2018-06-15
Would you believe that two separate divisions of US Treasury have competing and contradictory definitions of what cryptocurrencies are? Yes, you would believe that. Because you have been paying attention.
2018-06-14
The IRS created a massive buzz with its Fresh Start Program. Now, some state revenue agencies are following suit with their own “Fresh Start Programs.” Once such state is Connecticut. But is the Connecticut Fresh Start Program actually helpful? What are the qualifications? What should you do if you don’t qualify but still need to deal with a DRS problem?
2018-06-06
For homeland Americans and corporations, the transition tax is a pretty good deal. In order to repatriate money to a US, a tax needs to be paid, which can be paid over eight years, and voila, those future foreign earnings can now be exempt from US taxation. But for Americans overseas who own businesses, the transition tax can be a complete disaster, and compliance will difficult for many and impossible for a few.
2018-06-05
FBAR filing is annoying, an unnecessary breach of privacy, and believe it or not, can be far more complicated than one would at first imagine. The obvious question people ask is "Do I really have to file an FBAR?" "What happens if I don't file an FBAR?" and "Can I cheat the FBAR?"
2018-05-17
The IRS rules by fear and intimidation. Because of this, tens of thousands of US expatriates who learned they were in non-compliance and took the steps to rectify the situation. However, there are countless US expats who would love to be in tax compliance, but simply can’t afford the cost of hiring a firm like ours to help them submit their Streamlined “Foreign” Submission. Once such person is our latest podcast guest, "Julio." Julio has decided to definitely NOT be in compliance. His reasons are well-known to many US expats, perhaps not so well-known to Congress.
2018-05-03
If you are looking for some sort of IRS tax amnesty, there are changes and new proposed changes to the law to consider. With Tax Reform passed in 2017, and a new IRS Tax Relief Act (The Taxpayer First Act of 2018) being proposed, now more than ever it is essential if that you understand how IRS tax settlements actually work. In this article we will review the various IRS initiatives, answer some of the very basic and more advanced questions about how to deal with back taxes, penalties and interest, and the issues that arise from owing the IRS money or larger fears.
2018-04-23
The IRS Fresh Start program has been a marketing success --- for the IRS. Despite the IRS Fresh Start Program not really being a program, just slightly different settlement guidelines, taxpayers' interest in making a "Fresh Start" has been significant. Following suit are states like Connecticut, with their own claimed "Fresh Start program." In this article we will discuss just how different the approaches are and what to do if Connecticut asks you to make a Fresh Start.
2018-04-09
Set-backs be danged. This is not over, in fact, we are closer than ever to ending FATCA and the global tax reporting nightmare for US persons living overseas.
In this video, tax attorney Anthony Parent leads a discussion of the repeal of FATCA, the impacts of IRC Sec 965 "transition tax" & the hoped for territorial taxation for individuals (TTFI).
2018-03-15
Tax Reform was poised to eliminate many Federal Tax Credits and create new ones. And now that the smoke has cleared, we are able to see which tax credits survived, and which ones have been modified, and which ones have been added and will be available for tax years 2018 and going forward.
2018-03-13
The IRS ended the 2014 Offshore Voluntary Disclosure Program (OVDP) in September of 2018. leaving the Streamlined and Delinquent Informational Reporting Form (DIRF) programs open. And on November 20, 2018, the IRS announced new Offshore Voluntary Disclosure Practice rules for taxpayers seeking protection from criminal prosecution.
2018-03-13
It is that time of the year again, when the early tax filing season is upon us and interest not he IRS is at a yearly high. In response, you will see article published claiming to give you the “secret sauce” on how to avoid an IRS tax audit, by warning you of “red flags.” There articles are all fine, I suppose, if this was 2008. However, the IRS has changed drastically since then. In this article, we will discuss what the real audit red flags are, and what is just sort of things are outdated.
2018-03-05
When the IRS introduced Subpart F, it completely changed the the rules of international tax planning. Things have never been the same. Yet Congress was not done. The Tax Cuts and Jobs act of 2017, aka Tax Reform, change Subpart F and not for the best. So what are the Subpart F rules? Why are they so awful? What can be done to avoid Subpart F? This article answers these questions.
2018-02-22
UPDATE: In a 77-paragraph indictment, Special Prosecutor Robert Mueller announced on February 22, 2018 that even more FBAR and Bank Secrecy Act criminal charges against Paul Manafort and Robert Gates for conduct that preceded their involvement in the 2016 president election.
