October 9, 2014
October 7, 2014
IRS Simplifies Procedures for Favorable Tax Treatment on Canadian Retirement Plans and Annual Reporting Requirements
September 26, 2014
US Expatriate Mini Consultations and Reviews of Self Prepared Returns - Offshore Disclosure and Citizenship Surrender
1. We can review your self prepared expat returns or special international tax forms and provide you with suggestions, comments and corrects. This will help avoid potential IRS audits or problems.
2. If you are moving abroad, need to understand your personal expatriate tax or US international tax situation, we offer a mini consultation with an attorney that can give you guidance and resolve your questions. This consultation is subject to attorney/client privilege and its totally confidential.
3. Considering giving up your US Citizenship? We have assisted over a hundred clients with this process and can provide you with guidance on all aspect of the legal and tax requirements, including assisting with the special required tax forms.
4. Haven't been filing your tax returns or special foreign tax forms (FBAR, Foreign Corp, etc) while living abroad? Omitted your foreign income or failed to disclose foreign bank accounts to the IRS. We can help with the expertise and confidentiality of an Attorney/CPA. We provide you with complete legal tax advice and can prepare all of the returns necessary to enter the IRS Offshore Disclosure Program or the new Streamlined Disclosure Programs (that can significantly reduce your penalties).
Email us if you need help at email@example.com or visit our websites at www.TaxMeLess.com or www.expatattorneycpa.com
September 21, 2014
LINK TO 2014 CALIFORNIA TAX INFORMATION
September 9, 2014
Link to Forbes Article: http://www.forbes.com/sites/irswatch/2014/07/07/irs-ovdp-vs-streamlined-what-to-do/
The disadvantage of the Streamlined Program is that it does not protect you from criminal prosecution and if you are rejected, your entire situation may be sent to the audit department and regular penalties may then be imposed which can be very high.
We have advised or represented in excess of a hundred clients in connection with the Streamlined program or the Offshore Voluntary Disclosure Program. We can advise you which program is best for you after you read the article above.
September 2, 2014
August 1, 2014
1. Fail to file a return for any tax year that one is due on your worldwide income? The statute of limitations nevers runs out to assess taxes for that year.
2. Fail to pay taxes on past filed returns or assessed by the IRS? The normal statute of limitations is 10 years from the date of assessment and filing a tax lien (that may be a later date from the date you filed the return) to collect tax. However, if you leave the country or the tax is assessed while you are outside the USA, that statue of limitations is put on hold until you return to the USA when it starts to run again.
3. Failed to file Foreign Bank Account Reporting Forms (FBAR or now form 114)? The statute of limitations to assess penalties for failing to file is 6 years from the due date of each years forms.
July 21, 2014
Do you know that if you sell your home and make a profit, the gain may not be taxable? These rules apply even if your primary home is located abroad. That’s just one key tax rule that you should know. Here are ten facts to keep in mind if you sell your home this year.
1. If you have a capital gain on the sale of your home, you may be able to exclude your gain from tax. This rule may apply if you owned and used it as your main home for at least two out of the five years before the date of sale.
2. There are exceptions to the ownership and use rules. Some exceptions apply to persons with a disability. Some apply to certain members of the military and certain government and Peace Corps workers. For details see Publication 523, Selling Your Home.
3. The most gain you can exclude is $250,000. This limit is $500,000 for joint returns. The Net Investment Income Tax will not apply to the excluded gain.
4. If the gain is not taxable, you may not need to report the sale to the IRS on your tax return.
5. You must report the sale on your tax return if you can’t exclude all or part of the gain. And you must report the sale if you choose not to claim the exclusion. That’s also true if you get Form 1099-S, Proceeds From Real Estate Transactions. If you report the sale you should review the Questions and Answers on the Net Investment Income Tax on IRS.gov.
6. Generally, you can exclude the gain from the sale of your main home only once every two years.
7. If you own more than one home, you may only exclude the gain on the sale of your main home. Your main home usually is the home that you live in most of the time.
8. If you claimed the first-time homebuyer credit when you bought the home, special rules apply to the sale. For more on those rules see Publication 523.
