IRS Tax Resolution Services – Greece – fatca_crs, audit_risks

For FATCA compliance, U.S. citizens in Greece must file Form 8938 if their specified foreign financial assets exceed certain thresholds. For CRS, Greece follows OECD guidelines, and while the U.S. is not a signatory, dual citizens should check their Greek obligations. Ensure filing by the April 15 deadline, or June 15 if living abroad. Failure to file can result in severe penalties, including fines up to $10,000 for Form 8938 omissions.

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Americans in Greece face audit risks if they fail to report foreign income or assets accurately. The IRS uses data-sharing agreements to identify discrepancies. High-risk areas include unreported foreign bank accounts and failure to file Form 114 (FBAR) by April 15. Mitigate risks by maintaining accurate records and consulting a CPA for compliance strategies.

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Non-compliance with FATCA can result in penalties starting at $10,000 and increasing if non-compliance continues after IRS notifications. This includes failing to file Form 8938 or providing incorrect information. Regular audits and voluntary disclosure programs can help mitigate potential penalties. Consult a CPA to navigate these complexities and ensure timely compliance.

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To comply with IRS requirements, maintain detailed financial records, including bank statements, investment accounts, and any income received abroad. For FATCA, gather details for Form 8938, and for FBAR, ensure you have account numbers and balances. Keep these records for at least seven years to safeguard against audits and potential inquiries.

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The U.S.-Greece tax treaty helps avoid double taxation by allowing credits for taxes paid in Greece against U.S. tax liabilities. However, limitations exist, such as specific income types not covered and requirements for claiming treaty benefits. Review Article 22 of the treaty for detailed provisions and consult a CPA to optimize your tax position.

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Seek CPA services when dealing with complex tax situations, such as high-value foreign assets, significant income from Greek sources, or when facing IRS notices. A CPA can help navigate forms like 8938 and FBAR, ensure compliance, and represent you in IRS communications. Professional guidance is crucial for minimizing risks and penalties.

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Resolving IRS issues from Greece involves gathering necessary documentation, understanding your filing obligations, and potentially using services like the IRS’s International Taxpayer Service Call Center. Filing amended returns or participating in voluntary disclosure programs can address past non-compliance. Consulting a CPA ensures proper adherence to resolution processes.

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A common scenario involves dual citizens with unreported Greek rental income, leading to IRS audits and penalties. Another involves retirees with foreign pensions not fully disclosed, resulting in back taxes and fines. Timely filing of Forms 8938 and 114, coupled with CPA guidance, can prevent such issues and ensure compliance.

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Key IRS forms for Americans in Greece include Form 8938 for foreign assets, Form 114 for FBAR, and Form 1040 for annual income reporting. Depending on your situation, you might also need to file Form 2555 for foreign earned income exclusion. Ensure all forms are filed by the appropriate deadlines to avoid penalties.

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Costs for IRS tax resolution services vary based on complexity and CPA expertise. Expect fees to range from a few hundred dollars for simple consultations to several thousand for comprehensive audits or legal representation. Investing in a qualified CPA can save significant penalties and ensure accurate filings.

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Resolution timelines depend on issue complexity. Simple inquiries might resolve within weeks, while audits or appeals could take months or longer. The IRS typically responds within 30 days to submissions, but international cases may experience delays. Engaging a CPA can expedite resolution through accurate and timely filings.

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The IRS voluntary disclosure program allows taxpayers to disclose previously unreported income or assets to avoid severe penalties. Participants must file amended returns and pay back taxes, interest, and a penalty. This program is ideal for those who inadvertently failed to comply with FATCA or FBAR requirements. Consulting a CPA can streamline the disclosure process.

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If you receive an IRS audit notice, promptly gather relevant financial records, including bank statements and tax returns. Respond to the IRS within the specified timeframe, usually 30 days. Consider hiring a CPA to represent you and ensure accurate documentation and communication. Proper preparation can mitigate potential penalties and expedite the resolution process.

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Avoid common IRS filing mistakes by double-checking all forms for accuracy, ensuring timely submissions, and keeping thorough records. Pay particular attention to foreign asset reporting on Forms 8938 and 114. Utilizing CPA services can help ensure compliance and prevent errors that could lead to audits or penalties.

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Hiring a CPA offers numerous benefits, including expert guidance on complex tax matters, accurate filing of necessary forms, and representation in IRS communications. A CPA can help navigate international tax treaties, ensure compliance with FATCA and FBAR, and provide peace of mind by minimizing audit risks and penalties. Investing in professional services can ultimately save time and money.

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