US citizens and green card holders living in the Kingdom can file their 2015 tax returns by June 15. This was disclosed by KPMG Al-Fozan and Partners. The company, which is a global network of professional firms providing various audit, tax and advisory services to a large number of clients around the world, also encouraged Americans to report their foreign bank accounts by June 30 to avoid any penalties. Rupert Pease, head of Tax at KPMG Al-Fozan and Partners, said: "It should be noted that once the Saudi banks start reporting the bank accounts details of their US citizen customers to the the Internal Revenue Service (IRS), it is expected that the IRS will start contacting US individuals regarding their delinquent tax returns. "In such case, the penalties for noncompliance could range from imposing late filing penalty of up to 20 percent on delinquent taxes, up to 50 percent penalty of the highest balance of unreported foreign bank accounts, the loss of the foreign earned income exclusion and possible criminal charges if the IRS can prove fraudulent conduct." The Foreign Accounts Tax Compliance Act (FATCA), passed by the US Congress in 2010 but came into force on June 1, 2014, grants IRS more powers to impose severe penalties and fines on non-compliant citizens living outside the US, who fail to file tax returns and report foreign bank accounts.
