Tag Archive for Tax Blog

U.S. International Tax Law Disclosure Requirements

Depending on whether you are a U.S. Citizen or Resident, you have various reporting and disclosure requirements to the IRS on your U.S. source and worldwide income. In this article we will take a look at a few of the most common and most important international tax reporting requirements.

Disclosure of Foreign Bank Accounts

If you have a financial interest or signatory power over a foreign financial account, then you are required to file a Report of Foreign Bank Account and Financial Accounts (FBAR), also known as FinCEN Form 114. This reporting obligation applies to bank accounts, brokerage accounts, mutual funds, trusts, or other financial accounts. American Citizens Abroad, What is FBAR?. Read More

Written by | Posted in FBAR • International

Dividends From Foreign Corporations Part III – “Controlled Foreign Corporations”

As will be recalled from the previous blog posting that discussed so-called “Controlled Foreign Corporations” (CFC), a United States shareholder of a CFC can possibly be treated as having received “dividend” income at various times. These are when the US shareholder (i) has current income inclusions from the CFC under the anti-deferral regime (Subpart F income); (ii) has amounts actually distributed to him that had not been previously taxed as Subpart F income (these are ‘actual’ dividends); (iii) has amounts actually distributed to him that had been previously taxed as Subpart F income and (iv) recognizes gain on the sale of his CFC stock and the CFC has undistributed earnings and profits.

The question arises whether any of these amounts (i)-(iv), can be treated as “qualified dividend income”? Full details about the tax beneficial treatment of “qualified dividend Read More

Written by | Posted in Corporate • International

Taxpayers Rights When Audited By Tax Authorities In South Africa (Chapter 2 – 2.2.6)

Posted in sections, this is my Doctoral Thesis on taxpayers rights when audited by the tax authorities in South Africa – equally applicable to many English-based law systems in Africa and abroad (eg. India). This will be of particular use to any tax practitioners doing work in Africa and in other English-based legal systems around the world.

Analysis Of Challenging The Commissioner’s Discretionary Powers In Auditing Taxpayers under The Constitution Of The Republic of South Africa

2.2 THE RELEVANT CONSTITUTIONAL PROVISIONS

2.2.6 Conduct and legitimate expectations Read More

Written by | Posted in Africa • Audit

Should I Stay or Should I Go? – Part 3

Answers to the Most Frequently Asked Questions Regarding Offshore Voluntary Disclosure Program

As a tax attorney specializing in the Offshore Voluntary Disclosure Program (OVDP), nary a day goes by that I don’t get a call from a person inquiring about the OVDP. The questions asked are relatively the same. After a while, I began to make a list of the most frequently asked questions. Below are my answers to them: (continued)

IV. What kinds of assets does the 27.5% penalty apply to?

The offshore penalty applies to: Read More

Written by | Posted in FBAR • OVDP

Did The FFIs In The 148 Non-IGA Countries FATCA Register?

64 IGAs Published or in Effect

Sixty-four IGAs are published and treated as in effect as of May 11, 2014, comprised of twenty-seven published Model 1s, five published Model 2s, whereas thirty Model 1s have been agreed in substance and two Model 2s agreed.

148 IGAs still left to be agreed by Treasury?

The USA recognizes 195 independent states in the world, 67 dependencies of states, and has contacts with Taiwan.  But only approximately 16 dependencies of the 67 have both local responsibility with regard to tax policy and more than de minimis US source income exposure, such as investments in US Treasuries, for the local authorities to sign an IGA Read More

Written by | Posted in FATCA

Should I Stay or Should I Go? – Part 2

Answers to the Most Frequently Asked Questions Regarding Offshore Voluntary Disclosure Program

As a tax attorney specializing in the Offshore Voluntary Disclosure Program (OVDP), nary a day goes by that I don’t get a call from a person inquiring about the OVDP. The questions asked are relatively the same. After a while, I began to make a list of the most frequently asked questions. Below are my answers to them: (continued)

III. What are some of the criminal charges I might face if I don’t come in under OVDP and the IRS examines me?

Potential criminal charges include: Read More

Written by | Posted in FBAR • OVDP

Taxpayers Rights When Audited By Tax Authorities In South Africa (Chapter 2 – 2.2.5)

Posted in sections, this is my Doctoral Thesis on taxpayers rights when audited by the tax authorities in South Africa – equally applicable to many English-based law systems in Africa and abroad (eg. India). This will be of particular use to any tax practitioners doing work in Africa and in other English-based legal systems around the world.

