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As you are aware, a ll American expats (including Green Card holders) must file a 1040 Tax return for the United States, regardless of the country where they are living.

New Tax Law For January 2016

This month the U.S. Congress is planning to put into effect a new law that empowers the government to revoke passports of citizens who refuse (or somehow neglect) to pay their taxes. According to various sources, this law also gives the U.S. State Department the right to deny tax scofflaws new passports.
If you are in arrears to the tune of $50,000 or more, ( including penalties and interest), then your passport may soon be rendered meaningless. The law basically allows for the denial or, as mentioned, the actual revocation of passports for taxpayers who owe Uncle Sam.
The law is to officially take effect in January and is a rider to the overall highway funding bill. It is estimated that getting tough with tax delinquents will bring in an additional $398 million over the next decade.
If you are an American who is living and working abroad, this may be particularly troublesome as you, likely, would prefer to someday return home. 

Did you think filing an FBAR was bad? New FATCA laws enacted in 2010 create reporting nightmares for those with overseas assets.
All U.S. Expats and green card holders are required to file and pay taxes to United States (IRS). You must pay taxes by April 15 if you owe.
Make sure you file the correct form when filing amended 1040 return. Use form 1040x. Check out common errors. 
The team at Capital Tax also wishes you and your family and friends a Happy New Year! Although the last thing to think about at the beginning of the year is taxes, don't let it slip by and get a head start as the April 15th deadline approaches sooner than you think. 


Eric La Cara

Eric La Cara
Capital Tax & Accounting Services, Ltd.

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