Form 3520 is one of the most important US international information returns. Due to its severe penalty structure, it is important to file it timely. In this brief essay, I will discuss the tax year 2024 Form 3520 deadline. 2024 Form 3520 Deadline: What is Form 3520 IRS Form 3520 is a US international information return. The IRS uses this Form […]
On November 18, 2024, the IRS announced that the First Quarter 2025 IRS interest rates on overpayment and underpayment of tax will decrease from the Fourth Quarter of 2024. This means that the First Quarter 2025 IRS interest rates will be as follows: seven (7) percent for overpayments (six (6) percent in the case of a corporation); seven (7) percent for underpayments; nine (9) […]
FinCEN Form 114, the Report of Foreign Bank and Financial Accounts, commonly known as “FBAR”, is one of the most important requirements that Indian Americans face as part of their US tax compliance concerning their Indian Financial Accounts. This articles provides an overview of the Indian American’s FBAR compliance requirements with the particular focus on […]
If you live in Orlando, Florida, and you are an owner or a beneficiary of a foreign trust, you need to secure the help of a Orlando Foreign Trust Attorney to properly comply with US international tax laws. You should consider retaining Sherayzen Law Office as your Orlando Foreign Trust Attorney. Sherayzen Law Office is […]
If you live in Miami, Florida, and you are an owner or a beneficiary of a foreign trust, you need to secure the help of a Miami Foreign Trust Attorney to properly comply with US international tax laws. You should consider retaining Sherayzen Law Office as your Miami Foreign Trust Attorney. Sherayzen Law Office is […]
If you reside in Athens, Georgia and have unreported foreign bank and financial accounts, you may be looking for a Athens FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Athens FBAR Attorney: International […]
On August 21, 2024, the IRS announced that the Fourth Quarter 2024 IRS interest rates on overpayment and underpayment of tax will remain the same as in the Third Quarter of 2024. This means that, the Fourth Quarter 2024 IRS interest rates will be as follows: eight (8) percent for overpayments (seven (7) percent in the case of a corporation); eight (8) percent for underpayments; […]
If you live in Atlanta, Georgia, and you are an owner or a beneficiary of a foreign trust, you need to secure the help of a Atlanta Foreign Trust Attorney to properly comply with US international tax laws. You should consider retaining Sherayzen Law Office as your Atlanta Foreign Trust Attorney. Sherayzen Law Office is […]
If you reside in San Antonio, Texas, and have unreported foreign bank and financial accounts, you may be looking for a San Antonio FBAR Tax Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. […]
Passive Foreign Investment Company (PFIC) classification of a foreign corporation may have highly undesirable consequences for its US shareholders. In addition to high PFIC tax, these taxpayers face expensive and burdensome tax reporting requirements. This is why US taxpayers and their tax advisers generally try to avoid PFIC designation. This article explores a possible way […]
In the realm of US international tax compliance, few topics are as crucial as the reporting of foreign financial accounts, particularly The Foreign Bank and Financial Accounts Report (FBAR). This article focuses on one specific aspect of FBAR compliance: what accounts need to be disclosed on FBAR. In particular, we will delve into the intricacies of […]
If you reside in Knoxville, Tennessee and have unreported foreign bank and financial accounts, you may be looking for a Knoxville FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Knoxville FBAR Attorney: International […]
If you reside in Fort Collins, Colorado, and have unreported foreign bank and financial accounts, you may be looking for a Fort Collins FBAR Tax Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. […]
If you reside in Chattanooga , Tennessee and have unreported foreign bank and financial accounts, you may be looking for a Chattanooga FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Chattanooga […]
If you reside in Nashville, Tennessee and have unreported foreign bank and financial accounts, you may be looking for a Nashville FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Nashville FBAR Attorney: International […]
If you reside in Colorado Springs, Colorado, and have unreported foreign bank and financial accounts, you may be looking for a Colorado Springs FBAR Tax Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. […]
Retaining a Corpus Christi foreign inheritance lawyer to deal with the IRS is very likely to be necessary if you reside in Corpus Christi, Texas and have received an inheritance from a non-resident alien (i.e. foreign inheritance). Sherayzen Law Office, Ltd. is a leader in US international tax compliance concerning foreign inheritance, including offshore voluntary disclosures concerning late disclosure of a foreign […]
If you reside in Glenview, Kentucky and have unreported foreign bank and financial accounts, you may be looking for a Glenview FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Glenview FBAR Attorney: International […]
The Closer Connection Exception is a very important provision in US international tax law, because it provides a potential way for individuals who meet the Substantial Presence Test to still be treated as nonresident aliens for US income tax purposes. This article explores the Closer Connection Exception, its requirements and its implications for US and foreign taxpayers. Understanding the Closer […]
If you reside in Louisville, Kentucky and have unreported foreign bank and financial accounts, you may be looking for a Louisville FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Louisville FBAR Attorney: International […]
The substantial presence test is one of the most important legal tests in the Internal Revenue Code (IRC), because it determines whether a person is a US tax resident solely by virtue of his physical presence in the United States. Additionally, this Test is essential to the determination of whether a person is a “US […]
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On June 28, 2024, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) have issued final regulations requiring brokers to report sales and exchanges of digital assets, including cryptocurrency. These digital currency final regulations aim to improve tax compliance and provide taxpayers with necessary information for accurate tax reporting. Digital Currency Final […]
If you reside in Indianapolis, Indiana and have unreported foreign bank and financial accounts, you may be looking for a Indianapolis FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Indianapolis FBAR Attorney: International […]
Retaining a Waco foreign inheritance lawyer to deal with the IRS is very likely to be necessary if you reside in Waco, Texas and have received an inheritance from a non-resident alien (i.e. foreign inheritance). Sherayzen Law Office, Ltd. is a leader in US international tax compliance concerning foreign inheritance, including offshore voluntary disclosures concerning late disclosure of a foreign inheritance, and […]
Retaining a Abilene foreign inheritance lawyer to deal with the IRS is very likely to be necessary if you reside in Abilene, Texas and have received an inheritance from a non-resident alien (i.e. foreign inheritance). Sherayzen Law Office, Ltd. is a leader in US international tax compliance concerning foreign inheritance, including offshore voluntary disclosures concerning late disclosure of a foreign inheritance, and […]
If you reside in Boulder, Colorado, and have unreported foreign bank and financial accounts, you may be looking for a Boulder FBAR Tax Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Boulder […]
In the intricate realm of US international tax law, few areas are as challenging and potentially costly as PFIC compliance. Understanding the nuances of Passive Foreign Investment Companies (PFICs) is crucial for US taxpayers with foreign investments. This article provides an introduction to PFIC compliance, outlining key concepts and reporting requirements. What is PFIC Compliance? […]
Retaining a McKinney foreign inheritance lawyer to deal with the IRS is very likely to be necessary if you reside in McKinney, Texas and have received an inheritance from a non-resident alien (i.e. foreign inheritance). Sherayzen Law Office, Ltd. is a leader in US international tax compliance concerning foreign inheritance, including offshore voluntary disclosures concerning late disclosure of a foreign inheritance, and […]
Retaining a Dallas foreign inheritance lawyer to deal with the IRS is very likely to be necessary if you reside in Dallas, Texas and have received an inheritance from a non-resident alien (i.e. foreign inheritance). Sherayzen Law Office, Ltd. is a leader in US international tax compliance concerning foreign inheritance, including offshore voluntary disclosures concerning late disclosure of a foreign inheritance, and […]
US taxpayers must file Form 8938 with their US tax returns if they hold foreign financial assets with an aggregate value exceeding a relevant balance threshold. This article discusses the 2024 Form 8938 threshold limits. 2024 Form 8938 Threshold: Form 8938 Background Form 8938 burst onto the US international compliance scene in 2011 as a result […]
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Retaining a Austin foreign inheritance lawyer to deal with the IRS is very likely to be necessary if you reside in Austin, Texas and have received an inheritance from a non-resident alien (i.e. foreign inheritance). Sherayzen Law Office, Ltd. is a leader in US international tax compliance concerning foreign inheritance, including offshore voluntary disclosures concerning late disclosure of a foreign inheritance, and […]
Retaining a Houston foreign inheritance lawyer to deal with the IRS is very likely to be necessary if you reside in Houston, Texas and have received an inheritance from a non-resident alien (i.e. foreign inheritance). Sherayzen Law Office, Ltd. is a leader in US international tax compliance concerning foreign inheritance, including offshore voluntary disclosures concerning late disclosure of a foreign inheritance, and […]
Retaining a Minneapolis foreign inheritance lawyer to deal with the IRS is very likely to be necessary if you reside in Minneapolis, Minnesota and have received an inheritance from a non-resident alien (i.e. foreign inheritance). Sherayzen Law Office, Ltd. is a leader in US international tax compliance concerning foreign inheritance, including offshore voluntary disclosures concerning late […]
If you reside in Milwaukee, Wisconsin and have unreported foreign bank and financial accounts, you may be looking for a Milwaukee FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Milwaukee FBAR Attorney: International […]
This article is an update of prior articles on the FBAR Civil Penalties. Since the US Congress mandated the IRS to adjust FBAR civil penalties for inflation on an annual basis, this article discusses the year 2024 FBAR Civil Penalties. 2024 FBAR Civil Penalties: Overview of the FBAR Penalty System FinCEN Form 114, the Report of Foreign Bank and […]
If you reside in Denver, Colorado, and have unreported foreign bank and financial accounts, you may be looking for a Denver FBAR Tax Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Denver […]
On May 9, 2024, the IRS announced that the Third Quarter 2024 IRS interest rates on overpayment and underpayment of tax will remain the same as in the Second Quarter of 2024. This means that, the Third Quarter 2024 IRS interest rates will be as follows: Internal Revenue Code (“IRC”) §6621 establishes the IRS interest rates on overpayments and underpayments of tax. Under §6621(a)(1), the […]
On February 29, 2024, the IRS announced a major update to one of its compliance campaigns that focuses on high income non-filer taxpayers. Let’s discuss this major update to the High Income Non-filer IRS Campaign in more detail. High Income Non-Filer IRS Campaign: Background Information As part of its extensive tax enforcement planning in the […]
If you reside in Garland, Texas and have unreported foreign bank and financial accounts, you may be looking for a Garland FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, consider us in your search. Let’s understand why this is the case. Garland FBAR Attorney: International Tax Lawyer First of […]
If you live in McKinney, Texas, and you are an owner or a beneficiary of a foreign trust, you need to secure the help of a McKinney Foreign Trust Attorney to properly comply with US international tax laws. You should consider retaining Sherayzen Law Office as your McKinney Foreign Trust Attorney. Sherayzen Law Office is […]
On February 21, 2024, the IRS announced that it will begin dozens of audits of business aircraft usage as part of a new tax enforcement campaign. In this short article, I will discuss these new IRS corporate jet audits in more detail. IRS Corporate Jet Audits: Focus on Personal Use of High-Net Individuals The IRS […]
On February 21, 2024, the IRS announced that the Second Quarter 2024 IRS interest rates on overpayment and underpayment of tax will remain the same as in the First Quarter of 2024. This means that, the Second Quarter 2024 IRS interest rates will be as follows: Internal Revenue Code (“IRC”) §6621 establishes the IRS interest rates on overpayments and underpayments of tax. Under §6621(a)(1), the overpayment […]
If you reside in McKinney, Texas and have unreported foreign bank and financial accounts, you may be looking for a McKinney FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. McKinney FBAR Attorney: International […]
If you live in Dallas, Texas, and you are an owner or a beneficiary of a foreign trust, you need to secure the help of a Dallas Foreign Trust Attorney to properly comply with US international tax laws. You should consider retaining Sherayzen Law Office as your Dallas Foreign Trust Attorney. Sherayzen Law Office is […]
If you reside in San Jose, California and have unreported foreign bank and financial accounts, you may be looking for a San Jose FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. San […]
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If you reside in Midland, Texas and have unreported foreign bank and financial accounts, you may be looking for a Midland FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Midland FBAR Attorney: International […]
Sometimes, a taxpayer may find himself in a situation where his problem cannot be resolved through normal IRS channels. In this case, one of the options is to secure the help of the Taxpayer Advocate Service (“TAS”). TAS can issue a Taxpayer Assistance Order (TAO) to require the IRS to desist from a certain action […]
If you reside in Big Spring, Texas and have unreported foreign bank and financial accounts, you may be looking for a Big Spring FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Big […]
One of the first things a client must get in order to pursue an offshore voluntary disclosure are all of the client records from his former accountant. Sometimes, however, the clients are having difficulty obtaining their documents from their accountants. In this article, I would like to briefly describe an accountant’s obligations with respect to […]
Reliance on a written advice of a tax practitioner (attorney, CPA, etc.) may provide the basis for a reasonable cause exception to imposition of IRS noncompliance or late filing penalties with respect to pretty much every single US international tax compliance requirement. In this short article, I will describe the reasonable cause written advice standard […]
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On December 4, 2023, Banque Pictet et Cie SA (“Banque Pictet” – a Swiss private bank) entered into a deferred prosecution agreement with the US government. In this article, I will discuss Banque Pictet Deferred Prosecution Agreement and explain its importance. Banque Pictet Deferred Prosecution Agreement: Facts Leading Up to the Agreement The Pictet Group was […]
Minnesota has a sizable immigrant community with over 9% of the population foreign-born and another more than 7% of the population that has at least one immigrant parent. The top countries of original for immigrants are: Mexico, Somalia, India, Laos and Ethiopia. Many of these new US taxpayers own assets in foreign countries and receive income generated […]
If you reside in Amarillo, Texas and have unreported foreign bank and financial accounts, you may be looking for a Amarillo FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Amarillo FBAR Attorney: International […]
If you live in Abilene, Texas, and you are an owner or a beneficiary of a foreign trust, you need to secure the help of a Abilene Foreign Trust Attorney to properly comply with US international tax laws. You should consider retaining Sherayzen Law Office as your Abilene Foreign Trust Attorney. Sherayzen Law Office is […]
If you reside in Corpus Christi, Texas and have unreported foreign bank and financial accounts, you may be looking for a Corpus Christi FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Corpus […]
Generally, only attorneys, CPAs, enrolled agents and enrolled actuaries can act as taxpayer representatives before the IRS. However, Circular 230 §10.7 contains several limited exceptions to this general requirement. Let’s explore these IRS limited practice exceptions. IRS Limited Practice Exceptions: Standard of Conduct Before we discuss the exceptions, I would like to point out that […]
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Internal Revenue Manual: Description & Purpose Internal Revenue Manual (“IRM”) is the primary, official source of IRS instructions to staff that relate to the administration and operation of the IRS. The rules set in the IRM are meant to provide guidance to the IRS employees (including managers) in their daily work life. The IRM is […]
If you reside in Abilene, Texas and have unreported foreign bank and financial accounts, you may be looking for a Abilene FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Abilene FBAR Attorney: International […]
Florida has a huge immigrant community with over 21% of the population foreign-born and another more than 12% of the population that has at least one immigrant parent. The top countries of original for immigrants are: Cuba, Haiti, Colombia, Mexico and Jamaica. Many of these new US taxpayers own assets in foreign countries and receive income generated by […]
If you live in Waco, Texas, and you are an owner or a beneficiary of a foreign trust, you need to secure the help of a Waco Foreign Trust Attorney to properly comply with US international tax laws. You should consider retaining Sherayzen Law Office as your Waco Foreign Trust Attorney. Sherayzen Law Office is […]
In this calender year 2024, there is a special October 7 FBAR deadline that was created by FinCEN in response to the October 7 terrorist attack against Israel. Let’s discuss discuss this special October 7 FBAR deadline in more detail. October 7 FBAR Deadline: Background Information The terrorist attack on Israel on October 7, 2023 […]
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If you reside in Waco, Texas and have unreported foreign bank and financial accounts, you may be looking for a Waco FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, consider us in your search. Let’s understand why this is the case. Waco FBAR Attorney: International Tax Lawyer First of […]
On January 16, 2024, the IRS Large Business and International division announced a new compliance campaign: the IRS Sports Industry Campaign. While the announcement is recent and certain details are not yet available, let’s discuss the general direction of this IRS new compliance tax enforcement effort. IRS Sports Industry Campaign: Background Information In the mid-2010s, after […]
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On January 22, 2024, the Internal Revenue Service announced tax relief for individuals and businesses in parts of Connecticut affected by severe storms, flooding and a potential dam breach that began on January 10, 2024. These taxpayers now have until June 17, 2024, to file various federal individual and business tax returns and make tax payments. June […]
Oklahoma is a home to a growing immigrant community with at least 6% of the population foreign-born and another 6% of the population that has at least one immigrant parent. The top countries of original for immigrants are: Mexico, Vietnam, India, Germany (a major surprise to many people) and Guatemala. Many of these new US taxpayers own […]
If you live in Plano, Texas, and you are an owner or a beneficiary of a foreign trust, you need to secure the help of a Plano Foreign Trust Attorney to properly comply with US international tax laws. You should consider retaining Sherayzen Law Office as your Plano Foreign Trust Attorney. Sherayzen Law Office is […]
If you reside in Houston, Texas and have unreported foreign bank and financial accounts, you may be looking for a Houston FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, consider us in your search. Let’s understand why this is the case. Houston FBAR Attorney: International Tax Lawyer First of […]
On November 17, 2023, the IRS announced that the First Quarter 2024 IRS interest rates on overpayment and underpayment of tax will not change from the Fourth Quarter of 2023. This means that, the First Quarter 2024 IRS interest rates will be as follows: Internal Revenue Code (“IRC”) §6621 establishes the IRS interest rates on overpayments and underpayments of tax. Under §6621(a)(1), […]
An increasing number of submissions under the Streamlined Domestic Offshore Procedures (SDOP) has been subject to an IRS audit; this trend will undoubtedly continue in 2024. In this article, I will explain what an 2024 SDOP Audit is and what a taxpayer should expect during the Audit. 2024 SDOP Audit: Background Information on Streamlined Domestic Offshore Procedures Streamlined Domestic […]
If you live in Minneapolis, Minnesota, and you are an owner or a beneficiary of a foreign trust, you need to secure the help of a Minneapolis Foreign Trust Attorney to properly comply with US international tax laws. You should consider retaining Sherayzen Law Office as your Minneapolis Foreign Trust Attorney. Sherayzen Law Office is […]
If you reside in Denver, Colorado and have unreported foreign bank and financial accounts, you may be looking for a Denver FBAR Attorney. Sherayzen Law Office, Ltd. (“Sherayzen Law Office”) is a leader in FBAR compliance and you should consider us in your search. Let’s understand why this is the case. Denver FBAR Attorney: International Tax Lawyer First of all, it […]
