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back to index backAMERItalk April,  2012


IRS Cracking Down on U.S. Expat Taxpayers

All U.S. citizens across the globe, regardless of whether they reside or have earned taxable income in the country are required to file tax returns to the IRS, even if no money is owed. And while this law is not new, it will start to be enforced this year. According to the U.S., tax obligations are imposed based citizenship, not residency, and if they aren’t filed then the IRS can impose penalties. The law also applies to individuals who may have already paid their taxes to their current country of residency, although a treaty between the U.S. and Canada prevents those persons from being forced to pay twice.  “When taxpayers overseas avoid paying what they owe, other Americans have to bear a disproportionate share of the tax burden. FATCA (Foreign Account Tax Compliance Act) is an important part of the U.S. government’s effort to address that issue,” said Emily McMahon, the acting assistance secretary for tax policy with the U.S. Treasury.

Source: GLOBALITY - GAI





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