Onestoptaxprep

09/08/2017

Our office in Eindhoven.

Fellenoord 130
5611 ZB Eindhoven
The Netherlands

09/08/2017

Our Office on the Keizersgracht 241, 1016 EA in Amsterdam, the Netherlands

09/08/2017

US TREASURY DEPARTMENT PUBLISHES "NAME AND SHAME" LIST OF US EXPATRIATES!

On 3 August “Name and Shame” list of those individuals who renounced their US citizenship or terminated their long-term US residency (“expatriated”) during the second quarter of 2017 was published by the US Treasury Department.

The number of published expatriates for the quarter was 1,759, which according to the International Tax Blog is the second highest quarterly number ever.

Expatriations are thought to be linked to increasing complexity (and cost) involved in US tax filings for those with any overseas financial assets, as the typical American abroad would hold (e.g.,“local” bank accounts, pension fund plans established by the “local” employer).

Many of those giving up their US citizenship are so-called “Accidental Americans“ and (expired) US green card holders, who learned US tax rules applicable to them.

The expatriation tax regime must be carefully considered prior to taking the plunge as it may not always be cost-efficient and may lead to penalties if not done according to the rules.

Should you be considering giving up your US citizenship or green card, feel free to contact us!

List of US expatriates: https://www.federalregister.gov/documents/2017/08/03/2017-16318/quarterly-publication-of-individuals-who-have-chosen-to-expatriate-as-required-by-section-6039g

This notice is provided in accordance with IRC section 6039G of the Health Insurance Portability and Accountability Act (HIPPA) of 1996, as amended. This listing contains the name of each individual losing United States citizenship (within the meaning of section 877(a) or 877A) with respect to...

14/07/2017

The State Secretary of Finance today confirmed that the current Amnesty Program for undisclosed assets, known as the ‘inkeerregeling’ will end this year. In other words, this is your last chance to come clean and report any previously undisclosed Box 3 assets.

THE AMNESTY PROGRAM
Under the current Amnesty Program, taxpayers are allowed to voluntarily disclose previously unreported assets without further investigation with a penalty capped at 120% of the additional tax due plus interest. In addition, any disclosures made within 2 years of the omission will not be subject to the 120% penalty of the additional tax due. Just back tax plus interest.

WITHOUT THE PROGRAM
When it comes to unreported Dutch assets, the Dutch tax authorities have a 5-year statute of limitation. But when it comes to unreported assets held outside The Netherlands, the statute of limitation is extended to 12 years. Meaning that the Dutch tax authorities can claim back taxes for undisclosed U.S. (and other non-Dutch) bank accounts going back 12-years. Without the Amnesty Program, a penalty of up to 300% of the back taxes can be issued. Plus interest. In severe cases the Dutch tax authorities can also initiate criminal prosecution.

RECENT DEVELOPMENTS
The State Secretary of Finance explained that the decision to cancel the Amnesty Program was made due to the increased exchange of information between countries. In the past, the Amnesty Program was meant as an incentive for taxpayers to come clean and report assets that may otherwise go undiscovered for years, because exchange of information between authorities was unstructured and relied on a chance or only if the taxpayer was already under specific investigation. In the first years of the Amnesty Program, the penalties started at 0% and for this reason were gradually increased to the current 120% of back tax owed.

However, now the exchange of information between authorities has become more structured due to international agreements. In addition, IT-development has meant that the exchange of information has become more sophisticated and easier to process. Therefore, there is less need to rely on taxpayers for the information.

Earlier this year, the Dutch tax authorities tracked down 10.000 taxpayers with bank accounts in the U.S. that were not previously disclosed in their Dutch tax returns. The Dutch tax authorities received this information on the back end of the U.S. FATCA reporting requirements.

If you wish to know more about the Dutch Amnesty program or if you wish to make use of the current Amnesty Program, please do not hesitate to contact us.

05/03/2017

IRS HELPING THE DUTCH TAX AUTHORITIES IDENTIFY DELINQUENT TAXPAYERS

Based on the Foreign Account Tax Compliance Act (FATCA), Dutch banks and other Dutch financial institutions have been gathering and disclosing account information of US persons to the US Internal Revenue Service starting 2014.

