Is it easy to get away with not filing your taxes on time if you’re an Expat? No, it isn’t and this is why you need to consult an expat tax CPA if you are not able to file your taxes on time or else the IRS will come after you. People living abroad have a lot on their minds and filing taxes or filing your taxes and making sure you avoid double taxation can be a tough job to do. After all, no one wants to waste their hard earned money in double taxation. If you want to know what happens to people who fail to file their taxes on time, and what do they need to do in order to make sure they don’t face severe consequences, read this article till the end!
How The IRS Can Track Your Tax Returns?
The IRS is an organization that can be very difficult to trick. They have all your tax filing records and can also anticipate how much tax you will be filing this year. And even if you do succeed, how will you evade problems that will come forth in the future. Let us give you a thorough description of how the IRS tracks your tax returns when you’re living abroad.
Social Security or Pension Benefits
When in the long run you wish to avail certain benefits like state benefits or others, the government will ask for proof that you have filed all your taxes and paid them in time. If you don’t have the proof, you will not be able to avail these benefits. Moreover, everything is now digitized so you won’t be able to fake it either because the government has all the records. As a consequence, the government may call upon you to file and pay all the taxes you have been running behind on.
For example, when you apply for your social security or pension benefits, you cannot be registered or eligible for the process.The Opening Of A U.S Based Financial Account
The IRs has various ways of catching you in a taxation net. If you want to open a U.S based account, you will have to deal with yet another problem if you haven’t filed your taxes on time. The first condition to open a U.S based account is to show a record of in time tax filings.
Inheritance Of Property
If you think you were lucky enough to get away with late or no tax filings, then here’s the sad news. If your parents or grandparents die and leave you with a hefty inheritance that you can enjoy, you won’t be able to transfer it to your name until you file all your taxes and pay a fine as well.
The WhistleBlower
The IRS gives special incentives to people who report non-filers. The also give money in return for such services calling it the “Finders Fee”
The highest amount paid to a whistleblower till date is $104M.