9. If you sell your main home at a loss, you can’t deduct it.
10. After you sell your home and move, be sure to give your new address to the IRS. You can send the IRS a completed Form 8822, Change of Address, to do this.
July 12, 2014
Taxpayers who do not need to use either the OVDP (described in section 1 above) or the Streamlined Filing Compliance Procedures (set forth in section 2 above) to file delinquent or amended tax returns to report and pay additional tax, but who:
(1) have not filed a required Report of Foreign Bank and Financial Accounts (FBAR) (FinCEN Form 114, previously Form TD F 90-22.1),
(2) are not under a civil examination or a criminal investigation by the IRS, and
(3) have not already been contacted by the IRS about the delinquent FBARs
should file the delinquent FBARs according to the FBAR instructions and include a statement explaining why the FBARs are filed late. All FBARs are required to be filed electronically at FinCen. On the cover page of the electronic form, select the reason for filing late. If you are unable to file electronically, you may contact FinCEN's Regulatory Helpline at 1-800-949-2732 or 1-703-905-3975 (if calling from outside the United States) to determine possible alternatives to electronic filing.
The IRS will not impose a penalty for the failure to file the delinquent FBARs if you properly reported on your U.S. tax returns, and paid all tax on, the income from the foreign financial accounts reported on the delinquent FBARs and you have not previously been contacted regarding an income tax examination or a request for delinquent returns for the years for which the delinquent FBARs are submitted.
FBARs will not be automatically subject to audit but may be selected for audit through the existing audit selection processes that are in place for any tax or information returns.
Taxpayers who do not need to use the OVDP (described in section 1 above) or the Streamlined Filing Compliance Procedures (set forth in section 2 above) to file delinquent or amended tax returns to report and pay additional tax, but who:
(1) have not filed one or more required international information returns,
(2) have reasonable cause for not timely filing the information returns,
(3) are not under a civil examination or a criminal investigation by the IRS, and
(4) have not already been contacted by the IRS about the delinquent information returns
should file the delinquent information returns with a statement of all facts establishing reasonable cause for the failure to file. As part of the reasonable cause statement, taxpayers must also certify that any entity for which the information returns are being filed was not engaged in tax evasion. If a reasonable cause statement is not attached to each delinquent information return filed, penalties may be assessed in accordance with existing procedures.
All delinquent international information returns other than Forms 3520 and 3520-A should be attached to an amended return and filed according to the applicable instructions for the amended return. All delinquent Forms 3520 and 3520-A should be filed according to the applicable instructions for those forms. A reasonable cause statement must be attached to each delinquent information return filed for which reasonable cause is being requested.
Information returns filed with amended returns will not be automatically subject to audit but may be selected for audit through the existing audit selection processes that are in place for any tax or information returns.
July 2, 2014
June 29, 2014
Who Must File an FBAR by 6/30/14
Exceptions to the Reporting Requirement
Reporting and Filing Information
U.S. Taxpayers Holding Foreign Financial Assets May Also Need to File Form 8938
June 20, 2014
• A 50% offshore penalty applies if either a foreign financial institution at which the taxpayer has or had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement has been publicly identified as being under investigation or as cooperating with a government investigation. See FAQ 7.2.
• FAQ 7 has been modified to require that the offshore penalty be paid in full at the time of the OVDP submission.
June 19, 2014
Read new IRS rules below.
June 18, 2014
Read new rules at this link:
June 12, 2014
Read more below. To be safe due to uncertainties list your account!
Read more below. No extension of 6-30-14 Deadline for 2013 form 114 can be granted. Penalty for not filing is $10,000 or more!
June 11, 2014
- 1. The right to be informed.
- 2. The right to quality service.
- 3. The right to pay no more than the correct amount of tax.
- 4. The right to challenge IRS's position and be heard.
- 5. The right to appeal an IRS decision in an independent forum.
- 6. The right to finality.
- 7. The right to privacy.
- 8. The right to confidentiality.
- 9. The right to retain representation.
- 10. The right to a fair and just tax system.