Since 2014, Streamlined Domestic Offshore Procedures (“SDOP”) has probably been the most popular offshore voluntary disclosure option, and I predict that it will remain so in the year 2024. In this article, I would like to explore main four 2024 SDOP advantages which US taxpayers should take into account while considering an offshore voluntary disclosure this year. 2024 […]
Indiana is a home to a small but growing immigrant community with at least 5% of the population foreign-born and another 5% of the population that has at least one immigrant parent. The top countries of original for immigrants are: Mexico, India, China, Myanmar and the Philippines. Many of these new US taxpayers own assets in foreign countries and […]
If you reside in Cambridge, Massachusetts and have unreported foreign bank and financial accounts, you may be looking for a Cambridge FBAR Attorney. Sherayzen Law Office, Ltd. (“Sherayzen Law Office”) is a leader in FBAR compliance and you should consider us in your search. Let’s understand why this is the case. Cambridge FBAR Attorney: International Tax Lawyer First of all, it […]
The introduction of the Streamlined Domestic Offshore Procedures (SDOP) in 2014 meant that the IRS finally recognized that there was a very large number of U.S. taxpayers who were non-willful with respect to their inability to comply with numerous obscure complex requirements of U.S. tax laws. Since 2014, SDOP has been a highly successful voluntary disclosure option that […]
Ohio has a growing immigrant community with at least 5% of the population foreign-born and another 5% of the population that has at least one immigrant parent. The top countries of original for immigrants are: India, Mexico, China, the Philippines and Canada; more than half of them are naturalized US citizens and more than 42% of them […]
If you reside in Worcester, Massachusetts, and you have unreported foreign bank and financial accounts, you may be looking for Worcester FBAR Attorney. In your search, please consider Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s understand why this is the case. Worcester FBAR Attorney: International Tax Lawyer First of all, it is very important to […]
Wisconsin has a small but rapidly growing immigrant community with at least 5% of the population foreign-born and another 5% of the population that has at least one immigrant parent. The top countries of original for immigrants are: Mexico, India, China, Laos and the Philippines. Many of these new US taxpayers own assets in foreign countries […]
Beginning January 1, 2024, the IRS changed the optional standard mileage for the calculation of deductible costs of operating an automobile (sedans, vans, pickups and panel trucks) for business, charitable, medical or moving purposes. Let’s discuss in more detail these new 2024 IRS Standard Mileage Rates. 2024 IRS Standard Mileage Rates for Business Usage For the tax year 2024, […]
If you reside in Boston, Massachusetts, and you have unreported foreign bank and financial accounts, you may be looking for Boston FBAR Attorney. In your search, please consider Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s understand why this is the case. Boston FBAR Attorney: International Tax Lawyer First of all, it is very important to […]
On December 21, 2023, the IRS and the US Department of Justice announced that Mr. Rolf Schnellmann, a Swiss national, pleaded guilty to conspiring to defraud the United States for his role in the creation and implementation of a fraud scheme related to foreign accounts and foreign income called “Singapore Solution”. In this small essay, I […]
If you reside in Duluth, Minnesota, and you have unreported foreign bank and financial accounts, you may be looking for Duluth FBAR Attorney. In your search, please consider Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s understand why this is the case. Duluth FBAR Attorney: International Tax Lawyer First of all, it is very important to […]
The 2023 FBAR conversion rates are very important for your US international tax compliance. The reason for their importance is their relation to FBAR (FinCEN Form 114) and the IRS Form 8938. The 2023 FBAR and 2023 Form 8938 instructions both require that 2023 FBAR conversion rates be used to report the required highest balances of foreign financial assets on these […]
If you reside in St Paul, Minnesota, and you have unreported foreign bank and financial accounts, you may be looking for St Paul FBAR Attorney. In your search, please consider Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s understand why this is the case. St Paul FBAR Attorney: International Tax Lawyer First of all, it is […]
Form 5471 generally requires US GAAP (Generally Accepted Accounting Practices) conversion of foreign financial statements for the purposes of reporting book income, because foreign accountants usually prepare these statements based on a different foreign standard. While Treas. Reg. Reg. §1.964-1(a)(2) contains a limited exception to the US GAAP conversion adjustments for “non-material” items (the same exception applies to […]
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If you reside in Plano, Texas, and you have unreported foreign bank and financial accounts, you may be looking for Plano FBAR Attorney. In your search, please consider Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s understand why this is the case. Plano FBAR Attorney: International Tax Lawyer First of all, it is very important to […]
If you are a resident of Galveston, Texas, and you have unreported foreign bank and financial accounts, you may be looking for Galveston FBAR Attorney. In your search, consider Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s understand why this is the case. Galveston FBAR Attorney: International Tax Lawyer First of all, it is […]
If you are a resident of Sugar Land (Texas) and you have unreported foreign bank and financial accounts, you may be looking for Sugar Land FBAR Attorney in Texas. In your search, you should consider Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s understand why this is the case. Sugar Land FBAR Attorney: International […]
If you are a resident of The Woodlands (Texas) and you have unreported foreign accounts, you may be looking for The Woodlands FBAR Attorney in Texas. In your search, you should consider Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s explore in more detail why this is the case. The Woodlands FBAR Attorney: International […]
Failure to timely and correctly submit Form 5471 with a US tax return may lead to an imposition of Form 5471 penalties. In this article, I will discus the most important 2024 Form 5471 penalties that US taxpayers may face if they fail to comply with the Form 5471 requirements. 2024 Form 5471 Penalties: Purpose of Form 5471 We first need to understand […]
As was the case in the year 2023, I expect that Streamlined Domestic Offshore Procedures will continue to be the flagship offshore voluntary disclosure option in 2024 for US taxpayers who reside in the United States. This is why noncompliant US taxpayers should understand well the main advantages and disadvantages of participating in the 2024 Streamlined Domestic […]
Dear clients, followers, readers and colleagues: Mr. Eugene Sherayzen, an international tax attorney, and the entire international tax team of Sherayzen Law Office, Ltd. wishes you a very Happy New Year 2024!!! Dear clients and prospective clients, in the New Year 2024, you can continue to rely on Sherayzen Law Office for: In resolving all of your current […]
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If you are looking for a Minnesota FBAR tax attorney, consider retaining the services of Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Mr. Sherayzen is an international tax attorney and founder of Sherayzen Law Office. Minnesota FBAR tax attorney: FBAR Specialization of an International Tax Attorney The definition of a Minnesota FBAR tax attorney includes […]
Form 3520-A is a very important US international information return. It can be very complex and has somewhat tricky filing requirements as well as significant noncompliance penalties. In order to avoid these penalties, you need to file a correct Form 3520-A timely. In this essay, I will discuss the 2023 Form 3520-A deadline in the calendar year 2024. 2023 Form 3520-A Deadline: […]
Form 3520 is one of the most important US international information returns. Due to its severe penalty structure, it is important to file it timely. In this brief essay, I will discuss the tax year 2023 Form 3520 deadline. 2023 Form 3520 Deadline: What is Form 3520 IRS Form 3520 is a US international information return used by the IRS to collect […]
IRS Form 5471 is one of the most important US international information returns. In this brief essay, I will discuss the tax year 2023 Form 5471 deadline in the calendar year 2024. 2023 Form 5471 Deadline: What is Form 5471 Form 5471 is a US international information return. In general, the IRS uses Form 5471 to collect information about certain US persons who are officers, directors, or shareholders in […]
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The 2023 FBAR deadline is a critical deadline for US taxpayers this calendar year 2024. What makes FBAR so important are the draconian FBAR penalties which may be imposed on noncompliant taxpayers. Let’s discuss the 2023 FBAR deadline in more detail. 2023 FBAR Deadline: Background Information The official name of FBAR is FinCEN Form 114, the Report of Foreign Bank and Financial Accounts. US […]
Streamlined Foreign Offshore Procedures has been the best voluntary disclosure option since its creation in 2014 for eligible US taxpayers with undisclosed foreign assets and foreign income, and I predict that it will remain so in the year 2024. Let’s discuss in more detail the unique advantages of the 2024 Streamlined Foreign Offshore Procedures. 2024 Streamlined Foreign Offshore Procedures: Background […]
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Even as the year 2023 nears its end, numerous taxpayers continue to be substantially noncompliant with various US international tax laws. Hence, it is important for US taxpayers with undisclosed foreign assets to consider their 2024 offshore voluntary disclosure options. In this essay, I would like to provide an overview of these 2024 offshore voluntary disclosure options. 2024 Offshore Voluntary Disclosure […]
The 2023 IRS quarterly interest rates IRS interest rates are relevant for a great variety of purposes. Let’s highlight three of its most important uses. First, these rates will determine the interest a taxpayer will get on any IRS refunds. Second, the 2023 IRS quarterly interest rates will also be used to establish the interest […]
US taxpayers with undisclosed foreign assets and foreign income need to consider their 2023 offshore voluntary disclosure options. As was the case in the year 2022, I expect that Streamlined Domestic Offshore Procedures will continue to be the flagship voluntary disclosure option in 2023 for US taxpayers who reside in the United States. This is […]
Child FBAR filing obligations is a topic that comes up fairly often in my practice. In this short essay, I will discuss whether a child is required to file an FBAR and how it should be done. Child FBAR Obligations: What is FBAR FBAR is a common abbreviation for the Report of Foreign Bank and […]
In my practice, I often receive calls from people who are confused about their FBAR obligations. A recent call raised an important issue of whether a tax treaty election may affect one’s FBAR obligations. In this brief article, I would like to address this issue of tax treaty election FBAR obligations.
FinCEN Form 114 US Person definition is a highly important component of FBAR and US international tax compliance. In this essay, I will discuss in detail the FinCEN Form 114 US Person definition and highlight some common issues that arise with respect to this definition.
The 2022 FBAR conversion rates are very important for your US international tax compliance. The reason for their importance is their relation to FBAR (FinCEN Form 114) and the IRS Form 8938. The 2022 FBAR and 2022 Form 8938 instructions both require that 2022 FBAR conversion rates be used to report the required highest balances […]
On December 12, 2022, the Internal Revenue Service reminded those who were born in 1950 or earlier that funds in their retirement plans and individual retirement arrangements face important upcoming deadlines for the 2022 required minimum distributions to avoid penalties. What are the 2022 Required Minimum Distributions? Required minimum distributions, or RMDs, are minimum amounts […]
On August 15, 2022, the IRS announced that the 2022 Fourth Quarter IRS interest rates will again increase for both underpayment and overpayment cases. This increase closely follows the Federal Reserve’s recent increases in interest rates. This means that, the 2022 Fourth Quarter IRS interest rates will be as follows: Under the Internal Revenue Code, […]
One of the most challenging issues during an IRS audit is establishing cost-basis in foreign real estate. This issue most frequently comes up in the context of real estate that was obtained through inheritance or gift many years ago. In this article, based on my IRS audit experiences, I would like to discuss the main […]
In situations where a person was not classified as a resident alien at any time in the preceding calendar year and he became a resident alien at some point during current year, a question often arises concerning the tax residency starting date of such a person. This article seeks to provide a succinct overview of […]
On February 23, 2022, the Internal Revenue Service (“IRS”) announced that the 2022 Second Quarter IRS underpayment and overpayment interest rates (“2022 2Q IRS Interest Rates”) will increase from the first quarter of 2022. This means that, the 2022 2Q IRS interest rates will be as follows: The second quarter will start on April 1, […]
On February 22, 2022, Mr. Eugene Sherayzen, an international tax attorney and founder of Sherayzen Law Office, Ltd., presented at a seminar “IRS Voluntary Disclosure Options for U.S. Owners of a Foreign Business” (the “Offshore Voluntary Disclosure Seminar”). The Offshore Voluntary Disclosure Seminar was sponsored by the International Business Law Section of the Minnesota State […]
In early February of 2022, Mr. Sherayzen, an international tax attorney and owner of Sherayzen Law Office, Ltd., traveled to Austin, Texas. Let’s discuss this Austin business trip in more detail. Austin Business Trip: Goals While the business trip to Austin was very short, Mr. Sherayzen set forth three main goals for the trip: (1) […]
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Form 3520-A is a very important US international information return. It can be very complex and has somewhat tricky filing requirements as well as significant noncompliance penalties. In order to avoid these penalties, you need to file a correct Form 3520-A timely. In this essay, I will discuss the 2021 Form 3520-A deadline in the […]
Austin is a fast-growing city which attracts a large number of immigrants with assets in foreign countries. These assets may also generate foreign income which their owners must disclose on their US tax returns. Unfortunately many of these new residents of Austin have not correctly reported their foreign assets and foreign income to the IRS. […]
IRS Form 5471 is one of the most important US international information returns. In this brief essay, I will discuss the tax year 2021 Form 5471 deadline in the calendar year 2022. 2021 Form 5471 Deadline: What is Form 5471 Form 5471 is a US international information return. In general, the IRS uses Form 5471 […]
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The beginning of a new tax season starts the clock on completing the required US international information returns, including Form 3520. In this brief essay, I will discuss the tax year 2021 Form 3520 deadline. 2021 Form 3520 Deadline: What is Form 3520 ? IRS Form 3520 is a US international information return used by […]
The 2021 FBAR deadline is a critical deadline for US taxpayers this calendar year 2022. What makes FBAR so important are the draconian FBAR penalties which may be imposed on noncompliant taxpayers. Let’s discuss the 2021 FBAR deadline in more detail. 2021 FBAR Deadline: Background Information The official name of FBAR is FinCEN Form 114, […]
While the year 2021 has ended, numerous taxpayers continue to be substantially noncompliant with various US international tax laws. Hence, it is important for US taxpayers with undisclosed foreign assets to consider their 2022 offshore voluntary disclosure options. In this essay, I would like to provide an overview of these 2022 offshore voluntary disclosure options. […]
If you have foreign financial accounts and reside in San Antonio (Texas), you would be looking for a San Antonio FBAR Attorney in Texas. In your search, you could consider out-of-state attorneys such as Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s explore in more detail why this is the case. […]
The 2021 FBAR conversion rates are highly important in US international tax compliance. The 2021 FBAR and 2021 Form 8938 instructions both require that 2021 FBAR conversion rates be used to report the required highest balances of foreign financial assets on these forms (in the case of Form 8938, the 2021 FBAR conversion rates is […]
If you have foreign financial accounts and reside in San Diego (California), you would be looking for a San Diego FBAR Attorney in California. In your search, you could consider out-of-state attorneys such as Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s explore in more detail why this is the case. […]
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In a previous article, I discussed the necessity of balancing international tax planning priorities in order to obtain an optimal tax result. In this article, I will explain why international tax planning should be based on a carefully-studied factual basis. Factual Basis as the Foundation for International Tax Planning Young inexperienced lawyers often come up […]
If you have foreign financial accounts and reside in Los Angeles (California), you would be looking for a Los Angeles FBAR Attorney in California. In your search, you might consider out-of-state attorneys such as Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s explore in more detail why this is the case. […]
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For the purposes of US international tax laws, it is very important to distinguish a subsidiary from a branch. Let’s define both terms in this short essay. Subsidiary vs. Branch: Definition of a Branch A branch is a direct form of doing business by a corporation in another country where the corporation retains the direct […]
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If you have foreign financial accounts and reside in San Francisco (California), you should be looking for a San Francisco FBAR Attorney in California. In your search, you could consider out-of-state attorneys such as Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s explore in more detail why this is the case. […]
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Sometimes, I encounter in my practice one particularly damaging belief concerning international tax planning for US corporations that engage in cross-border transactions and maintain a foreign subsidiary or a network of foreign subsidiaries. This is a belief that international tax planning for such corporations should only focus on the reduction of its US taxes above […]
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Defining a partnership as “foreign” or “domestic” can be highly important for US tax purposes. In this article, I will explain the foreign partnership definition and explain its significance. Foreign Partnership Definition: Importance There may be important US international tax law consequences that stem from whether a partnership is classified as “foreign” or “domestic”. These […]
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If you have foreign financial accounts and reside in Berkeley (California), you would be looking for a Berkeley FBAR Attorney in California. In your search, consider out-of-state attorneys such as Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s explore in more detail why this is the case. Berkeley FBAR Attorney: International […]
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Dear clients, followers, readers and colleagues: Sherayzen Law Office wishes you a very Happy New Year 2022!!! For those of you who are currently not in compliance with their US international tax reporting obligations, including FBAR or FinCEN Form 114, we wish you to successfully resolve your prior noncompliance in this new year 2022 with […]
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If you reside in Oakland (California) and have foreign accounts, you would be looking for a Oakland FBAR Attorney in California. In your search, consider out-of-state attorneys such as Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s explore in more detail why this is the case. Oakland FBAR Attorney: International Tax […]
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If you are a resident of Sacramento (California) and you have foreign accounts, you would be looking for a Sacramento FBAR Attorney in California. In your search, you could consider out-of-state attorneys such as Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s explore in more detail why this is the case. […]
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If you are looking for a Bozeman FBAR Attorney in Montana, the recommendation is that you retain the services of Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Mr. Sherayzen is an FBAR Attorney and founder of Sherayzen Law Office. Bozeman FBAR Attorney: International Tax Attorney It is very important to understand […]
Oregon is a lovely state which hosts a number of immigrants from many different countries (especially in Portland, but also Salem and Eugene). Many of these new US taxpayers own assets in foreign countries and receive income generated by these assets. Unfortunately a number of these taxpayers are not in compliance with their US international […]
This essay seeks to identify those considered to be a “US Taxpayer” with respect to reporting foreign real estate or income from it to the IRS. In other words, today, I will discuss the foreign real estate US Taxpayer definition. Foreign Real Estate US Taxpayer Definition: IRC §7701(a) The definition of “US taxpayer” for the […]
