If you are a non-resident of the US but owe back taxes, THEVOZ Attorneys can help you get in compliance with the IRS.
US non-residents have an obligation to pay US taxes if they have a green card, or have a substantial presence in the US, meaning they spend 183 days or more in the US in a three year period, according to a specific IRS formula. [See the formula here.] Some delinquent taxpayers have willfully evaded paying US taxes, which is a more serious offense as far as the IRS is concerned.
Since these “US residents for tax purposes” do not want to lose access to the US banking system or be barred from entry into the US, they want to get compliant on their taxes. THEVOZ Attorneys can help. There are two programs for getting compliant with US tax laws; one is for people who were not aware of their obligations to pay the IRS and who simply made a mistake. The streamlined offshore compliance procedure is designed to help people who fit this description, deemed “non willful non-compliant.” It is important that the taxpayer be forthright and complete in reporting all income on their US tax return.
The streamlined procedure requires that taxpayers submit tax returns for the most recent year they were delinquent and for the two years prior. They also must submit six years of FBARs, or Foreign Bank Account Reports, to report any accounts in foreign institutions with an aggregate value of over $10,000.
THEVOZ Attorneys works with these taxpayers by reviewing their tax returns and FBAR filings to be sure they are complete and in compliance with IRS rules. The benefit of completing a successful streamlined offshore compliance procedure is that, while the taxpayer must pay all taxes owed in addition to interest, they will not have to pay any penalty to the IRS for failing to file in a timely manner. Working with a THEVOZ Attorneys will make for a successful process for the taxpayer.
Program for non-residents who are willfully non-compliant.
While the IRS does regularly prosecute people for not paying their taxes, or paying them incompletely, they do have a program for non-resident taxpayers who are willfully noncompliant on the US taxes to get compliant. It is called the offshore voluntary disclosure program, or OVDP.
The requirements for OVDP are rigorous, but the benefit to successfully completing OVDP is that the taxpayer will not face criminal or civil sanctions for noncompliance. The program requires that the taxpayer undergo preclearance to determine if they are eligible for OVDP and are prepared to fully disclose all relevant information about their tax liability and pay any back taxes and interest promptly.
Once the taxpayer receives preclearance, the IRS requests all relevant records and information to assess the complete tax liability. A non-resident taxpayer undergoing OVDP should work with a tax attorney, like THEVOZ Attorneys, who knows US law and tax rules and will protect their rights as the taxpayer goes through OVDP. Full and timely disclosure of all income and other information is what the IRS wants from willfully noncompliant taxpayers and working with an attorney who can help with the disclosure and enforcement process is essential.