Many Israelis, both self-employed and employees, are required to submit tax returns to the United States Tax Authority (IRS). Annual reporting to the IRS is mandatory for Israelis who meet the following criteria:
- Israeli citizens holding a green card.
- U.S. citizens living in Israel (even if they have never traveled in the U.S.)
- Any person doing business in the United States territory, even if not a U.S. citizen. Many Israeli citizens work in the United States under Israeli or American employers and all employees without exception must report to the IRS. In addition, the requirement applies to anyone setting up a U.S. business or company or real estate investor on American land.
The reporting process to the authorities may be complex, but lucrative. If appropriate, there may be good tax refunds on various recognized expenses. In order to make reporting optimally and accurately, it is important to be accompanied by a professional who has deep knowledge and experience working with the U.S. tax authorities. CPA Guy Dovrat provides tax services for individuals who are required to report to the IRS.
When to file tax returns?
All U.S. citizens and businessmen, whether resident or not, file a tax return most often to the U.S. Department of the Treasury. In some cases, you may also be required to file a return with the relevant U.S. state tax authority. The matter must be carefully considered.
Also, any taxpayer who held a foreign account, i.e. non-U.S., with cumulative amount in excess of $ 10,000 in any part of that year, will be required to file in addition to the annual tax return for individuals or corporations, the FBAR report. The FBAR report is used to declare interest in accounts outside the United States. The report can be submitted in electronic form until April 15th of the following year.
The date on which the tax returns must be filed varies by the status of the relevant taxpayer.
The Income tax return for a corporation of a calendar year must be filed by March 15th or April 15th, depending on the type of the incorporation.
Individuals living in the United States submit the tax return to the IRS until April 15th of the following year.
Individuals who do not live in the United States usually submit the tax return to the IRS until June 15th of the following year.
By filling out a form and reporting on time, it is possible to request an extension for these dates and is usually given no later than October 15th.
Enforcement of the U.S. tax authorities is very serious
Financial institutions in Israel are obliged to report to the IRS every person who has accounts and who is considered a U.S. person by definition. Evasion from reporting to the authorities may result in extremely heavy fines, prosecution and in some cases even imprisonment.
Guy Dovrat is an Enrolled Agent specializing in U.S. taxation and having extensive experience with the IRS
We will walk you through the annual tax return and / or the FBAR process. As part of the close and high quality service we provide, we will assist you with a U.S. tax advice that will save you a lot of money and, if necessary, represent you before the Tax Authority on any matter that may arise. We invite you to contact us and enjoy a faithful accompaniment.