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Failure to timely and correctly submit Form 5471 with a US tax return may lead to an imposition of Form 5471 penalties. In this article, I will discus the most important 2022 Form 5471 penalties that US taxpayers may face if they fail to comply with the Form 5471 requirements. 2022 Form 5471 Penalties: Purpose […]
Streamlined Foreign Offshore Procedures has been the best voluntary disclosure option for eligible US taxpayers with undisclosed foreign assets and foreign income, and I predict that it will remain so in the year 2022. Let’s discuss in more detail the unique advantages of the 2022 Streamlined Foreign Offshore Procedures. 2022 Streamlined Foreign Offshore Procedures: Background […]
Florida is one of the most favorite destinations for immigrants as well as US citizens who do business overseas. Many of these taxpayers own assets in foreign countries and receive income generated by these assets. For this reason, Florida is also one of the leading states when it comes to individuals who wish to go […]
As the year 2021 winds down, US taxpayers with undisclosed foreign assets and foreign income need to consider their 2022 offshore voluntary disclosure options. As it has been the case since the second half of 2014 (really the year 2018 when the 2014 OVDP was closed), I expect that Streamlined Domestic Offshore Procedures will continue […]
The increased emigration to Texas of foreigners and Americans from other states resulted in a higher portion of Texans with undisclosed foreign assets. The vast majority of these Texans are non-willful with respect to their prior reporting noncompliance and, once they discover their prior noncompliance, they look for professional help resolve their US tax noncompliance […]
If you are a California resident with undisclosed foreign assets and you believe that you were non-willful with respect to your prior reporting noncompliance, you would be looking for professional help to bring your US tax affairs into full compliance with US international tax law through Streamlined Domestic Offshore Procedures. In other words, you are […]
If you have undisclosed foreign accounts and you are a resident of Spring, Texas, it is important for you to understand your options in terms of who can help you with the voluntary disclosure of your noncompliant offshore accounts. In this article, I will help you understand your offshore accounts voluntary disclosure lawyer Spring Texas […]
On November 23, 2021, the IRS announced that the First Quarter 2022 IRS interest rates on overpayment and underpayment of tax will not change from the Fourth Quarter of 2021. This means that, the First Quarter 2022 IRS interest rates will be as follows: Internal Revenue Code (“IRC”) §6621 establishes the IRS interest rates on […]
Ownership of a Controlled Foreign Corporation (“CFC”) presents unique income tax challenges under US international tax law. One of them is the fact that US shareholders of a CFC may have to recognize CFC income on their US tax returns beyond what is required under US domestic tax laws. In this article, I will introduce […]
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It is a common, almost default practice in Brazil to invest in Brazilian mutual funds. While this practice is perfectly innocent for majority of Brazilians, it may present a huge compliance issue for Brazilians who are also US taxpayers. The problem is that this type of an investment draws at least two important US tax […]
As if they were not high enough, the US Congress has obligated the IRS to adjust FBAR civil penalties for inflation on an annual basis. In this article, I will provide a broad overview of the current FBAR penalty system and describe the current 2021 FBAR civil penalties. 2021 FBAR Civil Penalties: Overview of the […]
After having handled so many offshore voluntary disclosures for my Indian and Indian-American clients, I can clearly see that US tax reporting obligations concerning Indian mutual funds is one of the most troublesome areas for my clients. In this article, I will focus on the three most important US tax reporting requirements that may be […]
The 2020 FBAR conversion rates are highly important in US international tax compliance. The 2020 FBAR and 2020 Form 8938 instructions both require that 2020 FBAR conversion rates be used to report the required highest balances of foreign financial assets on these forms (in the case of Form 8938, the 2020 FBAR conversion rates is […]
The 2020 FBAR deadline is one of the most important deadlines for US taxpayers this calendar year 2021. What makes FBAR so important are the draconian FBAR penalties which may be imposed on noncompliant taxpayers. Let’s discuss the 2020 FBAR deadline in more detail. 2020 FBAR Deadline: Background Information The official name of FBAR is […]
On January 15, 2021, the IRS announced that the 2021 tax filing season for the tax year 2020 will start on Friday, February 12, 2021. On that day, the IRS will begin accepting and processing 2020 tax year returns. The February 12 start date for individual tax return filers allows the IRS time to do […]
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On January 28, 2021, Mr. Eugene Sherayzen, an international tax attorney and founder of Sherayzen Law Office, Ltd., co-presented with a business lawyer a seminar titled “Investing in US Businesses by Foreign Persons – Common Business and Tax Considerations” (the “Inbound Transactions Seminar”). The Inbound Transactions Seminar was sponsored by the International Business Law Section […]
In a previous article, I described the analytical framework for conducting tax analysis of inbound transactions. In this article, I will focus on the first issue of this framework – the Non-US Person definition. Non-US Person Definition: Importance in the Context of Inbound Transactions Before we delve into the issue of Non-US Person definition, we […]
Inbound transactions deal with Non-US persons who operate in and/or derive income from the United States. This introductory essay opens a series of articles concerning US taxation of inbound transactions. Today, I will set forth the general inbound transactions tax framework; in future articles, I will explore in more detail each element of this framework. […]
2020 FBAR criminal penalties is a potential threat to any US taxpayer who willfully failed to file his FBARs or knowingly filed a false FBAR. In this essay, I would like to review the 2020 FBAR criminal penalties that these noncompliant US taxpayers may have to face. 2020 FBAR Criminal Penalties: Background Information A lot […]
I often receive calls from prospective clients who talk about FBAR voluntary disclosure. They usually have no clear idea of what is meant by this term and what its requirements are. In this article, I will discuss this concept of FBAR Voluntary Disclosure and explain how this concept covers a variety of offshore voluntary disclosure […]
Recently, I received a number of phone calls and emails from people who complained about incorrect filing of their Streamlined Domestic Offshore Procedures (“SDOP”) packages by lawyers who took their cases on a flat-fee basis. In this article, I would like to discuss why a flat fee is generally not well-suited for a proper SDOP […]
US taxpayers can still timely file their 2019 FBAR (Report of Foreign Bank and Financial Accounts) by the new October 31 2020 FBAR deadline. This FBAR deadline extension is highly unusual and requires some explanation. October 31 2020 FBAR Deadline: What is FBAR? The Report of Foreign Bank and Financial Accounts (“FBAR”) is officially known […]
This article is a second installment of our series of articles on corporate distributions. Today’s topic is the description of 26 U.S.C. Subpart A, which contains the most important tax provisions for our subsequent discussions of this subject. 26 U.S.C. Subpart A: Purpose 26 U.S.C Subpart A is the first part of Part I of […]
This essay opens our new series of articles which focuses on corporate distributions. The new series will cover the classification, statutory structure and tax treatment of various types of corporation distributions, including redemptions of corporate stock. This first article seeks to introduce the readers to the overall US statutory tax structure concerning corporate distributions. Corporation […]
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On March 5, 2020, the Internal Revenue Service (“IRS”) and the U.S. Department of Justice (“DOJ”) announced that Mr. Oleg Tinkov was arrested in London in connection with an indictment concerning concealment of about $1 billion in foreign assets and the expatriation income in connection with these assets. Let’s discuss the Tinkov case in more […]
In a previous article, I discussed the IRC (Internal Revenue Code) §318 sidewise attribution limitation. This limitation was the last piece in the jigsaw puzzle of the §318 entity-member attribution rules; now, we are ready to summarize these rules in light of this exception. This is the purpose of this article – state the §318 […]
On April 9, 2020, the IRS announced additional relief to taxpayers by moving the due date for more deadlines to July 15, 2020. Let’s discuss this additional July 15 Deferral in more detail. July 15 Deferral: Background Information On March 13, 2020, in response to the 2019 coronavirus (also called “COVID-19″) pandemic, President Trump issued […]
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On March 31, 2020, the IRS launched the Employee Retention Credit. This new tax credit is designed to encourage businesses to keep employees on their payroll. Let’s discuss the Employee Retention Credit in more detail. Employee Retention Credit: Eligibility Criteria Two categories of employers are not eligible to apply for the Employee Retention Credit: (a) […]
This article explores the third main limitation on the general IRC (Internal Revenue Code) §318 corporate stock re-attribution rules – §318 Sidewise Attribution Limitation. §318 Sidewise Attribution Limitation: What is “Sidewise Attribution”? A sidewise attribution occurs when corporate stock owned by an owner of a business entity (or a beneficiary of a trust or estate) […]
On March 25 , 2020, the Honorable Tim Walz, Governor of the State of Minnesota, issued a “Shelter-In-Place” Emergency Executive Order 20-20. The Executive Order mandates all persons in Minnesota to stay at home or in their place residence, unless they go out to engage in certain activities or do work for a business which […]
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The advancement of coronavirus in the United States and around the world has significantly disrupted the normal conditions and assumptions for a US taxpayer who engages in an offshore voluntary disclosure of his unreported foreign income and foreign assets. I will refer to a voluntary disclosure conducted in this context of the coronavirus disruptions as […]
On March 21, 2020, the IRS moved the federal income tax filing and tax payment due date from April 15, 2020, to July 15, 2020. Let’s discuss the new July 15 deadline in more detail. July 15 Deadline: Why the IRS Moved the Tax Deadline to July 15, 2020? The IRS moved the deadline because […]
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The ongoing coronavirus pandemic has disrupted many areas of human activity around the planet. The coronavirus even affected the IRS offshore voluntary disclosures concerning US taxpayers’ unreported financial assets and income in China (“Chinese Offshore Voluntary Disclosures”). In fact, the impact of coronavirus on the Chinese Offshore Voluntary Disclosures has been severe and extremely disruptive. […]
This article explores the second limitation on the IRC (Internal Revenue Code) §318 re-attribution rule – family re-attribution limitation. Family Re-Attribution Limitation: General §318 Re-Attribution Rule The general §318 re-attribution rule states that a constructively-owned corporate stock should be treated as actually owned for the purpose of further re-attribution of stock to other persons. §318(a)(5)(A). […]
This article continues a series of articles concerning US tax classification of unusual foreign entities; our focus is on the determination whether these entities should be classified as foreign business entities or foreign trusts. Today’s topic is the Hindu Undivided Family, the preferred legal entity for managing family estates for a large number of wealthy […]
In a previous article, I discussed the IRC (Internal Revenue Code) §318 general rule on the re-attribution of corporate stock; in that context, I mentioned that there are certain restrictions on §318 re-attribution. Today, I would like to discuss one of such restrictions – §318 double-inclusion prohibition. §318 Double-Inclusion Prohibition: General Re-Attribution Rule Before we […]
On February 28, 2020, the Internal Revenue Service (“IRS”) announced that the 2020 Second Quarter IRS underpayment and overpayment interest rates (“2020 2Q IRS Interest Rates”) will not change from the first quarter of 2020. This means that, the 2020 2Q IRS interest rates will be as follows: Under the Internal Revenue Code, these interest […]
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In an earlier article, I discussed the advantages of the Streamlined Domestic Offshore Procedures (“SDOP”) in the year 2020. Among the advantages, I mentioned the SDOP Miscellaneous Offshore Penalty (hereinafter “SDOP Penalty”), but never explained this concept. The focus of this article is on the 2020 SDOP Penalty and how one generally should calculate it. […]
This article continues a series of articles on the Internal Revenue Code (“IRC”) §318 constructive ownership rules. Today, I would like to focus on the §318 re-attribution rule. In this article, I will explain the general §318 re-attribution rule and mention the exceptions. I will discuss the exceptions in more detail in future articles. §318 […]
This article continues a series of articles on foreign trust classification with respect to various foreign entities. Today’s topic is the US tax treatment of a Liechtenstein Stiftung. Liechtenstein Stiftung: Formation A Liechtenstein Stiftung, or Foundation, is a legal entity under Liechtenstein law. It may be formed by filing a foundation charter or by will […]
Over the years, the IRS has made a number of rulings with respect to whether certain foreign entities should be considered trusts for US tax purposes. In this article, I would like to discuss the US tax classification of Liechtenstein Anstalt based on the 2009 IRS Chief Counsel Advice Memorandum, AM 2009-012. Liechtenstein Anstalt: Creation […]
For the very first time, the IRS has created a new tax form called Form “1040-SR”. “SR” here standards for “seniors”. The idea is that the new form will be used by senior taxpayers. Let’s discuss Form 1040-SR in more detail. Form 1040-SR: Reasons for Its Creation The reason for the creation of Form 1040-SR […]
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FinCEN Form 114 trust filers constitute a highly problematic category of FBAR filers. Form 114 trust filers are problematic not so much because the FBAR requirement itself is unclear, but, rather, because the trustees do not realize that this requirement applies to them. In this article, I would like to educate potential Form 114 trust […]
A previous article defined “option” for the purposes of the IRC (Internal Revenue Code) §318(a)(4). Today, I will discuss the main §318 option attribution rule. §318 Option Attribution: Main Rule Under §318(a)(4), “if any person has an option to acquire stock, such stock shall be considered as owned by such person.” For the purposes of […]
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This article continues our series of articles on the IRC (Internal Revenue Code) §318 constructive ownership rules. In this article, I would like to introduce the readers to the infamous §318 option attribution rules. Before we delve into the discussion of the constructive ownership rules for options, however, it is important to understand what “option” […]
In a previous article, I discussed the rules for the downstream attribution of corporate stocks under the IRC (Internal Revenue Code) §318. Today, I would like to discuss the §318 upstream corporate attribution rules. §318 Upstream Corporate Attribution: Two Types of Attribution There are two types of §318 corporate attribution rules: downstream and upstream. Under […]
This article continues a series of articles on the constructive ownership rules of the IRC (Internal Revenue Code) §318. Today, we will discuss corporate attribution rules, even more specifically the §318 downstream corporate attribution rules. §318 Downstream Corporate Attribution: Two Types of Attribution There are two types of §318 corporate attribution rules: downstream and upstream. […]
Beginning January 1, 2020, the IRS changed the optional standard mileage for the calculation of deductible costs of operating an automobile (sedans, vans, pickups and panel trucks) for business, charitable, medical or moving purposes. Let’s discuss in more detail these new 2020 IRS Standard Mileage Rates. 2020 IRS Standard Mileage Rates for Business Usage For […]
For some years now, India has remained at the top of all countries that receive remittances in US dollars. A lot of these funds flow from Indian-Americans and Indians who reside in the United States. The problem is that a lot of them are not in compliance with respect to their US international tax obligations […]
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In a previous article, I explained special §318 rules concerning grantor trusts as an exception to the general §318 trust attribution rules. Today, I will discuss the special §318 employee trust attribution rules as another exception to the general §318 trust attribution rules. §318 Employee Trust Attribution: Focus on Tax-Exempt Employee Trusts First of all, […]
In previous articles, I discussed the §318 downstream and upstream attribution rules; in that context, I also mentioned that there were special rules concerning grantor trusts and tax-exempt employee trusts. This article will cover the special §318 grantor trust attribution rules. §318 Grantor Trust Attribution: Definition of Grantor Trust A grantor trust is any trust […]
In a previous article, I discussed the Internal Revenue Code (“IRC”) §318 downstream trust attribution rules. Today, I would like to focus on the §318 upstream trust attribution rules. §318 Upstream Trust Attribution: Downstream vs. Upstream There are two types of §318 trust attribution: downstream and upstream. In a previous article, I already covered the […]
In this article, I would like to introduce the readers to the concept of US information returns; I will also explore the differences between US information returns and US tax returns. US Information Returns: Two Types of Returns The US tax system is a self-assessment system where taxpayers must file certain forms or returns developed […]
Many taxpayers and even tax professionals are completely unaware of the fact that FBAR needs to be filed not just by individuals, businesses and trusts, but also by estates. In this article, I will discuss FinCEN Form 114 Estate filers (i.e. estates that need to file FinCEN Form 114). FinCEN Form 114 Estate filers: FBAR […]
The attribution of stock ownership to constructive owners is a highly important feature of US domestic and international tax law. The Internal Revenue Code (“IRC”) §318 contains complex constructive ownership rules concerning corporate stock; these rules vary depending on a specific §318 relationship. This article focuses on an important category of §318 relationships – trusts. […]
This article continues a series of articles concerning the constructive ownership rules of the Internal Revenue Code (“IRC”) §318. Today’s focus is on the §318 upstream estate attribution rules. §318 Estate Attribution Rules: Downstream Attribution vs. Upstream Attribution There are two types of the IRC §318 estate attribution rules: downstream and upstream. In a previous […]
The Internal Revenue Code (“IRC”) §318 contains corporate stock attribution rules between an estate and its beneficiaries. In order to apply these rules correctly, one must understand how §318 defines “beneficiary” for the purposes of upstream and downstream estate attribution rules. This articles will introduce the readers to this §318 estate beneficiary definition. §318 Estate […]
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This article continues a series of articles on the Internal Revenue Code (“IRC”) §318 constructive ownership rules. Today, the topic is §318 estate attribution rules – i.e. attribution of ownership of corporate stock from estate to its beneficiaries and vice versa. Since this is a long topic, I will divide it into three articles. This […]
In a recent article, I mentioned that Streamlined Domestic Offshore Procedures (“SDOP”) will continue to be the most important voluntary disclosure option in 2020 for US taxpayers who reside in the United States. However, not all taxpayers will qualify to participate in the 2020 SDOP. In this article, I will discuss the main 2020 SDOP […]
This article continues a series of articles on the Internal Revenue Code (“IRC”) §318 constructive ownership rules. In this essay, we will discuss the §318 partnership attribution rules – i.e. attribution of ownership of shares from partnership to partners and vice versa. §318 Partnership Attribution Rules: Two Types There are two types of the IRC […]
On November 18, 2019, the Ukrainian FATCA IGA entered into force. Sherayzen Law Office already wrote on this subject a little more than three years ago. This essay updates the status of the Ukrainian FATCA IGA. Ukrainian FATCA IGA: Background Information The Foreign Account Tax Compliance Act (FATCA) was enacted into law in 2010 and […]
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The 2019 FBAR conversion rates are highly important in US international tax compliance. The 2019 FBAR and 2019 Form 8938 instructions both require that 2019 FBAR conversion rates be used to report the required highest balances of foreign financial assets on these forms (in the case of Form 8938, the 2019 FBAR conversion rates is […]
Noncompliant US taxpayers with undisclosed foreign assets and foreign income should consider their voluntary disclosure options in this new year 2020. Similarly to 2019, I expect that this year Streamlined Domestic Offshore Procedures will continue to be the flagship voluntary disclosure option for such taxpayers who reside in the United States. In order for the […]
