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Congress finally acted on New Year's Day, passing the "fiscal cliff" rules. This law extended the existing tax rate structure for single taxpayers with taxable income of as compared to USD 400,000, and married taxpayers with taxable income of less than USD 450,000. For individuals with higher incomes, the top tax rate was increased to 22.6% These limits are determined ahead of when the foreign earned income exclusion.
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But the danger doesn?t stop with mere financial penalization. Punishment can add considerably as being included jail and being made to pay fines to transfer pricing the federal government if evasion is blatantly uneven.
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