Need to File U.S Taxes Late? what do U.S Expats need to know?

Tax Preparation Services in California:

What is a Tax Id Number? A tax identification number is as exactly as it sounds. Actually, it is a number that identifies an entity or individual for tax preparation. It is a term number that acts as an umbrella. Moreover, it covers all types of other numbers that can be used when contacting authorities for tax reasons. The TIN (Tax Identification Number) is used by many countries worldwide. Contact us for Tax Preparation services in California.

These tax numbers are used to help identify tax-paying individuals, to help administer the tax. It identifies those companies that are eligible to pay taxes.

Types of Tax Identification Numbers:

Tax Preparation Services in California. Tax Identification Numbers are different for each country. However, some countries use SSN numbers. This number is written on identity cards, passports, or other Identity National Numbers.

Need to File U.S Taxes Late:

Many Non-Residents of the United States are not aware, they don’t know how to continue filing U.S taxes from overseas. However, they might assume that they are protected by a tax treaty or other mechanism.

As a matter of fact, American citizens have to file, when they need to claim one or more IRS exemptions. These exemptions alleviate the US tax burden, often to zero.

Expats who have been living in Foreign Countries, are unaware of the requirement to file taxes. These taxes from abroad need to file U.S taxes late to catch up.

Those non-residents who are behind for more than three years need to employ an IRS. This Amnesty program is known as Streamlined Procedure, this helps them to catch up and become compliant.

The Streamlined Procedure is necessary for Expats to file their three years tax returns. They also need to file an IRS form to self-certify that their last non-compliance was not willful avoidance.

Moreover, the Streamlined Procedure amnesty program allows Expats to claim IRS (Internal Revenue System) exemptions. This reduces their U.S tax liability, in most cases to zero. However, those Expats who file taxes late under the program don’t have to face any penalties or fines. We are Best for Tax preparation services in California.

What do U.S Expats Need to Know?

Well, there are two types of penalties from the IRS (Internal Revenue System) for Expats, who failed to file taxes. A failure-to-file penalty can apply in case you did not file the tax-filing deadline. Another penalty, A failure-to-pay penalty if one did not pay all the taxes he owed by the tax filing deadline.

Failed to File? get our tax preparation services in California:

In case, you file late taxes as a U.S Expat, within 60 days of your U.S Expat return due date. Generally, this will be equal to 5% of the amount of unpaid tax. The exact same amount may apply to each new month that you return late.  

However, the penalty cannot exceed 25% of the total unpaid amount. Moreover, the minimum penalty for filing 60 days past the filing date is 100% of the unpaid amount.

Failure to Pay:

Expat in the United States Filing taxes late is not a big deal, but if you failed to pay your taxes, then you are subject to a failure-to-pay penalty. However, this is assessed at a monthly rate of 0.5% of your actual tax liability. In minor cases, one may avoid this penalty, if he files an extension.

As an Expat if you failed to pay tax before the deadline, you will be charged interest on the amount accumulating from the deadline. But if you pay your taxes after the deadline, then you will face penalties.

This is even if you have an extension on the tax deadline for the U.S Expat. If you are hit with both penalties, then a failure to pay the penalty is deducted from the failure to file the penalty.

In some cases, Expats include a letter with their late tax returns. This letter explains why they are failed to file. This is because they do not know about their tax obligations. As they are overseas, this may be accepted by the IRS and any penalties may be waived.

Moreover, there are other penalties that include serious ones, such as FBAR penalties. Do not hesitate to contact us for tax preparation services in California.

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