US IRS rules, regulations and laws, for US Citizens, Americans, green card holders, and nonresidents living abroad or moving to the US or out of the US.... valuable information on IRS rules concerning U.S. expatriates and their tax returns, and tax planning.... by an experienced International Tax Attorney
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May 1, 2014
IRS FBAR 114 REFERENCE GUIDE FOR TAXPAYERS
April 29, 2014
Astralia and IRS sign tax sharing agreement
Read more here. http://uk.mobile.reuters.com/article/idUKKBN0DE0QI20140428?irpc=932
If you need to catch up your returns before its too late go to www.expat attorney CPA.com.
April 27, 2014
IRS Announces How to Handle your BITCOIN for US tax Purposes
- • Wages paid to employees using virtual currency are taxable to the employee, must be reported by an employer on a Form W-2, and are subject to federal income tax withholding and payroll taxes.
- • Payments using virtual currency made to independent contractors and other service providers are taxable and self-employment tax rules generally apply. Normally, payers must issue Form 1099.
- • The character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer.
- • A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property.
April 26, 2014
US International Social Security Agreements and Self Employed Expatriates
Countries with Social Security Agreements | |
---|---|
Country | Entry into Force |
Italy | November 1, 1978 |
Germany | December 1, 1979 |
Switzerland | November 1, 1980 |
Belgium | July 1, 1984 |
Norway | July 1, 1984 |
Canada | August 1, 1984 |
United Kingdom | January 1, 1985 |
Sweden | January 1, 1987 |
Spain | April 1, 1988 |
France | July 1, 1988 |
Portugal | August 1, 1989 |
Netherlands | November 1, 1990 |
Austria | November 1, 1991 |
Finland | November 1, 1992 |
Ireland | September 1, 1993 |
Luxembourg | November 1, 1993 |
Greece | September 1, 1994 |
South Korea | April 1, 2001 |
Chile | December 1, 2001 |
Australia | October 1, 2002 |
Japan | October 1, 2005 |
Denmark | October 1, 2008 |
Czech Republic | January 1, 2009 |
Poland | March 1, 2009 |
Slovak Republic | May 1, 2014 |
http://www.ssa.gov/pressoffice/factsheets/colafacts2014.html
Expat Tax Return Deadlines
Here are the most important tax filing deadlines for expatriates:
April 15th – US tax deadline to pay any US taxes owed (or penalties and fines begin to accrue). US expats get an automatic 2-month extension.
June 16th – US tax return deadline for expats
June 30th – FBAR forms are due to the US Department of the Treasury. Expats must file if they have had $10,000 or more in foreign bank and financial accounts. No extensions are or can be granted
October 15th – Final expat deadline for those who filed for an extension
If you are concerned that you won't be able to get your returns ready in time, you're not alone! Get started with with our help today by downloading our expat tax questionnaire at www.Taxmeless.com. We offer a simple process, reasonable fees and expat tax experts who will make your US tax preparation quick and easy.
April 16, 2014
9 Facts about Penalties for Filing and Paying Late - For Expats and Those Living in the USA
Additional Resources on Late Payment:
- Electronic Payment Options Home Page
- Make a Payment – payment options
- Tax Topic 653 - IRS Notices and Bills, Penalties and Interest Charges
- Q&A about interest and penalties for filing and paying late
- Publication 594, The IRS Collection Process
- 1040 Central
- IRS Tax Map
April 15, 2014
Obama and Bidens 2013 Tax Returns Reviewed
SEE ACCOUNTING TODAY ARTICLE. http://www.accountingtoday.com/news/obamas-paid-irs-204-tax-rate-on-2013-gross-income-of-481098-70313-1.html?utm_campaign=daily-apr%2015%202014&utm_medium=email&utm_source=newsletter&ET=webcpa%3Ae2573270%3A2450710a%3A&st=email
April 14, 2014
What You Should Know about the Additional Medicare Tax
Married filing jointly $250,000
Married filing separately $125,000
Single
Head of household $200,000
Qualifying widow(er) with dependent child $200,000
Need help. Visit us at www.expatattorneycpa.com and email ddnelson@gmail.com
April 10, 2014
WHAT TO DO IF YOU NEED MORE TIME TO FILE YOUR TAXES
The April 15 tax deadline is approaching. What happens if you can’t get your taxes done by the due date? If you are an expat you have until June 15 th to file. The IRS has given you an automatic extension. However if you live in the US and you need more time, you can get an automatic six-month extension from the IRS using form 4868. You don’t have to explain why you’re asking for more time. Here are five important things to know about filing an extension:
1. File on time even if you can’t pay. If you complete your tax return but can’t pay the taxes you owe, do not request an extension. Instead, file your return on time and pay as much as you can. That way you will avoid the late filing penalty, which is higher than the penalty for not paying all of the taxes you owe on time. Plus, you do have payment options. Apply for a payment plan using the Online Payment Agreement tool on IRS.gov. You can also file Form 9465, Installment Agreement Request, with your tax return. If you are unable to make payments because of a financial hardship, the IRS will work with you.
