Read new IRS rules below.
http://www.irs.gov/Individuals/International-Taxpayers/Streamlined-Filing-Compliance-Procedures
June 18, 2014
New Easier IRS Disclosure Rules for Expats and those Living in USA
Read new rules at this link:
http://www.cpapracticeadvisor.com/news/11527344/taxpayers-offered-new-options-in-offshore-voluntary-disclosure-program
June 12, 2014
Bitcoin Accounts May Now Need to be Reported on FBAR (114) Regardless of Prior IRS Statement!
Read more below. To be safe due to uncertainties list your account!
http://www.bna.com/bitcoin-exchange-accounts-n17179891170/
On Line Poker Accounts Abroad Must Be Reported on Fbar ( form 114) by 6-30-14
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!
http://www.onlinepokerreport.com/12647/fbars-us-online-gambling/
June 11, 2014
IRS RELEASES NEW TAXPAYER BILL OF RIGHTS
IR 2014-72
In a news release, IRS has announced the adoption of a "Taxpayer Bill of Rights" to help taxpayers better understand their rights.
Background. In the past, Congress passed multiple pieces of legislation with the title "Taxpayer Bill of Rights." But National Taxpayer Advocate Nina Olson discovered that most taxpayers were unaware that "they have rights before the IRS."
New rights. After getting input from Ms. Olson, and because existing rights are scattered throughout the Code making it difficult for taxpayers to understand, IRS has announced the new Taxpayer Bill of Rights. It takes the multiple existing rights embedded in the Code and groups them into these 10 broad categories, making them more visible and easier for taxpayers to find on IRS's website:
- 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.
The rights have been incorporated into a redesigned version of Publication 1, a document that is routinely included in IRS correspondence with taxpayers. The new version has been added to irs.gov. IRS says print copies will start being included in IRS correspondence in the near future.
June 9, 2014
TAXES, WHO PAYS AND HOW MUCH - BY COUNTRY, BY STATE AND WEALTH LEVEL
Great article by Bill Moyers with 8 charts showing tax levels by country, state, income level, etc. READ MORE HERE
June 6, 2014
REPORTING BITCOIN ACCOUNTS ON FBAR (FORM 114) NOT REQUIRED FOR 2013
Virtual currency (such as bitcoin) isn't subject to FBAR reporting... for now. During a recent IRS webinar titled "Reporting of Foreign Financial Accounts on the Electronic FBAR," Rod Lundquist, Senior Program Analyst in IRS's Small Business/Self Employed (SB/SE) division, stated that for purposes of the current filing season (i.e., for 2013 FBARs due later this month), taxpayers aren't required to report Bitcoin on an FBAR. However, he cautioned that IRS is continuing to analyze virtual currency and that this policy could very well change going forward.
June 3, 2014
Tool to Check If Your Foreign Bank is Registered to Report Your Bank Account To IRS
Click link below to find out:
http://www.irs.gov/Businesses/Corporations/FATCA-Foreign-Financial-Institution-List-Search-and-Download-Tool
77,000 Foreign Banks to Share Tax Info with IRS
From USA TODAY
77,000 foreign banks to share tax info with U.S.
WASHINGTON — More than 77,000 foreign banks have agreed to share information about U.S. account holders as part of a crackdown on offshore tax evasion, the Treasury Department said Monday. The list includes 515 Russian financial institutions. Russian banks had to apply directly to the tax-collecting Internal Revenue Service because the U.S. broke off negotiations with Russia over an information-sharing agreement after Russia's actions in Ukraine. Nearly 70 countries have agreed to share information from their banks as part of a U.S. law that targets Americans hiding assets overseas. Participating countries include all the world's financial giants, as well as many places where Americans have traditionally hid assets, including Switzerland, the Cayman Islands and the Bahamas.
http://usat.ly/1h0qtJi
Get USA TODAY on your mobile device:
http://www.usatoday.com/mobile-apps
May 29, 2014
87 year old man owes 150% of high balance FBAR Penalty
Read more: http://mobile.businessweek.com/news/2014-05-28/florida-man-87-owes-150-percent-of-swiss-account-jury-says
Maybe IRS disclosure program would have been better but he applied too late.
May 28, 2014
IRS Direct Pay Now On Line for expats
If you file form 1040 as an expat or not. You can now pay taxes and estimates on line with a direct debit by IRS to your US bank account for no extra charge. Do it here- http://www.irs.gov/Payments/Direct-Pay
May 6, 2014
Ultimate US Tax Planning for Expatriates -CITIZENSHIP SURRENDER
Read about the high number of Americans surrender their US Citizenship. Once you do, in most situations (with some exceptions) you no longer have to file US tax returns. If you first acquire citizenship in a low income tax or no income tax country you may never have to pay income taxes again. Over 1,000 surrenders were listed for the first quarter of 2014 by the IRS and State Department.
