Today was the extended filing deadline for U.S. citizens who lived abroad on the regular tax due date for 2014 returns. You still have until the end of June to file your FBARs, FATCA reports and Statements of Special Foreign Financial Assets, as appropriate, however, which brings us back to those controversial foreign income reports.
It's hardly as anticipated as the Cherry Blossom Festival here in Washington, D.C., but it is no less reliable in its arrival. We're talking about the Internal Revenue Services' annual "Dirty Dozen" list of potential tax scams.
We've written a bit in recent posts about the Internal Revenue Services efforts to close the loop on U.S. citizens they suspect of using foreign banks to hide wealth and income from tax liability. Swiss banks and the accounts they hold have garnered much of the limelight, but banks all around the world are under scrutiny as officials in Washington, D.C., try to bring some black to the red that washes over the treasury.
Every year the Taxpayer Advocate Service issues a report to Congress about the state of the nation's tax code. Washington, D.C., area readers of this blog may be interested, but not surprised to know that the latest report from the head of the service suggests there are a few things that could use some changing, and perhaps the most important might be for the Internal Revenue Service to focus on fixing itself.
Now is clearly not the time to be playing coy with Washington. As we've noted for a while now, the Internal Revenue Service is stepping up its tax evasion enforcement game against Americans in the District of Columbia area and the rest of the country who they suspect of having undeclared caches of cash in foreign banks.