Americans must declare assets by end of month

THE 12,000-plus Americans living in Ireland have been warned that they must declare their income or assets before the end of the month.

All US citizens or green card holders living outside the US are obliged to file a tax return every year regardless of whether they are employed or not working, married or single or paid from a US-based or foreign source.

There are more than 12,000 US citizens residing in Ireland and according to www.taxback.com these people have just four weeks to own up to any foreign assets or they run the risk of losing up to 40% of their value.

Aoife Twohig of taxback.com said: “Mobile workforces are a hallmark of the modern business world and many US firms expanding into Ireland and other international markets for the first time subsequently find themselves facing increased tax responsibilities.

“Whether they have staff working from numerous tax jurisdictions in a given year or relocating to a different jurisdiction for a period of time, ensuring full compliancy with both US and international tax laws is vital.”

The IRS requires all US citizens to submit a yearly income tax return on worldwide income. While the tax return deadline for US citizens living abroad has been extended to April 15, US expats are obliged to declare any assets held in foreign bank accounts by August 31.

“The IRS is increasingly likely to find non-compliant taxpayers through whistle-blowers and new Foreign Account Tax Compliance Act (FATCA) legislation which comes into effect shortly,” said Ms Twohig.

According to taxback.com the new FATCA legislation grants the US government the authority to order foreign banks to disclose any assets it may hold belonging to US citizens. Taxpayers participating in the new initiative must file all original and amended tax returns and include payment for taxes, if not already submitted or provide copies of them for the years 2003 to 2010, interest and accuracy-related penalties by the August 31 deadline.

Taxback.com say that they have seen a growing number of clients come to them in recent weeks in an effort to meet the deadline at the end of the summer.