Filing Requirements and Administrative Tips

All U.S. citizens and residents are required to file a U.S. tax return in which they report their worldwide income on an annual basis.

• Travel Calendar - is a must for people who work in multiple states, travel on business or are sent by their employer on short- or long-term assignments away from their home state. Keeping track of your workdays and non-workdays by location helps your tax advisor to correctly prepare your tax return.

Statute of Limitations

The IRS has a statute of limitations in which it may audit a taxpayer's return. Generally, it is three years from the later of:

• The date the tax return was due; or
• The date the return was actually filed

In other words, if you never file a return, then the IRS has an unlimited amount of time to assess the tax or to audit your records related to that return. If your Gross Income shown on the return is understated by at least 25%, the assessment period is six years. The statute of limitations does not apply to returns the government can prove are fraudulent.

You must retain your records for three years, but it is recommended that you retain them for six years prior to shredding them.

Report of Foreign Bank and Financial Accounts

If you have a financial interest in, or a signatory authority over a foreign bank account or other foreign financial accounts(s) that exceeds in the aggregate $10,000 at ANY time during the calendar year, you must file Form 90-22.1 with the U.S. Treasury Department by June 30th of the following year. A copy of this form is in Section IV.

Mail the completed form to:

Department of the Treasury
P.O. Box 32621
Detroit, MI 48232-0621

Foreign Tax Credit Documents

If you claim a Foreign Tax Credit on your return, you must maintain receipts and other evidence such as Broker statements and foreign tax returns evidencing the foreign tax paid to support the credit claimed. While there is no requirement to attach such documents to the U.S. return, it is normally requested by the IRS during audits.

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