Washington D.C. Tax Law Blog

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: […]

Late last month Treasury Secretary Steven Mnuchin announced what he said was one of the largest sanctions actions every taken by Treasury’s Office of Foreign Assets Control (OFAC). The sanctions are aimed at 271 employees of the agency of the Syrian government believed to have been involved in chemical weapons attacks. These individuals are now […]

Living outside the U.S. can have many benefits, both cultural and financial. But in terms of complying with U.S. tax laws, expatriates carry more burdens, not fewer, than taxpayers who live in the U.S. In this post, we will use a Q & A format to address the issue of tax compliance for U.S. citizens […]

In recent posts, we’ve explored how maintaining compliance with rules for offshore accounts has become increasingly burdensome in recent years. These burdens include stepped-up enforcement of existing requirements and the implementation of a complicated new law, the Foreign Account Tax Compliance Act (FATCA). There is another aspect to foreign income reporting, however, that also merits […]

The majority of people put preparing for next year’s tax season at the bottom of their to do list once their tax return is filed. If you’re one of the many people who have been struggling the last few weeks before the deadline, you can save yourself a huge headache and a lot of time […]

This is the first year that the deadline to file an annual Report of Foreign Bank and Financial Accounts (FBAR or FinCEN Form 114) is April 18th. In the past, it was a June 30 due date with no extension. Who needs to file an FBAR? The triggering threshold is $10,000 in foreign financial accounts. […]

The IRS has been remarkably successful in getting people to enter its limited-amnesty program for undisclosed offshore accounts. In the first part of this post, we took note of some of the reasons for this. The Offshore Voluntary Disclosure Program (OVDP) has seemed to offer the opportunity to reduce the risk of criminal prosecution for […]

The ongoing IRS enforcement crackdown on offshore accounts has been remarkably lucrative for Uncle Sam. Since the crackdown began in 2009, it has driven more than 100,000 taxpayers into IRS programs to resolve their offshore compliance issues and generated upwards of $10 billion in back taxes, interest and penalties from those taxpayers. But are more […]