tax returns, 8 years back of FBAR and pay taxes, pay interest and pay penalties for up to 27.5%
Need help to navigate offshore, call me, skype me or email me.
Fulton Abraham Sanchez, CPA
Certified Public Accountant
10661 N Kendall Dr Suite 201
Miami FL 33176
This discussion is not intended as legal advice, and cannot be relied upon for any purpose without the services of a qualified professional.