In a previous article, I outlined six main relationship categories of the Internal Revenue Code (“IRC”) §318. In this article, I will focus on the first of these categories: the IRC §318 family attribution rules. §318 Family Attribution: General Rule §318(a)(1)(A) describes the §318 family attribution rule . It states that an individual is a […]
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As the new year 2020 begins, it is important for US taxpayers with undisclosed foreign assets to consider their 2020 offshore voluntary disclosure options. Unlike last year, there have not been any drastic changes to the voluntary disclosure options since 2019. In this article, I would like to generally explore the 2020 offshore voluntary disclosure […]
On January 6, 2020, the IRS announced that the 2019 tax filing season will commence on Monday, January 27, 2020. In other words, on that date, the IRS will begin accepting and processing the 2019 tax returns. This year the deadline for the filing of the 2019 tax returns as well as any payment of […]
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In a series of articles concerning Internal Revenue Code (“IRC”) §267, I discussed various rules concerning related party loss disallowance. In this article, I would like to focus on special rules concerning partnership related party loss disallowance. Partnership Related Party Loss Disallowance: Main IRC Provisions Three IRC sections are most relevant to special rules of […]
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In a previous article I discussed the importance of the Internal Revenue Code (“IRC”) §318 constructive stock ownership rules. Today, I would like to introduce the readers to the various §318 relationship categories – i.e. what types of taxpayers are affected by this section’s constructive ownership rules. §318 Relationship Categories: Related Persons Congress created IRC […]
It is difficult to overstate the significant role the Internal Revenue Code (“IRC”) §318 plays in US corporate tax law and US international tax law. In this article, I will explain the §318 importance and list out major IRC provisions which reference §318. IRC §318 Importance: Fundamental Purpose §318 sets forth the circumstances when the […]
The IRS stated in December of 2019 that it hired about 9,500 people during the fiscal year 2019 and it is trying to add another about 5,300 employees as soon as possible. This new IRS hiring spree is meant to reverse the long-term declining trend in IRS employment. The IRS Hiring Spree: 2009-2018 Trend Between […]
In a previous article, I introduced the constructive ownership rules of the Internal Revenue Code (“IRC”) §267. Today, I would like to discuss one of them in more detail – §267 family attribution. §267 Family Attribution: General Rule The §267 family attribution rule is described in §267(c)(2). It states that, for the purposes of determining […]
In a previous article, I introduced the Internal Revenue Code (“IRC”) §267 constructive ownership rules. Today, I would like to focus specifically on the §267 entity-to-member attribution rule. §267 Entity-to-Member Attribution: General Rule §267(c)(1) describes the §267 entity-to-member attribution rule. It states that stocks owned by a corporation, partnership, estate or trust will be treated […]
In a previous article, I discussed the related person definition for the purposes of the Internal Revenue Code (“IRC”) §267. That article, however, focused on the definition itself rather than on a host of supplementary rules necessary to fully understand this definition. In this article, I would like to discuss one set of these rules […]
Internal Revenue Code (“IRC”) §267 imposes significant restrictions on the ability of related persons to recognize loss from a transaction that involves a sale or exchange of property. Hence, it is important for a tax attorney who advises on such a transaction to understand the concept of a “related person” in order to properly advise […]
Sherayzen Law Office wishes everyone a very happy and prosperous New Year 2020! We also wish you stay in full US tax compliance with US international tax laws while your tax burden decreases! And, we are here to help our clients to turn these wishes into reality! In the year 2020, Sherayzen Law Office will […]
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This brief essay explores the IRC §267 purpose of existence – i.e. Why did Congress decide to enact IRC §267 and in what situations does it generally apply? IRC §267 Purpose: Problematic Scenarios When Congress enacted IRC §267, it meant to address a very specific problem in the context of two scenarios. The problem was […]
One of the most popular tax reduction strategies is based on shifting an ownership interest in an entity or property to related persons or related entities. In order to prevent the abuse of this strategy, the US Congress has enacted a large number of attribution rules. In this brief essay, I will introduce the concept […]
On December 6, 2019, the Internal Revenue Service (“IRS”) announced that the 2020 First Quarter IRS underpayment and overpayment interest rates will not change from the 4th Quarter of 2019. This means that, the 2020 First Quarter IRS underpayment and overpayment interest rates will be as follows: Under the Internal Revenue Code, the rate of […]
A significant number of US taxpayers who went through the OVDP mistakenly believed that they were immune from the IRS post-OVDP audits concerning their post-voluntary disclosure compliance. Sherayzen Law Office has repeatedly warned in the past that these taxpayers were mistaken with respect to their exposure to potential post-OVDP audits. The recent announcement of a […]
On November 8, 2019, the Federal Circuit Court of Appeals (the “Court”) upheld the decision of the Court of Federal Claims to uphold the IRS assessment of a willful FBAR penalty in the amount of $803,530 with respect to Ms. Mindy Norman’s failure to file her 2007 FBAR. The Norman case deserves special attention because […]
On November 19, 2019, the IRS announced changes to the current FBAR filing verification submission process. The change is technical, but not without importance.
On November 21, 2019, Mr. Eugene Sherayzen, an international tax attorney and founder of Sherayzen Law Office, Ltd., conducted a seminar at the Belarusian State University Law School (the “2019 BSU Seminar”) in Minsk, Belarus. Let’s explore the 2019 BSU Seminar in more detail. 2019 BSU Seminar: Topic and Attendance The topic of the seminar […]
The new Greek government headed by Prime Minister Kyriakos Mitsotakis wishes to reach 2.8% economic growth next year. Part of the plan to achieve this goal includes a tax reform which introduces a curious new concept of Greek flat tax residency for wealthy foreign investors. Let’s discuss this interesting idea in more detail. Greek Flat […]
There is a surprisingly large number of US taxpayers who believe that reporting foreign income that was not disclosed on a Form W-2 or 1099 is unnecessary. Even if they honestly believe it to be true, this erroneous belief exposes these taxpayers to an elevated risk of imposition of high IRS penalties. In this article, […]
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On September 6, 2019, the Tax Division of the US Department of Justice (“DOJ”) announced another victory against Offshore Tax Evasion. This time, a Houston lawyer, Mr. Jack Stephen Pursley, was convicted of one count of conspiracy to defraud the United States and three counts of tax evasion. Let’s discuss this Pursley Case in more […]
On August 27, 2019, the US Department of Justice (“DOJ”) announced that a federal grand jury returned a superseding indictment charging Mr. Brian Booker, a former resident of Fort Lauderdale, Florida, whose business specialized in international trade, with failing to file Reports of Foreign Bank and Financial Accounts (“FBARs”) and filing false documents with the […]
On July 19, 2019, the IRS Large Business and International division (LB&I) announced the approval of another six compliance campaigns. Let’s discuss in more detail these July 2019 IRS compliance campaigns. July 2019 IRS Compliance Campaigns: Background Information In the mid-2010s, after extensive tax planning, the IRS decided to restructure LB&I in a way that […]
I often receive questions concerning a child’s FBAR requirements. Many taxpayers automatically assume that, if their children are below the age of majority, these children do not have to file FBARs. Unfortunately, this is not the case – a child’s FBAR requirements are every bit as extensive of those of his parents. Child’s FBAR Requirements: […]
On August 28, 2019, the Internal Revenue Service (“IRS”) announced that the 2019 Fourth Quarter IRS underpayment and overpayment interest rates will not change from the 3rd Quarter of 2019. This means that, the 2019 Fourth Quarter IRS underpayment and overpayment interest rates will be as follows: Under the Internal Revenue Code, the rate of […]
On October 15, 2019, Sherayzen Law Office, Ltd., successfully completed its 2019 Fall Tax Season. It was a challenging and interesting tax season. Let’s discuss it in more detail. 2019 Fall Tax Season: Sherayzen Law Office’s Annual Compliance Clients Annual tax compliance is one of the major services offered by Sherayzen Law Office to its […]
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While there are a number of articles in professional publications and attorneys’ blogs covering the civil penalties associated with a failure to comply with the Foreign Account Tax Compliance Act (“FATCA”), there is almost a complete silence with respect to FATCA criminal penalties. This essay intends to fill this gap by introducing its readers to […]
On August 28, 2019, Mr. Eugene Sherayzen, the owner and founder of Sherayzen Law Office, Ltd, gave a seminar at Minsk City Bar Association (“MCBA”) in Minsk, Belarus. The focus of the seminar was on the 2017 Tax Cuts and Jobs Act (“2017 TCJA” or “2017 tax reform”) changes in the US international corporate tax […]
This article introduces readers to potential US international tax issues that a business entity may face when it elects to operate as a partnership for US tax purposes (all together “partnership international tax issues”). The focus of this article is on partnership international tax issues, particularly where US partnerships have a foreign partner and foreign […]
It seems that the IRS audit powers are increasing more and more at the expense of taxpayers’ privacy rights. In June of 2019, the IRS posted a procurement notice on its website to award a contract to a company Cellebrite, an Israeli company that specializes in smartphone decryption software and equipment. In other words, the […]
In this article, I would like to discuss the legal definition of Responsible Person under Minn. Stat. § 270C.56 – I will refer to this term as Minnesota sales tax responsible person legal standard. Minnesota Sales Tax Responsible Person: Background Information Minnesota imposes a sales tax “on the gross receipts from retail sales.” Minn. Stat. […]
In July of 2019, Mr. Eugene Sherayzen, an international tax attorney and owner of Sherayzen Law Office, Ltd., completed his business trip to Zurich, Switzerland. Let’s discuss in more detail this 2019 Zurich Trip, its goals and accomplishments. 2019 Zurich Trip: Goals Mr. Sherayzen outlined the firm’s goals for the Zurich trip during the Sherayzen […]
Mr. Eugene Sherayzen, an international tax attorney and owner of Sherayzen Law Office, Ltd., completed his trip to Karlovy Vary, Czech Republic, on July 10, 2019. Let’s discuss in more detail this brief 2019 Karlovy Vary trip, its motivations and results. 2019 Karlovy Vary Trip: Reasons for this Excursion There were several reasons why Mr. […]
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The Legal Entity Identifiers (“LEI”) is a method to identify legal entities that engage in financial transactions. Let’s discuss LEI in more detail. LEI: Background Information The establishment of LEI was driven by the recognition by regulators around the world that there is a complete lack of transparency with respect to identifying parties to international […]
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In May of 2019, Mr. Andrew Keyso, a deputy chief of the IRS Office of Appeals, stated that the Appeals Office is in the early stages of rolling out the technology to conduct video conferences as an option for Appeals conferences. This is great news for tax practitioners – an IRS Appeals video conference is […]
On May 1, 2019, the United States District Court for the Western District of North Carolina (the “Court”) authorized the IRS to serve John Doe Summonses seeking information about Finnish residents who own secret US bank accounts (collectively Finnish US Bank Accounts). Let’s discuss this development concerning Finnish US bank accounts in more depth. Finnish […]
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The IRS Private Letter Rulings (“PLR”) and the IRS Technical Advice Memoranda (“TAM”) often get confused by non-practitioners. In this small essay, I will engage in a brief PLR TAM comparison in order to clarify the similarities and differences between both types of IRS administrative guidance. PLR TAM Comparison: Similarities Let’s begin our PLR TAM […]
On April 4, 2019, the IRS issued the FBAR Fact Sheet in order to acquaint US taxpayers with this highly important reporting requirement for foreign accounts held by US persons. Let’s analyze the new fact sheet in more detail. FBAR Fact Sheet: Organizational Structure of the Fact Sheet The IRS FBAR Fact Sheet can be […]
An analysis of the fiscal year 2018 DOJ criminal case statistics reveals certain interesting patterns about federal criminal tax prosecution in that year. Let’s explore in more detail these patterns. 2018 DOJ Criminal Case Statistics: Typical Tax Criminal The analysis of the FY 2018 DOJ criminal case statistics reveals an interesting fact – a typical […]
On June 7, 2019, the Organization for Economic Cooperation and Development (“OECD”) announced that countries shared information concerning 47 million financial accounts under the OECD’s Common Reporting Standard (“CRS”). Let’s explore this CRS success in more detail. Measuring CRS Success: What is CRS? CRS can be called the response of the rest of the world […]
US taxpayers who own Hungarian bank accounts may have to comply with a large number of US tax reporting requirements. In particular, they need to be concerned about reporting income generated by their Hungarian bank accounts as well as disclosing the ownership of these accounts on FBAR and Form 8938. Other requirements may apply, but […]
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On June 5, 2019, the Internal Revenue Service announced 2019 Third Quarter IRS Interest Rates. This quarter, the IRS interest rates will be reduced for the first time in years. 2019 Third Quarter IRS Interest Rates: 3rd Quarter and Interest Rates Defined Third quarter of 2019 begins on July 1, 2019 and ends on September […]
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On May 31, 2019, the IRS released a Private Letter Ruling (“PLR”) on the extension of time to make an election to be treated as a disregarded entity for US tax purposes under Treas. Reg. Section 301.7701 (26 CFR 301.7701-3). Let’s explore this PLR 201922010 in more detail. PLR 201922010: Fact Pattern PLR 201922010 deals […]
The 2017 Tax Reform created the Internal Revenue Code Section 965, which requires US shareholders of foreign corporations to pay a new transition tax (hereinafter, “IRC 965 Tax”) in certain circumstances. In this short article, I will introduce the readers to the IRC 965 Tax. IRC 965 Tax: Taxpayers Who Are Targeted by the New […]
On April 16, 2019, the IRS Large Business and International division (LB&I) announced the approval of three additional compliance campaigns. Let’s discuss in more detail these April 2019 IRS compliance campaigns. April 2019 IRS Compliance Campaigns: Background Information In the mid-2010s, after extensive planning, the IRS decided to move LB&I toward issue-based examinations and a […]
On May 15, 2019, a Texas federal court ruled that the IRS can enforce a John Doe Summons for client information from Taylor Lohmeyer Law Firm because the firm failed to demonstrate that the attorney-client privilege protected this information. This is bad news for Taylor Lohmeyer Law Firm clients who now may have to face […]
A large number of US taxpayers own Panamanian bank accounts. These taxpayers have bank accounts in Panama for a variety of reasons: personal, business, tax planning and/or estate planning. Many of these account holders still do not realize that their Panamanian bank accounts may be subject to numerous reporting requirements in the United States. In […]
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On October 30, 2018, the IRS Large Business and International division (LB&I) has announced five additional compliance campaigns. Let’s discuss in more detail these October 2018 IRS compliance campaigns. October 2018 IRS Compliance Campaigns: Background Information By the middle of the 2010s, the IRS realized that the then-existing structure of the LB&I was not the […]
Employee stock option sourcing rules govern the US tax classification of income generated by stock options as US-source income or foreign-source income. In this article, I will provide a general overview of the employee stock option sourcing rules. Employee Stock Option Sourcing Rules: Importance of Income Sourcing Rules Income sourcing rules are very important in […]
On September 10, 2018, the IRS Large Business and International division (“LB&I”) announced the creation of another five compliance campaigns. Let’s explore in more depth these September 2018 IRS Compliance Campaigns. September 2018 IRS Compliance Campaigns: Background Information Since January of 2017, the IRS has been regularly adding more and more compliance campaigns. The compliance […]
On July 2, 2018, the IRS announced the creation of another five compliance campaigns. Let’s discuss these July 2018 IRS Compliance Campaigns in more detail. July 2018 IRS Compliance Campaigns: Background Information The IRS compliance campaigns is the end result of a long period of planning by the IRS Large Business and International division (“LB&I”). […]
On May 16, 2019, the IRS Large Business and International Division (“LB&I”) announced the creation of a new compliance program for the large corporations – Large Corporate Compliance program. The Large Corporate Compliance program will cover the oversight of the LB&I’s largest corporate taxpayers. It replaces the existing Coordinated Industry Case program. The replacement of […]
On May 21, 2018, the IRS announced the creation of another six compliance campaigns. Let’s explore these May 2018 IRS Compliance Campaigns in more detail. May 2018 IRS Compliance Campaigns: Background Information After a long period of planning, the IRS Large Business and International division (“LB&I”) finalized its new restructuring plan in 2017. Under the […]
The 2017 Tax Cuts and Jobs Act (the “2017 tax reform” or “TCJA”) enacted a highly-lucrative incentive for US corporations to export directly from the United States – the Foreign-Derived Intangible Income (“FDII”) regime. In this article, I would like to introduce the readers in a general manner to the FDII export incentive contained in […]
On May 11, 2019, the IRS Commissioner Chuck Rettig stated that the IRS is rapidly increasing the number of agents in certain divisions. US international tax compliance is the primary target of this 2019 IRS hiring spree. 2019 IRS Hiring Spree: Affected IRS Divisions The Commissioner announced this news while speaking at the American Bar […]
On March 15, 2019, the IRS announced that it will keep undisclosed offshore bank accounts on its 2019 Dirty Dozen list. 2019 Dirty Dozen List: Background Information The “Dirty Dozen” list is complied annually by the IRS. It consists of common tax scams and noncompliance schemes that the IRS prioritizes in its enforcement efforts. Many […]
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With this article, we begin a series of articles dedicated to the description of the IRS compliance campaigns initiated between March of 2018 and April of 2019. This article is dedicated to the March 2018 IRS Compliance Campaigns. March 2018 IRS Compliance Campaigns: Background Information On March 13, 2018, the IRS Large Business and International […]
Oftentimes, as part of their noncompetition agreement, a taxpayer may receive income for restraining from competing with another party in certain areas. An issue often arises with respect to international noncompetition agreement income sourcing rules – i.e. should the income paid as part of such a noncompetition agreement be considered US-source income or foreign-source income? […]
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Failure to file FBARs for secret Russian bank accounts and income tax evasion led to the imposition of a five-year prison sentence on a New Jersey chiropractor. This is the essence of the new IRS victory in the Amato case. Let’s explore this case in more detail, because the case demonstrates the long reach of […]
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The Czech Republic just joined an ever increasing list of countries who are introducing their own versions of the digital tax. Let’s explore this development in more detail. Czech Digital Tax Proposal: Overview The Czech Republic’s ministry of finance just announced that it will introduce by the end of May of this year a 7% […]
A large number of Polish immigrants in the United States continue to maintain close ties to Poland, including the ownership of Polish bank accounts. The same is true for Polish citizens with “green cards” who reside outside of the United States during most of the year. Many of these new American tax residents do not […]
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Business service income sourcing is a highly important issue in US international tax law. In this article, I will explain the concept of business service income sourcing and discuss the general rules that apply to it. Please, note that this is a discussion of general rules only; there are important complications with respect to the […]
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Since July 1, 2014, the Foreign Account Tax Compliance Act (“FATCA”) has imposed heavy compliance burden on Foreign Financial Institutions (“FFIs”). In this brief essay, I want to provide a general overview of these FFI FATCA requirements so that the readers can begin to develop an understanding of FATCA.
