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August 1, 2014

Statute of Limitations for Expatriates Living Outside the USA

IRS Statute of Limitations for expatriates.

1. Fail to file a return for any tax year that one is due on your worldwide income?  The statute of limitations nevers runs out to assess taxes for that year.

2. Fail to pay taxes on past filed returns or assessed by the IRS?  The normal statute of limitations is 10 years from the date of assessment and filing a tax lien (that may be a later date from the date you filed the return) to collect tax. However, if you leave the country or the tax is assessed while you are outside the USA, that statue of limitations is put on hold until you return to the USA when it starts to run again.

3. Failed to file Foreign Bank Account Reporting Forms (FBAR or now form 114)?  The statute of limitations to assess penalties for failing to file is 6 years from the due date of each years forms.

4. 3 years from date return is filed is normal statute. 6 years from date return filed if you omitted 25 percent or more of gross income.

5. The statute never runs out if you fail to file forms 5471, 8865, or 3520 --3520A.

Read more at www.taxmeless.com

1 comment:

Amelia Heartwright said...

I've been wondering how you pay taxes if you live outside of the United States. If you are a U.S. citizen but you live in a foreign country, do you have to pay taxes for both countries? I'm going to be moving soon and I want to make sure I know what I'm doing with regards to taxes before I go. http://pstokesco.com.au/taxation