Washington D.C. Tax Law Blog

The Internal Revenue Service (IRS) audited approximately 934,000 tax returns in 2017. The IRS conducted 70.8 percent of these audits via a mailed correspondence and 29.2 through a full field investigation. The IRS uses these investigations to determine if taxpayers are correctly reporting income and expenses. In some cases the evidence gathered during an initial […]

The biggest tax tip for 2017 tax filings may come as a surprise. This is because it does not have to do with 2017 taxes. The tax reform passed for 2018 overhauls the system. As a result, the reform could translate to a change in your tax obligations in 2018. Thus, arguably the biggest benefit […]

The United States has taken a hard-line approach on tax compliance for assets held in foreign countries. Those who hold these assets and fail to comply with tax laws face serious penalties. These penalties can include jail time. Part of this effort involves the Foreign Account Tax Compliance Act (FATCA). What is FATCA? The law […]

One of the goals of recent tax reform in the United States was to encourage businesses to bring revenue currently kept in foreign countries back into the United States. Not everyone was thrilled with this change — including a number of European countries. In response, the European Commission is taking into consideration tax revisions of […]

American taxpayers with overseas accounts are required to report these accounts through the use of the Report of Foreign Bank and Financial Accounts form (FBAR). Failures to file this report with the Treasury’s Financial Crimes Enforcement Network (FinCEN) are not uncommon. Failures can stem from a lack of awareness of the requirement or simple confusion. […]

The Internal Revenue Service (IRS) recently published a clarification on how the new tax law impacts deductions for interest paid on home equity loans. The agency notes that there are restrictions, but many homeowners can still qualify for these deductions. What types of home equity loans will qualify? Deductions will remain for home mortgages, home […]

The corporate repatriation tax is one part of the new tax law. This tax specifically addresses those who have earnings abroad. How is this different than the previous repatriation tax? The concept of a repatriation tax is not a novel one. A repatriation task was already present. However, the previous repatriation tax was set at […]

Victory at the Olympics comes with more than just a medal and prestige, it also comes with a big bonus paycheck. The amount awarded varies depending on the medal. Gold winners will win $37,500 at the Winter Olympics this year, Silver medalists earn $22,500 while a Bronze wins $15,000. The Internal Revenue Service (IRS) taxed […]

Recent tax reform has changed tax obligations. These changes impact not just those currently living in the United States, but also those living abroad. Some changes that will specifically impact expats include adjustments to exclusion rates and corporate taxes. Exclusion rates and expats: Some things remain the same, some change The Foreign Tax Credit and […]

Matthew Costa, CPA, CFP® MAcc All of us paying attention to the recent tax reform suspected that: 1. We will not be doing our taxes on a postcard going forward, and 2. The US treasury would not just forget about the wealth that has been created in the cryptocurrency space in 2017. Washington lawmakers and […]