Analysis Of Challenging The Commissioner’s Discretionary Powers In Auditing Taxpayers under The Constitution Of The Republic of South Africa

2.2 THE RELEVANT CONSTITUTIONAL PROVISIONS

2.2.5 Conduct, audits and inquiries
Wheelright K in Taxpayer’ Rights in Australia in Bentley D Taxpayers’ Rights: An Read More

Written by | Posted in Africa • Audit

Two Free IRS Webinars For Small Businesses In May 2014

According to the Internal Revenue Service (IRS), it will hold two free webinars for small businesses on this year’s “Small Business Week,” May 12 to 16. The Webinars focus on several key tax benefits and a special relief program for employers who reclassify their workers as employees.

The webinars will cover payments to independent contractors and filing requirements for Form 1099 on Tuesday, May 13, and avoiding common mistakes on Thursday, May 15. Both webinars will begin at 2 p.m. Eastern Time and last an hour. To register visit the IRS Webinars for Small Businesses page.

Voluntary Classification Settlement Program

Read More

Written by | Posted in IRS • Small Business • Tax Deductions

Tax Exemption: A Precious Status, Take Care Not To Lose It!

Martin Luther King Jr said, “Life’s most persistent and urgent question is, what are you doing for others?” Daily routine is an all-consuming machine, we do forget to ask ourselves this question.

Speaking of doing something for others, brings to mind Charitable Organizations. May 15th is creeping up on us real fast. And for those of us who have non-profit organizations as clients, we know that it is the deadline to file Form 990. This form is due on the 15th day of the fifth month after an organization’s tax year ends. Since most use the calender year, the deadline for them is May 15th.

A non-profit or a tax-exempt organization is one which seeks exemption from federal income Read More

Written by | Posted in Federal • Income Tax

Tangible Property – Section 482 and International Financial Centers

Introduction

Corporate structures in global enterprise find the use of conduit offshore corporate entities a requisite to accommodate the anomalies inherent in maximizing efficiencies and cost savings. Common ownership of inter-related corporate structures encounter arms length pricing scrutiny. (See TaxConnections April 24, 2014, Introduction to Section 482 and International Financial Centers.)

Arm’s length standards of Section 482 are applicable to a transfer of tangible property rights in transactions when deemed between controlled entities. When the possession, use or occupancy of tangible property that is owned or leased by one member of a group of Read More

Written by | Posted in Corporate • International

Have Not Filed US Taxes In Years? Not To Worry, Apply The Streamlined Procedure!

You are an American citizen living abroad and you have just found out, through one source and then another source that you are required to file US income taxes every year. Who knew? You may feel overcome with an angst and a fear that life abroad – once blissful and so secure – is about to change and change a lot.While it is true that, indeed, as an American citizen you do need to file taxes with the United States on your worldwide income each year, the fact that you have not been compliant is not as ominous as it may at first seem. One often hears horror stories, mostly hearsay, of how this American or another’s life had been opened up and read like a book by the IRS. The reality though is not so scary. The IRS realizes that many Americans living abroad did not know of their obligation to file their US taxes and are offering a safe and worry-free path forward … Read More

Written by | Posted in Expatriate • FATCA • FBAR • International • IRS • Tax Policy • Tax Risk Management • Tax Tips

Taxpayers Rights When Audited By Tax Authorities In South Africa (Chapter 2 – 2.2.4)

Posted in sections, this is my Doctoral Thesis on taxpayers rights when audited by the tax authorities in South Africa – equally applicable to many English-based law systems in Africa and abroad (eg. India). This will be of particular use to any tax practitioners doing work in Africa and in other English-based legal systems around the world.

Analysis Of Challenging The Commissioner’s Discretionary Powers In Auditing Taxpayers under The Constitution Of The Republic of South Africa

2.2 THE RELEVANT CONSTITUTIONAL PROVISIONS

2.2.4 Conduct, decisions and public power

The effect of these provisions and commentary above, is that the provisions of ss 74A and Read More

Written by | Posted in Africa • Audit
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