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All Blog Posts for tax compliance

  • US or Foreign Income? The Ultimate D-I-Y Guide.

    US or Foreign Income? The Ultimate D-I-Y Guide.

    Is it important to know whether your income is attributable to the USA or another country? In fact, the determination of the source of an item of income is a number one priority when it comes to taxation rights, allocation of deductions, and foreign tax credit provisions. As an ease to taxpayers, we have developed this do-it-yourself guide to explain some of the most relevant source of income rules. For simplicity and transparency, we have also presented 14 real-life examples!

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  • Foreign Bank Account Reports. Doing them right!

    Foreign Bank Account Reports. Doing them right!

    The last several years marked a tremendous increase in the number of Foreign Bank Account Reports filed with the Treasury Department's Financial Crimes Enforcement Network. In fact, the IRS has announced that the number of Forms 114 (Former TD.F. 90.22-1 or FBAR) filed in 2015 topped at over 1.1 million! This record number shows an upsurge in awareness of the foreign financial account reporting requirements and a trend towards voluntary compliance. Still, many taxpayers experience practical difficulties in complying with the FBAR regulations. So, what it takes to do it right?

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  • Tax Guide for Americans & Expats Living in the United Kingdom

    Tax Guide for Americans & Expats Living in the United Kingdom

    This tax guide aims to supplement and enhance your understanding of the UK income tax laws by providing current insights and practical information. In addition, we have also stressed on valuable tax planning opportunities and tax treaty provisions available to United States citizens, permanent residents, and expatriates residing in the UK.

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  • The Streamlined Foreign Offshore Procedure: From A to Z

    The Streamlined Foreign Offshore Procedure: From A to Z

    The Streamlined Foreign Offshore Procedure (SFOP) was developed by the IRS to address noncompliance with the foreign financial assets reporting requirements, an omission of a foreign-source income or a failure to file certain information returns. The streamlined procedure is available to US citizens, expatriates and residents whose noncompliance with the internal revenue laws was not borne by a willful conduct or an attempt to avoid paying taxes in the United States. If you have resided outside the United States and you failed to file returns or under-reported foreign-source income, the SFOP is the shortest way to regain compliance without the burden of severe penalties. So what is the fuss about it?

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  • Fraud & Tax Numbers. The IRS revokes ITINs not used on a return.

    Fraud & Tax Numbers. The IRS revokes ITINs not used on a return.

    The Individual Taxpayer Identification Number (ITIN) is a nine-digit number that is used to identify certain individual taxpayers within the tax system. The ITIN is assigned directly by the IRS to eligible nonresident and resident taxpayers who do not have and do not qualify for a Social Security Number. The first ITIN was issued back in 1996 when the IRS replaced the temporary Internal Revenue Service Number (IRSN) with the ITIN as a mean to address accurate identification of international taxpayers with tax return filing or reporting requirements. Until recently, the number was personal and valid for life. Well, not anymore!

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  • 2017 Return Due Dates under the PATH Act

    2017 Return Due Dates under the PATH Act

    The Protecting Americans from Tax Hikes (PATH) Act of 2015, made major changes to tax and information return filing dates. The rationale behind the accelerated return due dates is streamlining the tax return filing information and strenghtening the IRS identity theft prevention and detection efforts. Most of the changes are effective for tax and information returns due in 2017. How the new return due dates affect you and your business?

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  • Form 5472 Now Required for a Foreign-Owned U.S. LLC

    Form 5472 Now Required for a Foreign-Owned U.S. LLC

    On December 13, 2016, final regulations were issued under Sections 6038A and 7701. The new rules treat a U.S. disregarded entity, wholly owned by a foreign person, as a “U.S. corporation” solely for the report on Form 5472 “Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business.”

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