Is it Possible to File a Joint FBAR?

Is it Possible to File a Joint FBAR?

Taxpayers are generally aware that certain tax obligations can be filed jointly. That is, a married couple can file a single tax return that satisfies each taxpayers’ obligation to file and pay taxes. However, a joint tax return is most commonly discussed in the context of a taxpayer’s income tax return. While income tax is often the main obligation that taxpayers face, it is far from the only informational reporting duty. In fact, in recent years, Congress has enacted new obligations requiring foreign disclosures or introduced new penalties to further compel compliance with already existing foreign disclosure obligations. In particular, taxpayers are frequently concerned with their potential duty to file FBAR. Concern over FBAR is justified because even inadvertent mistakes can result in large fines and unwanted scrutiny. If you have questions about whether you are required to file FBAR, Ted Kleinman and U.S. Tax Help may be able to assist. Likewise, if you are considering whether a joint FBAR filing may be appropriate, Ted can provide on-point guidance. To schedule a free consultation, call CPA Ted Kleinman at U.S. Tax Help by dialing 1-800-810-9312 today. When Is a Taxpayer Permitted to File a Joint Tax Return? Taxpayers are generally aware that they are able to file a joint tax return under certain circumstances. While state law impacts exactly who can file a joint tax return, the general rule is that only two married individuals are permitted to file taxes jointly. Whether you are considered married for tax filing purposes is based on your state’s laws. Generally, any couple who is recognized as married under their state’s laws is...
U.S. Expats Beware:  The Tax Filing Deadline for the 2017 Filing Season is Quickly Approaching

U.S. Expats Beware: The Tax Filing Deadline for the 2017 Filing Season is Quickly Approaching

For expatriates living in nations like Brazil, China, the U.K., or Saudi Arabia tax time can quickly sneak up on a taxpayer. When you are living outside of the American media bubble, it can be easy to become immersed in the culture that surrounds you and to pay less attention to U.S.-based events and obligations. As far as taxes go, this level of cultural immersion is often a problem as expats can find themselves scrambling to make a timely filing at the last minute or miss the filing deadline entirely. If you are an expat and have not yet considered your 2016 taxes which will be filed during the 2017 filing season, the time to do so is now. While you have more time to file than a taxpayer living in the United States, the taxes of expats are frequently more complex and require more time. Expatriates may need to consider tax treaty provisions to minimize the impacts of double-taxation. U.S. taxpayers living abroad are also more likely to need to make offshore account disclosures through FBAR or FATCA. Deadlines for Expats Filing U.S. Tax Returns Most expats are aware that, provided they satisfy certain tests, as a foreign resident they automatically have additional time to file taxes. Taxpayers who qualify as foreign residents automatically have until June 15, 2017 to file their taxes. Furthermore, an additional six-month extension can be requested pushing the tax filing deadline to October 16, 2017. Taxpayers who require an additional six-month extension can request it by filing IRS Form 4868. However, it is important to note that the extension of time to file...
What Can Happen if a Taxpayer Fails to File Taxes?

What Can Happen if a Taxpayer Fails to File Taxes?

While CPAs, accountants, and tax professionals frequently warn taxpayers regarding the parade of horribles that can occur if a taxpayer falls out of compliance with the U.S. Tax Code. Despite these warnings, taxpayers still fail to file taxes for an array of reasons. Some taxpayer – particularly expatriates – may fail to file their income taxes because they do not realize they have an obligation to report all income inclusive of foreign income. Other taxpayers may fail to file because they become overwhelmed with the complexity of their tax filing. Still others may fail to file taxes simply because they do not think the IRS will notice their non-filing. If you stopped filing taxes because you didn’t know where to start or made good faith mistakes regarding your filing obligation, U.S. tax accountant and CPA Ted Kleinman may be able to help. At U.S. Tax Help Ted is proud to assist taxpayers living in the United States and abroad. To schedule a no-cost consultation, call U.S. Tax Help at 1-800-810-9312 or contact Ted online. Also, please see our information on important 2017 dates for American expatriates. How Does the IRS Detect Tax Non-Filers? As mentioned above, at least some taxpayers do not file taxes because they believe the likelihood of facing an enforcement action is remote. Other taxpayers may simply decide to abandon their compliance efforts when they believe that enforcement is unlikely and they are facing a complex and confusing tax issue. Unfortunately, for taxpayers who engage in this type of action, the IRS has developed multiple systems to catch tax non-filers. In fact, a failure to file taxes...
IRA Rollover Problems? Is the IRS seeking a Penalty? New Rules May Provide Tax Relief

