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May 30, 2016

US Expatriate Tax Return Due Date Deadlines

Several tax return deadlines are coming up very soon. Failure to meet these deadlines or file extensions can result in substantial penalties and other problems.

  • June 15, 2016: US Expat Tax Tax Return Deadline (without  applying for an extension)
This is the US expat deadline and also the deadline to file an additional extension until October 15. Remember that if you are required to file FATCA Form 8938 (to report your foreign assets), it must be filed along with your US expat tax return. If you file for an extension, the extension applies to Forms 5471, 8865, and  8938, as well.
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  • June 30, 2016: Foreign Bank Account Report (FBAR) Filing Deadline
Form FinCEN 114 must be filed online using the BSA e-filing system. It is filed on line only and can easily be done by you if you are good with computers. No further extensions can be granted. Failure to timely file can result in a $10,000 penalty..
  • October 17, 2016: Final US Expat Tax Deadline
If you filed an extension prior to June 15th using form 4868 and marking the expat box  this is your final deadline. Normally the deadline is October 15th, but due to it falling on a Saturday the tax deadline is extended.  You can get a further extension if necessary by following the required procedure and sending a letter to the IRS which can give you until December 15, 2016 to file your return. This additional extension is discretionary with the IRS.
If you need help email us at ddnelson@gmail.com or for additional information visit our website at www.taxmeless.com 
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May 17, 2016

WHEN THE IRS CALLS, DON'T BE FOOLED... IT MOST LIKELY IS SOMEONE ELSE

The Internal Revenue Service has some advice for taxpayers this April Fool’s Day that  may prevent them from being the victim of a tax scam: Don’t be fooled by scammers. Stay safe and be informed. Here are some of the most recent IRS-related scams to be on the lookout for:

Telephone Scams. Aggressive and threatening phone calls by criminals impersonating IRS agents remain an ongoing threat. The IRS has seen a surge of these phone scams in recent years as scam artists threaten taxpayers with police arrest, deportation, license revocation and more. These con artists often demand payment of back taxes on a prepaid debit card or by immediate wire transfer. Be alert to con artists impersonating IRS agents and demanding payment.
Note that the IRS will never:
  • Call to demand immediate payment over the phone or call about taxes owed without first having mailed you a bill.
  • Threaten to immediately bring in local police or other law enforcement groups to have you arrested for not paying.
  • Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
  • Require you to use a specific payment method for your taxes, such as a prepaid debit card.
  • Ask for credit or debit card numbers over the phone or threaten to bring in local police or other law enforcement groups to have you arrested for not paying.
Scammers Change Tactics. The IRS is receiving new reports of scammers calling under the guise of verifying tax return information over the phone. The latest variation on this scam uses the current tax filing season as a hook. Scam artists call saying they are from the IRS and have received your tax return, and they just need to verify a few details to process it. The scam tries to get you to give up personal information such as a Social Security number or personal financial information, such as bank numbers or credit cards.
Tax Refund Scam Artists Posing as TAP. In this new email scam targeting taxpayers, people are receiving emails that appear to come from the Taxpayer Advocacy Panel, a volunteer board that advises the IRS on issues affecting taxpayers. They try to trick you into providing personal and financial information. Do not respond or click the links in these emails. If you receive an email that appears to be from TAP regarding your personal tax information, forward it to phishing@irs.gov.
Email, Phishing and Malware Schemes. The IRS has seen an approximate 400 percent surge inphishing and malware incidents so far in the 2016 tax season.
The emails are designed to trick taxpayers into thinking these are official communications from the IRS or others in the tax industry, including tax software companies. The phishing schemes can ask taxpayers about a wide range of topics. Emails can seek information related to refunds, filing status, confirming personal information, ordering transcripts and verifying PIN information.
Variations of these scams can be seen via text messages, and the communications are being reported in every section of the country.
When people click on these email links, they are taken to sites designed to imitate an official-looking website, such as IRS.gov. The sites ask for Social Security numbers and other personal information, which could be used to help file false tax returns. The sites also may carry malware, which can infect your computer and allow criminals to access your files or track your keystrokes to gain information.
If you get a ‘phishing’ email, the IRS offers this advice:
  • Don’t reply to the message.
  • Don’t give out your personal or financial information.
  • Forward the email to phishing@irs.gov. Then delete it.
  • Don’t open any attachments or click on any links. They may have malicious code that will infect your computer.
More information on how to report phishing or phone scams is available on IRS.gov.

Additional IRS Resources:
IRS YouTube Video:
Podcasts:

May 13, 2016

US EXPATRIATES - HOW DO YOU KNOW WHEN YOUR ARE COMMITTING TAX FRAUD SUBJECT TO CIVIL AND CRIMINAL PENALTIES?

The Courts have developed a nonexclusive list.of factors, or "badges of fraud," that demonstrate fraudulent intent with respect to US income taxes (or the failure to pay those taxes).  If your situation involves some of the following you are at risk. The civil and criminal penalties can be extreme
  • Understating income,
  • Maintaining inadequate records,
  • Implausible or inconsistent explanations of behavior,
  • Concealment of income or assets,
  • Failing to cooperate with tax authorities,
  • Engaging in illegal activities,
  • Lack of credibility of the taxpayer's testimony,
  • Filing false documents,
  • Failing to file tax returns,
  • Failing to make estimated payments, and
  • Dealing in cash.

A taxpayer's background, level of education, and relative business sophistication are also rely evant considerations as they inform the court about the taxpayer's ability to understand the transactions and issues at hand. 

If you wish to discuss your situation and find ways out of potential expensive and criminal situations we can help. As an attorney our consultations provide the complete confidentiality and privacy of "attorney client privilege."  Email
 for phone phone consultation with Don D. Nelson, who is a an admitted attorney in US Tax Court at ddnelson@gmail.com.