Stefanova & Tochkov
lawyers
US expat tax services
As a result of the expanding US tax legislations, an increasing percentage of foreign individuals and companies have obligations to file tax returns or information each year before the US authorities.
In 2010, the US government adopted much stricter obligations to declare financial assets in foreign countries through the adoption of the Foreign Account Tax Compliance Act (FATCA). The very implementation of the act began in 2013, and from 2015 onwards the Bulgarian authorities assist the US authorities in sharing the necessary information. This Act requires all US persons (US taxpayers), including those living abroad, to file with the Financial Crimes Enforcement Network (FINCEN) within the US Department of Treasury, annual reports of their non-US financial and bank accounts, as well as to submit to the Internal Revenue Service information about their financial assets abroad. The law, on the other hand, requires foreign financial institutions to periodically check their databases for indications that a client is a US taxpayer and then to inform the US Department of Treasury about the assets of the entity - individual or company, as well as his or her personal data. If the US agencies find non-compliance with the requirements of FATCA in foreign countries, hefty fines of up to US $ 50,000 may be imposed to the liable entity.
According to FATCA and other US tax laws, a number of individuals and copanies could be deemed connected to the US, albeit residing in other countries and then have a duty to declare to the US authorities their income and financial assets abroad, and in particular in Bulgaria.
In the context of the above described tax requirements, in recent years there has been a sharp increase in renouncements of US citizenship by individuals holding dual citizenship. In partnership with a US-based accounting firm, we assist our clients - individuals and companies, in preparation and filing of all types of mandatory tax forms and information before the US authorities.
