It’s U.S. Tax Filing Time
We hope you have been enjoying the summer weather and enjoying life abroad. We are fully into tax season right now and the 2014 filing deadline is only a couple of days away.
2014 U.S. Tax Return Deadline:
JUNE 15
If we previously received your tax documents by we should be able to meet the June 15 deadline as it normally takes around 4 weeks for us to complete the tax declarations once we receive all your tax documents.
U.S. Tax Extension Deadline – October 15
If we have not received your tax documents we’ll need to file an extension until October 15 because it is unlikely we’ll meet the June 15 deadline. Please contact us by email to request or authorize an extension for you and we will proceed with filing the extension. There is no cost for filing extensions and we are glad to do it for you.
If you had a U.S. tax liability in 2013 you should pay the same amount as last year’s taxes in order to minimize the failure to pay a penalty. Unfortunately, the payment deadline was April 15 and the penalties and interest have already started accruing.
We operate under an open door policy for all active clients so don’t worry about emailing or calling if you have any questions or need anything. We don’t bill for consultations or questions for active clients so feel free to give us a call. We appreciate your business and look forward to speaking with you.
Important Tax Dates in 2015
- April 15 – Due date for 2014 tax returns for taxpayers living in the U.S. Tax payments are due for ALL U.S. taxpayers.
- June 15 – Due date for 2014 tax returns and to pay any remaining tax due for U.S. taxpayers living abroad.
- June 30 – Due date for 2014 FBARs for U.S. taxpayers living abroad. There are no extensions.
- October 15 – Final deadline to file individual tax returns for 2014. Last day the IRS will accept electronically filed tax return for the year 2014.
- October 16 – Start planning for next year!
What needs to be reported on the FBAR for 2014?
The Foreign Bank Account Reporting rules are very confusing and ever changing so make sure you stay up to date on what foreign assets need to be reported and what value should be used.
Assets to report: Bank accounts, brokerage accounts, mutual funds, private retirement accounts (pillar 3), life insurance accounts with cash value, FX trading accounts, derivatives accounts and any financial instruments accounts, which are held by an institution outside the U.S.
Value to use: Maximum account value of each account as indicated by the highest daily balance in the year. Alternatively, you can take the highest value in one of your periodic statements. Example: if you receive monthly account statements for your bank account you can choose the highest balance reflected in one of the 12 statements.
More information on FBARs:
How does the Affordable Care Act affect me for 2014?
The Answer: Generally speaking, it doesn’t affect you if you live abroad and have an intention to stay abroad. However, you will need to complete a special form or your return will be rejected and you could be penalized.
IRS Language: U.S. taxpayers living abroad will be given a coverage exemption as long as they meet the physical presence or bona-fide residence test as indicated by the foreign earned income exclusion.
Form to complete: You will need to complete the health coverage exemption form (form 8965) and submit it with your tax return in order to qualify for the exemption. This is new for 2014 and if you don’t complete it your tax return will be rejected and you will receive a notice from the IRS and possibly a penalty.
Additional Resources:
Watch the Full US Tax Services Video Series
About US Tax Practice GmbH:
US Tax Practice offers U.S. tax services in Switzerland. It is the go-to tax preparation service and compliance practice for U.S. tax payers. Located in Schaffhausen, Switzerland, the company was founded by Patrick Evans, a U.S. tax accountant (CPA) and U.S. citizen determined to work with his clients’ best interests in mind. US Tax Practice GmbH services include U.S. Income Tax Preparation, U.S. Tax Compliance, Foreign Bank Account Reporting (FBAR), Tax Planning and Optimization, and Expatriation.