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June 27, 2010

TDF 90-22.1 FOREIGN FINANCIAL ACCOUNT REPORT DUE 6/30/10 - STREET ADDRESS TO USE FOR DHL, FED EXP OR UPS DELIVERY

TDF 90-22.1 FOREIGN FINANCIAL ACCOUNT REPORT DUE 6/30/10 - STREET ADDRESS TO USE FOR DHL, FED EXP OR UPS DELIVERY 

The following street address should be used to file TDF 90-22.1 (FBAR) form when the US mail is not available for delivery. These private delivery services will not deliver to the PO Box shown delivery address shown on the form's instructions.:

IRS Detroit Computing Center
Attn: FBAR Mailroom
4th Floor
985 Michigan Ave.
Detroit, MI 48226
(313) 234-1062

This form must be filed immediately. If it does not arrive by 6/30/10, you may incur a $10,000 late filing penalty. The fine can be greater if you do not file at all and also might include criminal prosecution.  When in doubt whether you owe the form to the US Treasury, best to file just to be certain there are no problems since it does not cause any additional income tax cost, and is only a reporting form.

June 9, 2010

IRS PROPOSES JOINT AUDITS OF INTERNATIONAL COMPANIES - INDIVIDUALS WILL PROBABLY BE NEXT

The IRS Commissioner has proposed joint audits of International Companies by the US and the tax agency of the Country in which they are doing business abroad.  This is a further extension of the general worldwide opinion that if all country taxing agencies work together they will all benefit by increased tax collection.

This is just the first step of what will most likely follow in a few years (or less) which will be joint country audits of individuals living and working abroad.  This means that in the future the IRS  and the foreign country taxing agency will institute joint audits of US individuals living and working abroad.

The commissioner also talked about the new rules for 2010 about reporting foreign financial assets. For more click here or on the caption to this article to go to the details of the Commissioner's remarks.

June 8, 2010

Due Date for Other Foreign Tax Reporting Forms

Form 5471 ( filed if you own a foreign corporation) and Form 8865 (filed if you participate in a foreign partnership) are both due by the extended due date of your personal tax return. Forms 3520 (for foreign trusts) is also due by the extended due date of your personal tax return.  However form 3520A which is also filed for foreign trusts is due on 3/15 of each year, but can be extended using Form 7004 to September 15th following the end of the calendar year.

There are severe and punitive penalties for failing to file these forms at  at all or for filing them late.

June 5, 2010

IMPORTANT DUE DATES ARE NEAR FOR EXPATRIATES

If you were living and working abroad on 4/15/10, the due date of your return (but not payment of any tax due) was automatically extended until 6/15/10. You can further extend your personal income tax return by filing Form 4868 by 6/15/10 until 10/15/10. The extension must be send by US mail or UPS, DHL or Fed Express overnight express service and dated or postmarked on the 15th.

The Foreign Bank and Financial Account reporting form TDF 90-22.1 is must be received by the Detroit address it must be mailed to (it is filed separately from your Form 1040) by 6/30/10. Failure to file that form or filing it late will result in an IRS penalty of $10,000 or more. This form must be filed if your personal foreign accounts or the foreign accounts you sign on but have no ownership interest equal or exceed $10,000 at any time during 2009 when all accounts are aggregated together (combined in one total). That means even though no individual account exceeds $10,000 if you combine the highest balances during 2009 together an that amount is met or exceeded you must file the form. This includes foreign stock broker accounts and any type of foreign account in which an entity holds custody of financial assets (such as credit balances in foreign credit card accounts)