Glen E. Frost, Esq., CPA, CFP® On December 20, 2018, Congressman George Holding (R-North Carolina) introduced the Tax Fairness for Americans Abroad Act of 2018 (H.R. 7358) (TFAA)—a long-awaited residency-based tax bill with the very real potential to provide the framework necessary to ultimately replace the current US citizenship-based taxation regime. As drafted, TFAA would […]

On May 23, 2018, the Maryland Tax Court held that the Maryland legislature’s 2014 attempt to lower the interest rate for refunds resulting from the decision in Comptroller of the Treasury of Maryland v. Wynne [1] was unconstitutional.[2]As such, interest paid on Wynne refunds will be at a rate of 13 percent—the same rate for […]

Eli Noff, Esq., Partner In 2017, the Maryland Student Debt Relief Tax Credit was implemented to provide eligible Maryland taxpayers, even those who have already graduated, with at least a modicum of student loan forgiveness from the state government.[1]In January of 2019, Governor Hogan announced the program’s results for tax year 2018, noting that Maryland […]

Eli Noff, Esq.,Partner As we reported last year, the IRS is actively targeting taxpayers with “seriously delinquent tax debt” for passport denial/revocation.[1]Recently, on July 12, 2019, the IRS released interim guidance for agency officials regarding passport decertification and revocation.[2]The guidance signifies a significant shift in enforcement. Until now, some certified taxpayers have experienced the enforcement […]

Dear IRS, My name is Jenny, and I’m one of millions of American citizens living abroad*. I met my Canadian-born husband Frank while in college in the U.S., and I returned with him to Canada so he could work in his family business. As you well know, as a U.S. citizen, I am required to […]

Eli Noff, Esq., Partner We’ve continued to report on the increasingly aggressive IRS posture towards uncovering tax evasion via cryptocurrency transactions.[1]Interestingly, we may now be seeing a trend in the courts indicating that the IRS will need to more carefully tailor summonses in cryptocurrency cases in order to survive the courts’ scrutiny of the allowed […]

Eli Noff, Esq.,Partner On July 25, 2019, in Dufresne v. Commissioner,[1]the Tax Court held that purported intrafamily loans between a son and his mother failed to withstand heightened scrutiny to qualify as bona fide loans. The decision emphasizes the need for careful record-keeping and convincing substantiating evidence. Without such documentation, the government is poised to […]

Eli Noff, Esq.,Partner On August 8, 2019, in Soltani-Amadi v. Commissioner,[1]the Tax Court determined that Taxpayer’s early distribution from her Internal Revenue Code (IRC) §401(k) retirement plan (401(k)) used for the purchase of her first home was includible in income and subject to the 10% early distribution penalty. This decision emphasizes the need for careful […]

Eli Noff, Esq.,Partner As we’ve previously reported, in Notice 2014-21,1the IRS considers virtual currency to be property rather than fiat money. The Notice, however, is silent as to whether virtual currency is reportable on Form 114, Report of Foreign Bank and Financial Accounts(FBAR). For purposes of the FBAR, all foreign financial accounts must be reported […]

Eli Noff, Esq.,Partner On August 26, 2019 the United States Department of Justice (DOJ) issued a press release reporting that a federal grand jury returned a superseding indictment charging Taxpayer with: (1) failing to file Reports of Foreign Bank and Financial Accounts (FBARs); (2) filing false individual income tax returns with the Internal Revenue Service […]