Introduction
Tax return filing for American citizens living in ISRAEL
In the past two years, there has been a dramatic rise in enforcement by the US tax authorities of mandatory tax return filing and F-BAR filing for US citizens residing in ISRAEL.
According to FATCA law (Foreign Account Tax Compliance Act), beginning in 2014 Israeli banks will be obligated to report all bank accounts belonging to US citizens to the U.S. tax authorities.
Furthermore, an essential part of the tax treaty between Israel and the US is the collaboration and sharing of information between the tax authorities in both countries in order to identify any American citizen who does not comply with his or her filing requirements required by law.
Do not assume that you can just stay “under the radar” and rely on geographic distance from the U.S or the lack of capabilities of the IRS to enforce US tax laws. You may be subject to substantial fines and penalties (minimum 10,000$ per year or up to 50% of your account value) and you may even face criminal charges in certain situations.
Virtue tax specializes in filing personal tax returns that includes the following IRS forms:
1040 – Individual tax return for US citizens.
1040NR – Individual tax return for non-resident aliens.
W-7 – Application for Individual Taxpayer Identification Number.
706/709 – Estate and Gift tax returns.
Virtue tax specializes in filing F-bars(Foreign bank and financial accounts report) and FACTA that includes the following IRS forms:
TDF 90-22.1 – Report of foreign bank and financial accounts.
8938 – Statement of Specified Foreign Financial Assets.
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Contributing to the Community
Us, at VirtueTax believe that beyond excellence in providing professional services toour clients, we must assist and support those in Israeli society whose fate has not improved.Our vision includes business entities and social entities joining hands together and having a shared sense of drive to promote all aspects of Israeli society. Therefore, we have a deep commitment to both Israelis in need and to voluntary bodies focused on helping them. As part of this mission, the company purchases and delivers essential products to those in need in cooperation with organizations such as the “Association for a Turnaround in Education”. Our additional area of activity focuses on transferring funds as donations to animal shelters such as “Jerusalem loves animals” and “Mateh Yehuda loves animals”. We believe that our active involvement in Israeli society, provides not only an important service to the community, but also improves our professional teams.
