Hello, and welcome to Sherayzen Law Office video Blog. My name is Eugene Sherayzen and I’m an international tax attorney and owner of Sherayzen Law Office, Ltd.
Today, we are continuing our series of blogs from Beverly Hills and I would like to talk about Streamlined Domestic Offshore Procedures, in particular, I’d like to talk about the Amended Tax Returns that have to be filed as part of the SDOP process.
You may know as part of the SDOP, that you have to submit amended tax returns for the past three years. The question is: why do you have to amend them? It may seem like an obvious question; but unfortunately, too often, people make mistakes.
Let’s list the three most important things that amended tax returns have to disclose. First of all, they have to disclose correctly, unreported foreign income. Second, they have to disclose unreported foreign assets, on the information returns obviously, such as form 8938, form 8621 and so on and so forth. Finally, the third thing, and a bit of a surprise for many people, the amended tax returns have to disclose US-source income; meaning, that they have to correct the original mistakes that were made by the accountants, tax software or by the taxpayers themselves, on the amended tax returns, as part the SDOP submission.
This is where a lot of people make mistakes, even accountants. Not only is it foreign income tax compliance that has to be reflected, but US tax compliance has to be reflected on the amended tax returns.
If you would like to know more about the Streamlined Domestic Offshore Procedures, you can call me at (952) 500-8159 or you can email me at [email protected]
Thank you for watching, until the next time.