Voluntary Disclosure- It’s time to get your head out of the sand!
If you are an American and Israeli dual citizen / green card holder who has income from wages, self employment, investments, businesses or any other source and did not report to the US tax authorities / reported partially / or reported in the past and stopped, you are in trouble.
Even if it is an amount that you think is negligible, you are liable to criminal charges and fines and the US tax authorities are not going to give up easily.
What should I do?
Report!
Our global village has become “small”. The transfer of information between the tax authorities in various countries vis-a-vis the banks and other financial entities is becoming a matter of routine. Therefore, tax evasion or hiding capital are not realistic options today. Out of understanding and desire to encourage the disclosure process, the American IRS encourages those who forgot/feared/avoided reporting, to proactively report and disclose the information for all income, profits or capital they have accumulated) whether originating in Israel or abroad (, pay the debt as required and receive full criminal immunity for the tax offenses committed knowingly or inadvertently.
How do I know I’m not paying more than I’m obligated to?
Every process of voluntary disclosure must be accompanied by an expert CPA who understands both tax systems and knows how to plan for you the optimal tax route that takes into account the tax benefits you deserve in the US and Israel .He can assist you not only in dealing with the authorities but reduce for you as much as possible the amount of the tax exposure.
In some cases, the intervention of an attorney will also be required. Therefore it is important to contact a CPA firm that has extensive experience in the field and connections with the relevant professionals.
How to begin?
The process of voluntary disclosure requires patience. First collect the relevant documents. For the full list click here.
Coordinate a conversation with a CPA who reviews all the information and can assess the specific situation you are in and also offer you the solution required for you.
Finally!
You are in good hands, it’s time to relax!
You may be surprised! In some cases the voluntary disclosure process reveals that you are entitled to tax refunds ?.
