Examples of Willful and Nonwillful FBAR (form 114) Excuses for Streamlined Program and Other Purposes

Following article gives excellent FBAR unwillful excuse guidance for the streamlined program and filing foreign reporting forms outside of the streamlined program from the International Tax Blog.

http://intltax.typepad.com/intltax_blog/2014/11/willful-vs-non-willful-fbar-violations.html

If you need help with drafting your unwillful failure to file or report income excuse or a review of what you have written, we can provide that service.

Hidden Costs of living in UAE - United Arab Emirates0

The UAE may have no income taxes but is is very expensive to live there. Remember you will still have file a US tax return  and pay us taxes after deducting the $99200 (2014) foreign earned income exclusion and housing deduction.  Read more at www.taxmeless.com

Read more about hidden other costs at: 

http://www.arabianbusiness.com/expats-need-count-hidden-costs-of-living-in-uae-report-572603.html

When is Social Security Taxable to Those Retired Abroad or Expatriates

Read the following ARTICLE FROM USA TODAY to find out when your social security is taxable. 

Remember, to collect social security you must pay in a minimum amount and qualify. Go to the Social Security Administration Website to find out how much you must pay in, your possible benefits, and collecting social security while living abroad or after surrendering your green card or citizenship.  That website is at www.ssa.gov 

Obamacares Impact on US Expats Explained

It may be surprising, but Americans overseas may not actually be exempt from Obamacare’s provisions. Obamacare, or the Affordable Care Act, is a new initiative created to ensure that every American has proper health care coverage. There are ‘minimum essential requirements’ that your plan must meet in order to satisfy Obamacare’s provisions and the Act applies to all US citizens, regardless of where they live. So depending on your personal circumstances, you may be required to purchase an acceptable policy. Those who don’t comply are subject to an Obamacare tax on their Federal tax returns.  Read more from Costa Rican News

What Unwillful excuse to use for the IRS when entering the Streamlined Program or Offshore Disclosure Programs?

Read this excellent article on writing your "Unwillful excuse" when entering the Streamlined  or Offshore Disclosure Program to file the various international tax forms which you failed to file in earlier years.

http://www.forbes.com/sites/irswatch/2014/08/08/am-i-non-willful-under-the-ovdp-streamlined-procedures/

If you need help with the forms or filing your Offshore Disclosure or Streamlined Filing email us at ddnelson@gmail.com. We have assisted hundreds of clients with these complicated forms and procedures with great success.

Wyoming Deemed Best of Income Tax Free States

If you are a nonresident or expatriate and need to set up a US corporation for your business, Wyoming is a good choice. Other states that are  state income tax fee and excellent include Nevada, Washington, Florida and Texas.  Operating the US side of your business in one of these states can save you having to pay state taxes.

Read more about Wyoming below:

http://tucson.com/ap/commentary/wyoming-the-fairest-of-the-low-tax-states/article_dcab31e2-289d-5998-84db-08fef5ddfd78.html

Some Nonresidents with U.S. Assets Must File Estate Tax Returns

Deceased nonresidents who were not American citizens are subject to U.S. estate taxation with respect to their U.S.-situated assets. 

U.S.-situated assets include American real estate, tangible personal property, and securities of U.S. companies. A nonresident’s stock holdings in American companies are subject to estate taxation even though the nonresident held the certificates abroad or registered the certificates in the name of a nominee.

Exceptions: Assets that are exempt from U.S. estate tax include securities that generate portfolio interest, bank accounts not used in connection with a trade or business in the U.S., and insurance proceeds.

Estate tax treaties between the U.S. and other countries often provide more favorable tax treatment to nonresidents by limiting the type of asset considered situated in the U.S. and subject to U.S. estate taxation. Executors for nonresident estates should consult such treaties where applicable.

Executors for nonresidents must file an estate tax return, Form 706NA, United States Estate (and Generation-Skipping) Tax Return, Estate of a nonresident not a citizen of the United States, if the fair market value at death of the decedent's U.S.-situated assets exceeds $60,000. However, if the decedent made substantial lifetime gifts of U.S. property, and used the applicable $13,000 “unified credit exemption” amount to eliminate or reduce any gift tax on the lifetime gifts, a U.S. estate tax return may still be required even if the value of the decedent’s U.S. situated assets is less than $60,000 at the date of death (due to the decrease in the “unified credit exemption” for the lifetime gifts). See Unified Credit (Applicable Credit Amount) Section in Publication 559, Survivors, Executors, and Administrators, and the Form 706NA Instructions for more information.

American citizens are subject to U.S. estate taxation with respect to their worldwide assets. An estate tax return, Form 706, United States Estate (and Generation-Skipping) Tax Return, Estate of a citizen or resident of the United States, is required for a deceased American citizen, if the fair market value at death of the decedent's worldwide assets exceeds the "unified credit exemption" amount in effect on the date of death. However, if the U.S. citizen made substantial lifetime gifts, and used the applicable “unified credit exemption” amount to eliminate or reduce any gift tax on the lifetime gifts, a U.S. estate tax return may still be required even if the value of the decedent’s worldwide assets is less than the “unified credit exemption” amount at the date of death (due to the decrease in the “unified credit exemption” for the lifetime gifts). To determine the “unified credit exemption” amount for American citizens for any particular year, refer to the Instructions to Form 706 or to Publication 559, Survivors, Executors, and Administrators.

The Internal Revenue Service may collect any unpaid estate tax from any person receiving a distribution of the decedent’s property under transferee liability provisions of the tax code.

Special Rules Applicable to Gifts or Bequests from Covered Expatriates

U.S. citizens and long-term residents who relinquished their U.S. citizenship or ceased to be U.S. lawful permanent residents (green card holders) on or after June 17, 2008, and who meet specific average tax or net worth thresholds on the day prior to their expatriation are considered “covered expatriates” – subject to IRC section 877A. See Expatriation Tax for more information on covered expatriates.

U.S. citizens and residents who receive gifts or bequests from covered expatriates under IRC 877A may be subject to tax under new IRC section 2801, which imposes a transfer tax on U.S. persons who receive gifts or bequests on or after June 17, 2008, from such former U.S. citizens or former U.S. lawful permanent residents.

In addition, covered expatriates under IRC 877A are not considered U.S. expatriates for purposes of Form 706NA, United States Estate (and Generation-Skipping) Tax Return, Estate of a nonresident not a citizen of the United States.