Living Abroad and Haven't Filed Your Taxes in Many Years?

Living Abroad and Haven't Filed Your Taxes in Many Years?

If you are an US expat living abroad for first time and have missed out on 1 or 2 years of filing your federal tax return, then it's fine. You can file back taxes from your missing returns. Thus, if you are a new US expat and missed a year of filing already, the US tax year you have to file for the year before. For example- it is the year 2020, you need to file for 2019.

American citizens who are living abroad and have missed their federal tax filing 1 or 2 years can catch up by back filing their missing tax return. The filing deadline for US citizens living abroad is June 15 but you can request an extension to the Oct 15th deadline.

US citizens living abroad who never filed can use US expat tax services. Us taxes abroad can be difficult to understand to find out your tax profile and how to become more tax complaint, we advise you entrust in US expat taxes company that proves services like filing US tax returns when living abroad.

US expat tax service companies like US expat taxes, support US citizens living abroad with all their tax questions and get them to a state of ease as they bring them to a state of tax compliance. Besides, their customer service professionals are available to answer your emails and any form of message you may have about getting back on track with the internal revenue system as US citizens living abroad.

Keep in mind that while failure to file the forms for the tax breaks taxpayers want will only result in the loss of that tax relief, and the required paperwork, your income tax return and assets reports and others, carries significant penalties if don't file your taxes on time. We have mentioned some if the penalties for filling delinquent US expat taxes. Let's take a look at them.

Failed to file your tax return for several years There are mainly three financial penalties for avoiding to file your tax return on time.

1) failure to file penalty 2) the failure to pay penalty 3) interest accrued on missed payments.

Remember, each is calculated based on some percentage of the unpaid taxes. The failure to file panalty is the most expensive among them as you can charge 5 percent of the amount you owe and fine will increase 5 percent each month. By comparison, the failure to pay penalty is more reasonable as the rate is 0.5 percent per month.

Interest for the missed payments can also affect you even if you file on time. People who are living abroad on the prescribed tax deadline are often granted an automatic two months extension to file. But, the interest will start accruing on the April deadline and will continue until the tax bill is settled irrespective of any extension.