Where are the low tax or no tax countries? See list of countries and tax rates HERE
We have represented and advised over a hundred expats or US residents surrender their US Citizenship (or Long Term Green Card Holders surrender their residency). We can prepare the tax forms, and give you the guidance to surrender successfully. As an Attorney CPA we offer our clients attorney client privilege (absolute confidentiality) and have the knowledge and experience to do all of the complex tax paperwork. If you need assistance email me at ddnelson@gmail.com or visit my website at www.Taxmeless.com or www.expatattorneycpa.com.
May 1, 2014
10 STEPS TO PAINLESS ESTATE PLANNING FOR EXPATS
Go to the following link for estate planning steps from CNN Money for expatriateshttp://money.cnn.com/2014/03/03/pf/estate-planning.moneymag/ . If you need help from a US expat tax Attorney and CPA with over 32 years experience for your expat estate planning write ddnelson@gmail.com.
IRS FBAR 114 REFERENCE GUIDE FOR TAXPAYERS
Download this excellent PDF reference guide to FBAR filing with answers to most questions. Need help or have further FBAR for Form 114 questions, write us at ddnelson@gmail.com. Remember FBARS now must be filed on line at FBAR FILING SITE and are due 6/30/14 for 2013 and cannot be extended.
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
The Internal Revenue Service has issued a notice providing answers to frequently asked questions (FAQs) on virtual currency, such as Bitcoin. These FAQs provide basic information on the U.S. federal tax implications of transactions in, or transactions that use, virtual currency.
In some environments, virtual currency operates like “real” currency -- i.e., the coin and paper money of the United States or of any other country that is designated as legal tender, circulates, and is customarily used and accepted as a medium of exchange in the country of issuance -- but it does not have legal tender status in any jurisdiction.
The notice provides that virtual currency is treated as property for U.S. federal tax purposes. General tax principles that apply to property transactions apply to transactions using virtual currency. Among other things, this means that:
- • 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.
Further details, including a set of 16 questions and answers, are in Notice 2014-21, posted today on IRS.gov.
April 26, 2014
US International Social Security Agreements and Self Employed Expatriates
If you do not live and work in a country with a Social security agreement with the US, and are self employed as a sole proprietor (not an employee) you will have to pay US self employment tax which is medicare and social security ( 15.3% of your net profit).
The US has social security treaties with the countries below. If self employed these treaties set forth rules on which countries social security you can pay into.
| 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
April 15 is the tax day deadline for most people. If you’re due a refund there’s no penalty if you file a late tax return. But if you owe taxes and you fail to file and pay on time, you’ll usually owe interest and penalties on the taxes you pay late. Here are eight facts that you should know about these penalties.
1. If you file late and owe federal taxes, two penalties may apply. The first is a failure-to-file penalty for late filing. The second is a failure-to-pay penalty for paying late.
2. The failure-to-file penalty is usually much more than the failure-to-pay penalty. In most cases, it’s 10 times more, so if you can’t pay what you owe by the due date, you should still file your tax return on time and pay as much as you can. You should try other options to pay, such as getting a loan or paying by credit card. The IRS will work with you to help you resolve your tax debt. Most people can set up a payment plan with the IRS using the Online Payment Agreement tool on IRS.gov.
3. The failure-to-file penalty is normally 5 percent of the unpaid taxes for each month or part of a month that a tax return is late. It will not exceed 25 percent of your unpaid taxes.
4. If you file your return more than 60 days after the due date or extended due date, the minimum penalty for late filing is the smaller of $135 or 100 percent of the unpaid tax.
5. The failure-to-pay penalty is generally 0.5 percent per month of your unpaid taxes. It applies for each month or part of a month your taxes remain unpaid and starts accruing the day after taxes are due. It can build up to as much as 25 percent of your unpaid taxes.
6. If the 5 percent failure-to-file penalty and the 0.5 percent failure-to-pay penalty both apply in any month, the maximum penalty amount charged for that month is 5 percent.
7. If you requested an extension of time to file your income tax return by the tax due date and paid at least 90 percent of the taxes you owe, you may not face a failure-to-pay penalty. However, you must pay the remaining balance by the extended due date. You will owe interest on any taxes you pay after the April 15 due date.
8. You will not have to pay a failure-to-file or failure-to-pay penalty if you can show reasonable cause for not filing or paying on time.
9. While US expatriates get an automatic extension of time to file their return until 6/15 following the year end, that extension does not apply to any taxes due. Therefore, you should estimate any taxes you might owe and pay on on the regular 4/15 date to avoid the 1/2 percent per month penalty. Since this penalty is low, many expats just pay when they file the return and pay the penalty.
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
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