Category: Asset Protection Planning

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INTRODUCTION:

For my clients residing in States with high State Income Taxes and/or high personal residential property taxes, the valued and yearly deduction of these taxes on your Itemized Deductions beginning in 2018 has had the unlimited ceiling crashing down to a total of $10,000 per year.

PART I.

What does this mean?

For 2018, all of your usual deductible itemized tax deductions are radically diminished in their treasured reduction of your overall U.S. Income Tax Liability. 

If you look at your form 1040, Schedule A for 2017 and calculate your total taxes paid, including but not limited to:

State Income Paid in 2017, State Income Taxes Withheld from your Wages and Pensions, Your State Estimated Taxes Paid f
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As income tax filing season approaches, the U.S. Commodity Futures Trading Commission (CFTC) is warning investors to be cautious of sales pitches touting “IRS approved” or “IRA approved” virtual currency retirement accounts. BACKGROUND: IRAs are retirement accounts that provide investors wit
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The Internal Revenue Service terminated its 2014 Offshore Voluntary Disclosure Program (OVDP) September 28, 2018.

“Taxpayers have had several years to come into compliance with U.S. tax laws under this program,” said Acting IRS Commissioner David Kautter. “All along, we have been clear that we would close the program at the appropriate time, and we have reached that point.”

Since the OVDP’s initial launch in 2009, more than 56,000 taxpayers have used one of the programs to comply voluntarily. All told, those taxpayers paid a total of $11.1 billion in back taxes, interest and penalties. The planned end of the current OVDP also reflected advances in third-party reporting, such as banks located overseas, and increased awareness of U.S. taxpayers of their offshore ta

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The IRS has announced that its Offshore Voluntary Disclosure Program (OVDP) will end on 28 September 2018.  US citizens are subject to US tax on worldwide income even if they are not resident in the US.

A failure to comply may result in civil and criminal penalties being imposed.  The OVDP enables US expatriates to voluntarily resolve past non-compliance with reduced penalties and interest for voluntary disclosure.

A voluntary disclosure will not automatically guarantee immunity from prosecution – however, in practice a voluntary disclosure usually results in the IRS recommending no prosecution.

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On the matter of filing the FBAR, the U.S. Treasury’s Financial Management Services provides the exchange rates for you to use when converting foreign account balances for reporting on form 114. In too many instances, individuals us the internet for conversion rates or the IRS conversion rates, so
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Under a law passed by Congress in 2015, the Department of State is required to deny an individual’s passport application and is authorized to revoke or limit an existing passport if the IRS has certified the individual as having a seriously delinquent federal tax debt (i.e., a federal tax debt exc
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The Internal Revenue Service (IRS) has formally announced its intent to start enforcing its passport revocation powers against US persons who owe more than USD 51,000 in taxes and penalties.

The Fixing America’s Surface Transportation Act (FAST Act), signed into law in December 2015, requires the IRS to notify the US State Department of those taxpayers the IRS has certified as owing a “seriously delinquent tax debt”.

The State Department must then deny their passport application or renewal request, or even revoke an existing passport.

“Seriously delinquent tax debt” is classified by the IRS as “more than USD 51,000 in back taxes, penalties and interest, for which the IRS has filed a Notice of Federal Tax Lien and the period to c