If you have clients that are U.S. taxpayers living in Canada, and they haven’t kept up-to-date on their tax and filing obligations, read on. The IRS has made some changes to its new streamlined filing compliance procedures, reports Moodys.
First, eligibility for streamlined filing is determined by examining a taxpayer’s compliance risk, which is measured by the complexity of the returns. If the taxpayer owes less than $1,500 in any of the three submitted years he will not necessarily qualify as low risk, and if he owes more than $1,500 in any of those years he will not necessarily be considered high risk.
Moodys adds if the taxpayer is a participant in the 2011 offshore voluntary disclosure initiative (OVDI) or 2012 offshore voluntary disclosure procedure (OVDP) he may opt out of these programs and to enter the streamlined procedure.
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Get U.S. clients ready for tax season