Law

New Compliance on IRS Singapore for Americans Working Abroad As Expats

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Every year, once in a while, IRS launches new compliance which is specifically targeting expats and taxes. The new IRS Singapore compliance releases in recent months are again aimed towards one community in particular: Americans who are working abroad and haven’t filed their taxes. So, we are going through the campaigns. Through this post, we will make you aware of the latest IRS campaigns one by one to let the expats have detailed information to prepare in advance.


What Are Included In Latest IRS Releases Compliance?

To address tax non-compliance, the Large Business & International Division (LB&I) of the IRS launches a new campaign in its regulation. There’s no reason to take the stress. Compliance campaigns in IRS Gov Singapore are not new. Being an American expatriate what you have to keep in mind is that the latest released campaigns are mostly targeting expat tax compliance.

How The Latest IRS Expatriation Compliance Affect Americans Working Overseas?

The expatriates’ compliance involves “US persons” including US citizens and resident aliens (Green Card holder) who expatriated “after June 17, 2008”, and are recognized as tax non-compliant. Those who come under these categories can form contact with the IRS through a soft letter and examination.

However, expatriates tax is different for those who expatriated after June 17, 2008, and those who expatriated between June 3, 2004, and June 17, 2008, and those who expatriated before June 3, 2004. All these dates can be difficult to remember, but what American expats need to remember is this: no matter the date, expats who haven’t filed Form 8854 can have to pay the penalty of amount $10,000.
If you fit into the categories, listed above, meeting the IRS compliance will become more important than ever.

How American Expats Can Prepare Them?

The latest IRS compliance initiatives are standing as a new and strict period of expat tax regulation era. For instance, some of the IRS amnesty programs- streamlined tax filing procedures can only be followed if an expat is unaware of tax filing requirements or contact the IRS and file late taxes before IRS contacts him. In case, they contact you for your late tax filing (which has the more chance due to this new campaign), you will be ineligible to avail of any of the amnesty program facilities.

In order to use the streamlined tax filing procedures, you as an expat is required to file three years of federal tax returns, 6 years of FBARs (Foreign Bank Account Reports), and a form that states that your non-compliant tax status was non-wilful. In simple words, this particular compliance is specifically for expats who were unaware of their tax filing requirement as an American expat or say after moving abroad.

By using the streamlined tax filing route, you can become compliant penalty-free. It’s an ideal way to rectify your tax complications and save a good amount of money at the same time. With new campaigns looming, there’s no reason to wait for a second to become tax compliant, instead, get the assistance of the IRS tax specialist.

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