Glen Frost was quoted in an article describing an ingenious way in which a “mystery business” was able to secure a 10 percent return on their money. The business just made sure to significantly overpay its estimated taxes, triggering a law that required the city to refund the overpayment plus 10 percent. “If somebody could […]

The Internal Revenue Service (IRS) is not relaxing its crackdown on the proper taxation of foreign financial accounts. Part of the agency’s efforts include requiring foreign financial institutions (FFIs) to provide the agency with information about persons from the United States that hold accounts within their institutions. The agency recently announced that the process required […]

In terms of sheer revenue generated, limited-amnesty programs for noncompliance with offshore reporting requirements has been tremendously successful for the IRS. Since the IRS started these initiatives in 2009, the amount of revenue generated in fines, penalties and back taxes is upwards of $10 billion. Many questions remain, however, about the main limited-amnesty program, the […]

The Report of Foreign Bank and Financial Accounts (FBAR) might not be on your radar, but maybe it should be. FBARs, technically FinCEN Form 114, are used to disclose foreign accounts valued at $10,000 or more at any point in a year. While the international account disclosure requirement has been around for 45 years since […]

International tax compliance has become so complicated it sometimes seems like a constant crossword puzzle of acronyms and obligations. If you live abroad, have foreign accounts, or meet other criteria, the intricacies of FATCA, FBAR, FinCen, Form 8938 are in play, carrying the potential to trip you up. In this post, we will use a […]

Competing laws can make for confusing situations. For many people in the Washington, D.C., area, trying to find the balance becomes something of a way of life. This may be particularly true for green card holders who have financial ties that reach around the globe. On one hand, the current political turmoil over immigration makes […]

During the 2017 tax season, the MD Comptroller suspended a total of 54 tax preparers who have been involved in potentially fraudulent behavior. Among the suspicious activities are: Business income reported when taxpayers did not own a business. Refund amounts requested much higher than previous year tax returns. Inflated and / or undocumented business expenses. […]

U.S. taxpayers with more than $10,000 in a foreign financial account at any time during the calendar year are required to report foreign financial interests on Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR). Since the financial crisis in 2008, the government has increased its attention to overseas […]

Leanne Fryer Broyles, Esq. Most people are familiar with the concept of a “spendthrift”- a person who is recklessly wasteful with his or her spending. While the spendthrift trust bears the name of the type of person for whom it was designed, its modern purpose is much broader. Anyone leaving substantial means to their beneficiaries […]

A tax audit is essentially an accounting procedure that examines your financial records to ensure you filed your tax return accurately. If the IRS finds errors or purposeful mis-reportings, you’ll have to pay the recalculated return amount and any interest. The IRS can choose to audit your tax return for a number of reasons, including: […]