There are many American citizens living in Israel who are not even aware that they have a duty to report their income to the U.S. tax authorities. U.S. authorities are strictly enforcing the tax laws and omission of income may result in various penalties ranging from heavy fines and even to actual imprisonment in extreme cases.
In 2014, an agreement was signed on an exchange of information between the Israeli and American government (FATCA) tax authorities, which means that the financial information of U.S. citizens living in Israel is also exposed to the U.S. tax authorities and may be subject to severe enforcement action.
In order to ensure that your personal data meets the reporting requirements for the U.S. authorities and to best manage the entire reporting and obtain proper representation before the IRS, the U.S. Tax Authority, it is important to obtain professional guidance by an expert with a thorough knowledge of the conduct of the U.S. tax authorities. That will assist you with any difficulties that may arise.
Voluntary Disclosure Program and Streamlined Procedure Programs
Because many American citizens living in Israel are unaware that they must report to the IRS, the U.S. government has launched a program that provides an opportunity to report your income retroactively, act in compliance with U.S. tax laws without any serious enforcement consequences and heavy fines. As part of the Streamlined Offshore Procedure Program, U.S. citizens are required to report their income from any source in the world as well as financial accounts in financial institutions where cumulative amount exceeds $ 10,000. Anyone filing tax returns three years back and FBAR reports six years back may start over again with the IRS without any consequences.
Income Tax Audit
The U.S. tax authorities are conducting on a test basis rigorous auditing of annual tax returns submitted to it by U.S. citizens living in or outside the United States. As long as citizens living in the United States are concerned, these are fairly random audits that are unlikely to reach us. however, when it comes to reports sent from foreign countries, which include Israel, the likelihood exceeds ten times. Therefore, it is very important to be prepared when an audit is made by the IRS if we are under the obligation of reporting to the U.S. tax authorities.
You can be represented by professionals before the U.S. tax authorities
Not only a CPA in Israel, but Guy Dovrat is also an American IRS Enrolled Agent who can help and represent you before the IRS. During his work he has achieved a great deal of knowledge which will serve as a valuable asset to you. During this time, when reporting to the IRS becomes more important and urgent than ever, it is important that you have a professional who will help you prepare all the required reports, prepare for a voluntary disclosure program to avoid getting involved with tax authorities and to enjoy potential benefits that you may receive and in case you are audited, also Provide you with all the necessary support to get it through. We invite you to contact us today and enjoy a high quality service.