Tag Archives: Foreign Activity

Offshore Trusts Were Used To Commit Tax Fraud, Bankruptcy Court Finds

A federal bankruptcy court has found that a taxpayer used offshore trusts to hide some $1 billion from U.S. taxation. The court was not persuaded that the taxpayer had used the offshore trusts for tax deferral, as he claimed, rather … Continue reading

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FACTA

FACTA, the Foreign Account Tax Compliance Act was enacted in 2010, as a portion of the Hiring Incentives to Restore Employment.  This act has been placed into service, to target non compliance by U.S. taxpayers using foreign accounts. It will … Continue reading

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Tax Strategies for Americans Abroad

The United States taxes citizens and resident aliens on all income earned worldwide, including earned income and investment income. However, you have several ways to avoid U.S. tax on income already taxed by a foreign country. If you’re working in a country … Continue reading

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Reliance on accountant may avoid penalty for failure to file foreign trust form

There are a great deal of complicated rules, related to reporting any foreign income.  These provisions put the burden of reporting on the taxpayer and “encourage” compliance by imposing significant penalties of taxpayer who fail to comply.  Since, most accountants … Continue reading

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Foreign Bank Account Reporting Due June 30th

There is a major and often overlooked tax filing that is due on June 30th. Any US person that has a financial interest in or signature authority over foreign financial accounts with an aggregate value in excess of $10,000 at … Continue reading

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New Foreign Asset Reporting In Effect For 2011 Tax Year

Individuals must report specified foreign financial assets on new Form 8938 for 2011 tax year. The HIRE Act (the Hiring Incentives to Restore Employment Act of 2010 passed in March, 2010) provides that individuals with an interest in a “specified … Continue reading

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IRS Reopens Offshore Voluntary Disclosure Program

The IRS has reopened the offshore voluntary disclosure program (OVDP) for an indefinite time period. OVDP is a program where we can correct filing deficiencies related to our offshore assets.  These programs allow us to pay a penalty for our non-compliance as … Continue reading

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Will Congress OK a repatriation holiday?

Under current law, if a corporation has off shore earnings those amounts are generally not subject to US income tax until they are repatriated (brought back) to the US.  We are strong advocates for non-US earned income being allowed to be … Continue reading

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Get ready for a new acronym – FATCA

The Foreign Account Tax Compliance Act (FATCA) requires foreign banks to forward details of US clients with deposits of over $50,000 to the IRS or withhold 30% of the interest, dividend and investment returns payable to them and send the … Continue reading

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Offshore settlement deadline August 31st

If you have income in undisclosed offshore accounts you are running out of time to take advantage of the 2011 Offshore Voluntary Disclosure Initiative (OVDI), which will expire on August 31, 2011. Under this version of “offshore amnesty”, US taxpayers can … Continue reading

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