Your Obligations as a US person

The US is one of the few countries in the world that taxes on the basis of citizenship rather than residency. Under the US tax system, US Persons are required to file annual US income tax or informational returns, reporting worldwide income from any source, no matter where they live in the world. A move overseas exposes individuals to additional US tax compliance and planning issues. Non-US Persons must also comply with the US tax rules if they have investments or income/gains from the United States.

You’re considered a US Person if you meet one of the criteria below:

• Born in the United States
• Born outside the United States of a US parent
• Naturalized citizen
• Green Card Holders
• US Residents

Filing US tax returns and staying FATCA compliant

If you qualify as a US tax resident or US Person, you need to file an annual individual US tax return, form 1040 or 1040NR, reporting your income from all sources worldwide. Click through to our FATCA (Foreign Account Tax Compliance Act) FAQs to read more about these regulations and how they affect both individuals and organizations.

Informational reports for benefits and ownership in various foreign assets:

• FBAR – Report of Foreign Bank and Financial Accounts FinCen 114 (formerly TD-F 90-22.1) for all foreign bank accounts, pension accounts, trust accounts and insurance accounts in which you have a financial or beneficial interest in or signature authority over the account, if the aggregate balance of all your accounts exceeds $10,000 at any time during the year.
• Statement of Specified Foreign Financial Assets – Form 8938. Different rules apply for individuals living in the US and US persons living abroad if you have specified foreign financial assets. This form is in addition to the reporting of your FBAR.
• Informational reports detailing ownership or beneficial interest in foreign corporations, partnerships, trusts and estates
• State issues will also need to be taken into consideration

Worldwide income, assets and benefits are all fair game

If you have received assets in the form of property, income or other applicable benefit anywhere in the world, you will need to report this to the IRS. We can help you ascertain how you can report these receipts or disposals in the most tax-efficient way.

Filing your US tax return is a responsibility you should not ignore. Failing to submit a US tax return can have serious consequences, including possible criminal charges. Click through to our services and read more about how we can help.

There are also several options for getting caught up on your US tax return filings if you are behind. Please read about Voluntary Disclosure options we can assist you with.