NEW LAW WILL REQUIRE TAXPAYERS TO REVEAL TRUE OWNERSHIP OF CORPORATIONS AND LLCS OR PAY SUBSTANTIAL PENALTIES

A new law that's taking effect next year is going to require millions of small businesses to begin filing disclosures about their true ownership with the Treasury Department or face stiff penalties, and most are unaware of it.

As a result of the Corporate Transparency Act of 2021, corporations, LLCs and other entities formed under state law (domestic reporting companies) or similar entities formed under foreign law and registered to do business in the U.S. (foreign reporting companies) must report their beneficial ownership to FinCEN — the Treasury Department's Financial Crimes Enforcement Network. 

The reason is that kleptocrats, human rights abusers and other corrupt actors have used complex and opaque corporate structures, including shell companies, to hide and launder the proceeds of their corrupt activities. 

Need help with your LLC and Corporate filings or tax planning for the future. Email us to set up a consultation EMAIL FOR TAX HELP

NEW REPORTING NEXT YEAR FOR CORPORATIONS, LLCS AND FOREIGN CORPORATIONS

A new law that's taking effect next year is going to require millions of small businesses to begin filing disclosures about their true ownership with the Treasury Department or face stiff penalties, and most are unaware of it.

As a result of the Corporate Transparency Act of 2021, corporations, LLCs and other entities formed under state law (domestic reporting companies) or similar entities formed under foreign law and registered to do business in the U.S. (foreign reporting companies) must report their beneficial ownership to FinCEN — the Treasury Department's Financial Crimes Enforcement Network. 

The reason is that kleptocrats, human rights abusers and other corrupt actors have used complex and opaque corporate structures, including shell companies, to hide and launder the proceeds of their corrupt activities. 

Expats Working Abroad May Be Able to Deduct Their Rent from their earnings.

 US expatriates working abroad may be able to deduct their rent if their income exceeds the current foreign earned income exclusion ($112,000 for 2022). The rent has to exceed a certain minimum amount which is often set by the country you live in.  If your an expat and need to take advantage of this special rule on your US tax return CONTACT US FOR ASSISTANCE.  Visit our website at www.taxmeless.com for a lot of expat taxation information that you may find useful.  

US Expatriate Taxation - Everything You Need to Know from 30 year CPAs and Attorney Experts

 Expatriate taxation for US citizens are complicated. You must file a US expat tax return no matter where you live and work in the world each year so long as you earned in excess of a certain amount. Failure to file can result in substantial penalties and interest and possible criminal prosecution.

Learn all of the rules and regulations at our website www.taxmeless.com   At our website you can download a 2022 tax questionnaire which you can use for the current year and any past unfiled returns. Contact us with your questions and inquiries by email HERE.   Our whatsapp number in the US is 818-519-9219.  

One more thing, if you owe the IRS more than $50,000 they can seize your US passport when you enter back into the US. We can help you resolve this problem before it happens.

DOWNLOAD YOUR 2022 EXPAT TAX QUESTIONNAIRE

DOWNLOAD YOUR 2022 EXPAT FAST TAX FACT SHEET

There are hundreds of IRS forms and schedules — that may apply to US expatriates living abroad and nonresidents

Some of the many expat and nonresident forms include the following. Many forms require 5 or more hours to complete - if filled out by an average taxpayer. We can reduce your time and save money.

1. Form 1040 – The form every American files during tax season to report income to the IRS.
2. FBAR (FinCEN Form 114) – Your Foreign Bank Account Report, used to report any assets in foreign financial institutions to the Financial Crimes Enforcement Network of the U.S. Treasury.
3. Foreign Earned Income Exclusion Form 2555 – One of two methods for U.S. expats to avoid being double-taxed on income earned abroad.
4. Foreign Tax Credit Form 1116 – One of two methods for U.S. expats to avoid being double-taxed on income earned abroad.
5. FATCA Form 8938 – How you report assets in foreign financial institutions to the IRS.
6. Form 5471 – Informational return for U.S. citizens who are also shareholders, officers, or directors of a foreign corporation.
7. Form 8621 – Informational return for U.S. citizens who are also shareholders of a passive foreign investment company.
8. Form 3520 – Informational return expats use to report certain transactions with foreign trusts, ownerships of foreign trusts, or if you receive certain large gifts from certain foreign persons.

Ready to file or confused about expat tax forms? Get started with Kauffman Nelson LLP CPAs. We have been doing taxes for US expats and nonresidents for over 30 years.  Email us at taxmeless@gmail.com or call 949-480-1235 (this is a US number.  We offer phone consultations  to answer you questions and solve your problems.

Expatriate and Nonresident US Taxpayers should avoid these common mistakes when they file their tax return

Most of the common errors taxpayers make on their tax returns are easily avoidable. By carefully reviewing their return, taxpayers can save time and effort by not having to correct it later. Filing electronically also helps prevent mistakes. Tax software does the math, flags common errors and prompts taxpayers for missing information. It can also help taxpayers claim valuable credits and deductions. Taxpayers who qualify may use IRS Free File to file their return electronically for free.

Here are some of the mistakes to avoid:

• Filing too early. While taxpayers should not file late, they also should not file prematurely. They should wait to file until they’re certain they’ve received all their tax reporting documents, or they risk making a mistake that may lead to a processing delay.

• Missing or inaccurate Social Security numbers. Each SSN on a tax return should appear exactly as printed on the Social Security card.

• Misspelled names. The names of all taxpayers and dependents listed on the return should match the names on their Social Security cards.

• Inaccurate information. Taxpayers should carefully enter any wages, dividends, bank interest and other income they received to make sure they report the correct amounts. This includes any information taxpayers need to calculate credits and deductions.

• Incorrect filing status. Some taxpayers choose the wrong filing status. Publication 501 has detailed information about filing statuses.

• Math mistakes. Math errors are some of the most common mistakes. They range from simple addition and subtraction to more complex calculations. Taxpayers should always double check their math. Better yet, tax prep software will check it automatically.

• Figuring credits or deductions. Taxpayers can make mistakes figuring things like their earned income tax credit, child and dependent care credit and child tax credit. Tax software will calculate these credits and deductions and include any required forms and schedules.

• Incorrect bank account numbers. Taxpayers who are due a refund should choose direct deposit. This is the fastest way for them to get their money. However, taxpayers need to make sure they use the correct routing and account numbers on their tax return.

• Unsigned forms. An unsigned tax return isn't valid. In most cases, both spouses must sign a joint return. Exceptions may apply for members of the armed forces or other taxpayers who have a valid power of attorney.

At Kauffman Nelson LLP CPAs we are experts and will make you tax preparation easy. We prepare over 800 returns for US nonresidents and US expatriates everywhere in the world and have done so for over 25 years.  For tax preparation questionnaires, tax consultations and more information please email us a ddnelson@gmail.com. Thank you.