Tax Topics

The Internal Revenue Service (IRS) recently reminded taxpayers that even those living abroad likely need to file paperwork this tax season. In some cases, the government may require taxpayers to file additional paperwork. What else does the Treasury Department need? The agency may also require an additional form, the Report of Foreign Bank and Financial […]

The United States Internal Revenue Service (IRS) requires taxpayers to report foreign assets. A failure to do so can result in fines and even criminal charges. Although most people know about this requirement, not everyone knows exactly how to go about reporting these assets. This post will provide some basic information, including common tax forms […]

The allure of a foreign country calls to many United States citizens. Some fall in love with the views, the culture, the weather. Some choose to make their vacation destinations more than just an occasional stop, but rather invest in property and visit their personal paradise on a more regular basis. Ownership of property in […]

The Internal Revenue Service (IRS) requires those who hold an interest in or signature authority over a foreign account with a value over $10,000 at any point during the applicable tax year file the Foreign Bank Account Report (FBAR). A failure to do so can lead to both civil and criminal penalties. But how harsh […]

The Internal Revenue Service (IRS) recently provided guidance on the application of section 965(e) of the Code. This section applies specifically to those who receive income from “certain specified foreign corporations.” The law basically requires a transition tax on foreign earnings. Who must pay this tax? The IRS requires United States shareholders as well as […]

The United States of America filed suit against a taxpayer for his alleged “willful” violation of the requirement to report an interest in a foreign account. The government had already established the taxpayer was required to file a Report of Foreign Bank and Financial Accounts (FBAR). The court is asked to determine which standard of […]

Thinking of giving up United States citizenship? You may owe an exit tax. The exit tax, also known as the expatriation tax, is due in certain situations when a citizen of the United States renounces his or her citizenship. The government determines this tax obligation based on one of three tests. A failure of any […]

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 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 […]