IRA Rollover Problems? Is the IRS seeking a Penalty? New Rules May Provide Tax Relief

Today, a ever-increasing share of responsibility for retirement planning and retirement savings is placed on the individual rather than pension plan administrators and other professionals. Reasons behind this shift include business’s desire to reduce costs, a do-it-yourself national ethos, and the rise of investment vehicles like the 401(k). While many taxpayers successfully navigate the often complex rules that govern IRAs and other retirement accounts, it is not outside the realm of possibility to make serious tax mistakes regarding these retirement accounts and disbursements you may receive. If you have received an IRA rollover disbursement and failed to reinvest that money in a qualifying account in a timely manner, you may be subject to significant penalties. Working with careful tax lawyers can help taxpayers avoid a situation of this type. However, if you fear that you have already made an error, Ted Kleinman of U.S. Tax Help may be able to utilize new IRS rules to mitigate the tax consequences of the this mistake. To schedule a free consultation, call Ted at 1-800-810-9312 or online today. What Happens If I Fail to Deposit an IRA Rollover Within 60 Days? When it comes to distributions from an IRA or IRA rollovers, the IRS applies what is known as the 60-day Rule. Under the 60-day Rule, a taxpayer is afforded 60 days to redeposit or reinvest the account in a qualifying account. If the taxpayer fails to redeposit the funds within this timeframe, significant penalties can apply. After 60 days elapses without appropriate action, the IRS assumes that you have had use of the money. This determination means that income tax becomes...
Are Expatriates and Others Living Abroad Entitled to an Automatic Extension if they Haven’t Filed their Taxes?

Are Expatriates and Others Living Abroad Entitled to an Automatic Extension if they Haven’t Filed their Taxes?

There are an array of reasons why taxpayers fail to file their taxes by the April tax deadline. In some cases, the failure to file comes down to simple forgetfulness. In other cases, procrastination may contribute to the individual’s failure to file their taxes on time. In still other cases, due to independent contracting work or other activities where a self-employment tax may apply, the individual may fail to file on time simply because he or she fears the tax bill that the filing will result in. In any case, delaying a tax filing will only make the eventual result worse, therefore, it is always prudent to move as quickly as possible to correct a potentially late tax filing. CPA Ted Kleinman has decades of experience assisting expats and others living abroad with their U.S. and international tax obligations. If you have unfiled taxes or have failed to make required offshore disclosures like FBAR and FATCA, Ted can help you achieve compliance with the U.S. Tax Code and avoid harsh compliance penalties. To schedule a tax consultation with ted call U.S. Tax help at 1-800-810-9312 or contact us online. How Should I File My Taxes if I’m an Expat Living Abroad? If you are living abroad as an expatriate, there is a high likelihood that your taxes aren’t late yet and your concern and anxiety are largely unfounded. However, continued delay may indeed result in your tax filing and payment being late. This is because, generally speaking, U.S. citizens who are living or working outside of the country are automatically provided a two-month extension of time to file their...
Should I be Worried if I Receive a Letter from the IRS?

Should I be Worried if I Receive a Letter from the IRS?

Filing taxes is a duty that all U.S. citizens, permanent residents, expats, and other qualifying taxpayers must satisfy. While it is certainly not a duty that any individual looks forward to engaging in, it is essential that taxpayers handle their taxes promptly and properly. Aside from providing the revenues that the U.S. government needs to function, fulfilling one’s tax filing and tax payment obligation is essential because of the severe penalties and consequences that can be imposed due to non-filing. While the penalties may start with fines and interest, they can quickly escalate if the investigator or auditor believes that willfulness motivated the tax failure. Therefore, most taxpayers dutifully endeavor to ensure that their taxes are filed on time and all obligations are satisfied. Unfortunately, sometimes taxpayers who think that they have done everything right regarding their tax filing duty will nevertheless receive a letter or notice from the IRS. Many times, the recipient’s first inclination is to panic and immediately conclude that he or she will face a full-fledged audit. Panicking is rarely a constructive means to address a situation and taxes are no different. If you’ve received a letter from the IRS, keep calm and approach the matter with a step-by-step approach. If you still have questions, call an experienced CPA like Ted Kleinman of U.S. Tax Help to schedule a no-cost review of your situation. To contact Ted and schedule a consultation call 1-800-810-9312 today or contact the firm online. Not All Letters from the IRS Are Bad To start, it is important to point out that not all letters and notices that you receive from...