Even More GILTI Rules.
2021-09-09
With the tax industry finally coming to understand the implications and effects of GILTI, Congress is looking to add significant amendments.
Current Affairs
The Mandatory Requirements Before Tax Resolution
2021-09-08
We all want our problems solved as quickly and painlessly as possible, but when it comes to the IRS, taxpayers need to meet certain requirements before they can effectively resolve their tax debts.
Working for Yourself Means More Work When Filing Your Tax Returns
2021-09-07
Starting a business, hanging out a shingle, working for yourself, being your own boss: however you put it, being self-employed can be exciting and fulfilling, but with great autonomy comes unexpected responsibility.
A Coming Catastrophy for Cryptocurrency?
2021-08-31
Congress is poised to impose the same information reporting requirements on cryptocurrency as it does on other accounts and assets.
Paying Taxes Abroad? Take Credits Here.
2021-08-25
Paying taxes in more than one jurisdiction? Wondering what to do next? Start here.
What a Difference a Year Makes. . . for CFCs and form 5471.
2021-08-19
There are many things for a U.S. taxpayer to keep in mind when preparing their form 5471. Here is one of them.
Our 2020 guide to Expat tax news & updates
2020-02-05
Tax reform, unfortunately, did not make things easier for the American overseas. In our latest video, Anthony Parent interviews three experts, fellow tax attorney John Richardson, Laura Snyder of the Taxpayer Advocate's office, and global advocate for the American Overseas, Keith Redmond. The three share their insight to the essential changes and potential paths to meaningful help.
Expert help with IRS Form 5471: We stand by our work
2020-01-23
Do you need help with an IRS Form 5471 issue? Our international tax law firm, Parent & Parent LLP has helped business owners around the globe fix past IRS Form 5471 issues. Not only that, but we also make sure our clients' filings are problem-free year after year.
Do you qualify for the IRS Fresh Start Program?
2019-12-14
Believe it or not, the IRS Fresh Start Program actually offers some benefits! We've used this initiative to help individuals and small businesses around the country and the world settle their an IRS probem. But who qualifies and for what exactly? Read this article to learn what you need to know about the IRS Fresh Start Program.
How the IRS Treats International Taxpayers and Returns
2019-12-09
The IRS requires all U.S. citizens, resident aliens, and other U.S taxpayers to file a tax return each year, no matter where they are located in the world. This means international taxpayers who were born, have lived, or are living in the U.S. must file with the IRS.
This article applies to you if:
You have lived in the U.S.
You have paid tax in the U.S. in any way.
• You are a U.S. citizen or resident, even if you are not living there now.
• You have ever filed a U.S. tax return.
• You have relocated to a country outside the U.S.
US Treasury issues new IRS Form 5471 rules to limit damage tax reform caused
2019-10-01
While tax reform may have been a huge boon for domestic corporations, it has made international taxation even more onerous, convoluted, and difficult to comply with. In light of this, the IRS announced new revenue procedures to negate at least some of the absurdities of owning stock in a foreign corporation.
What is a covered exptatriate? Why is it so bad?
2019-09-23
The IRS announced a new program "Relief Procedures for Certain Former Citizens" to help those who have expatriated incorrectly and are worried about being deemed a "covered expatriate." So before you convince yourself you need this program, it may be a good idea to know a covered expat is and what happened is you don't take any action, right?
What are IRS Form 5471 penalty triggers?
2019-09-12
Obviously, not filing a Form 5471 at all when required to do so can trigger a Form 5471 penalty. But also, any Form 5471 that is filed but that the IRS considers not “substantially complete" may result in Form 5471 penalties. In this article we will discuss what types of mistakes on a Form 5471 could lead to "substantially incomplete" penalties and what you can do to protect yourself from an IRS international audit team that admits it is hyper-aggressive when it comes to assessing Form 5471 penalties.
What Tax Reform Means to Foreign Tax Credit Rules
2019-08-07
The Tax Cuts and Jobs Act of 2017 (TCJA) made many changes to how the U.S. taxes earnings or dividends from overseas. One of the areas impacted was foreign tax credits, which changes how taxpayers in the U.S. calculate and pay taxes on certain foreign income. Like many other parts of tax law, this can be complicated, so we’ve broken things down to explain what these changes could mean to you, whether you’re a U.S. expatriate, a corporation, or you receive income from overseas.
