Delinquent US Tax Filings and FATCA

Many US persons (including US citizens, “green-card” holders and individuals meeting the “Substantial Presence Test” under US tax law) living in Canada and other countries outside the US, are unaware of their US tax filing requirements or were incorrectly advised that they did not have to file in the US.

Andersen Tax LLP has worked extensively with individuals who are delinquent in their US tax filings and identifying strategies to comply with US tax law in order to avoid or reduce the tax, penalties and interest that would otherwise apply to them.

Options for Delinquent US Tax Filers

To encourage delinquent US tax filers to comply with their US tax filing obligations, the US Internal Revenue Service has introduced a number of filing alternatives including:

  • Offshore Voluntary Disclosure Procedure
  • Streamlined Filing Procedure
  • “Quiet Disclosure”

Each of these alternatives have advantages and disadvantages associated with them. Andersen Tax LLP works with individuals to enable them to comply with their past US tax filing obligations in the most effective way possible. We advise on filing alternatives, recommend the strategy that is most suitable for them and prepare the required tax filings including relevant disclosures associated with their interest in financial accounts, investments and other entities located outside the US.

For individuals who wish to renounce their US citizenship we strongly recommend an evaluation be undertaken to review the associated US tax implications prior to taking such action. Similar rules apply to individuals who are “green-card” holders and have become long-term residents of the US as defined by US tax law.