Tax and the taxing systems of countries vary to a great extent from each other. Every country has a fixed procedure for collecting taxes. While most countries have a similar taxation system, the USA as a country has some distinct characteristics to its taxation system. 

What Makes USA Taxation System a Different One?

The United States of America follows different taxation policies. The USA taxation system levies taxes on the citizens of the country even if they have moved to a foreign land. Many people are often unaware of this system and lag. The Streamlined Tax Amnesty Program is designed for such people.

The streamlined tax amnesty facility offers the USA ex-pats who have failed to pay taxes, to pay them easily without any penalties. A very important point to note here is that this program does not apply to every citizen. This program is only applicable for three years. 

Requisites for the Enrolling in Amnesty Program

There are three major criteria to be fulfilled to enroll yourself in this program.

• The citizen must reside in some other country. Additionally, the person must have lived in their new residence for at least 330 days of the three years they are seeking amnesty for.

• The citizen must prove their unawareness of the taxation laws. It should be proved that the delay in the taxpaying was a mistake and not an intentional move.
• The third and the most important requisite is to present proof or certification claiming no future delay in the payment of taxes.

Another must-have for availing the streamlined tax amnesty facility is the ex-pat should not have received a notice from the IRS beforehand. Once a notice is generated and delivered to the citizen by the IRS, the citizen can no more qualify for the program.

What is the Program all about?

The amnesty program is more like a blessing to the tax defaulters of the USA. Since the introduction of the program in 2012 and amendment in 2014, more than 70,000 people have benefited themselves from this program.

The program offers to let US ex-pats clear their outstanding taxation dues without having to pay any file.

Documents Required for Filing Streamlined Tax Amnesty

• US tax returns of three years containing all the information related to income, expenses, deductions, etc.

• Foreign Bank Account Report of six years reflecting all brokerage accounts, insurances, investment plans, etc.
• Offshore certification which states the delay in tax payment was an unintentional move and the amnesty seeker would pay the taxes timely henceforth.

Advantages of the Streamlined Tax Amnesty Program

The biggest advantage that comes with the program is the suspension of any fines due to the late submission of taxes. Another advantage that comes with this program is that it levies tax returns on only three years. So even if you have failed to pay taxes for years, you can get rid of the burden by paying for only three years. The program is also applicable to Green cardholders.

Many US ex-pats have surely benefited from this scheme. But the scheme is often misused by many for their advantages. Drafted with a good intention, the scheme still has a few loopholes. Once these loopholes are covered, it would turn into a perfect citizen benefiting program. 

The program in no way encourages the citizens to stop themselves from paying the taxes. One should be a diligent citizen and abide by the rules of its land. This program is a blessing for all the US ex-pats. So, if you have not filed your tax returns till now, quickly enroll yourselves for the amnesty program.

Edward Bertrand