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Tax audit red flags: separating fact from fiction

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 In this article, we will discuss what the real audit red flags are, and what is just sort of things are outdated.

Help with common US tax issues for US-Indian persons

While there is a US-Indian tax treaty that claims to offer benefits, the issue is that the "Savings Clause" of the treaty negates the double-taxation prohibition. Meaning, anything earned in India is subject to US taxation.

China is sharing confidential financial information with the US. How to protect yourself from bad advice

For Chinese-Americans with assets in China and elsewhere who have not disclosed their worldwide income and assets properly, the IRS might be able to target them easily very soon. And, the consequences could be very dire.

FATCA is a blinding disaster that the 6th Circuit can't see. So let's help them.

**** UPDATE: We learned the the Sixth Circuit denied an En Banc Hearing September 27, 2017. So it's on the the Supreme Court. **** The US 6th Circuit of Appeals dismissed the Rand Paul/Mark Crawford Foreign Account Tax Compliance Act (FATCA) lawsuit for a lack of standing, claiming that it couldn't see the damage FATCA has caused. Yet we know the damaged caused is so obvious to everyone --- even its supporters --- that there has to be a logical way to explain the 6th Circuit's massive failure to see what everyone knows. One theory is that the FATCA disaster is so massive, like a atomic blast, it temporarily blinds certain observers, making them unable to make use of their faculties. In this article, we will help anyone so confused to make sense of FATCA. We will focus on just one example, just one victim of FATCA, Donna-Lane Nelson. Ms. Nelson is a plaintiff in the FATCA lawsuit. She tells us her story in detail and talks about how FATCA robs opportunity from regular Americans every day.

Common renunciation and IRS exit tax questions

More and more United States citizens are renouncing their US citizenship. Many, thanks to the havoc that FATCA is wreaking on their lives. We understand the gravity of making this decision. These are common questions our clients ask when considering renunciation.

FATCA repeal and tax reform updates with Solomon Yue

We were joined by Solomon Yue -- an integral force behind the effort to repeal the Foreign Account Tax Compliance Act (FATCA). We wanted to check in with Solomon to find out what progress has been made since the hearing.

FATCA contact information #repealFATCA

The Foreign Account Tax Compliance Act (FATCA) is  a law that affects so many negatively. We are partnered with a group in Washington that is working so hard to get FATCA repealed. We are asking for your help. 

The folly that is the FATCA same-country exemption

The Democrats on the House Oversight Committee tacitly admit that the Foreign Account Tax Compliance Act (FATCA) has some serious problems. But FATCA was a Democrat law, so they seem...

Expert Minority Witness at FATCA hearing - 15 things she got wrong

On April 26, 2017, Anthony and Claudine attended a hearing in Washington, DC - The "Unintended Consequences of the Foreign Account Tax Compliance Act (FATCA)". The minority expert witness got quite a few things incorrect during...

How to avoid disaster with the US tax code

The US tax code is one of the most complicated things in the history of time for US taxpayers. So imagine being an expat trying to decipher all of the rules and regulations!

How long should I keep my tax records?

Maybe you've heard that you should hang on to your tax records for 3 years, maybe you heard 6 years, maybe 7, or even 10.  But, as we will explain, the best answer may be: "for as ...

DOJ muffs up international asset reporting rules

The issue I have with the quoted paragraph is the claim that taxpayers must "identify the country where the account was maintained." But this is only true if the FBAR... Saul Hyatt, 53, pleaded guilty today before U.S. District Judge Freda L. Wolfson of the District of New Jersey to an Information charging him with conspiracy to conceal assets in an undeclared bank account held in Panama for his ...

Israel stands up to FATCA

9/13/2016 Update: Less than a week later, Israel has caved in: /2016/09/13/israel - caves - into - fatca/. It's Israel versus FATCA. A true David and Goliath story, and we're rooting for David.

Renouncing citizenship while hiding tears

From a recent post in the American Expatriate Facebook group: Rachel Heller, a US expat living in the Netherlands, has tried to find a venue for here story but unfortunately, no major media outlet was interested in ...

Dismissal of Rand Paul's lawsuit

Not too many surprises here. A federal court decides no meaningful limits to federal power and ratifies one of the worst laws of all time. Here with a claim those negatively affected by the Foreign Account Reporting Act (FATCA) must be imagining it all. Huh. Seems like a factual determination ...

IRS help for Swiss banks (and their customers)

It seems like the new disclosure laws have turned everything upside down, and unfortunately people panicked. We've seen how this is affecting Swiss Bankers, and we know that it is possible to help their clients --- making all of their lives easier and more prosperous.

FATCA, OVDP, and Streamlined case studies

Offshore disclosures and FBAR penalties are a focus of the IRS. The law, procedures and actual outcomes are constantly evolving --- and sometimes the IRS operates inconsistently. To...

The hidden truth behind the horror of FATCA with Jim Jatras

On February 11, 2016, Claudine and I discussed the hidden truth behind FATCA with Jim Jatras of And it was an eye - opener.lative history of FATCA As part of PAYGO budgeting, new federal spending ...

FATCA - will it be around forever?

I really hope not. There were hopes and rumblings that FATCA may go away some day soon; but upon reading remarks from Acting Assistant Attorney General Caroline D. Ciraolo at the American Bar Association’s Tax Section midyear meeting on Friday, we can now say that doesn't ...

FATCA - What is a 'Specified Foreign Financial Asset'?

Once you've determined that you need to file a Form 8938, you'll need to know what to report. The IRS has not made it a simple, quick process, and some of the requirements cause duplicate ...

FATCA Form 8938 Reporting Thresholds

FATCA is a federal law that requires all US taxpayers, even those living outside of the US, to report their non-US financial accounts yearly. There are generally two forms needed to report your offshore accounts. The first is called the FBAR, and the second is ...

What do you do if you receive a FATCA letter from your bank?

A ‘FATCA letter’ is a letter from your foreign bank requesting certain information about your US tax status to confirm whether or not you are a US taxpayer and subject to FATCA, and usually arrives with a Form...

What is FATCA compliance, and why is it so annoying?

FATCA is a reporting requirement, not a tax, and was designed to seek out undeclared foreign income. It is a federal law that requires all U.S. taxpayers to report their non-US financial accounts yearly, including those individuals living outside of the States. These accounts must be reported to the IRS on form 8938 each...

IRS Form 8938 FAQ

Form 8938 (Statement of Specified Foreign Financial Assets) is used to report specified foreign financial assets. It is filed by taxpayers with specific types and amounts of foreign financial assets or foreign accounts. It can be confusing to know exactly what you need to ...

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