Does your child need to file an FBAR?
2019-08-02
The Report of Foreign Bank accounts, also known as the FBAR was a tool invented by congress in 1970 to make it difficult for criminal masterminds around the world to use the international banking system to facilitate their criminal mastermind plans. And because of that, any US person regardless of age or mental abilities must file an FBAR should their foreign bank accounts exceed $10,000 in the aggregate. Again, believe it or not this requirement extends to someone who is disabled or is a child - even a baby. Read more to find out why
The IRSMedic MasterGuide to 2019 Federal Tax Table, Rates, and Brackets
2019-07-27
Everyone needs to pay tax of one kind or another, so we’ve created a comprehensive guide to most of the ways the IRS and your state will charge taxes to you. From federal tax brackets and standard deductions to corporate, estate, and gift taxes, we’ll share the latest information from the IRS and state agencies on what you’ll need to pay.
The IRS is improperly and automatically assessing $10,000 Form 3520-A penalties - what to do now
2019-07-16
The IRS has assessed many of our clients and others taxpayers around the globe who might have even correctly filed Form 3520-A and Form 3520 with substantial penalties - often $10,000. What gives? What can be done about this? In this article we will explain many situations in which a Form 3520-A is required so that you can have a good idea if the IRS's penalty assessments are something you should push back on.
Foreign Earned Income Exclusion and the Bona Fide Residence Test
2019-07-11
“Foreign Earned Income” and “Bona Fide Residence Tests” can sound like a bit of a mouthful, but if you spend time living, studying, or working abroad, they can save you money when it comes to tax time. We’ll explain what each of these means and let you know how you can reduce your tax burden.
Thinking of Getting Your LLC Taxed as an S Corporation? Here’s How to Stay Legal and Compliant
2019-06-27
Business owners who run a Limited Liability Company (LLC) can reduce the tax they pay to the IRS by choosing to be treated as an S Corporation. Known as an “S Corporation Election,” this changes the tax status of your business. It makes you a different type of “tax entity” meaning you need to report on, file, and pay your taxes in a different way. We’ll explain the changes you need to make to stay compliant with IRS rules and the tax code, so you can avoid unpleasant penalties.
Here’s the best way to deal with certified mail from the IRS
2019-06-21
Chances are, you weren’t home when the post office attempted to deliver a certified or letter from the IRS. Chances are, a pink slip was left for you in your mailbox. You might be holding that pink slip in your hand right now. It might be a little sweaty. You might be wondering — Is this bad? Is this good? Is this no big deal?
You might question - Am I going to be arrested? Should I pick up the letter? What happens if I do? What happens if I don’t?
You probably are very concerned - so read on as we answer as many great questions we can.
Business Expenses, Tax Write Off, and Deductions Guide
2019-05-17
The owners of businesses must pay various taxes on the profits that their business generates. If your business is a sole-proprietorship, partnership, LLC, or S Corporation, those profits “flow through” to your personal tax return, which is where you will pay any taxes that are owned. C corporations are taxed slightly differently, and pay corporation tax on any profits.
Our guide to IRS Filings for the deceased
2019-05-17
Death and taxes are two of the great certainties of life, and if you need help filing taxes for a deceased friend, relative, or colleague, we’ll help you understand what you need to do. This is likely to be an emotionally fraught and difficult time, so let’s keep things simple and straightforward.
Starting a New Business? Here are Your Tax Requirements and Forms You Need to File
2019-05-01
Creating a new business brings many opportunities and challenges to an entrepreneur. You can turn your ideas into products and services that you can sell at a profit. At the same time, you need to deal with the inevitability of taxes — knowing what you need to report on, file, and pay.
For better or worse: Tips on breaking the news of a tax problem to your spouse
2019-04-18
There are two very common fact patterns we come across:
A business owner that has run up a large tax problem.
Someone with foreign accounts and assets who hasn't been reporting them correctly. They too, have a large tax problem.
In both cases we often find that they have not been forthcoming about the true nature of the issue with their significant others. In this article I am going to discuss three steps to take to break the news of an IRS problem to a spouse.
What Foreign Investors in U.S. Real Estate need to know
2019-03-11
IRS Form 5472 is now required for Foreign-owned Limited Liability Companies (LLCs), which include LLCs that own US real estate. The penalty for not filing a form 5472 is ...