On February 25, 2019, the IRS announced that the IRS underpayment and overpayment interest rates will remain the same for the second quarter of 2019 as they were in the first quarter of 2019. The second quarter of 2019 begins on April 1, 2019 and ends on June 30, 2019. This is an important announcement […]
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Sherayzen Law Office successfully completes 2019 April 15 tax season. Our international tax team filed hundreds of complex tax forms and FBARs during this tax season.
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Due to various waves of emigration from South Africa since early 1990s, there is a significant number of South Africans who live in the United States. Many of these new US taxpayers continue to maintain their South African bank accounts even to this very day. These taxpayers need to be aware of the potential US […]
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FBAR tax lawyer and attorney explains the FBAR financial interest definition. FBAR tax lawyer discusses six different categories of FBAR financial interest.
There is a vibrant community of New Zealanders in Wisconsin (though New Zealanders can be found in many other places in the United States). Many members of this community continue to maintain their pre-immigration New Zealand bank accounts. Some of these owners of New Zealand bank accounts are aware of at least some US tax […]
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The 2018 FinCEN Form 114 deadline is approaching fast. It is definitely one of the most important deadlines that US taxpayers face in 2019. It is also one of the most confusing ones, because this form is not filed with a federal income tax return. Moreover, some taxpayers mistakenly treat 2018 FinCEN Form 114 as […]
The 2018 FBAR deadline is one of the most important deadlines for US taxpayers in the calendar year 2019. Since FBAR is not filed with the federal income tax return, many taxpayers may miss this deadline. This is why Sherayzen Law Office is publishing this notice to US taxpayers. 2018 FBAR Deadline: Background Information FBAR […]
US tax requirements concerning Italian bank accounts can be quite burdensome and complex. The chief three US reporting requirements applicable to Italian bank accounts are: worldwide income reporting, FBAR and FATCA Form 8938. Let’s discuss each of these requirements in more depth. Italian Bank Accounts: US Tax Residents and US Persons Before we delve into […]
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On December 14, 2018, the IRS issued the 2019 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Let’s discuss in a bit more depth these new 2019 IRS Standard Mileage Rates. Beginning on Jan. 1, 2019, the standard mileage rates for the […]
Mr. Eugene Sherayzen, the founder and owner of Sherayzen Law Office, Ltd., is a premier Minneapolis Minnesota Voluntary Disclosure Lawyer. Why is this the case? Let’s explore the top five reasons for it. Premier Minneapolis Minnesota Voluntary Disclosure Lawyer: Experience Mr. Sherayzen started practicing law at the end of 2005. In other words, he has […]
International tax lawyer & attorney Miami discusses US requirements concerning Costa Rican bank accounts. International tax lawyers point out 3 most important: worldwide income reporting, FBAR and Form 8938
FinCEN Form 114 Business Filers definition provided by international tax lawyer & attorney Delaware. FBAR lawyer explains the general rule and exception.
Streamlined Foreign Offshore Procedures (“SFOP”) is currently the preferred offshore voluntary disclosure option for US taxpayers who reside overseas, recently came to the United States or recently left the United States. Hence, the issue of SFOP eligibility (i.e. the ability of a taxpayer to participate in this program) is very important for these taxpayers. Today, […]
The Report of Foreign Bank and Financial Accounts, FinCEN Form 114 (a/k/a FBAR) is arguably the most important information return concerning foreign accounts. Its importance stems first and foremost from the extremely severe Form 114 penalties, which range from criminal penalties of up to 10 years in prison to willful and even non-willful penalties that […]
The closure of the IRS flagship 2014 Offshore Voluntary Disclosure Program (“OVDP”) in September of 2018 posed a critical issue of the 2019 offshore voluntary disclosure options available to US taxpayers. This is precisely the issue that I would like to explore today – the 2019 offshore voluntary disclosure options available to US taxpayers who […]
The United States is defined differently with respect to different parts (and, sometimes even within the same part) of the United States Code. There is a specific definition of the United States for FBAR Purposes. In this brief essay, I would like to discuss the FBAR United States Definition and explain its importance to FBAR […]
Even today many US owners of Colombian bank accounts remain completely unaware of the numerous US tax requirements that may apply to them. The purpose of this essay is to educate these owners about the requirement to report income generated by these accounts in the United States as well as the FBAR and FATCA obligations […]
In a previous article, I discussed the worldwide income reporting requirement and I mentioned that I would discuss the traps or false myths associated with this requirement in a future article. In this essay, I will keep my promise and discuss the main worldwide income reporting myths. Worldwide Income Reporting Myths: the Source of Myths […]
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Worldwide income reporting is at the core of US international tax system. Yet, every year, a huge number of US taxpayers fail to comply with this requirement. While some of these failures are willful, most of this noncompliance comes from misunderstanding of the worldwide income reporting requirement. In this essay, I will introduce the readers […]
In this essay, I would like to discuss three main US tax obligations concerning Mexican bank accounts: the worldwide income reporting requirement, FBAR and Form 8938. I will only concentrate on the obligations concerning individuals, not business entities. Mexican Bank Accounts and US Tax Residents Before we delve into the discussion concerning US tax obligations, […]
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Foreign inheritance definition is a topic of crucial importance for both US income and US estate tax compliance, because domestic inheritance and foreign inheritance have vastly different income tax results and reporting requirements. Hence, the topic of foreign inheritance definition directly concerns millions of Americans who reside overseas and tens of millions of Americans who […]
On January 16, 2019, the IRS announced that it would waive the 2018 estimated tax penalty for taxpayers who paid at least 85% of their total tax liability during 2018, either through federal income tax withholding, quarterly estimated tax payments or the combination of both of these payment methods. These changes will be integrated in […]
2018 FBAR and 2018 Form 8938 instructions both require that 2018 FBAR Currency Conversion Rates be used to report the required highest balances of foreign financial assets on these forms. In the case of 2018 Form 8938, the 2018 FBAR Currency Conversion Rates is the default choice, not an exclusive one. The U.S. Department of Treasury […]
On January 7, 2019, the IRS confirmed that the 2019 tax filing season will begin on January 28, 2019. In other words, the 2019 tax filing season will begin on schedule despite the government shutdown. 2019 Tax Filing Season for 2018 Tax Returns and 2018 FBAR During the 2019 tax filing season, US taxpayers must […]
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On January 17, 2019, Mr. Eugene Sherayzen, an international tax attorney and owner of Sherayzen Law Office, Ltd., conducted a foreign inheritance seminar for the International Business Law and Probate and Trust Law Sections of the Minnesota State Bar Association. The title of the seminar was “Foreign Inheritance – the Pandora’s Box of U.S. International […]
On April 19, 2018, Mr. Eugene Sherayzen, an international tax lawyer, co-presented with an attorney from KPMG at a seminar entitled “The 2017 U.S. Tax Reform: Seeking Economic Growth through Tax Policy in Politically Risky Times” (the “2017 Tax Reform Seminar”). This seminar formed part of the 2018 International Business Law Institute organized by the […]
On February 8, 2018, Mr. Eugene Sherayzen, an international tax lawyer, co-presented with three other attorneys in a seminar titled “EU Market Entry: Business and Tax Considerations” (the “EU Market Entry” seminar). The EU Market Entry Seminar was co-sponsored by the Business Law Section and International Business Law Section of the Minnesota State Bar Association. […]
On October 19, 2017, Mr. Eugene Sherayzen, an owner of Sherayzen Law Office and a highly experienced international tax attorney, conducted a seminar titled “Introduction to U.S. International Tax Compliance for U.S. Owners of Foreign Businesses” at the French-American Chamber of Commerce in Minneapolis, Minnesota (the “FACC Seminar”). The audience of the FACC Seminar consisted […]
On August 17, 2017, the owner of Sherayzen Law Office, Mr. Eugene Sherayzen, conducted a seminar on the new FATCA reporting requirement concerning Form 8938, specifically the new filing category of Specified Domestic Entities (the “Specified Domestic Entity Seminar”). Mr. Sherayzen is a highly experienced attorney who specializes in U.S. international tax compliance, including FATCA […]
On June 9, 2017, Mr. Eugene Sherayzen, an international tax attorney and owner of Sherayzen Law Office, was the keynote speaker at a seminar “Introduction to U.S. Tax Compliance for U.S. Citizens and Green Card Holders Residing and Doing Business in Belarus” in Minsk, Republic of Belarus (the “Minsk Seminar”). The attorney conducted the entire […]
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On February 23, 2017, Mr. Eugene Sherayzen, an international tax lawyer and owner of Sherayzen Law Office (“SLO”), conducted a seminar titled “Top 5 International Tax Mistakes Made by Business Lawyers”. The seminar was sponsored by the Corporate Counsel Section and International Business Law Section of the Minnesota State Bar Association. Mr. Sherayzen commenced the […]
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While most US taxpayers understand that a US permanent resident who resides in the United States is a US tax resident, there seems to be a great deal of confusion over whether the same is true with respect to a US permanent resident who resides overseas (hereinafter, “Overseas Green Card Holder”). In other words, the […]
Employment income sourcing is a very important tax issue for employees of US corporations sent overseas, employees of foreign corporations stationed in the United States and employees who work in different countries during a tax year. For employees who are tax residents of a foreign country, this issue will determine whether their income will be […]
In my practice, I often receive phone calls from prospective clients who treat FinCEN Form 114 and FBAR as two different forms. Of course, these are the same forms, but I have asked myself: why do so many taxpayers believe that FinCEN Form 114 and FBAR are two different forms? The simplest answer, of course, […]
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Despite the fact that FATCA has been implemented already in July of 2014, a lot of US taxpayers are still unaware of their obligation to disclose their Japanese bank accounts in the United States. In this essay, I will discuss the three most important US international tax requirements concerning Japanese bank accounts: worldwide income reporting, […]
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In a previous article, I explained that US tax law sources personal services to the place where these services are performed. What about a situation where such services are performed partially in the United States and partially outside of the United States (hereinafter, I will call such services “international personal services”)? In this article, I […]
The legal tax team of Sherayzen Law Office, Ltd. wishes a very Happy New Year 2019 to our clients, blog readers and all US taxpayers around the world! May this new year bring you good health, prosperity and happiness! And, of course, full and proper compliance with all US international tax laws. 2019 Will Be […]
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Due to ongoing implementation of FATCA as well as the tax reform in India, more and more Indian Americans and US tax residents of Indian nationality are learning that they are required to disclose to the IRS their Indian bank accounts. Yet, there are still many more US taxpayers left who are either completely unaware […]
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This article continues our series of articles on the source of income rules. Today, I will explain the general rule for individual personal services income sourcing. I want to emphasize that, in this essay, I will focus only on individuals and provide only the general rule with two exceptions. Future articles will cover more specific […]
On December 19, 2018, the UK officials confirmed that Bitcoin payments received by UK tax residents will be subject to UK taxation. The HMRC is now clear: digital currency is not a currency or money. The exact purpose of a Bitcoin transaction seems to determine the exact tax treatment of it. For example, if you […]
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As the EU talks on the single digital services tax have stalled, some major individual-member countries have moved to impose one independently in their own jurisdictions. On December 17 and 20, 2018, France and Italy announced their plans to impose their national digital services taxes. Spain and the United Kingdom already stated that they will […]
The Tax Cuts and Jobs Act of 2017 modified the tax brackets that existed in tax year 2017. In this short essay, I will discuss the new 2018 individual tax rates. 2018 Individual Tax Rates: Historical Background Tax rates seem to change every time there is a new President. For example, when President Bush got […]
This article is a continuation of a recent series of articles on the US source of income rules. In this article, I would like to introduce the readers to the interest income sourcing rules. Interest Income Sourcing: Definition of “Interest” Let’s first understand what is meant by the word “interest”. It is very curious that […]
On December 20, 2018, Congressman George Holding, a Republican from North Carolina and a member of the House Ways and Means Committee, introduced The Tax Fairness for Americans Abroad Act of 2018 (H.R. 7358). According to the analysis below, Sherayzen Law Office believes that H.R. 7358 seeks to modify it in a manner that moves […]
One of the most common questions that often arises is whether a sale of real property is considered to be a foreign-source or US-source income. In this short essay, I will briefly describe the source of income rule for the sale of real property and discuss its importance. Sale of Real Property: What is “Source […]
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One of the most important issues in US international tax law is the sourcing of income – i.e. the determination of whether the income is foreign or domestic for US tax purposes. In this article, I will introduce readers to US tax rules concerning dividend income sourcing (note, I will not be discussing substitute dividends […]
On December 6, 2018, the IRS announced that the 2019 First Quarter IRS interest rates for the underpayment and overpayment purposes will increase again. The increase in the 2019 First Quarter IRS interest rates follows the recent increases in interest rates by the Federal Reserve. After the new increase, the 2019 First Quarter IRS interest […]
The Singapore Central Provident Fund is an important compliance issue for US owners of foreign accounts in Singapore. In fact, it could be the most common problem for these taxpayers. In this article, I would like to provide an overview of the main US tax compliance requirements for US taxpayers who have a Singapore Central […]
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The FBAR and FATCA obligations with respect to French bank accounts are extensive and can often be quite burdensome for US owners of these accounts. This is one of the main reasons why France has been consistently one of the top sources of clients for my firm with respect to offshore voluntary disclosures. In this […]
Despite the surge in FATCA letters from Spanish banks in the past two years, there is a significant number of US taxpayers with Spanish bank accounts who still have not complied with their US tax obligations. In this essay, I would like to discuss the most common US tax reporting requirements of individual US owners […]
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Despite the domination of international tax compliance by FATCA since at least July of 2014, many US owners of Lebanese bank accounts are still not compliant with their US tax obligations. In fact, for many of them, the receipt of a FATCA letter is a huge surprise. In this essay, I would like to discuss […]
There has been virtually no discussion of the impact of the OVDP closure beyond how it affects the ability of willful taxpayers to settle their past noncompliance. This is very unfortunate, because there is a direct correlation between OVDP and IRS tax enforcement activities. In this article, I will discuss how the OVPD closure sets […]
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One of the most important considerations in an offshore voluntary disclosure is the type of assets that form the Penalty Base for the imposition of the Miscellaneous Offshore Penalty. In this article, I would like to explore the issue of whether there is such a thing as SDOP Real Estate Penalty. SDOP Real Estate Penalty: […]
On September 7, 2018, the IRS announced that the 4th Quarter 2018 underpayment and overpayment interest rates will not change from the 3rd Quarter of 2018. This means that, the 4th quarter 2018 IRS underpayment and overpayment interest rates will be as follows: five (5) percent for overpayments (four (4) percent in the case of […]
Sherayzen Law Office, Ltd., successfully ended yet another tax season. The October 2018 tax season presented formidable challenges not only due to the diversity of the issues involved, but also the sheer volume of deadlines that needed to be completed between September 16 and October 15, 2018. Let’s analyze the October 2018 tax season in […]
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With just a week left before October 15 2018 deadline, it is important for US taxpayers to remember what they need to file with respect to their income tax obligations and information returns. I will concentrate today on four main requirements for US tax residents. 1. October 15 2018 Deadline for Federal Tax Returns and […]
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Egyptian Law 174 of 2018 announced the 2018 Egyptian Tax Amnesty program that commenced on August 15, 2018. Egypt is no stranger to tax amnesties; in fact, the very first documented tax amnesty program in the world is believed to be the one announced by Ptolemy V Epiphanes in 197 B.C. The 2018 Egyptian Tax […]
The fact that the IRS Offshore Voluntary Disclosure Program (“OVDP”) closes on September 28, 2018, obscured another important deadline that is much closer – the August 24 OVDP Deadline to submit the Preclearance Request. August 24 OVDP Deadline: What is a Preclearance Request? The Preclearance Request is basically a pre-application process to make sure that […]
On August 8, 2018, Mizrahi-Tefahot Bank (“Mizrahi-Tefahot”) informed the Tel Aviv Stock Exchange that its Board of Directors rejected a settlement offer from the US Department of Justice (“DOJ”). It appears that the DOJ offer was received by the bank on August 7, 2018. The DOJ proposed that Mizrahi-Tefahot pay $342 million to settle the […]
On July 18, 2018, the US Department of Justice (the “DOJ”) announced that it signed a Non-Prosecution Agreement with NPB Neue Privat Bank AG (“NPB”). Let’s explore in more detail the history of this case and its resolution. Background Information: 2001 QI Agreement between NPB and the IRS NPB is a Swiss private bank based […]
On July 31, 2018, the US Department of Justice (“DOJ”) announced that it signed an Addendum to a non-prosecution agreement with Bank Lombard Odier & Co., Ltd. (“Lombard Odier). The Addendum requires Lombard Odier to disclose additional 88 accounts; in other words, US taxpayers who own these additional Lombard Odier bank accounts are now at […]
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FBAR noncompliance is the worst nightmare for US taxpayers due to enormous FBAR penalties even for non-willful taxpayers. US Taxpayers who are not facing an IRS examination or a DOJ (US Department of Justice) lawsuit have three options with respect to their FBAR noncompliance: (1) do nothing with respect to correcting their prior FBAR noncompliance, […]
Less than two months are left before the 2014 IRS Offshore Voluntary Disclosure Program (“2014 OVDP”) closed on September 28, 2018. 2014 OVDP may offer great benefits to taxpayers with undisclosed foreign accounts, such as the possibility of avoiding criminal penalties and greatly reducing FBAR civil penalties. Yet, entering 2014 OVDP also implies a great […]
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One of the most common types of IRS audits is the Schedule C IRS audit. In this article, I would like to introduce the readers to the Schedule C IRS audit. In particular, I would like to discuss the type of taxpayers who are affected by an IRS audit of Schedule C and the key […]
