The long-arm of the IRS has been further strengthened by an announcement from The Large Business and International Division (LB&I) of the IRS. Within the announcement were six new compliance campaigns, designed to specifically target US Expats and their taxes. A comprehensive summary of these campaigns have not yet been announced, however we have put together a summary of what we already know to keep US Expats in line with their filing obligations.
IRS Compliance campaign
The new IRS compliance campaigns are extremely comprehensive and focuses on targeting:
· Post OVDP compliance
· S Corporation Build in Gains Tax
· High Income Non-Filers
· US Territories
· Section 457A Deferred Compensation Attributable Services
Many US Expats will fall into more than one of these categories’.
It has not yet disclosed the degree to which this could affect US expats. However, the overall goal to crack down on noncompliance suggests the impact for US expats who are behind on their filing obligations could be huge.
There are a number of plans that the IRS have introduced to assist non-compliant expats in catching up with their filing obligations; I.E, The Streamlined Offshore Filing Procedure.