While most big tax changes happened last year, late filers still need to keep in mind foreign bank accounts are continuing to come under the watch of the IRS, said Scott Graville of Taxes in Mexico.
The Foreign Account Tax Compliance Act (FATCA), which is part of the 2010 Hiring Incentives to Restore Employment Act (HIRE), requires foreign financial institutions, like those in Mexico, to report to the Internal Revenue Service about their American clients.
Along those lines, those filing a Foreign Bank Account Report, or FBAR, now need to do so electronically using a new (FINCEN 114) form. While the FBAR has been around since 1972, the IRS and Treasury Department have been keeping a closer eye on Americans with accounts outside the United States since the Swiss bank scandals of 2007-2008. Any U.S. citizen with foreign financial accounts where the combined balance exceeds $10,000 in a calendar year must file the FBAR by June 30th of the following year.Many people also have questions about the Affordable Health Care Act, more widely known as Obamacare, which requires Americans to have health insurance or face a “penalty” enforced by the IRS. Even so, as of now it seems expatriates will remain largely unaffected by the act.
“U.S. citizens living in a foreign country for at least 330 days of a 12-month period are not required to get health insurance coverage under the Affordable Care Act for that 12 month period,” says the website, www.healthcare.gov. “If you’re uninsured and living abroad under this definition, then you don’t have to pay the fee that other uninsured U.S. citizens may have to pay.”
Also when it comes to buying health insurance coverage through the act’s Marketplace, it’s important to remember it only covers health care provided by doctors, hospitals and medical services within the United States.
It’s important to remember that tax filing can be complicated and it’s a good idea to work with a trusted tax preparation professional.
For more information check out these websites of Lakeside based U.S. tax professionals: www.taxesinmexico.com; www.ajijictaxman.com and lakesidetaxservice.com