Today’s news that a Grand Jury returned an indictment against Paul Manafort and Richard Gates confirms my observation that too many high profile individuals are still not filing FBAR forms at significant risks. While many have learned that FBARs can result in significant civil penalties, today’s indictment reminds us that there can be criminal charges for failing to file an FBAR as well. In this article, I'm going to answer what an FBAR is, the uphill road Manafort and Gates have, and what steps to take if you should have filed an FBAR but did not.
2018-02-13
If you're a Connecticut resident, chances are you've been shortchanging the State Treasury each year when you file your state income tax return, most likely without even realizing it. With the increasing ubiquity of the online marketplace and the convenience that online shopping offers, many have turned to the internet to buy all manner of goods and services. The fact that many online retailers do not charge sales tax on purchases is seen by many to be an extra incentive to shop online. However, what many do not realize is that just because your go-to online store doesn't charge you sales tax doesn't mean that you're off the hook for paying taxes. Connecticut law requires you to self-report the purchase and pay use tax in lieu of sales tax. For years, many have flouted this requirement with little to no consequence, as means of effective enforcement simply did not exist. However, this week the Connecticut DRS made waves by sending out use tax assessments for prior years to customers of at least one online retailer: Newegg.com.
2018-02-02
Tax resolution programs are extremely important to helping those that are struggling with tax debts. Many people are surprised to find out that you can actually negotiate with the IRS. There are a number of tax resolution programs provided by the IRS that can be monumental in dissolving your tax problem.
2018-01-25
The Tax Cuts and Jobs Act of 2017, otherwise knows as Tax Reform reduced the amount of tax brackets for individuals and lowered the rates. Tax reform reduced the corporate tax rates to one flat rate. Find out how much you can expect to save with the new federal tax table.
2018-01-22
The 2017 Tax Cuts and Jobs Act (otherwise knowns as the 2017 tax reform) includes a fantastic tax benefit for many entrepreneurs, self-employed individuals, and investors by allowing them to deduct 20% of their business income. The problem is that the rules are incredibly complicated. In this article, we will explain the basics of how it works and under which circumstances you may want to consult with a tax advisor so that you can best take advantage of this new tax break.
2018-01-10
The complexities in revoking a passport for a taxpayer who owes a debt to the IRS are becoming more concrete to the IRS and the US State department. After great delay, the IRS has finally updated its Internal Revenue Manual. This article includes the entire updates as of January 10, 2018.
2017-12-15
We are joined today by guest Keith Redmond, an American overseas global advocate to talk about updates on the Repeal FATCA movement, Territorial Taxation for Individuals, and some tax traps for people who are, or are thinking about becoming a US person.
2017-12-11
With tax reform in the news, the media has found an interest in various absurdities the new law will create. For instance, with an progressive higher tax rates and a phase out of deductions, those who earn just over a million dollars have an effective marginal tax rate of 100%. But this outrage speaks to an unfortunate ignorance of our current tax code. For there are far greater outrages that are currently the law. In this article I will explain one of them --- how it is possible to be taxed when you have a loss.
2017-12-08
Two recent court decisions, one involving civil FBAR penalties and the other involving a huge alleged criminal conspiracy illustrate the perversion of our legal system. Those who are small-time offenders often are hit the hardest, meanwhile those who are much larger players, somehow avoid the full brunt of the US government.
2017-11-28
Have you ever looked closely at your W-2 and see box 13, “Statutory Employee” and wonder what it means? In this article I’ll explain this unique status and why it can be really important — I’ll be using a real life example of a client of ours who came to us with six years of unfiled returns. Effectively paralyzed by the number; too afraid to file as it looked like he would owe $800,000.
2017-11-20
The trickle of IRS Offshore Voluntary Disclosure Program (OVDP) Opt-outs has now developed into a steady stream for us. We have had some incredible successes, but we have also run into frustrations. In this article, I’ll discuss the benefits and drawbacks for those who are considering whether or not to Opt-out of the Standard OVDP 27.5% or 50% penalty.
2017-11-15
In support of the argument that there is nothing simple about the IRS, in this article I examine the seemingly ‘simple’ IRS W-4 Form, an Employee's Withholding Allowance Certificate. This is the form an employee fills out to indicate his tax situation to the employer so that the employer knows the “correct” amount of tax to withhold from an employee's paycheck. But like anything involving the IRS, things can get complicated and in a hurry.
2017-11-13
According to at least one US tax professional, the IRS is beginning a campaign to encourage tax professionals to whistle-blow on their clients. I find this horrific. It encourages a complete breach of trust and will work to further diminish the entire profession. In this article I will lay out my exact reasoning why I may do think unconventionally, but I will never be a whistle-blower and encourage all tax professionals to follow suit.