However, the FATCA works two ways; US financial institutions have also gathered information on Dutch residents with accounts in the US. This information has been provided to the Dutch tax authorities (the Belastingdienst) and the Belastingdienst have started identifying taxpayers who have not disclosed these US accounts in their Dutch tax returns. The Belastingdienst announced last week that they will start informing some 10.000 taxpayers that they have been identified as having non-disclosed US accounts and that they will need to report these accounts in their 2016 tax returns. The assets in these accounts will be subject to a 1.2% flat tax rate.

This sounds pretty straightforward and reasonable. But there is a catch. The Belastingdienst currently only received information about accounts held in 2016. But when it comes to non-disclosed foreign accounts, the statute of limitation is 12 years. That means that with the 2016 US account information at hand, the Belastingdienst can and will also require the reporting of any assets in those US accounts for the years 2015 through 2004. This back reporting is not without consequences; the Belastingdienst will levy a penalty of up to 300% on any back taxes owed on those accounts. And on top of this, there will be compounded interest.

How to resolve?

If you received such a letter, consult a specialized tax professional or research the matter carefully. There will be back taxes owed and penalties, but an experienced advisor can help reduce the tax calculated and negotiate a lower penalty than the maximum 300%. Whatever you do, do not just naively report these US accounts in your 2016 return and wait for a response from the tax authorities.

If you have not received such a letter then:

a) you may wish to consider making a voluntary disclosure of these accounts through a specific program called the ‘inkeerregeling’. With this program, there will be no penalties calculated on any back taxes for the years 2015 and 2014. For the years 2013 through 2004 the penalties will be capped at 120% of the tax due. There will be compounded interest owed for all years. It is recommended you use a specialized tax professional for this disclosure.

b) You can choose not to do anything. Perhaps even close the US accounts and move your money from your US account(s) to another country. However, FATCA exchange of information is annual. If you did not receive a letter in 2017, then you could still receive one for 2018 or one of the following 11 years. In addition to the FATCA with the US, the Dutch government also has or may establish similar exchange of information programs with other countries. If…. or better: When they do catch on then you will most likely not only face the 300% penalty but your actions may be considered tax fraud which can result in immediate seizure of assets and property to cover amounts owed and / or be subject to criminal prosecution. We would therefore strongly advise against this option.

Please contact us for all matters relating to the Dutch and US income tax treaty.

05/03/2017

VERENIGDE STATEN GEEFT VERZWEGEN VERMOGEN DOOR AAN DE NEDERLANDSE BELASTINGDIENST

Op basis van de Foreign Account Tax Compliance Act (FATCA), verzamelen Nederlandse banken en andere Nederlandse financiële instellingen sinds 2014 gegevens van Amerikaanse rekeninghouders en geven dit door aan de Amerikaanse Internal Revenue Service.

Echter, de FATCA werkt beide kanten op; Amerikaanse financiële instellingen hebben op hun b***t ook informatie verzameld over Nederlandse ingezeten met rekeningen in de Verenigde Staten. Deze informatie is verstrekt aan de Belastingdienst om verzwegen rekeningen te identificeren. Naar aanleiding hiervan kondigde de Belastingdienst verleden week aan dat ongeveer 10.000 belastingbetalers geïnformeerd zullen worden over het feit dat ze hun Amerikaanse rekening(en) alsnog in hun belastingaangifte van 2016 moeten opgeven. Het vermogen in deze rekeningen zal worden belast in Box 3 tegen een effectief percentage van 1,2%.

Dit klinkt vrij eenvoudig en redelijk, maar er is een addertje onder het gras. De Belastingdienst heeft momenteel alleen gegevens ontvangen over het jaar 2016. Echter, als het gaat om niet-bekendgemaakte buitenlandse rekeningen, mag de Belastingdienst tot 12 jaar navorderen. Dat betekent dat de belastingdienst de gegevens van 2016 zal gebruiken om verzwegen vermogen en achterstallige Box 3 belasting voor de jaren 2015 tot en met 2004 vast te stellen. Dit verzwegen vermogen is niet zonder gevolgen; de Belastingdienst kan een boete tot maximaal 300% berekenen over de naheffing. Tevens zal dit bedrag worden verhoogd met heffingsrente.

Hoe op te lossen?

