How the Next Treasury Secretary Could Impact Your Tax Situation
The nation anxiously awaits as the president-elect works to put together his Cabinet and advisors. Despite all the uncertainties, one thing seems inevitable—if Trump holds to his campaign promises, major financial changes lie ahead.
One such area of change is taxation. The new treasury secretary oversees the IRS. And amid the promises to cut taxes for corporations and the wealthy, there are a number of other tax areas that could be affected. Will they affect you?
For example, in the past few years, the IRS has aggressively sought to identify and bring into compliance those citizens who live abroad or taxpayers who hold income in foreign accounts, including trusts, and have not been properly reporting foreign income. Foreign banking institutions have been supplying the IRS with a wealth of information on account holders with ties to the U.S. Those efforts have added upwards of $10 billion to the coffers of the U.S. government, virtually all of which has come from those who deliberately chose to hide assets.
In 2014, they established an amnesty policy to encourage those who were not willfully noncompliant but simply unaware of what was required of them. That helped bring about half of the 100,000 taxpayers with previously unreported income back into compliance. However, the amnesty granted meant the government collected virtually nothing in terms of penalties for underreporting. The question now is whether that amnesty policy will continue under the new administration. If not, and you’re not fully compliant, the penalties could be significant. And if you’re living here but are not a U.S. citizen, it could even mean deportation.
If you are unsure about your situation, and what your tax reporting requirements are, now is the time to sit down with a professional tax attorney, before this amnesty program possibly disappears, and determine whether or not you need to take steps to become fully compliant. It could save you major headaches later on, as well as major expense. Call us now if you have questions.