In two recent blog posts, we discussed issues that may affect and lengthen the statute of limitations for IRS Audits as well as options for taxpayers who fail to comply with FATCA reporting requirements. Recent actions by members of the U.S. Congress resulted in some important changes with regard to both of these IRS matters.
Oddly enough, these important tax changes were rolled into a completely non-tax related bill, the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, making it likely that many taxpayers will miss them. Below are some of the important deadline and other changes that affect individual taxpayers, business owners and foreign-account holders.
Previously, an individual who was audited could expect to produce related financial records for the last three years and, under certain circumstances six or more years. However, with these most-recent tax changes, the standard IRS audit period increased from three to six years.
For business owners, the deadlines for tax filings changed with regard to those who have business entities registered as partnerships and C corporations. To avoid possible fines or penalties, business owners would be wise to double-check with a tax professional about any applicable changes to tax-related filing deadlines.
For U.S. citizens with foreign account assets equaling $10,000 or greater, the deadline for filing a FBAR changed from April 15 to June 30. Additionally, much like one’s income tax return, an individual can now also file for a six month FBAR filing extension. As we noted in a previous blog, it’s important that foreign account and asset holders remain compliant with IRS reporting requirements as those who fail to do so can face fines that, in some cases, may exceed one’s entire account balance.
Individuals who have questions or concerns about these and other IRS changes and matters can benefit from seeking the advice and assistance of a tax attorney.