1)Als u een dergelijke brief ontvangen hebt, raadpleeg dan een gespecialiseerde belastingadviseur om u bij te staan of informeer uzelf grondig in de kwestie. Boetes en rentes zullen waarschijnlijk niet te voorkomen zijn, maar een ervaren adviseur kan helpen de naheffing te beperken en een lagere boete te onderhandelen. Wat u vooral niet moet doen, is simpelweg opgave doen van de Amerikaanse rekeningen in de 2016 aangifte en wachten op een reactie van de Belastingdienst.

2) Als u nog niet een dergelijke brief ontvangen hebt:

a) zou u kunnen overwegen om vrijwillig opgave te doen van verzwegen Amerikaanse rekeningen via de zogenaamde 'inkeerregeling'. Op basis van de inkeerregeling worden er geen boetes opgelegd over een naheffing over de jaren 2014 en 2015. Voor de jaren 2004 tot en met 2013 zal een boete van maximaal 120% van de naheffing worden opgelegd. Over alle jaren is er wel heffingsrente verschuldigd. Het is raadzaam om u hierbij door een gespecialiseerde belastingadviseur te laten bijstaan.

b) kunt u ervoor kiezen om niets te doen of misschien zelfs uw Amerikaanse rekeningen te sluiten en uw vermogen in een ander land onder te brengen. Echter, FATCA uitwisseling geb***t jaarlijks. Dus ook weer in 2017. Naast FATCA met de VS, heeft de Nederlandse overheid momenteel ook soortgelijke programma's met andere landen en komen er jaarlijks nieuwe bij. Als u in 2017 geen brief ontvangt, dan kan er alsnog in 2018 of in de 11 jaren daarna een brief volgen. Als…. of beter: Wanneer u deze brief ontvangt dan heeft u waarschijnlijk niet meer alleen te maken met een naheffing van 300% boete maar kunnen uw acties als frauduleus worden beschouwd. Bij fraude mag de belastingdienst overgaan tot onmiddellijke inbeslagname van bezittingen en / of strafvervolging inzetten. Wij raden deze optie daarom ook absoluut af.

Neem gerust contact met ons op voor al uw vragen met betrekking tot het Nederlands verdrag met de Vereinigde Staten.

01/02/2017

24/10/2016

In anticipation of the impact of the FATCA, the IRS is allowing taxpayers to come clean and voluntarily rectify their non-compliance. In this respect, to avoid and prevent possible negative consequences of the FATCA reporting for non-compliant Americans the IRS has set up two programs.


1. Streamlined Filing Compliance Procedure
•You can participate if you have not filed tax returns before;
•You are required to file only 3 years of delinquent tax returns;
•You need to report your non-U.S. bank accounts to the U.S. Department of the Treasury for the last 6 years (FBAR);
•No penalties are involved with this program.

2. Offshore Voluntary Disclosure Program (OVDP)
•Applies to all taxpayers not eligible for the streamlined filing process;
•You are required to amend your tax returns for the last 8 years;
•You need to report your foreign bank accounts for the period also going back 8 years;
•You need to pay a 20% penalty on any tax owed during the 8 years;
•In addition, you will have to pay a penalty amounting to 27.5% of the highest aggregate value in that 8-year period.

To read more about FATCA, go to http://onestoptaxprep.nl/tax-information/fatca/index.html

If you have any questions regarding participation in one of the IRS tax amnesty programs, feel free to contact us!

19/10/2016

Regardless of whether one or twenty years have passed since you left the U.S., you will still need to continue filing a U.S. federal tax return and sometimes pay U.S. federal tax, based on your U.S. nationality.

Short of relinquishing your U.S. citizenship or your Greencard, the only exception to having to file a U.S. federal tax return is if your worldwide gross income does not exceed the filing threshold (for 2014 e.g., $10,000 if you are filing as a single or $20,000 if you are married and filing jointly).

In this respect, worldwide income means just that: the income you earn worldwide. So not only income from U.S. sources, but also your Dutch employment income, UK interest, Croatian capital gains, that U.K. offshore pension account, rental income from your French vacation home, etc.

If you need help in your US filings or you wish to assess whether you are a subject to US tax, we can assist you! Please feel free to contact us any time, should you have any US tax related questions at [email protected] or +31 85 8000 095.

18/10/2016

Due to the ongoing changes and expansion of the company, we are currently working on our new website.
Sneak peek, introducing the new logo!

29/07/2016

Now we have an office in Eindhoven as well!

Visiting address: Fellenoord 130 (3rd floor), Eindhoven
Phone: +31 40 266 8668