U.S. Tax Filing Deadlines Start Next Week
March 17 is the deadline to file most business tax returns for the 2013 tax year. This includes “Corp”, “Inc.”, “S-Corporation” and some LLCs. An automatic extension can be requested to file up until September 15. Certain partnerships and some LLCs have until April 15 with the same extension.
Personal income tax returns are due April 15 for US tax residents and anyone else with U.S. source income. US tax residents include citizens and permanent residents (i.e. “green card” holders), regardless of their circumstances or other nationality, as well as persons who spend too much time in the U.S. (in some cases even less than 183 days). These tax returns must include not only worldwide income, but also information regarding many direct or indirect connections with foreign companies, trusts and financial assets. Some gifts or inheritances received from foreigners must also be reported. Individuals may request an automatic extension until October 15, but an estimated tax payment must be made with the extension, and there are penalties for underestimating. June 30 is the deadline for reporting any direct or indirect economic interest or signature authority over a foreign bank account, and there is no extension.
Some of these deadlines also apply to certain forms that must be filed to claim an exception from being treated as a U.S. tax resident. These exceptions include having a “closer connection” to another country, being present in the U.S. under certain visas or for certain medical reasons, and pursuant to certain income tax treaties (e.g. Mexico, Venezuela, etc.), all of which require a timely filing to qualify. The penalty for not filing on time is generally being treated like a tax resident anyway, and therefore reporting and paying tax on a worldwide basis.
Avoid Penalties and Headaches by Getting it Done Right and On Time
Regardless of your situation, it’s time to sit down with your CPA and start working on your 2013 tax returns or at least request any available extensions. If you don’t have a good CPA that understands the peculiarities of your situation, contact us ASAP so we can help you find one.
Transnational families with U.S. investments or a member who is or might become a U.S. tax resident, and who have not received current legal advice regarding their wealth from an experienced and independent and practicing U.S. international tax attorney, should act quickly to ensure that their wealth is properly structured for maximum tax efficiency and legal advantage. Anyone unsure whether they have fulfilled all their tax and information reporting obligations should seek the privileged advice of a tax attorney as soon as possible to determine the safest and most economical way of resolving their non-compliance prior to detection.