News for Americans Abroad

News from FAWCO-US Liaison

Message from the US Liaison-Good news and bad news!!


Actually, it's good news that you already knew the bad news (!), i.e. that it's tax time again (and most of us are required to file our tax forms even though we won't owe any tax).  Almost everyone now knows that the filing deadline for overseas filers is June 15, with a possible extension (you must request) until October 15, so don't panic but of course, the sooner you get it behind you, the better!
 
This year the good news is that FBARs may now be filed as late as October!  FinCEN tells us:
"Section 2006(b)(11) of the Act changes the FBAR due date to April 15 to coincide with the Federal income tax filing season.  The Act also mandates a maximum six-month extension of the filing deadline.  To implement the statute with minimal burden to the public and FinCEN, FinCEN will grant filers failing to meet the FBAR annual due date of April 15 an automatic extension to October 15 each year.  Accordingly, specific requests for this extension are not required."
 
As always, we recommend that you not use the online services that offer help in FBAR filing (and cost unnecessary money).  Go to the official site.  https://www.fincen.gov/report-foreign-bank-and-financial-accounts?utm_source=April+NIB+Draft&utm_campaign=NiB+December+2016&utm_medium=email


Lucy Laederich, AAWE Paris
US Liaison

 

AMERICANS CITIZENS ABROAD - by Dale Finlayson


Don’t forget your US tax return!


The United States taxes “US persons” outside the US (citizens, green card holders) on the basis of citizenship, NOT residence, unlike almost every other country in the world. Tax returns are normally to be filed by 15 April every year, but since the 15th falls on a Saturday in 2017, and since Monday 17th is the Emancipation Day holiday, 2017 returns are due by Tuesday 18th. Non-resident US persons have an automatic extension until 15 June – but any tax that is due must be paid by 18 April or penalties will be incurred. A further extension to 15 October can be applied for.
The following are the income thresholds for tax filing in 2017:

A “US person” is also required to file an FBAR (Report of Foreign Bank and Financial Accounts - FinCEN Form 114) form electronically by 18 April if 1) s/he had a financial interest in or signature authority over one or more financial accounts located outside the United States; and 2) the aggregate value of all foreign financial accounts exceeded $10,000 at any time during 2016. However, if you fail to file by the due date, FinCEN grants an automatic extension to 15 October; specific requests for an extension are not required.
All amounts on your tax return must be expressed in US dollars. The usual conversion rate is the Treasury’s Financial Management Service rate for the last day of the calendar year, which in 2016 was $1 = £0.8120.


Greenback expat tax survey – Greenback would like your Feedback!


In less than 5 minutes, you can help protect the interests of Americans living abroad and be entered to win a $1,000 Hotels.com gift card!
Share your thoughts on expat taxes, the new US presidential administration, and more.
https://greenback.getfeedback.com/us-expat-opinion-survey3e07ba24-3b24-4e17-928a-b983d557c262

 

Dale Finlayson, contact.

 

 

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