Any United States person is a Citizen or Resident who has financial interest in or Signature authority, or other authority over any financial account in a foreign country and if the aggregate value of these accounts exceeds US $10,000 at any time during the calendar year must file a report of Foreign bank and financial accounts by 30th June 2016 for the Calendar Year 2015.
FATCA ( Foreign Account Tax Compliance Act ):
FATCA requires certain U.S. taxpayers who hold foreign financial assets with an aggregate value of more than the reporting threshold (at least $50,000) to report information about those assets on Form 8938, which must be attached to the taxpayer’s annual income tax return.
Specified foreign financial assets include foreign financial accounts and foreign non-account assets held for investment (as opposed to held for use in a trade or business), such as foreign stock and securities, foreign financial instruments, contracts with non-U.S. persons, and interests in foreign entities.
Representation Services:
Professional representation can be Vital during an audit, and our experience with tax authorities enables us to guide clients in their dealing with Federal and State Agencies. If you have been chosen for an audit, the professional representation you can find with our firm can put many of your worries at bay. We are ready and willing to answer any and all questions the IRS may be asking you.
Retirement Account withdrawl
An individual retirement account is an investing tool used by individuals to earn and earmark funds for retirement savings. There are several types of IRAs as of 2016: Traditional IRAs, Roth IRAs, SIMPLE IRAs and SEP IRAs. Sometimes referred to as individual retirement arrangements, IRAs can consist of a range of financial products such as stocks, bonds or mutual funds.
TRADITIONAL IRA
contributions are often tax-deductible, all transactions and earnings within the IRA have no tax impact, and withdrawals at retirement are taxed as income.
ROTH IRA
contributions are made with after-tax assets, all transactions within the IRA have no tax impact, and withdrawals are usually tax-free
Avoid the early withdrawal penalty.
If you withdraw money from your traditional IRA before age 59 1/2, there’s a 10 percent early withdrawal penalty, and that’s in addition to the income tax due on each withdrawal. However, you can take penalty-free 401(k) withdrawals beginning at age 55, if you leave the job associated with that 401(k) account at age 55 or later.
Roll over your 401(k) without tax withholding.
If you withdraw money from your 401(k) when you change jobs, 20 percent will be withheld for income tax. However, you can avoid the tax withholding, and the potential to trigger penalties and fees, if you transfer the money directly from your 401(k) to the trustee of another 401(k) or IRA.
Due Date:
File an Income tax return (Form 1040, 1040A, or 1040EZ) and pay any tax due by APRIL 18th.
If you want an extension of time to file your tax return file Form 4868, application for extension of time for 6 months. Then file form 1040, 1040A, or 1040EZ by OCTOBER 15th.