Does my child need to file taxes?

An investigation has shown that the IRS has fallen far short of its goals in implementing the FATCA legislation. With stricter requirements, the department hopes to more quickly detect non-compliance by Americans living and working abroad.

The American tax system, Citizen Based Taxation, has existed for over 150 years. However, many Americans living and working abroad did not know that this tax liability existed, but since the introduction of FACTA legislation, there is a real need for them to file tax returns in America.

FACTA Legislation

FATCA (Foreign Account Tax Compliance Act), was introduced in 2010 to combat tax fraud and evasion. It requires financial institutions worldwide to share annual balances and contact information for Americans who have accounts.

The IRS can compare this information with the citizen’s filed tax returns.

In recent years, to avoid large fines, financial institutions have gone to great lengths to track down Americans in their customer base, contact them and ask for their U.S. tax number (SSN or TIN).

Financial institutions go so far as to even close accounts of customers who are also U.S. citizens.

The U.S. Congress passed FATCA in 2010, but we have yet to receive any significant funding for its implementation.

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The IRS’s previously expected tax revenue of 8.7 billion is stuck at only 14 million. The IRS simply does not have the capacity to process the data received and investigate the alleged fraud while investing $573 million.

• The IRS’s previously expected tax revenue of 8.7 billion is stuck at only 14 million.
• The IRS simply does not have the capacity to process the data received and investigate the alleged fraud while investing $573 million.
• The IRS’s previously expected tax revenue of 8.7 billion is stuck at only 14 million.
• The IRS simply does not have the capacity to process the data received and investigate the alleged fraud while investing $573 million.

Painful conclusion in TIGTA Report

Recently, (a report by TIGTA (Treasury Inspector General for Tax Administration) made it painfully clear that the IRS has fallen far short of its goals in implementing the FATCA legislation

The IRS’s previously expected tax revenue of 8.7 billion is stuck at only 14 million. The IRS simply does not have the capacity to process the data received and investigate the alleged fraud while investing $573 million.

Among other things, TIGTA’s research compared the number of Form 1099 tax returns issued by financial institutions to the number of tax returns received with investments. The differences are huge, the TIGTA translates this as a huge tax gap. In addition, TIGTA also notes that financial institutions’ reports to the IRS are often incomplete. They do not comply with the set rules in several areas if they are submitted at all by the financial institutions.

1. The IRS’s previously expected tax revenue of 8.7 billion is stuck at only 14 million.
2. The IRS simply does not have the capacity to process the data received and investigate the alleged fraud while investing $573 million.
3. Among other things, TIGTA’s research compared the number of Form 1099 tax returns issued by financial institutions to the number of tax returns received with investments.