Offshore Compliance | Information for Reporting Requirements

Basic of What to Do or Not Do If You Get a Letter from the IRS

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!

Do I need to file a special extension to get an automatic extension to file similar to the IRS form for individual Income Tax Returns…although automatic you still need to file?

The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) announced that, to implement the new due date for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), of April 15 (April 18 for 2017), it will automatically grant all taxpayers filing the form a six-month

IRS announces an end to the Offshore Voluntary Disclosure Program, what does this mean for you?

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

FBAR Deadline April 17, 2018

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

Creation of the U.S. Passport Denial and Revocation

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

UPDATE: US: Passport revocation is now under way

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

Time to Come in From Out in The Cold

One wonders whether it is beneficial to remain out of the U.S. Tax Return filing compliance system or seriously consider being in compliance with U.S. laws on filing a U.S. Tax Return. Of course, one of the best methods in making this determination is to seek experienced and wise counsel to assist a

Year End Tax Planning

Year End Tax Planning: You may have to report information about foreign financial assets and accounts in 2017 if you exceed IRS thresholds by or on December 31, 2017!

Comparison of House and Senate Versions of Tax Reform Bill

While none of us know what the ending tax bill will look like, here is the current versions of the tax bill as it relates to the House and the Senate.

House & Senate Tax Bill Comparison

Be Careful When Revising a Trust

Margaret Chappell created a trust in 2010 and amended it three times before succumbing to cancer in 2016. In the original trust she left everything to her boyfriend, Jose Aviles, on her death. The subsequent amendments changed the distribution provisions with the third amendment naming Tracy Swearin

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