How long do you keep your tax records?

A shortie that packs a punch. We discuss how long you should retain your tax and other financial records. 

We explore the statute of limitations for tax records, the importance of supporting documents, and special considerations for non-residents and property sales.  

 Some takeaways

• Keep copies of all your tax records for as long as necessary.

• The statute of limitations for tax records is three years for refunds.

• If you never filed a tax return, keep records indefinitely.

• Non-residents should hold onto property sale records until the issue is resolved.

• Employment records should be kept until a Social Security application is submitted.

And a whole lot more.  

We emphasize the importance of maintaining accurate records to ensure compliance with tax regulations and protect against potential issues with the IRS.

Episode Links & Resources

• Ep 11: Navigating U.S. Taxes

• Ep 40: Avoid These Blunders With Your Cross-Border Taxes

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

Your uncle just sent you a ton of money from overseas - what are the tax implications?

We discuss the complexities of gift taxes, particularly for individuals receiving gifts from overseas.

We explore the annual gift tax exclusion, reporting requirements for large gifts, and the implications of receiving money from non-U.S. persons.

The conversation also touches on exceptions to reporting requirements and the potential issues surrounding covered expatriates. 

We emphasize the importance of transparency and consulting with experts to navigate these financial matters effectively.

Some Key Takeaways

• Gifts over $100,000 must be reported on Form 3520.

• Receiving money from non-U.S. persons (outside the US) generally has no tax implications.

• The reporting threshold for gifts from foreign entities is around $17,000.

• IRS penalties for non-filing can be significant, up to 25%.

• Late filing of Form 3520 may allow for a reasonable cause statement.

• Exceptions exist for qualified tuition and medical payments.

• Consulting with financial experts is crucial when receiving large gifts.

• Understanding covered expatriate status is important for tax implications.

Episode Links & Resources

• Ep 08: What Is English For "Domicile?"

• Ep 18: What Is English For "Situs?"

• Ep 22: What Is English For "Covered Expatriate?"

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.