Category: Tax Planning

IRS warns people about a COVID-related text message scam

The IRS is warning people to be aware of a new text message scam.

The thief’s goal is to trick people into revealing bank account information under the guise of receiving the $1,200 Economic Impact Payment.

Here’s how this scam works: People get a text message saying they have “received a direct deposit of $1,200 from COVID-19 TREAS FUND. Further action is required to accept this payment… Continue here to accept this payment …” The text includes a link to a phishing web address.

This fake link appears to come from a state agency or relief organization. It takes people to a fake website that looks like the IRS.gov Get My Payment website. If people visit the fake website and enter thei

Kaepernick’s NFL Settlement Amount

How much did Colin Kaepernick actually receive from his “opting out” of the contract with the San Francisco Giants following the 2016 season and the recent Collective Bargaining Agreement, (CBA), with the NFL.[1] In a recent interview between Kaepernick’s attorney, Mark Geragos and

This Year You are Preparing Your Own Tax Return

So, this year you are preparing your own tax return, no need for a CPAs, Enrolled Agent or Tax Attorney…great! But have you thought about “FBAR” and your 2018 tax return!!! You might ask, do I have to worry about this FBAR quagmire if I have never been outside of the United States? YES

FOREIGN TRUST WITH U.S. TRUSTEE?

FOREIGN TRUST WITH U.S. JURISDICTION?

FRACTIONAL OWNERSHIP OF A FOREIGN ENTITY?

BEWARE!!!

The Tax Season for filing 2018 tax returns is now upon us and the full brunt of the Tax cuts and Job Act (TCJA) will occupy tax compliance by both the Taxpayers and the Tax Preparers. One of the most staggering provisions of the TCJA is the situation where your client owns an interest in a foreign entity directly or indirectly through a tiered-entity-structure, (TES).

The above threshold test will certainly raise eyebrows and compel the additional questioning to determine if you or your client falls into this catch-all provision. A simple example of indirect ownership, TES, is as follows:

The above basic schematic shows how e

Calculate Your 2018 Federal Tax Under the New Law

Hello and Welcome to my first News Letter on Matters That Will, Almost Certainly, Affect You in This New Year, 2019. I know that 2018 was a difficult year and now with the traumatic effect of the U.S. Government Partial Shutdown with the stock markets swings to record lows, we are facing a much high

Traditional Expensive Method of Shifting Profits from Your Foreign Company to You

Lets look at a traditional expensive method of shifting profits from your foreign company to you, the U.S. Shareholder. (Part I)

This is a very recent Tax Court Case, September 2018, where a husband and wife, named Barry and Rochelle Smith, were the grantors of two Domestic Grantor Trusts. I will use some leeway to fill in areas not noted in the Tax Court Case itself that I believe is more probably than not as we move through this scenario.

Since the totality of this scenario has international entities and transactions, I would assume that the trusts were created outside of the United States, but has fulfilled the conditions of U.S. Treasury Regulations § 301.7701-7 that the trust is a domestic trust if the a court within the United States is able to exercise

Beware “IRS Approved” Virtual Currency IRAs

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

If You Read This After September 28, 2018, You Are Too Late!!!

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

Highly Probably You Will Owe More Tax For 2018

With nearly 10 million U.S. taxpayers facing a penalty for underpayment of estimated tax last year, you should plan ahead, understand the options and avoid the huge penalty when filing 2018 Tax Return! And time is moving so quickly you may already be in the unfortunate penalty provisions.

Those of us who fall into the following categories are very susceptible to these penalties:

1. Self-employed 2. Receiving other income, such as a. Interest, b. Dividends, c. Self-employment, d. Capital gains, e. Prizes and awards or f. Too little tax withheld from wages. You probably need to either: 1. Immediately begin making Estimate Tax Payment, 2. Immediately make a Lump Sum Tax Payment for 2018 3. Increase your withholding on Earnings 4. Increase withholding on Royalties, Capital Gai

Avoid penalty for underpayment of taxes for 2018!

Is it possible at this late date? The new tax act of the Trump Administration, The Tax Cuts and Jobs Act, made significant changes for individuals, but the biggest were the loss of Itemized Deductions for high tax States, like California and New York, where Sales Tax, Real Estate Tax, State Income T

« Previous Post