IRS

Foreign financial institutions that provide financial accounts to U.S. taxpayers or foreign entities that have a substantial ownership interest by a U.S. taxpayer are generally required to report information to the IRS. In some cases, this requires completion of an FFI agreement. The Internal Revenue Service (IRS) recently posted a reminder that foreign financial institutions […]

Tax law is a difficult area of law for many reasons. The law is often changing and, as highlighted in a recent decision by the Tax Court; unexpected interpretations of the law are not uncommon. Take the Citizens United case from 2010. Essentially, this case involved a question as to what protections are available for […]

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 […]

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: […]

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. […]

Small businesses and people who work for themselves now have access to an expedited procedure to resolve tax disputes with the IRS. In this post, we will use a Q & A format to update you on the availability of this procedure, which is formally called the Small Business/Self Employed Fast Track Settlement program (SB/SE […]