IRS Collecting $8 Billion from Offshore Tax Compliance Push

Read in Accounting Today how the IRS is collecting taxes from expatriate taxpayers.  They have over 54,000 taxpayers that have come forward in the Offshore Disclosure Programs or Streamlined Programs.  That still leaves a lot of taxpayers out there who have not yet complied with the US tax rules because there are approximately 8.3 million Americans living abroad.  Do not wait until they catch you through FATCA or through the over 36 signed OECD agreements where the US and other countries have agreed to mutually exchange tax information on their residents.

The IRS  has stressed that it remains committed to stopping offshore tax evasion wherever it occurs, and even though the agency has faced several years of budget reductions, the IRS continues to pursue cases throughout the world.

READ ARTICLE HERE

IRS Begins Sending Individual Account Information to Foreign Countries

The Internal Revenue Service has kicked off a new program under which it shares large amounts of individuals’ financial-account information with certain foreign countries, the agency said Friday.

The IRS said it received digital information about U.S. taxpayers’ foreign accounts from governments and firms around the world, and it sent information on foreigners’ U.S. accounts to government authorities in as many as 34 countries. While governments have exchanged such information in the past, the sharing wasn’t automatic and the scope was often far narrower. The deadline for the exchange to begin was Sept. 30.  Read more in the wall street journal and find out if your resident country is on the list!

http://www.wsj.com/articles/irs-begins-sending-individual-account-information-to-foreign-countries-1443810584

IRS Going After Belize Bank Accounts and Secret Belize Corporations

Dept of Justice announces here that a district court authorized the IRS "to serve a 'John Doe'” summons seeking information about U.S. taxpayers who may hold offshore accounts at Belize Bank International Limited (BBIL) or Belize Bank Limited (BBL)."  The petition, memorandum in support and declaration of the agent are here.

PUERTO RICO IS THE BEST SIMPLE OFFSHORE TAX HAVEN FOR US CITIZENS

If you are a US Citizen you already have the right citizenship.  You need to make PR your full time residence (over 183 days a year). Then under the laws (unless changed in the future should the US Congress notice this amazing tax break) your interest income, dividend income and capital gains are tax free.  If you business is a service business that can be conducted from Puerto Rico you can pay a  4% tax on your corporate net profit and the dividends from that corporation are tax free. 

You can do all of this without surrendering your US Citizenship or getting a special visa. Puerto Rico is a great tropical place to live and not that far from the USA.

Read more about the benefits in Forbes Article.   http://www.forbes.com/sites/janetnovack/2015/01/27/puerto-rico-expands-tax-haven-deal-for-americans-to-its-own-emigrants/

IRS Makes it More Difficult for Taxpayers - They will not accept Checks for $100 million US or more soon!

So the IRS will stop accepting checks of more than $99,999,999 effective Jan. 1, 2016. After that date, you'll have to send in at least 2 checks to cover your big tax bill. This is really true!

Or, says the IRS, you can still send 1 large payment if you electronically wire it to the appropriate Federal Reserve bank.

In announcing the upcoming limit on big checks in the Sept. 7 Internal Revenue Bulletin, the IRS cited an earlier memo from the Treasury's Bureau of the Fiscal Service that noted the risks of manually processing checks of $100 million or more.

"Fraudulent activity, processing errors and uncollectible funds are more likely when checks over these amounts are accepted by TGA (Treasury General Account) depositaries," wrote David M. Metler, director, over-the-counter division of the Treasury Bureau of the Fiscal Service. "No check processing equipment can handle amounts over a million dollars."

Although the manual processing kicks in at $1 million, the IRS still will take checks up to $99,999,999 million, for now.

Read more: http://www.bankrate.com/financing/taxes/irs-limits-100-million-tax-payments/#ixzz3lLZYZjgJ

List of Foreign Banks Filing Reports with US Treasury of Foreign Bank Accounts (FATCA Bank)

Wonder if your bank will be reporting your foreign account to the US Treasury.   The link below will allow you to check up to see if they are participating. New banks are joining up daily so the fact it is not there now may not mean if will not be there tomorrow.

If the IRS discovers you have foreign accounts and are not filing form 114 (FBAR) form by June 30 following the end of each fiscal year they can assess civil penalties of $10,000 US or more for each year you failed to file that form.  There is still time to file this form late but avoid penalties under certain circumstances. Contact us if you wish to know more or want help filing your forms late.

You must go back six years due to the statute of limitations governing that form.  If you did not file a correct one in past years, best to amend also to avoid potential problems.  Write us at ddnelson@gmail.com or visit our website at www.taxmeless.com 

LINK TO CHECK OUT IF YOUR  FOREIGN BANK  OR FINANCIAL INSTITUTION IS REPORTING TO IRS FATCA Foreign Financial Institution (FFI) List Search and Download Tool

US Mexico Tax Treaty Guidance

Read the USA - Mexico Tax Treaty Here.   Need help. Email us at ddnelson@gmail.com

10 LEAST TAX FRIENDLY STATES FROM KIPLINGER

http://m.kiplinger.com/slideshow/taxes/T054-S001-least-tax-friendly-states-in-the-u-s/index.html

Link To IRS Publications Covering Almost Everything

Click here to get to the publication you need.  Can't understand what the publications says, then we can help. We offer mini consultations where you can talk with an Attorney CPA with over 30 years international and expatriate tax experience to answer you specific questions on your specific situation. Email us at ddnelson@gmail.com  to make an appointment by skype, phone or email.

You can also learn more about your tax questions at our website at www.taxmeless.com 

FIVE TAX MYTHS EXPATS NEED TO KNOW

Read more at Link below from Costa Rica

http://thecostaricanews.com/money/5-myths-about-catching-up-on-u-s-tax-returns-for-expats/