Deputy head of the US Financial Advisory and Audit Firm (USFAAF) Jim O’Neill said US citizens and green card holders in Egypt and Arab countries are obligated to comply with the US Foreign Account Tax Compliance Act, commonly known as FACTA, to avoid paying fines or imprisonment.
According to O’Neill, the US tax authority has begun receiving submissions of tax returns from mid-January 2016 until the end of June. The authority has provided two amnesty programmes for payment of taxes from previous years without sanctions, provided the disclosure of a person’s bank account.
O’Neill’s remarks came during a press conference held by USFAAF officials Sunday at the opening ceremony for the firm’s offices in Riyadh and Jeddah.
Middle East Managing Director Osama El-Dahshoury said US law imposes stiff penalties of a prison term of up to five years and a fine of $250,000 on US citizens and green card holders who evade paying taxes.
The office provides advice and consulting services free of charge, to help individuals avoid such penalties and withdrawal of passports, through its offices in Riyadh, Jeddah, Dubai, and Cairo.
Along with penalties on evaders, there are penalties for banks that do not comply with submitting statements of US citizens’ accounts. The US government has the means to find tax evaders and non-cooperating banks.
Attorney and FATCA Director at USFAAF Chelsea Rebeck said there are over 7 million US citizens living outside the US, most of whom have bank accounts, which obligates them to settle their taxes.
All Americans with bank accounts containing over $10,000 at any time throughout the year must provide a tax statement from now until the end of June.
