Tax Amnesty

US citizens residing outside the United States are required to file their tax return and report financial information to the US. In case of non-fulfillment, it is possible to comply with minimum penalties, or even without penalties, at a reduced cost by taking advantage of our professional services. Our experience allows us to solve all problems in order to determine if the simplified procedure is the best solution.

Making a tax return in America does not imply having to pay taxes in America and in fact in almost all cases there are no further taxes to pay in the USA ("US Resident living abroad"). a flat-rate deduction of income of approximately $ 110,000 (foreign earned income tax exclusion) and the benefit of the Italy-America treaty against double taxation.

Simplified procedures:

  • for US residents (Streamlined Domestic Offshore Program)tax amnesty
  • for residents abroad (Streamlined Foreign Offshore Program)
  • Offshore Voluntary Disclosure Program (OVDP) Expired

Standard procedures

  • Delinquent FBAR
  • Amended tax return

The simplified procedure involves penalties of 0% (Zero) for residents abroad and 5% for US residents.

It must always be shown that the non-compliance is not voluntary ("NOT WILLFUL"). Defined as conduct due to negligence, carelessness, or error or conduct that is the result of a good faith misunderstanding of the requirements of the law. The IRS will try to determine if there has been a voluntary and intentional violation of the Known Legal Duty. The burden of establishing voluntariness rests with the IRS, which can determine willingness by demonstrating that the person knew the reporting requirements but consciously chose not to comply with them. The person must present specific facts and circumstances that led to the lack of knowledge of the law.

The procedure covers citizens from administrative sanctions but does not protect against criminal prosecution in the event of a formal accusation.

Who is an American citizen?

Individuals holding a US passport.

How do you become an American citizen?

  • By birth (“ius soli”) in the US
  • By acquisition, both parents are American at the time of birth
  • "Green Card" holders
  • Prolonged stay ("Substantial Presence Test")