Delinquent U.S. tax filings

Delinquent U.S. tax filings and FACTA

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

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

Options for delinquent U.S. tax filers

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

• Offshore Voluntary Disclosure Procedure (OVDP)
• Streamlined filing procedure
• “Quiet disclosure”

Each of these alternatives have advantages and disadvantages associated with them. Andersen works with individuals to enable them to comply with their past U.S. 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 U.S.

For individuals who wish to renounce their U.S. citizenship we strongly recommend an evaluation be undertaken to review the associated U.S. 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 U.S. as defined by U.S. tax law.