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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

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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
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The Internal Revenue Service has listed the percentage of tax returns filed and examined by the amount of Adjusted Gross Income, see below. The returns showing Adjusted Gross Income, AGI, for 2016 of $10,000,000 or more were the highest audit at 14.52%. The returns with AGI of $75,000 to under $100,
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If you are a U.S. citizen or resident alien of the U.S., specifically contractors or employees of contractors supporting the U.S. Armed Forces in designated combat zones, may now qualify for the foreign earned income exclusion of $103,900, which is an exclusion of monies earned from being taxed by the IRS each year. This is a big windfall for individuals working overseas, but not living overseas!!!

The background was first laid out in the Bipartisan Budget Act of 2018, which changed the tax home requirement for eligible taxpayers, enabling them to claim the foreign earned income exclusion even if their “abode” is in the United States. The new law applies for tax year 2018 and subsequent years. This means that you, if eligible, will be able to claim the foreign earned income

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Today, September 4, 2018, t he Internal Revenue Service, IRS, provided a notice that Americans have until September 28, 2018, just over 3 weeks, to apply for the Offshore Voluntary Disclosure Program (OVDP). I know there are may Americans that have not come forward under one of the many alternatives
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If you receive a letter marked from the IRS or the U.S. Treasury, then you are one of millions of individuals who will received the mailing of letters from the U.S. Government and there are many and varied reasons why you may be one of these millions of individuals selected to receive a letter. The suggestions that I am listing below may seem to lack common sense, but I have seen just such happenings that occur when you experience unexpected IRS mailings mixed with the normal stresses of the day.

First, with the IRS envelope in hand, take a deep breath, find a few minutes where you will be able to focus and have a note pad and pen nearby for making notes.

This letter is a personal communication to the addressee. If this letter is not addressed to you, then don’t open it!

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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 be sure to go onto the Treasury’s website listed below.

Also, there has been an inclusion of other financial instruments to be reported on form 114, which is now labeled “Foreign Bank and Financial Account Reports” a change from the long-standing “Foreign Bank Account Report”. You may want to note that a reportable financial account now includes, but is not limited to, a securities, brokerage, savings, demand, checking, deposit, time deposit, or other account maintained with

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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