- Business versus Hobby. A key feature of a business is that you do the activity to make a profit. This differs from a hobby that you may do for sport or recreation. There are nine factors to consider when you determine if you do the activity to make a profit. Make sure you base your decision on all the facts and circumstances of your situation. Refer to Publication 535, Business Expenses to learn more. You can also visit IRS.gov and type “not-for-profit” in the search box.
- Allowable Hobby Deductions. You may be able to deduct ordinary and necessary hobby expenses. An ordinary expense is one that is common and accepted for the activity. A necessary expense is one that is helpful or appropriate. See Publication 535 for more on these rules.
- Limits on Expenses. As a general rule, you can only deduct your hobby expenses up to the amount of your hobby income. If your expenses are more than your income, you have a loss from the activity. You can’t deduct that loss from your other income.
- How to Deduct Expenses. You must itemize deductions on your tax return in order to deduct hobby expenses. Your costs may fall into three types of expenses. Special rules apply to each type. SeePublication 535 for how you should report them on Schedule A, Itemized Deductions.
- Use IRS Free File. Hobby rules can be complex. IRS Free File can make filing your tax return easier. IRS Free File is available until . If you make $60,000 or less, you can use brand-name tax software. If you earn more, you can use Free File Fillable Forms, an electronic version of IRS paper forms. You can only access Free File through IRS.gov.
July 21, 2015
July 2, 2015
See Forbes article for list of Swiss Banks Included
June 26, 2015
FORM BE 10 DUE BY JUNE 30TH OR THERE MAY BE PENALTIES - THIS FORM MUST BE FILED IN MOST SITUATIONS WHEN YOU OWN A FOREIGN CORPORATION
June 25, 2015
June 13, 2015
Over 65 articles by experts on every aspect of purchasing, owning and selling real estate in Mexico. http://www.mlsinbajasur.com/real-estate-articles.html
June 1, 2015
If you need additional time to qualify for the bonafide residence foreign earned income exclusion (form 2555) you can file form 2350 to extend your return further out until a date you have qualified for a full calendar year living abroad.
Your Form 114 (FBAR) which reports your foreign financial accounts is due on 6/30/15 for 2014 and cannot be extended any further. Failure to timely file this reporting form can result in substantial penalties. You can only file this form on line at http://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html
Though expats get these special extension rules, any taxes owed must be paid in by 4/15/15 to avoid penalty and interest charges if any taxes are later due with the return.
May 28, 2015
Form BE10 - Form Required by Bureau of Economic Analysis of Department of Commerce for those who own 10% or more of a foreign corporation
May 21, 2015
READ MORE ABOUT COLLEGE EDUCATION BENEFITS FOR EXPATS AND THEIR CHILDREN HERE
May 11, 2015
DIRECTIONS FOR FILING FBAR (FORM 114) FOREIGN FINANCIAL ACCOUNT REPORT ON LINE - THIS IS DUE 6/30/15 FOR 2014
- People who show more than $10 million in income or NO income at all!
- People who file International Tax returns and show International Activies on Their Return
Time Magazine Article on Taxpayers Most Likely to be Audited
May 8, 2015
Submission Processing Center Street Addresses for Private Delivery Service
|Austin - Internal Revenue Submission Processing Center|| 3651 S IH35,|
Austin TX 78741
|Cincinnati - Internal Revenue Submission Processing Center|| 201 West Rivercenter Blvd.,|
Covington, KY 41011
|Fresno - Internal Revenue Submission Processing Center|| 5045 East Butler Avenue,|
Fresno, CA 93727
|Kansas City - Internal Revenue Submission Processing Center|| 333 W. Pershing,|
Kansas City, MO 64108
|Ogden - Internal Revenue Submission Processing Center|| 1973 North Rulon White Blvd.|
Ogden, UT 84404
April 20, 2015
- Opened the foreign bank account
- Owner of, or a financial interest in, the foreign account
- Tax non-compliance
- Did not seek advice, or relied upon the advice of a promoter, foreign banker, or other unqualified tax professional.
- Violations persist after notification of FBAR reporting requirements
- Foreign account not disclosed to return preparer
- No business reason for the foreign account
- No family or business connection to the foreign country
- An offshore entity owns the account
- Previously-filed FBARs do not include all foreign accounts
- Illegal income in the foreign account
- Participated in an abusive tax avoidance scheme
- Inherited the foreign bank account
- Only signature authority over the foreign bank account
- Tax compliance
- Relied upon the advice of a tax return preparer, a CPA, an attorney, or another
qualified tax professional.
- Full compliance after notification of FBAR reporting requirements
- Foreign account disclosed to return preparer
- Business reason for the foreign account
- Family or business connection to the foreign country
- Person owns the account in his name
April 16, 2015
Identity Theft Fraud
Return Preparer Fraud ; Questionable Refund Fraud
International Tax Fraud
Fraud Referral Program
Organized Crime Drug Enforcement Task Force (OCDETF)
Bank Secrecy Act and Suspicious Activity Report (SAR) Review Teams
Voluntary Disclosure Program
Counterterrorism and Sovereign Citizens FY14 Business Results:
In 2014 there were only 4,297criminal investigations initiated by the IRS and out of this there were only 3,110 criminal convictions.. This is from a total US population of approx 330 million people. Therefore, you have to be a pretty bad person or a special target for the IRS to even bother with seeking criminal prosecution.
If you are one of those pretty bad persons, email us at firstname.lastname@example.org for help.
April 13, 2015
April 9, 2015
March 30, 2015
March 26, 2015
March 23, 2015
Additional IRS Resources:
- Taxation of U.S. Resident Aliens
- Publication 514, Foreign Tax Credit for Individuals
- International Taxpayers