Over the years, we have come across thousands of US expat who are behind on their taxes. This article focuses on US expats who have either missed the June 15th tax deadline over a month ago or perhaps are years behind.
If you are an American living abroad that have failed to file your tax return we recommend that you do not panic and simply take steps towards catching up. The IRS allows a number of schemes to US expats that offer consideration for backdated tax returns.
Identify what method you should file under
As mentioned above, there are a number of schemes allowed to US expats for catching up on taxes.
The IRS Amnesty program is aimed at US expats who need to catch up on over a year's worth of tax returns. You can do this using the Streamlined Filing Procedure, in which you are required to file the past three years of your tax returns and the past six years of FBARS. Whether you are behind by 3 years or 10, after you have filed these documents, you’ll be all up to date with your taxes.
If you missed the 2017 tax deadline, you can include your 2017 tax return in the streamline return.
The Offshore Voluntary Disclosure Program (OVDP) is another amnesty program that is available to taxpayers. However, in order to file under ODVP, you must act quickly as the scheme comes to an end this year.
Don’t wait- Get caught up now
Whether you are one year behind or several, it is essential to take action immediately to avoid unnecessary stress and penalties. We recommend as soon as you identify what filing procedure you require, you gather your documents and prepare to file.