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
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
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
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
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
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
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
