Has your bank or financial institution contacted you to provide a Tax ID or Social Security Number?
If so, it is because of new FATCA regulations. The United States has an agreement with other countries called the Foreign Account Tax Compliance Act (FATCA); this requires every American citizen living abroad or residents born overseas to provide their (SSN) or Tax Identification Numbers (TIN) to be on file to avoid not to be blacklisted at their financial or banking institutions outside the United States.
Many people from Saudi Arabia & GCC have had to supply their SSN to open bank accounts in the past few years. Otherwise, these individuals will be denied services and/or block access to their existing bank accounts without providing an SSN.
Accounts belonging to U.S. citizens without a Social Security Number (SSN) will soon be blocked or shut down.
Saudi Arabia is not the only country where U.S. citizens are denied bank accounts because of their citizenship. Banks have stopped providing service for Americans without SSN due to FATCA regulations. Accidental American status; this includes those born on United States soil and people with dual citizenship who did not have or cannot provide an SSN when asked by lenders or financial institutions will start facing financial issues, as well as compliance matters like income tax filing and bank reporting.
This could be a final warning before these customers completely lose access to their accounts. So, you must contact the Social Security administration In Italy, Roam, to get your SSN ASAP, and if there’s anything still left undone regarding providing your SSN, or to file your Income Taxe! The process of getting an SSN is difficult and time-consuming, which makes it essential for you to act quickly because the wait can be up to ten months or more. If you might need help, contact U.S Tax global service LLC for a free consultation.
As A Us Citizen, You Are Obligated To File Taxes In The United States Of America Regardless Of Your Total Income
Your financial institution or bank in Saudi Arabia or GCC will always ask for your Social Security number. They will never advise you of your responsibility to comply and complete your yearly income Tax Filing. If you need help with your queries about obtaining a Social Security number and complying with United States tax laws, get help from Tax Experts.
To catch up with your Tax obligation, you need to do the following:
- Must Submit your last three years’ Federal Income tax returns.
- Must Submit your last six years’ FBAR (Foreign Bank Account Reports).
- Pay any taxes that are due, if any (Mostly, you do not have any taxes once you claim one or more expat exclusions), meaning; for the tax year of 2021, you will have up to $108,700 of total income without paying any taxes.
Here’s What Could Happen If You Failed To File Your Yearly Income Tax and FBAR
The Penalty For Not Paying Income Tax On Time
Penalties and interest will increase the amount of tax due. You’ll have to pay IRS .5% for each month that it remains unpaid, up until you’re able to settle or reach a 25% maximum penalty limit on outstanding debts with them. The IRS will start billing you for not paying taxes. They’ll increase your interest rate to 1% if that’s still unpaid after ten days.
The threat of prison time could be enough to motivate you into filing your taxes. The prospect of five years’ incarceration for each count is not something any person wants on their conscience. Still, it may nevertheless make them think twice before failing again after being reminded by law enforcement about how severe these consequences will become if found guilty.
The Penalty For Not Submitting FBAR On Time
The law requires that all U.S. citizens file Annual Financial Reports with the IRS. Failing to do so is punishable by a $10,000 penalty for every year you failed in filing your FBARs and an additional 50% of any money found on deposit at a time if the violation was considered willful; this could mean up to two years imprisonment.
About Khaled Alaboudi and U.S. Tax Global Service LLC.
Khaled Alaboudi, an IRS-registered tax preparer, is a trusted and reliable tax preparation specialist in Riyadh, Saudi Arabia. He assists individuals and small businesses with their taxes and financial affairs, local and international clients—furthermore, U.S. Tax Global Service LLC. Mr. Khaled Alaboudi is an IRS Citifying Acceptance Agent, working to help a none U.S. citizens and individuals who need or are required to apply for ITIN.
In addition, his tax preparers have experience working with international clients.
At U.S. Tax Global Service LLC, the goal is to help individuals and businesses prepare their tax returns correctly, accurately, and efficiently. Their experienced team of accountants and software specialists can handle all your tax needs, big or small. They have access to every type of tax preparation software package available. They have created programs specifically designed for individuals living abroad. They can also provide you with information on claiming the foreign earned income exclusion.
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