Dear US Taxpayer,
I’m excited that we made it to 2020 and the 2019 income tax filing season, I hope you are too. While the President and Senate are currently bogged down with the unpredictable impeachment hearings back in Washington DC, one thing that is definite is we still need to prepare and file a 2019 income tax return and FBAR for you.
The income tax brackets according to each filing status for 2019 are as follows:
There haven’t been that many changes to the tax code that should be applicable since the passage of the Tax Cuts and Jobs Act at the end of 2017. Your 2018 tax returns should’ve reflected the majority of updates to the tax code, so your 1040 for 2019 will be a continuation of those update.
A couple noteworthy mentions are that in July of 2019, the Taxpayer’s First Act was signed into law, which is a positive sign that our legislators acknowledge that service from the “Service” can be downright horrendous at times. Even though the IRS has been understaffed and underfunded in recent years, hopefully this begins to improve some of the issues that US Taxpayers have. The act is intended to:
· Enhance an independent IRS Office of Appeals to resolve tax controversies;
· Modify tax enforcement procedures;
· Establish requirements for cybersecurity and identity theft protection;
· Promote electronic filing requirements; and
· Increase the penalty for failing to file a return.
In addition, the IRS also introduced new relief procedures for Certain Former Citizens. This makes the renunciation process much easier for the accidental Americans that would like to relinquish their US citizenship. These taxpayers will have to still file at least 5 years of tax returns and 6 years of FBARS, but they are NOT required to have an SSN to file the five most recent years of returns. To qualify for this program, a US citizen must have No Filing History, have a total net worth less than $2 million, have a total tax liability less than $25,000 and their demonstrate Non-Willful non-compliance with the US tax code and banking laws.
Our practice is taking dramatic steps this year to step into 2020 by finally establishing a consistent internet presence. For the last several years, we've been able to help so many new clients that have learned about us strictly from a referral basis. In addition to launching this website, we're also going to be introducing our LinkedIn and Facebook company pages, as well as Line App and SMS messaging service outreach. Eventually, we will also have a YouTube Channel and a Podcast dedicated to helping the American national, international entrepreneur.
The first day to electronically file a 2019 Form 1040 is January 27th. If you think you’ll have a tax liability for 2019, please make your estimated tax payment by April 15th to prevent unneeded interest and penalties from accruing on your balance due. We don’t want you to have to pay the IRS any more than you absolutely have to. If your residence is outside of the US, you get an automatic two-month extension to file your return until June 16th. If we prepared your 2018 tax return, we'll file an extension until October 15th for you if you need a couple more months to collect your documents. If you had a good year and might owe tax, please submit your payment by April 15th. The deadline to file your FBAR is also April 15th, however if you miss that deadline, you get an automatic extension to October 15.
On behalf of the entire team at Global US Tax Plan, we look forward to helping you in 2020 and beyond.
Matthew Stevens EA