The great majority of offshore voluntary disclosures are currently done through Streamlined Filing Compliance Procedures. Hence, the majority of IRS audits concerning offshore voluntary disclosures are focused on Streamlined Filing Compliance Procedures – the most common type is the Streamlined Domestic Offshore Procedures Audit. This article discusses the main stages of the Streamlined Domestic Offshore […]
One of the most interesting questions that arise during an IRS audit is whether a taxpayer (or his tax attorney) should amend his tax returns during an IRS audit. Amending tax returns during an IRS audit may offer great benefits as long as it is done properly, but this is not a strategy available in […]
Following the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, the FBAR civil penalties are adjusted every year by the IRS for inflation. In this brief article, I would like to describe the new 2018 FBAR Civil Penalties that may be assessed by the IRS with respect to FBAR noncompliance. 2018 FBAR Civil […]
Starting January 1, 2018, the State Department commenced to deny the requests for US passport issuance and renewal made by individuals with “seriously delinquent tax debt”. Moreover, the State Department has been granted the authority for US passport revocation with respect to these individuals. Let’s explore this new law on passport revocation and denial for […]
Paradoxically, while demanding that other countries comply with FATCA, the United States itself has become the second largest secrecy haven in the world according to the Financial Secrecy Index (“FSI”) released by the Tax Justice Network (“TJN”) at the end of January of 2018. Let’s explore why the 2018 FSI considers the United States a […]
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On March 20, 2018, the IRS announced that offshore tax cheating – i.e. hiding money and other assets in unreported foreign accounts – remains on the IRS “Dirty Dozen” tax scams for the year 2018. Offshore Tax Cheating: What is the “Dirty Dozen” List? The IRS uses the “Dirty Dozen” list to describe various scams […]
On March 19, 2018, President Trump sent the Uruguay-US Social Security Agreement to the US Senate. This is an important step toward the final ratification of the treaty that promises to benefit the citizens of both countries. Uruguay-US Social Security Agreement: What is a Social Security Agreement? A Social Security Agreement (also called a Totalization […]
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On March 22, 2018, the US Department of Justice (“DOJ”) announced that it charged four foreign residents – Panayiotis Kyriacou (resides in London, UK), Arvinsingh Canaye (resides in Mauritius), Adrian Baron (resides in Budapest, Hungary), and Linda Bullock (resides in St. Vincent/Grenadines) – with conspiracy to defraud the United States by failing to comply with […]
The Organization for Economic Co-operation and Development (“OECD”) has detailed base erosion and profit-shifting (“BEPS”) rules. Among these rules are the OECD rules for countering harmful tax practices (“OECD Harmful Tax Practices Rules”). The 2017 Tax Cuts and Jobs Act introduced a new tax concept in the US Internal Revenue Code – foreign-derived intangible income […]
In a previous article, I described the three main advantages of doing an offshore voluntary disclosure through Streamlined Domestic Offshore Procedures (“Streamlined Domestic Compliance”). Today, I would like to discuss three main Streamlined Domestic Compliance disadvantages. Streamlined Domestic Compliance Disadvantages: Audit Risks The first main disadvantage of Streamlined Domestic Compliance is the potential IRS audit […]
Using proper currency conversion rates is a very important part of preparing 2017 FBAR and 2017 Form 8938. The instructions to both forms require (in case of FATCA Form 8938, this is the default choice) US taxpayers to use the 2017 FBAR Currency Conversion Rates published by the Treasury Department. The 2017 FBAR Currency Conversion […]
At this point, Streamlined Domestic Offshore Procedures (“Streamlined Domestic Disclosure”) is undoubtedly the most popular offshore voluntary disclosure option. Let’s explore three main reasons for this preference of Streamlined Domestic Disclosure among US taxpayers. Streamlined Domestic Disclosure: Background Information and General Requirements The IRS created the Streamlined Domestic Disclosure as an offshore voluntary disclosure option […]
In a previous article, I discussed the recent IRS announcement with respect to the closure of the IRS Offshore Voluntary Disclosure Program (“OVDP”) on September 28, 2018. Today, I would like to predict the range of the 2018 post-OVDP options for offshore voluntary disclosures starting October of 2018. 2018 Post-OVDP Options: Streamlined Compliance Procedures As […]
On March 13, 2018, the IRS announced that it will be closing its flagship 2014 Offshore Voluntary Disclosure (“OVDP”) program on September 28, 2018. The closure of the IRS OVDP was already predicted by Sherayzen Law Office last year. Let’s analyze further this important development. Historical Overview of the IRS OVDP I already provided a […]
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On March 7, 2018, the Internal Revenue Service announced that the IRS underpayment and overpayment interest rates have increased for the second quarter of 2018. The second quarter of 2018 begins on April 1, 2018 and ends on June 30, 2018. The second quarter of 2018 IRS interest rates will increase by one percent and […]
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On February 19, 2018, the Israel Tax Authority (“ITA”) stated in a circular to tax professionals that cryptocurrencies, such as Bitcoin, are property under Israeli tax law. This view brings the Israeli tax law very much in line with the IRS position in the United States. Cryptocurrency is Property under Israeli Tax Law and Subject […]
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On February 28, 2018, the IRS issued a request for comments from the general public with respect to the its OVDP Information Collection practices. Let’s explore this new development in more detail. OVDP Information Collection: Background Information on the OVDP The IRS Offshore Voluntary Disclosure Program (“OVDP” now closed) remains today the primary voluntary disclosure […]
In January of 2018, South Korea announced that it will start taxing cryptocurrency exchanges. This is a highly important development in international tax law concerning cryptocurrencies, because South Korea is a major hub for cryptocurrency trading. Let’s delve a bit deeper into South Korean cryptocurrency taxation. South Korean Cryptocurrency Taxation of Exchanges The first important […]
In a recent case, the IRS failed to recover a large erroneous refund of $21 million that it gave to a company called Starr International Co. Inc. (“Starr”). The opinion was released on January 31, 2018 by the District Judge Christopher R. Cooper (U.S. District Court for the District of Columbia) who granted Starr’s summary […]
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FinCEN recently confirmed the 2017 FBAR deadline and the automatic extension option. 2017 FBAR Deadline: FBAR Background FinCEN Form 114, the Report of Foreign Bank and Financial Accounts, is commonly known as FBAR. US taxpayers should use this form to report their financial interest in or signatory authority over foreign financial accounts. Failure to timely […]
26 U.S.C. §1041(a)(2) states that transfers of property between former spouses are not taxable as long as they are “incident to divorce”. The question is what is the definition of divorce for Section 1041 purposes? Section 1041 Definition of Divorce: 26 U.S.C. §71(b)(2) The Treasury regulations specifically refer to 26 U.S.C. §71(b)(2) for the definition […]
Sherayzen Law Office PLLC hereby gives notice that, as of January 1, 2018, its official owner is Sherayzen Law Office, Ltd (“Sherayzen Law Office Ltd”). Sherayzen Law Office Ltd will continue to utilize “Sherayzen Law Office” as its trade name. Furthermore, Sherayzen Law Office Ltd will continue to maintain the disregarded entity (for tax purposes) […]
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In a previous article, I discussed that a late IRC Section 1041 transfer between former spouses is presumed to be unrelated to the cessation of the marriage. This means that such a transfer may not be considered tax-free for US tax purposes. In this article, I would like to explain what a late IRC Section […]
This article introduces a series of articles on 26 U.S.C. §1041 and specifically the issue of tax treatment of ex-spouse property transfers incident to divorce. As a result of a divorce, it is very common for ex-spouses to transfer properties to each other as part of their settlement agreement. A question arises: are these ex-spouse […]
On January 25, 2018, a South Korean citizen and a US Permanent Resident, Mr. Hyong Kwon Kim, was sentenced to prison for filing false tax returns and willful FBAR violations; additionally, he had to pay over $14 million in FBAR willful civil penalties. I already discussed Mr. Kim’s guilty plea and the main facts of […]
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On January 29, 2018, Broadcom Board of Directors approved the plan for Broadcom re-domiciliation in the United States. This move was expected after Broadcom’s November of 2017 pledge to president Trump that the company would return to the United States. Broadcom Re-domiciliation: A Story of Tax Inversion and Tax Remorse The story of the Broadcom […]
2018 FBAR criminal penalties should be on the mind of any US taxpayer who willfully failed to file his FBARs or knowingly filed a false FBAR. In this essay, I would like to do an overview of the 2018 FBAR criminal penalties that these noncompliant US taxpayers may have to face. 2018 FBAR Criminal Penalties: […]
As if the FBAR penalties were not frightening enough, Congress has mandated the IRS to adjust the FBAR penalties to account for inflation. As a result, the already complicated and severe system of FBAR penalties became even more complex and ruthless. In this article, I would like provide a general overview of the FBAR penalty […]
For the second time now, the Cyprus Tax Amnesty has been extended. Let’s discuss in more detail the new deadline and the terms of the Cyprus Tax Amnesty. Cyprus Tax Amnesty: Deadline Extensions The original deadline for the Scheme for the Settlement of Overdue Taxes (the official name of the Cyprus Tax Amnesty) was October […]
This article is published as part of a long series of articles on the Specified Domestic Entity (“SDE”) Definition. In a previous article, I stated that the term “formed or availed of” consists of two legal tests: the Closely-Held Test and the Passive Test. Since I already explained the general requirements of the Closely-Held Test […]
On January 23, 2018, the Spanish Newspaper based in Madrid “El País” broke the news that the Colombian Singer Shakira (full name Shakira Isabel Mebarak) is being reportedly investigated by the Spanish tax authorities for tax evasion. Let’s explore the alleged Shakira tax evasion investigation in more detail. Alleged Shakira Tax Evasion Investigation is Centered […]
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The voluntary disclosures by Swiss taxpayers jumped dramatically in 2017. The most likely reason for the increase is the fact that the Swiss government started to collect information under its numerous Automatic Exchange of Information (“AEOI”) agreements. Let’s analyze in more detail this connection between the Swiss voluntary disclosures and the Swiss AEOI Compliance. Swiss […]
On January 16, 2018, the International Monetary Fund (“IMF”) released its 2017 Article IV consultation notes with respect to Croatia. Among its recommendations is the introduction of a modern Croatian Real Estate Tax. Croatian Real Estate Tax: IMF assessment of Croatian Economy The IMF began on the positive note stating that, in 2017, Croatia continued […]
Form 8938 is one of the most important US international tax forms with its own sophisticated penalty structure. Hence, taxpayers should strive to understand when they are required to file the form. In this context, I would like to focus in this essay on the Form 8938 Filing Thresholds. General Relevant Criteria in the Determination […]
A government shutdown is always bad for the normal functioning of federal agencies, but the 2018 government shutdown spells disaster for the IRS, especially if it lasts for a significant amount of time. 2018 Government Shutdown Comes at the Worst Time for the IRS What makes the current 2018 government shutdown so bad is the […]
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The Specified Domestic Entity Form 8938 filing threshold is likely to be very easily satisfied by the majority of Specified Domestic Entities. With the major tax return filing deadlines just two or three months away (depending on whether an entity is a corporation, a partnership or a trust), every Specified Domestic Entity must assess whether […]
The Home Equity Tax Deduction used to be one of the most common deductions used by US taxpayers. The Tax Cuts and Jobs Act of 2017 eliminated this deduction. Let’s take a brief look at the Home Equity Tax Deduction and what its elimination may mean for your US tax return. Home Equity Tax Deduction: […]
In a previous article, I introduced the key term of the Specified Domestic Entity (“SDE”) Definition for corporations and partnerships that may be required to file FATCA Form 8938: “formed or availed of”. At that point, I stated that this term required that a business entity satisfies two legal tests. One of these tests is […]
We are continuing our series of articles on the Specified Domestic Entity definition. In previous articles, I already explained what entities are considered to be domestic and what kind of foreign assets are included in the Specified Foreign Financial Assets. In this article, I would like to introduce the key part of the definition of […]
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Specified Individual is a key tax term that must be correctly understood in order to properly identify the persons who are required to file FATCA Form 8938. In this brief article, I will describe the general definition of a Specified Individual for Form 8938 purposes. Specified Individual: FATCA Form 8938 Background In 2010, one of […]
This is the second article from the series of articles concerning the definition of a Specified Domestic Entity. Today, I will explore what business entities are considered to be “Domestic”. Specified Domestic Entity Background Information Specified Domestic Entity is a new category of FATCA Form 8938 filers. Under FATCA, Form 8938 has to be filed […]
On January 8, 2018, the US Treasury Department published a list of boycott countries. Let’s analyze what is meant here by Boycott Countries. Boycott Countries: The Meaning of Boycott Under IRC Section 999(b)(3) IRC Section 999(a)(3) requires the Department of the Treasury to publish (at least on a quarterly basis) a current list of countries […]
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On January 3, 2018, a decision of the Swiss Federal Court (the nation’s highest court) dated December 18, 2017, was published, prohibiting automatic disclosure of the Swiss bank staff details to the IRS and the US DOJ. Let’s analyze this decision in more detail. Disclosure of Swiss Bank Staff Details: History of the Case The […]
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A Toledo Tax Lawyer who specializes in international tax law does not necessarily have to be a tax lawyer who actually resides in Toledo. An international tax lawyer who offers US international tax law services to residents of Toledo, Ohio, may also be considered a Toledo Tax Lawyer. Let’s analyze a bit deeper why this […]
Tampa Foreign Accounts Lawyer is an interesting specialty among international tax lawyers who offer their foreign account tax compliance services to residents of Tampa, Florida. The term Tampa Foreign Accounts Lawyer does not simply refer to a lawyer who is physically located in Tampa, but also covers lawyers who reside outside of Tampa. Let’s explore […]
On December 29, 2017, the President of Kazakhstan Nazarbayev signed the law for the ratification of the Ireland-Kazakhstan Tax Treaty for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income. History of the Ireland-Kazakhstan Tax Treaty The Ireland-Kazakhstan Tax Treaty was originally signed in Astana on April […]
On December 5, 2017, the European Union (the EU) Council published its list of the non-EU non-cooperative tax jurisdictions. The list included American Samoa and Guam unleashing strenuous objections from the United States. Full List of Non-Cooperative Tax Jurisdictions A total of seventeen countries made it to the list of non-cooperative tax jurisdictions: American Samoa, […]
On January 3, 2018, the “Convention for the Avoidance of Double Taxation with respect to Taxes on Income and for the Prevention of Tax Evasion between the Republic of Cyprus and the Kingdom of Saudi Arabia” or the Cyprus-Saudi Arabia Tax Treaty was signed in Riyadh, Saudi Arabia. The Cyprus-Saudi Arabia Tax Treaty was signed […]
The EU Tax Harmonization initiative faced a joint opposition of Ireland and Hungary in early January of 2018. Both countries are vehemently opposed to any effort that would “tie their hands” in terms of their corporate tax policies. The EU Tax Harmonization Initiative Tax Harmonization is basically a policy that aims to adjust the tax […]
On January 4, 2018, the IRS announced that the 2018 tax filing season for the tax year 2017 will commence on January 29, 2018. This date was chosen by the IRS to make sure its software incorporates the full impact of the Tax Cuts and Jobs Act of 2017 on the 2017 tax returns. 2018 […]
In an earlier article, I described the main features of an IRS audit of a voluntary disclosure made pursuant to the Streamlined Domestic Submission Procedures (“Streamlined Submission Audit”). Today, I would like to discuss a very specific feature of this process – Streamlined Audit Interview. Streamlined Audit Interview: Background Information on Streamlined Domestic Offshore Procedures […]
On December 19, 2017, the Belarusian Council of the Republic, which is the upper chamber of the Belarusian parliament, approved a law on the ratification of the pending Belarus-Spain Tax Treaty. The Belarus-Spain Tax Treaty will cover both income and capital gain taxes and is meant to prevent the double taxation of the same income […]
An increasing number of submissions under the Streamlined Domestic Offshore Procedures are subject to an IRS audit (hereinafter “Streamlined Submission Audit”). In this article, I will explain what a Streamlined Submission Audit is and what a taxpayer should expect during the Audit. Streamlined Submission Audit: Background Information on Streamlined Domestic Offshore Procedures Streamlined Domestic Offshore […]
On January 2, 2018, the IRS issued Rev. Proc. 2018-7 (2018-1 IRB 271) to update its existing international No Rule list. I will quickly overview what the No Rule List is and provide a copy of Sections 3 and 4 of the No Rule List. What is an International No Rule List? It may be […]
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Our team at Sherayzen Law Office wishes a very Happy New Year 2018 to our clients; colleagues at other law firms; judges of state and federal courts; our website blog readers; and our followers on Facebook, Twitter, YouTube and other social media. Year 2017 was another highly successful year at Sherayzen Law Office. Our tremendous […]
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The Tax Cuts and Jobs Act of 2017 made dramatic changes that affected pretty much every US taxpayer. This is the first article of the series of articles on the Act. I will start this series with the discussion of simple US domestic issues (such as 2018 standard deduction and personal exemptions), then gradually turn […]
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The Tax Cuts and Jobs Act of 2017 radically changed the US tax system with respect to deductible state and local income taxes, including real property taxes. Starting tax year 2018, real estate, person property, income taxes and sales taxes are deductible only up to $10,000. This means that people with high property taxes have […]
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Earlier this month, the IRS issued the option IRS 2018 standard mileage rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.Earlier this month, the IRS issued the option IRS 2018 standard mileage rates to calculate the deductible costs of operating an automobile for business, charitable, medical or […]
On December 5, 2017, the IRS announced that the First Quarter 2018 IRS underpayment interest rates and overpayment interest rates will remain the same as they were in the last quarter of 2017. This means that, the First Quarter 2018 IRS underpayment interest rates and overpayment interest rates will be as follows: On December 5, […]
Since January 31, 2017, all of the denied and abandoned OVDP Preclearance requests have become the target of a special IRS compliance campaign. Let’s analyze in more detail this important development and attempt to predict what may be its main consequences for noncompliant or formerly noncompliant US taxpayers. Denied and Abandoned OVDP Preclearance Requests: OVDP […]
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The Irish Revenue is expanding its tax enforcement capabilities through new Irish software. This new Irish software will provide the Irish Revenue with a unique type of a multilateral analysis of a taxpayer in order to combat offshore tax evasion. This is definitely a new development in international tax enforcement and it is the one […]
Reducing Form 5471 penalties has become a big headache for US shareholders of foreign corporations due to a very aggressive enforcement stance by the IRS. In this essay, I would like to explore the main option for reducing Form 5471 penalties – the Reasonable Cause Exception. Reducing Form 5471 Penalties: What is Form 5471? 26 […]
