Washington D.C. Tax Law Blog

The Internal Revenue Service (IRS) recently announced the Offshore Voluntary Disclosure Program (OVDP) will end. The OVDP is currently scheduled to close on September 28, 2018. What is the OVDP? The program began in 2009. It provided an opportunity for those with offshore accounts to voluntarily come into compliance with United States tax laws. Those […]

The Internal Revenue Service (IRS) expects United States citizens and resident aliens to report certain foreign assets. Individuals with foreign assets generally fit one of two categories: either they live and work abroad or live stateside but have foreign financial interests. Tax obligations for those who live and work abroad It is important to report […]

The Supreme Court of the United States (SCOTUS) declined to hear a case that questions the constitutionality of the Foreign Account Tax Compliance Act (FATCA). A group of American expatriates brought the case against the government based on the contention that it violated their Fourth Amendment protections and the law has resulted in financial loss. […]

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 […]