Coronavirus pandemic and the difficulties faced by US expats in filing returns
Coronavirus is not only affecting the world economy but is also complicating all the bureaucratic procedures essential for living as a law-abiding citizen.
One such important basic duty is filing tax returns. And problems are being faced in the same during this pandemic, especially by US citizens living abroad.
The expats feel frustrated and confused regarding the different procedures for tax filings and all the rules concerned with the process.
The Problem:
More than 70% of the US expats think that they owe the government no taxes because they live abroad. Other than this there have been several other details like foreign bank account reporting and foreign account tax compliance.
These minor known laws and bylaws put about half a million American expats at risk of not upholding the USA tax laws and even getting punished.
Congress has now included the expats in the CARES program of the government. Experts say only people who file their tax returns as fast as possible can get the cheques for family support. According to the government, any family with an income of less than 15000 USD is eligible for about 2400 USD.
Even after extending the tax filing date till June 15, citizens around the world have not been able to return taxes and benefit the claims.
The biggest problem in this situation is the delay the families around the world are facing just to get their cheques. Each cheque should be cashed within a 90 day period from its date of issue.
Due to the compromised mailing and shipping systems as a result of the coronavirus, the cheques reach after long months or sometimes even get lost in transit.
According to a mid-May survey conducted amongst US expats, while 62% of respondents had filed their 2019 tax return, only 29% had actually received their economic support checks.
It also shows that the majority of people who received payments filed their tax returns in the month of February and not in the extended period of May. This clearly highlights the delay in tax filings when expats file it by themselves.
The coronavirus pandemic has also increased travel restrictions around the world. So it is not possible for the expats to come back to the USA and settle their tax issues directly with the IRS.
What can be done?
Fortunately, The Accounting and Tax company is an online site that handles all the taxes for expats. Tax consultation, corporate tax consultation, and other US tax consultations, everything is handled by the firm for the ease of its customers.
People living abroad can especially rely on the company’s services. It keeps track of all the latest news and updates about filing procedures and ensures that its clients complete them in time. Thus it gives its clients a fast and secure way to do their taxes even in difficult times like these.