This is the concluding article in our series of articles on the topic of the IRS Written Advice Defense. In prior articles, we have outlined the general legal test of the IRS Written Advice Defense and described each of the three prongs of this test. In this article, I would like to discuss the IRS […]
This is the fourth article on the topic of the IRS Written Advice Defense under 26 U.S.C. §6404(f). The first three articles outlined the legal test for the Defense and described the first and the second prongs of the test. In this say, I will briefly discuss the final third prong of the IRS Written […]
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This article is a continuation of the series of articles on the IRS Written Advice Defense. In the first article of this series, I outlined the legal test for the Defense. The second article of the series focused on the first prong of that test. In this essay, I would like to briefly highlight the […]
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In a previous article, I outlined the three-prong legal test of the IRS Written Advice Defense. This article aims to explore the first prong of that test: the IRS written advice was reasonably relied upon by the taxpayer. In particular, I would like to explain two important concepts of this part of the test: “advice”and […]
IRS written advice can constitute a reasonable cause defense against an imposition of pretty much any tax penalty related to noncompliance that stemmed from that advice. This essay begins a series of articles with respect to various aspects of the IRS Written Advice Defense. Today, I will outline the statutory authority and the main legal […]
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On October 10, 2017, the Salvadorian Congress enacted the Legislative Decree No. 804, “La Ley Transitoria para el Cumplimiento Voluntario de Obligaciones Tributarias y Aduaneras”. After noting the experience of the past El Salvador voluntary disclosure options, the Decree announced a three-month long El Salvador Tax Amnesty Program. Let’s briefly explore the main contours of […]
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On November 15, 2017, the IRS sent yet another signal that certain offshore voluntary disclosure options, particularly the OVDP & Streamlined Disclosure options, will be significantly modified or even terminated as the IRS proceeds with the LB&I Compliance Campaigns. This means that US taxpayers with undisclosed foreign accounts need to hurry up if they wish […]
On November 9, 2017, the IRS gave a clear signal that it is working on new PFIC Foreign Trust rules and hopes to have these new regulations published by June of 2018. The IRS also indicated that other areas of PFIC rules will be affected and it expects the Subpart F regulations to come out […]
Year 2017 marked an important increase in FATCA compliance throughout the Middle East, despite the fact that most countries of this region did not sign a FATCA implementation treaty. US owners of Egyptian bank accounts were among the most affected in the area. In this brief essay, I will explain what receiving a FATCA Letter […]
On October 30, 2017, Mr. Paul Manafort was charged with FBAR violations among other charges. Manafort FBAR violations charges were filed as a result of an ongoing investigation led by special counsel Robert Mueller. While the investigation should have been searching for possible ties between Mr. Manafort and the Russian government, it found something completely […]
On November 3, 2017, the IRS Large Business and International Division (“LB&I”) announced the rollout of additional 11 IRS Compliance Campaigns in addition to the 13 already existing campaigns. Most of these campaigns directly address the IRS concerns with respect to US international tax law compliance. Let’s explore these new 11 IRS Compliance Campaigns. New […]
Sale of Russian Real Estate by US permanent residents was the subject of a recent guidance letter from the Russian Ministry of Finance (“MOF”). Guidance Letter 03-04-05/66382 (dated October 11, 2011, but released only earlier this week) provides a thorough analysis of questions concerning the sale of real estate in Russia by a US resident […]
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On October 26, 2017, the IRS sent a clear signal that OVDP changes are coming soon. The signal that the 2018 OVDP changes are imminent came from Mr. Daniel Price, an attorney with the IRS Office of Chief Counsel, Small Business/Self-Employed Division, who participated in a panel discussion of offshore accounts and compliance at the […]
2018 FBAR audits are set to increase at a dramatic pace. In this article, I would like to discuss what the FBAR audits are and why 2017-2018 will be the period of time when we believe that the FBAR audits will gain as a percentage of the overall IRS audits compared to earlier years. 2018 […]
One of the most common questions that US taxpayers have is regarding FBAR Safe Deposit Box reporting requirements. While the general answer is clear, there may be complications in certain cases. General FBAR Safe Deposit Box Reporting Requirements In general, a safe deposit box is not considered to be a financial account and, therefore, not […]
On October 9, 2017, the Lebanese Parliament passed for the second time a controversial tax bill which may increase several Lebanese taxes. The passage of this increase in Lebanese taxes comes after a turbulent legislative history and it is not yet certain that it will actually become the law and survive a Constitutional challenge. History […]
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After the implementation of FATCA in 2014, Sherayzen Law Office made a prediction that there would be a major increase in FBAR litigation a few years later once the IRS is able to process data obtained through FATCA and the Swiss Bank Program. This prediction is now becoming a reality as the US Department of […]
On October 27, 2017, the IRS announced the cost of living adjustments affecting 2018 Pension Plan limitations. 2018 Pension Plan Limitations: Summary of Main Changes 1. The first main change in 2018 Pension Plan Limitations affects all employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan. In 2018, […]
For years, the Czech Republic has held a position within the top fifteen countries among our firm’s voluntary disclosure clients. At the end of May and early June of 2017, our firm’s owner, international tax attorney Eugene Sherayzen, made a trip to the Czech Republic to find out why there are so many clients with […]
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On September 8, 2017, the IRS announced that the 4th Quarter 2017 underpayment and overpayment interest rates will remain the same as they were in the third quarter of 2017. The IRS underpayment interests also govern the PFIC interest rates under the default Section 1291 method of calculation. PFIC interest rates are very important not […]
Specified Foreign Financial Assets is one of the most important terms in contemporary US international tax law. In this article, I will explore what these Specified Foreign Financial Assets are and why they play such an important role in modern US international tax compliance. Specified Foreign Financial Assets and FATCA In order to understand the […]
The recent introduction of the new concept of Specified Domestic Entity by the IRS represents a major expansion of the application of FATCA to US businesses and US trusts. For tax years beginning after December 31, 2015, a domestic corporation, partnership or trust classified as a Specified Domestic Entity must file FATCA Form 8938 with […]
US taxpayers who own accounts outside of the United States should remember that, in order to open a new account (even if you already have an existing account), foreign banks throughout the world require the submission of various documents pursuant to FATCA. In this legal note, I am providing a list of the documents required […]
On July 20, 2017, the US Department of Justice announced that Mr. Teymour Khoubian was indicted by a federal grand jury in the Central District of California for corruptly endeavoring to impede the internal revenue laws, filing false tax returns and filing false FBARs regarding his German and Israeli bank accounts and making false statements […]
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On July 19, 2017, Ms. Susanne D. Rüegg Meier, a citizen of Switzerland, pleaded guilty to conspiring to defraud the United States in connection with her work as the head of a team of bankers for Credit Suisse AG. The announcement of this plea by a former Credit Suisse Banker came from the U.S. Department […]
On July 24, 2017, the IRS Office of Appeals announced that it will soon pilot a new Internet virtual conference option for taxpayers and their representatives. This new option will offer an additional choice for holding taxpayer conferences and will come as close as possible to a “face-to-face” meeting. Internet Virtual Conference Option: Existing Options […]
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On April 12, 2017, a federal grand jury sitting in the Eastern District of New York returned an indictment, which was unsealed on May 24, 2017, charging Mr. Christopher Wolf, who operated Rothchild & Associates LLC (in New York), with tax evasion and aiding and assisting in the preparation of false tax returns achieved by […]
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On May 26, 2017, the IRS scored another victory against Offshore Accounts in Panama and again against a senior citizen. This time, Ms. Joyce Meads, a 73-year old Texas resident, pleaded guilty to conspiring to defraud the United States by using offshore accounts in Panama to conceal more than $1.3 million in royalty income that […]
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On May 25, 2017, the IRS sealed another victory against the infamous abusive tax shelter known as STARS (Structured Trust Advantaged Repackaged Securities). The actual victory occurred on November 17, 2016, when a jury in Minnesota found Wells Fargo guilty of engaging in abusive tax shelter and determined that Wells Fargo was not entitled to […]
On May 3, 2017, the IRS scored an important victory in United States v. Little, 2017 U.S. Dist. LEXIS 67580 (SD NY 2017) by defeating a Motion to Dismiss FBAR charges made by the defendant, Mr. Michael Little. The motion was based on an argument that is often used by opponents of FBAR penalties – […]
On March 23, 2017, the IRS scored another major victory against using Belize bank accounts to hide income. On that day, Mr. Casey Padula pleaded guilty to conspiracy to commit tax and bank fraud, including using Belize bank accounts to conceal almost $2.5 million. Facts Concerning Using Belize Bank Accounts to Commit Tax Fraud According […]
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Five of the thirteen new IRS Campaigns directly target US international tax noncompliance. In this essay, I would like to provide a brief overview of these five IRS International Tax Campaigns. In the future articles, I will explain each of these campaigns in more detail. IRS International Tax Campaigns: Background Information After multiple years of […]
On January 31, 2017, the IRS announced a complete new approach to tax enforcement – Issue-Focused IRS Compliance Campaigns. A total of thirteen IRS compliance campaigns were announced; all of them will be administered by the LB&I (Large Business and International) division of the IRS. Let’s explore in more detail this highly important IRS announcement. […]
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Almost two years ago, the IRS Large Business and International Division announced long-term changes in its structure as well as its approach to tax enforcement. In the fall of 2015, the IRS completed the first phase of the structural changes in the Division – re-organization of its administrative structure. This structure exists intact today and […]
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Many persons have assumed that FATCA is a one-way street where only the United States is able to obtain tax information with respect to foreign accounts controlled by its citizens while the information about US bank accounts is never exchanged with other FATCA signatories. While, to some (or even to a large) degree this may […]
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On February 28, 2017, the Ministry of Finance of Greece published a list of noncooperative states. What are Noncooperative States In order for a state to be designated as “noncooperative”, it has to satisfy the following four conditions: 1. The state is not a member of the European Union; 2. The state’s legal structure with […]
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On February 2, 2017, Mr. Eugene Sherayzen, the founder and owner of Sherayzen Law Office (an international tax law firm headquartered in Minneapolis, Minnesota) gave a lecture at the Italian Cultural Center in downtown Minneapolis. The topic of the lecture was an introduction to US tax reporting of Italian assets and income for individual taxpayers. […]
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On January 25, 2017, the federal court in Montana authorized the IRS to serve John Doe Summons on Michael Berg of Bozeman, Montana, seeking information about US taxpayers with offshore accounts established by Sovereign Management & Legal LTD (“Sovereign”), a Panamanian company. In particular, the IRS is interested in US taxpayers who use debit cards […]
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Israel continues to solidify its leading positions in the IT market by using tax policy. On January 1, 2017, Amendment 73 to the Law for the Encouragement of Capital Investments of 1959 entered into force. The main goal of the Amendment is to clarify, extend and improve the Israeli tax breaks for IT companies operating […]
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On February 10, 2017, the IRS scored yet another victory in its fight against secret offshore accounts with the imposition of a $100 Million FBAR Penalty. Mr. Dan Horsky, a 71-year old retired university professor (he used to teach at a business school), was a spectacularly successful investor and a very unsuccessful tax evader. After […]
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Outbound business tax planning should form part of every outbound business transaction, whether it is in technology transfers, export of goods or an investment overseas. In this article, I would like to discuss the main goal of the outbound business tax planning and identify the overall “global” (i.e. looking at the entire genre of outbound […]
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Using proper currency conversion rates is a critical part of preparing 2016 FBAR and 2016 Form 8938. The instructions to both forms require (in case of Form 8938, this is the default choice) US taxpayers to use the 2016 FBAR Currency Conversion Rates published by the Treasury Department. The 2016 FBAR Currency Conversion Rates also […]
Switzerland has recently become one of the most active countries with respect to expanding its network of automatic exchange of information agreements (Swiss AEOI Agreements). In fact, since January 1, 2017, nine Swiss AEOI Agreements entered into force. Nine Swiss AEOI Agreements All of the Swiss AEOI Agreements were signed via exchange of notes in […]
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On December 23, 2016, Argentina and the United States signed a Tax Informational Exchange Agreement (“Argentinian Tax Information Exchange Agreement” or “Argentinian TIEA”) in Buenos Aires. Let’s explore the main points of the Argentinian Tax Information Exchange Agreement. Argentinian Tax Information Exchange Agreement: Information to Be Exchanged The information to be exchanged under the Argentinian […]
International tax lawyers should focus not only on substantive, but also on procedural defenses against the results of an FBAR audit. One such potential defense against FBAR audit is a related-statute IRC §6103(h) violation. Related-Statute IRC §6103(h) Violation: Background Information In a previous article, I already discussed the fact that IRC §6103(a) limits somewhat the […]
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On January 18, 2017, three US taxpayers pleaded guilty for hiding millions of dollars in their secret Swiss and Israeli bank accounts (hereinafter “Swiss-Israeli Bank Accounts”) and failing to report these Swiss-Israeli Bank Accounts on their FBARs. Facts of the Case Involving Secret Swiss-Israeli Bank Accounts All three defendants are relatives – Mr. Dan Farhad […]
On January 17, 2017, US-Slovenia Totalization Agreement was signed in Slovenia. Ms. Anja Kopac Mrak, the Slovenian minister of labor, family, social affairs, and equal opportunities, signed on behalf of Slovenia. Mr. Brent Hartley, US Ambassador to Slovenia, signed on behalf of the United States. Signing of the US-Slovenia Totalization Agreement represents a major step […]
On January 18, 2017, the HM Revenue & Customs announced that the withholding tax on royalties under the 1994 Estonia-UK tax treaty has been eliminated retroactively as of October 16, 2015. Under the original Estonia-UK tax treaty, the rates had been 5 percent for industrial, commercial, and scientific equipment royalties and 10 percent in other […]
On January 16, 2017, the Belarus-Hong Kong Tax Treaty was signed by government officials from both countries – K.C. Chan, Hong Kong’s secretary for financial services and the treasury, and Sergei Nalivaiko, Belarusian minister of taxes and duties. Let’s explore the most important provisions of the new Belarus-Hong Kong Tax Treaty. Elimination of Double-Taxation Under […]
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There has been a spectacular growth in the number of the IRS civil penalties. In 1955, there were about 14 penalties in the entire Internal Revenue Code (“IRC”); on the other hand, today, there are over 150 penalties. The most recent growth in penalties has been driven mostly by offshore compliance concerns and the appearance […]
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In her January 17, 2017 speech, the British Prime Minister Theresa May confirmed that the United Kingdom (“UK”) will leave the European Union (“EU”) and seek a free trade deal with the EU. The Prime Minister also appears to have made the threat of creating a UK Tax Haven if the deal is not struck. […]
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Audit Reconsideration is a very important IRS procedure that may provide a taxpayer with a “second chance” to challenge the results of an established IRS determination without going through the expensive process of tax litigation (assuming it is still available as an option). In this article, I will introduce and explore the concept of audit […]
There is an interesting relationship between the FBAR Third-Party Verification problem and the enaction of FATCA that I would like to explore in this brief article. Lack of FBAR Third-Party Verification FBAR is undoubtedly one of the most important information returns administered by the IRS. It is the reigning king with respect to reporting of […]
The IRS has repeatedly stated that the US tax system is a voluntary compliance system. Yet, what does “voluntary compliance” mean in this context? Does it mean that US taxpayers only need to comply with US tax laws whenever they wish to do it? Does it mean that any US taxpayer has a right to […]
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The IRS loves FBAR. Undoubtedly, FATCA Form 8938 is a very serious rival, but even this form cannot match the FBAR’s popularity among the IRS agents with respect to foreign accounts. What is behind this popularity? Or, stated in another way, why does the IRS love FBAR and prefers them to any other international tax […]
Exploring the FBAR legislative history is not just a theoretical adventure which should interest only legal scholars. Rather, the FBAR legislative history allows us to understand the theoretical and historical basis for the high FBAR penalties and the legal arguments that may serve best to combat the imposition of these severe penalties. FBAR Legislative History: […]
The usefulness of FBARs for the U.S. tax enforcement agencies may seem to be an odd issue, but, in reality, it concerns every taxpayer with foreign bank and financial accounts. Why the FBAR is important and how the IRS and the U.S. Department of Justice (“DOJ”) utilize it in their prosecution tactics is the subject […]
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One of the advantages of practicing US international tax law is that an international tax lawyer can offer his FBAR services throughout the United States. Why is this case? Why is an international tax lawyer who lives in Minneapolis considered as an Indianapolis FBAR Lawyer? Indianapolis FBAR Lawyer: FBAR is Federal Law, Not State Law […]
On December 29, 2016, the US Department of Justice (“DOJ”) and the IRS announced that they have reached final resolutions with Swiss banks that have met the requirements of the Swiss Bank Program. In this article, I would like to provide the Swiss Bank Program summary and explain the importance of the Program to the […]
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FBAR problems and parental love – at first, it seems that nothing can be more contradictory. Yet, in reality, parental love may often cause grave US tax problems for children if this love extends to adding children to a foreign account, and especially if this is done without the knowledge of the children. In this […]
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Sherayzen Law Office, PLLC wishes a very Happy New Year 2017 to all of our clients and readers of our blog! We wish you great health, happiness and prosperity in this New Year 2017! And, to stay in full compliance with US tax laws! The New Year 2017 is going to be a complicated one […]
