# IMPORTANT US Tax Requirements



## pbgollaz (Apr 7, 2015)

*Updated IRS Requirements for Expats*

In addition to the now-famous Foreign Accounts and Tax Complicance Act (FATCA), which has affected many of us, the IRS has spent the last five years stiffening regulations to smoke out tax evaders and money launderers, consequently making life even harder for those Americans who have simply ignored their taxes because they assumed they were exempt. So, it's very important that we have up-to-date information about the applicable IRS requirements.

For example, all US expats (no exceptions) must annually file a tax return with the IRS. That is true even if:
They have no income from the US and owe no taxes.
All their US income is retirement income.
The source of all their income is in Mexico.
They pay tax on all Mexican income.

The fine for failure to file a US tax return ranges from $10,000 to $100,000 and ignorance of the law is no protecton against fines and penalties.

For the first time this year, US expats with Mexican health coverage must attach a completed Form 8965 to their 1040, which indicates to the IRS that they benefit from “deemed covered” status by a foreign health plan and thus do not need to participate in a US plan.

All US expats must also file a Report of Foreign Bank and Financial Accounts (FBAR) for each bank account and investment account held in Mexico with a balance of $10,000 (dollars) or more.

Those who were not aware of all this, and have not been meeting their income tax and financial reporting requirements, may still qualify for the Offshore Voluntary Disclosure Program (OVDP) which the IRS set up a couple of years ago to help non-US residents correct past tax returns (for up to eight years).

There's still time to get everything up to date this year, since the filing date for Expats is June 15, not April 15.

Further reading:
On the Trail of the Elusive U.S. Expat Taxpayer.
blogs.wsj.com/expat/2015/04/01/on-the-trail-of-the-elusive-u-s-expat-taxpayer/?utm_source=taboola&utm_medium=referral

Time to debunk the myth of the tax-free expat.
finance.yahoo.com/news/non-us-residents-abroad-must-file-income-taxes-195444214.html"]https://finance.yahoo.com/news/non-us-residents-abroad-must-file-income-taxes-195444214.html


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## joaquinx (Jul 3, 2010)

Do I really need to file? Check with the IRS Do I Need to File a Tax Return?


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## Isla Verde (Oct 19, 2011)

joaquinx said:


> Do I really need to file? Check with the IRS Do I Need to File a Tax Return?


Thanks for posting this, joaquin. Now I know I need to file and where to do it online.


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