Post Filing Deadline Checklist - Get Planning and Start Saving

GTN Newsletter - April 2016

Post Filing Deadline Checklist - Get Planning and Start Saving

Raj Azad, Director

GTN West Central
Phone: +1.763.746.4557 | Email: razad@gtn.com

Now that the tax busy season is over, it's a good time to relax. The summer months also present an ideal time to review the past compensation and tax seasons. This will allow you and your tax provider to be better prepared for a smoother tax season before it all starts again. Identified below are a number of areas that we recommend you begin to review now, while the memories of the past six months busy times are fresh in your memory.

Authorization list for 2016 Tax Preparation - Why not start now? You can start with your 2015 authorization list, identify mobile employees who no longer need to be on the list, and continue by adding your new mobile employees. At the end of 2016, you will only need to complete a quick review of the list.

Delinquent taxpayers - If you have mobile employees that are behind in their tax return filing requirements, now is a good time to follow up with them. The sooner you reach out to them, the sooner they will get on board. Don't let non-compliers drift as they may cause big headaches down the road.

Long Term Extensions - Many US taxpayers living overseas need to file extensions to file their tax returns. There may be many reasons for these extensions, ranging from qualifications for foreign earned income exclusions to foreign tax information not being readily available. Know who these mobile employees are and why their returns are extended. Also, make sure these individuals have received necessary communications so the right expectations are set.

Compensation reporting - Did you have a proper year end compensation review process in place, or are you scrambling around trying to resolve W-2 corrections? Identify what went well in your compensation reporting process and what can be improved. Making the necessary adjustments to your processes will enable you to get your compensation reporting under control for 2016. You may want to pay closer attention to bonus payments of your mobile employees who are in their first or last year of assignment. Bonus payments may create balances due if the necessary withholdings weren't taken in the right tax jurisdiction, which can be tricky.

Balances due on returns - Did you have balances due on tax returns that were more than expected? Was there anything that can be done better? Review your accrual process with your tax service provider and make sure you have a good accrual process in place.

Balance due payment process - Did you receive payment requests on time from your service provider? Did you have enough time to make these payments? Make sure that the processes and the timeline that you had set previously is manageable. If they are not, make the necessary adjustments now for next year, while the experience is still fresh in your memory.

Tax Equalization balances due back to the company - Make sure to track your receivables from tax equalization calculations. Also, remember that any payments due back to the company may result in potential "claim of right" on the following year's tax return, which may be an additional tax saving to the company.

Foreign tax credits - Put a process in place to track how much foreign tax credit carry-forward your mobile employees have. This will also help you with identifying your authorization list for the 2016 tax year.

Conclusion

Taking time now to identify what went well and what didn't over the past few months will undoubtedly help you as you look to next year's process. Have a discussion with your service provider and express your needs that will help you for the year ahead. Put the effort in now and next year's busy season might not be so busy. Enjoy your summer.

Please contact Raj Azad at razad@gtn.com or your GTN program leader with any questions regarding any of the above mentioned recommendations.

The information provided is for general guidance only, and should not be utilized in lieu of obtaining professional advice.

Author: Raj Azad

Raj Azad

Raj joined GTN in 2004 and currently serves as Director in GTN’s West Central region. Raj has over 20 years of experience in expatriate tax. In addition to consulting with companies on their mobility tax questions, he partners with his clients to find the right solutions and to define the proper policies that work best for them and their mobile employees.

Tags: Tax Planning, Tax Season Checklist

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