Search Results for: international tax
Deferral is the Name of the Game: Funding a Trust With Retirement Assets
…amount. Generally speaking, the longer period of time a taxpayer can defer the payment of the income tax due from the IRA and retirement assets, the more the taxpayer will…
IRS Listens, and Postpones Increased Form 1099 Reporting for PayPal and Venmo
…that income reported on his or her tax return. Payments incorrectly classified as business (goods or services) will trigger a Form 1099-K. If a taxpayer believes it is not taxable…
Payment Apps like Venmo and Paypal Now Subject to Tax Reporting
…to issue Taxpayers a 1099-K tax form each year he or she receives $600 or more annually. Small business owners, independent contractors, or anyone who has a business that accepts…
New FBAR FIling Deadline Law Signed
…for several years to create a more logical flow of information and help taxpayers and tax professionals in filing timely and accurate tax returns. The new law harmonizes the FBAR…
Income Taxation of FMLA Claims
…how settlement money should be reported and how it is taxed. FMLA Lawsuit Taxation The only type of lawsuit settlements that are tax-free are payments you receive to compensate you…
Finally. Government Accountability Office makes recommendations to the IRS for tax laws education to immigrants
…some taxpayers in trouble, but some are beneficial. Particularly helpful tax laws education commentary regarding offshore assets. Below is an excerpt from the report. In our [GAO] case file…
News from the 2014 Criminal Fraud and Tax Controversy Conference
We just returned last week from attending the Criminal Fraud and Tax Controversy Conference in Las Vegas, sponsored by the American Bar Association Section of Taxation where many government officials…
Forms 5471, 5472, 3520 Partial Penalty Relief Still Available for 2019 and 2020 Returns
IRS Notice 2022-36 provided relief for certain taxpayers from certain failure to file penalties and certain international information return penalties with respect to tax returns for tax years 2019 and…
Most Swiss banks participating in the US Department of Justice (DOJ) amnesty program seek extension to disclose
…paying taxes due plus interest. Applying to the OVDP involves submitting eight amended tax returns with taxes, penalties and interest, eight FBARs, and a 27.5% miscellaneous offshore penalty. Once Swiss…
Taxpayer’s Beware: Proving Non-Willful Conduct in the new IRS Streamlined Filing Compliance Procedures
…this new option, there is a 5% penalty on the balance of the undisclosed account for taxpayers living in the U.S.—and none at all for taxpayers living elsewhere. Taxpayers in…
New IRS Relief for Taxpayers Experiencing COVID-related Difficulties
…abatement programs in the IRS. · For individual taxpayers receiving notices (letters about a tax bill) with tax liabilities up to $250,000 for Tax Year 2019 only, the IRS can…
“Leave a Legacy” – Beneficiary Designation on your Retirement Plan
…to be untaxed income. The income tax is in addition to estate tax on the retirement account balance. The result of this double taxation? For estates fully subject to the…
India issues FATCA Self-certifications and KYC Warnings
…Foreign Account Tax Compliance Act (FATCA). FATCA is part of the U.S.’s answer to tracking money hidden in offshore accounts so it can be brought into the US tax net….
IRS’ first-time penalty abatement administrative waiver (FTA)
…few taxpayers who qualify for FTA request it. The problem is twofold: Most taxpayers and tax professionals do not know FTA exists, and IRS representatives often incorrectly disallow an FTA…
IRS Reminds (again) Taxpayers to Report Foreign Income and Assets
…to their tax return. Certain taxpayers may also have to fill out and attach to their return Form 8938, Statement of Foreign Financial Assets. Part III of Schedule B asks…
Taxation of Employment-related Discrimination Claims
Proceeds from a settlement involving an employment-related discrimination case may be taxable to the employee under some circumstances and not taxable in others. Non-taxable settlement amounts: Medical expenses associated…
Asset Protection
…and whether he has any litigation or investigations pending, threatened or expected 2. Evade Taxes Some U.S. clients and their advisors are attracted to foreign-based planning by hoped-for tax advantages….
FBAR statute of limitations court case ruling
…statutes, the Tax Court ultimately determined that the statute being used to assess additional income taxes from non-compliant taxpayers with foreign accounts could not be used for tax years prior…
How Will the IRS Find Out By Your Foreign Account? Let’s Count the Dozens of Ways
1. FATCA (Foreign Account Tax Compliance Act of 2009) requires disclosure of your account information. A. July 1, 2014 FATCA withholding began. B. FATCA requires a 30 percent withholding tax…
Probate of Estates in New Jersey
…the tax due. 4. Filing tax returns. You must also file a final income tax return for the decedent and, if the estate holds any assets and earns interest or…
New Rules: New Jersey Finally Follow Federal S Elections
…for any taxable year at any time during the preceding taxable year or at any time on or before the due date or extended due date of the corporation’s tax return….
FBARs from Wuhan
…charged with a tax crime face a very high rate of conviction. The IRS reported it brought 91.2% of all taxpayers accused of tax crimes in 2019 to conviction. Although…
An exception to PFICs in Foreign Pension Plan Accounts
…pension fund operated principally to provide pension or retirement benefits where an income tax treaty essentially provides that the earnings from the pension fund are not taxable until distribution. Exception…
Reasonable Cause Defense Denied: FBAR Penalties Assessed by Court
…the request of UBS and received a check. Agrawal testified that he prepared his own tax returns in 2006 and 2007, but relied on CPAs to prepare his tax returns…
What Is The Difference Between the SDOP and the Current OVDP program?: Willfulness
…fact and law, based largely on the taxpayer’s particular facts and circumstances. Taxpayers with foreign accounts would be wise to retain tax legal counsel, to better analyze the taxpayers’ position….
What to Expect if the IRS Audits Your Employee Retention Credit
The Employee Retention Credit (ERC) was a valuable tax credit available to businesses during the COVID-19 pandemic. However, the IRS has recently ramped up its audits of ERC claims, due…
Do You Need to Revise Your Estate Plan?
…applies and still limits gifts and makes many inheritances taxable for capital gains tax purposes. Finally, your existing documents may contain a trust formula that no longer works. What? Why?…
Watch Out for PFIC Status
…for a total of 23.8%, which is favorable compared to the top ordinary federal income tax rate of 39.6%. Capital gains in PFICs, however, are effectively taxed at the highest…
Vatican Signs FATCA Agreement
Praying may not be enough for non-compliant taxpayers (or evaders) under the Foreign Account Tax Compliance Act (FATCA). The Vatican has become the latest FATCA signatory to share bank information…
How to Avoid Criminal Prosecution Through Voluntary Disclosure
…Disclosure Practice is for Taxpayers who have committed tax or tax-related crimes and have criminal exposure due to willful violations of the law. A Taxpayer can voluntarily disclose when they…