2. Extra time to file is not extra time to pay. An extension to file will give you six more months to file your taxes, until Oct. 15. It does not give you extra time to pay your taxes. You still must estimate and pay what you owe by April 15. You will be charged interest on any amount not paid by the deadline. You may also owe a penalty for not paying on time.
3. Use IRS Free File to request an extension. You can use IRS Free File to e-file your extension request. Free File is only available through the IRS.gov website. You must e-file the request by midnight on April 15. If you e-file your extension request, the IRS will acknowledge receipt. You also can return to Free File any time by Oct. 15 to prepare and e-file your tax return for free.
4. Use Form 4868. You can also request an extension by mailing a Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. You must submit this form to the IRS by April 15. Form 4868 is available on IRS.gov.
You don’t need to submit a paper Form 4868 if you make a payment using an IRS electronic payment option. The IRS will automatically process your extension when you pay electronically. You can pay online or by phone.
5. Electronic funds withdrawal. If you e-file an extension request, you can also pay any balance due by authorizing an electronic funds withdrawal from your checking or savings account. To do this you will need your bank routing and account numbers.
Need help? We are www.Taxmeless.com and have been doing expat returns for over 30 years. Email us at ddnelson @gmail.com.
How To Pay IRS Taxes Electronically Today Without Mailing a Check
This link will guide you to the various methods . http://www.irs.gov/uac/Electronic-Payment-Options-Home-Page
April 6, 2014
20 Things Expat Taxpayers Do Not Know
Let us be your Expat Tax Expert. Don D Nelson attorney CPA
Www.Taxmeless.com. email. ddnelson@gmail.com.com
March 28, 2014
11 Illegal Tax Deductions
Tips for U.S. Taxpayers with Foreign Income
Additional IRS Resources:
- Taxation of U.S. Resident Aliens
- Publication 514, Foreign Tax Credit for Individuals
- International Taxpayer
March 25, 2014
IRS DECIDES TO TAX BITCOIN LIKE PROPERTY
March 24, 2014
New China tax Residency Requirements for US Expats Explained
March 21, 2014
TAX RULES FOR CHILDREN WITH INVESTMENT INCOME
You normally must pay income tax on your investment income. That is also true for a child who must file a federal tax return. If a child can’t file his or her own return, their parent or guardian is normally responsible for filing their tax return.
Special tax rules apply to certain children with investment income. Those rules may affect the tax rate and the way you report the income.
Here are four facts from the IRS that you should know about your child’s investment income:
1. Investment income normally includes interest, dividends and capital gains. It also includes other unearned income, such as from a trust.
2. Special rules apply if your child's total investment income is more than $2,000. Your tax rate may apply to part of that income instead of your child's tax rate.
3. If your child's total interest and dividend income was less than $10,000 in 2013, you may be able to include the income on your tax return. If you make this choice, the child does not file a return. See Form 8814, Parents' Election to Report Child's Interest and Dividends.
4. Children whose investment income was $10,000 or more in 2013 must file their own tax return. File Form 8615, Tax for Certain Children Who Have Investment Income, along with the child’s federal tax return.
Starting in 2013, a child whose tax is figured on Form 8615 may be subject to the Net Investment Income Tax. NIIT is a 3.8% tax on the lesser of either net investment income or the excess of the child's modified adjusted gross income that is over a threshold amount. Use Form 8960, Net Investment Income Tax, to figure this tax. For more on this topic, visit IRS.gov.
For more on this topic, see Publication 929, Tax Rules for Children and Dependents. Visit IRS.gov to get this booklet and IRS forms.
March 19, 2014
Simplified Home Office Deduction Explained By IRS
March 16, 2014
March 7, 2014
PROBLEMS WITH FOREIGN PENSION PLANS
Excellent article from Forbes. http://www.forbes.com/sites/janetnovack/2014/03/06/pensions-create-yet-another-tax-trap-for-u-s-expatriates/
February 28, 2014
600,000 Dollars in Cash Hidden in Foreign Bank Causes Taxpayer to Go to Prison
California Taxpayer put earnings in Swiss Bank and did not file Fbar sentenced to prison for one year and pays over $500,000 in penalties and taxes. Read more below
http://www.imperialvalleynews.com/index.php/news/california-news/7369-california-man-sentenced-to-prison-for-failure-to-report-foreign-bank-accounts-held-at-ubs.html