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On December 20, 2016, the Saeima (Latvian Parliament) approved new amendments to Latvian Micro-Enterprise tax law. While the modifications to the law represented a compromise solution, the overall tax rate went up. History of Latvian Micro-Enterprise Tax Law The Latvian Micro-Enterprise Tax Law first entered into force on September 1, 2010. It primary purpose was […]
Bostonians who are beneficiaries or owners of a foreign trust face a large number of very complex US tax requirements. Failure to properly identify and comply with these requirements may result in imposition of severe tax penalties. For this reason, these Bostonians need to secure the help of a Boston Foreign Trust Lawyer in order […]
This article is a continuation of a series of articles on the Reasonable Cause Exception as a defense against various IRS penalties. Today, we will be exploring whether a mistake made by a taxpayer satisfies the ordinary business care and prudence standard and can be considered a reasonable cause. Mistake Alone Does Not Constitute Reasonable […]
Ordinary Business Care and Prudence Standard is a requirement that is present, explicitly or implicitly, in all reasonable cause defenses. In this article, I would like to explain what Ordinary Business Care and Prudence Standard means and what are the main factors for analyzing whether a taxpayer met the burden of proof required under the […]
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In today’s world connected through an invisible network of new technologies, a great number of persons prefer to choose an attorney based on his qualities rather than his state of residence. The residents of Madison, Wisconsin, similarly search for such an attorney, especially in the area of Streamlined compliance procedures by utilizing the search words: […]
Despite their apparent diversity and complexity, international business transactions can be grouped into three categories: export of goods and services, licensing and technology transfer and foreign investment transactions. International Business Transactions: Export of Goods and Services The first category of international business transactions consists of exports involving a sale of a commodity, manufactured goods or […]
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We are continuing our series of articles on Reasonable Cause. Today, we will discuss whether a serious illness can establish a reasonable cause for abatement of the IRS penalties. It is important to note that this discussion of serious illness as a reasonable cause is equally applicable to death and unavoidable absence of the taxpayer […]
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On December 14, 2016, Credit Suisse and Italy settled their dispute over Credit Suisse undisclosed offshore accounts owned by Italian tax residents. The settlement between Credit Suisse and Italy was approved by a judge in Milan and obligates Credit Suisse to pay a total of 109.5 million euros – 101 million euros in taxes, interest […]
This article is a continuation of a recent series of articles on the exploration of the definition of the United States. As it was mentioned in a prior article, the general definition of the United States found in IRC § 7701(a)(9) has numerous exceptions throughout the Internal Revenue Code (“IRC”). The US airspace is another […]
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The US continental shelf presents a unique problem to the tax definition of the United States. It is governed by a special tax provision that sets it apart from any other tax definition. If fact, the US continental shelf is only considered to be part of the United States with respect to specific taxpayers who […]
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The tax definition of the United States is highly important for US tax purposes; in fact, it plays a key role in identifying many aspects of US-source income, US tax residency, foreign assets, foreign income, application of certain provisions of tax treaties, et cetera. While it is usually not difficult to figure out whether a […]
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Legal threats to wealth do not apply only to the wealthiest top 1% of US taxpayers. Rather, they also should concern middle and upper-middle classes of the United States, especially doctors, lawyers, small and mid-size business owners, professionals (self-employed and employed within by companies), high-salaried employees, corporate officers, high-net-worth families and investors. In this article, […]
The IRS recently issued the optional IRS 2017 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. According to the IRS Rev. Proc. 2010-51, a taxpayer may use the business standard mileage rate to substantiate a deduction equal to either the business standard mileage […]
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Streamlined Disclosure Attorney Indianapolis is a common search by US taxpayers who are looking for legal help in Indianapolis with their streamlined voluntary disclosure of undeclared foreign assets and foreign income. Let’s analyze this search term – Streamlined Disclosure Attorney Indianapolis – to identify the type of attorney that fits this search best. Streamlined Disclosure […]
US taxes on Indian income is one of the most important topics relevant to the everyday life of Indian-Americans and Indians who reside and work in the United States. In this article, I will focus on the issue of US taxes on Indian Income earned by H1 (mostly H1B) visa holders. US Taxes on Indian […]
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On December 12, 2016, the IRS announced today that the 2017 tax filing season (for the tax year 2016) will begin on January 23, 2017. The 2017 tax filing season e-filings will be accepted by the IRS starting that date. The IRS again expects that more than four out of five tax returns will be […]
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On October 7, 2016, the IRS and the DOJ (US Department of Justice) announced yet another conviction related to an undisclosed Swiss Bank Account owned through a Hong Kong shell company. Facts of the Case: Hong Kong Shell Company Used to Hold Undisclosed Swiss Bank Account The facts of the case contain a fairly typical […]
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On December 7, 2016, Mr. Eugene Sherayzen, the founder of Sherayzen Law Office and a US international tax lawyer, gave a lecture at the Minneapolis chapter of Alliance Française. The topic of the lecture was an introduction to reporting of foreign income and foreign assets for individual taxpayers in the United States. The lecture was […]
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Foreign Investment in Real Property Tax Act (also referred to as “FIRPTA”) is the most important tax law for foreign investors in US real estate. Not only does FIRPTA determine the tax treatment of the gains on the real estate owned by nonresident aliens, but it also establishes the famous FIRPTA tax withholding mechanism that […]
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If you are a resident of Austin, Texas, and you have undisclosed foreign accounts, it is highly likely that you have searched for Streamlined Disclosure Attorney Austin. Let’s analyze this search term – Streamlined Disclosure Attorney Austin – to understand exactly what kind of an attorney fits this search. Streamlined Disclosure Attorney Austin Search Applies […]
Bitcoin Offshore Abusive Tax scheme is now at the center of the new war against offshore tax noncompliance. The IRS started this war on November 17, 2016, with the John Doe Summons petition against Coinbase, Inc., the largest US bitcoin exchanger. In this petition, the IRS Revenue Agent David Utzke details one variation of the […]
On December 5, 2016, the IRS announced that the First Quarter 2017 underpayment and overpayment interest rates will remain the same from the Fourth Quarter of 2016. This means that, the First Quarter 2017 underpayment and overpayment interest rates will be as follows: four (4) percent for overpayments (two (3) percent in the case of […]
Can a lawyer who resides in Minneapolis be considered an Atlanta FBAR Lawyer? What kind of law should such a lawyer practice? These are the two questions that I seek to answer in this article. Atlanta FBAR Lawyer Definition: Legal FBAR Services Provided in Atlanta, Georgia Let’s start with the first question. The term Atlanta […]
On November 27, 2016, Israel and Switzerland signed a joint declaration committing to implement the automatic exchange of financial account information (AEOI). The joint declaration (the Israeli-Swiss AEOI Declaration) was signed by Moshe Asher, director of the Israel Tax Authority, and Joerg Gasser, Swiss state secretary for international financial matters, on behalf of their respective […]
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I recently received a phone call from a person who was looking for a Seattle FBAR lawyer online and found my website. He asked me whether I can help him even though Sherayzen Law Office is based in Minneapolis, Minnesota. I responded to him: “yes, I can help you”. This conversation brought to light an […]
On November 22, 2016, Switzerland and India signed a joint declaration on the introduction of the automatic exchange of information (AEOI) in tax matters on a reciprocal basis. The joint declaration (Swiss-Indian AEOI Declaration) was signed by Sushil Chandra, chair of India’s Central Board of Direct Taxes, and Gilles Roduit, deputy chief of mission of […]
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If you received a property as part of your foreign inheritance, one of the key questions that you are facing is whether this inherited property is entitled to a stepped-up basis in the United States. This issue was resolved some time ago by the IRS in Revenue Ruling 84-139, 1984-2 C.B. 168. What is a […]
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On November 17, 2016, the IRS and the US Department of Justice (the “DOJ”) opened a new front against offshore tax evasion – bitcoin accountholder data. On that day, the DOJ filed a petition (accompanied by the IRS memorandum) in the U.S. District Court for the Northern District of California seeking permission to serve a […]
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On November 18, 2016, Mr. Benjamin Herndon, the current IRS director for research and analytics, confirmed the recent rumors that the IRS AI Software is being tested to help IRS agents find patterns of tax noncompliance. The idea is to supplement human analysis of data with the IRS AI software that would analyze any piece […]
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On November 22, 2016, the European Parliament approved the automatic exchange of banking and beneficial ownership data across the European Union. The directive received an overwhelming support from the Parliament: 590 members voted “yes”, 32 – “no”, and 64 did not vote. Since the original proposal was already approved by the EU Council on November […]
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This essay is concerned with a situation where the IRS audits your quiet disclosure of foreign assets and foreign income. The IRS audit can be an absolute nightmare in this case. Not only will the audit examine the accuracy of the disclosure, but the IRS may actually raise the issue of willful and non-willful FBAR […]
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On November 9, 2016, the Ukrainian government authorized the Ukrainian FATCA Agreement for signature. Let’s explore this new development in more depth. Ukrainian FATCA Agreement and FATCA Background The Ukrainian FATCA Agreement is one of the many bilateral FATCA implementation agreements signed by the great majority of jurisdictions around the world. The Foreign Account Tax […]
The Russian Ministry of Finance (“MOF”) recently issued Guidance Letter 03-04-06/64102 (dated October 31) regarding the taxation of gifts from Russian legal entities to nonresidents (i.e. the Russian taxation of gifts to nonresidents). This Letter will have a direct impact on the tax planning for Russians who are tax residents of the United States. Russian […]
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Who is considered to be a Milwaukee FBAR Lawyer? This is a question that is important to all residents of Milwaukee, Wisconsin. Let me try to answer this question. Milwaukee FBAR Lawyer Definition: Legal FBAR Services Provided in Milwaukee, Wisconsin The term Milwaukee FBAR Lawyer includes two broad categories of international tax lawyers. The first […]
FATCA PFIC Reporting is an important feature in today’s U.S. tax compliance. In this article, I will focus on the explanation of the FATCA PFIC Reporting requirement for U.S. shareholders of a PFIC. FATCA PFIC Reporting: FATCA Background The Foreign Account Tax Compliance Act (“FATCA”) is contained in Chapters 1471–1474 of the Internal Revenue Code […]
On October 21, 2016, the IRS announced that more than 100,000 US taxpayers participated in its Offshore Voluntary Compliance programs paying a total of more than $10 billion. Let’s explore these Offshore Voluntary Compliance numbers in more depth. OVDP is Still the King of Offshore Voluntary Compliance but Its Impact is More Targeted The IRS […]
Between the years 2009-2016, the IRS created three different Offshore Voluntary Disclosure Programs (IRS OVDPs) for U.S. taxpayers to voluntarily disclose their undeclared foreign accounts: 2009 Offshore Voluntary Disclosure Program (2009 OVDP), 2011 Offshore Voluntary Disclosure Initiative (2011 OVDI), and 2012 Offshore Voluntary Disclosure Program (2012 OVDP). 2012 OVDP was subsequently profoundly modified in the […]
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The subject of this article is the discussion of the Form 872 Refund Claims, particularly whether filing Form 872 can extend the time for the taxpayer to claim a refund for the relevant years. Stated broadly, the key question that this article seeks to explore is whether an extension of time for assessment of tax […]
On October 26, 2016, the Totalization Agreement with Romania entered a new stage – the government of Romania approved for signature a draft social security (also known as “Totalization”) agreement with the United States. The Totalization Agreements are authorized by Section 233 of the Social Security Act. The United States currently has Totalization Agreements with […]
On October 28, 2016, the IRS reminded employers and small business owners of the new January 31, 2017 deadline as a result of the PATH Act. PATH Act’s Impact on the Filing Deadlines for Forms W-2 and 1099-MISC In the past, employers typically had until the end of February, if filing on paper, or the […]
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As the headquarters of Berkshire Hathaway, Omaha (Nebraska) draws a large number of foreign-born professionals. A high percentage of these professionals still have foreign accounts overseas and they are in great needs of assistance from an Omaha FBAR attorney. Oftentimes, they cannot find an attorney they like in Omaha (especially, since this is not a […]
The earlier IRS and DOJ (U.S. Department of Justice) investigations of secret bank accounts in Israel and Switzerland continue to produce new guilty pleas. On September 28, 2016, Mr. Markus Hager, a New York City resident, pleaded guilty to tax evasion for the tax years 2003-2005 and 2007-2010 with respect to his secret bank accounts […]
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On September 21, 2016, the IRS and the DOJ scored yet another success in their fight against hiding income in Central American banks – Mr. Saul Hyatt pleaded guilty to hiding income from an undeclared Panamanian bank account. Facts of the Case: Undeclared Panamanian Bank Account The Hyatt case falls right within the type of […]
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The residents of New York who are beneficiaries or owners of a foreign trust are likely to find themselves facing a difficult legal situation and various US tax complications. Failure to properly identify and comply with their tax obligations may result in imposition of severe penalties. This is why they need the help of a […]
Streamlined Disclosure Attorney Minneapolis is becoming a common search for an individual who is looking for professional help in Minneapolis with his streamlined voluntary disclosure of undeclared foreign assets and foreign income. Let’s analyze this search term – Streamlined Disclosure Attorney Minneapolis – to understand what kind of an attorney fits into this search. Streamlined […]
On October 6, 2016, Israeli bank Hapoalim Ltd. announced that, in order to cover the costs of a future settlement with the US Department of Justice (DOJ), it will add a $70 million charge to an existing $50 million provision in its third-quarter results. The expected settlement will cover Hapoalim’s role in helping US tax […]
On October 4, 2016, the US Public Interest Research Group, Citizens for Tax Justice, and the Institute on Taxation and Economic Policy issued a report called “Offshore Shell Games 2016: the Use of Offshore Tax Havens by Fortune 500 Companies”. The report calculates that eliminating all tax deferral on Fortune 500 US companies’ foreign earnings […]
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This article explores a certain relationship between tax returns and an IRS FBAR Audit. In particular, the critical question that I seek to answer in this writing is when the IRS is able to use US tax returns as evidence to support and/or commence an IRS FBAR Audit. IRS FBAR Audit and the IRS Examination […]
The first Colombia-US Tax Treaty nears the final stage of negotiations. This announcement was made on September 28, 2016, in Bogota, Colombia, by Colombian Finance Minister Mauricio Cardenas and U.S. Treasury Secretary Jacob Lew (the details of the meeting were published on the Colombian president’s website). Despite the fact that United States and Colombia already […]
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On September 29, 2016, the European Commission announced that it had asked Poland to fully implement into its domestic law Council Directive 2014/107/EU on mutual assistance in income and capital taxation matters (which amends the earlier Directive 2011/16/EU on mandatory automatic exchange of information between member states). The request came in after the realization that […]
Due to Seattle’s proximity to Canada and a large amount of foreign professionals employed by high-tech firms (especially Microsoft), there is a large number of residents of Seattle, Washington, who have an obligation to report their foreign accounts. The great majority of these people need the assistance of professional Seattle FBAR attorney, but they find […]
The main thesis of this essay is that the designation of a Houston FBAR Lawyer should be applied based on the geography of services of an FBAR lawyer rather the physical location of a lawyer. Houston FBAR Lawyer Definition: Legal FBAR Services Provided in Houston, Texas The old designation where a Houston FBAR Lawyer designation […]
This is an international tax lawyer news update: on September 26, 2016, Swiss tax officials confirmed that France asked Switzerland to provide the names of the holders of more than 45,000 UBS bank accounts. The request covers years 2006-2008. Le Parisien newspaper, which first published extracts from the French request that the combined balance in […]
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If you are a US beneficiary or a US owner of a foreign trust and you reside in Madison, Wisconsin, you need the help of an experienced Madison Foreign Trust Lawyer to properly comply with complex US tax reporting requirements regarding foreign trusts and avoid paying very high penalties. Who should you consider retaining as […]
IRS FBAR Audits can lead to catastrophic consequences for noncompliant US taxpayers. While there may be a numbers of factors that influence the IRS decision to commence such an audit, one of the leading sources of the IRS FBAR Audits are the US tax returns. In this article, I would like to explore the main […]
On September 14, 2016, the IRS announced that the 4th Quarter 2016 underpayment and overpayment interest rates will remain the same. This means that, the 4th quarter 2016 IRS underpayment and overpayment interest rates will be as follows: four (4) percent for overpayments (two (3) percent in the case of a corporation); four (4) percent […]
Ignorance of the Law forms part of a much broader Reasonable Cause Exception which is almost a universal defense against the imposition of IRS civil penalties. Ignorance of the Law is often utilized as a defense against the US international tax information return penalties, including penalties envisioned under FBAR, Form 8938, Form 5471, Form 8865, […]
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The definition of a Boulder FBAR Lawyer is much broader than many people believe. In this brief essay, I would like to explain who is considered to be a Boulder FBAR Lawyer and why you should retain the services of Sherayzen Law Office, Ltd. for professional help with your FBAR issues. Boulder FBAR Lawyer Definition: […]
On September 1, 2016, the US–Hungary Totalization Agreement entered into force. In this article, I will briefly discuss the main benefits of this Agreement to US and Hungarian nations. US–Hungary Totalization Agreement: What is a Totalization Agreement? The Totalization Agreements are authorized by Section 233 of the Social Security Act for the purpose of eliminating […]
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Are you looking for a competent Miami FBAR Lawyer to help you with the filing current or delinquent FBARs? Then, you need to understand who is considered to be a Miami FBAR Lawyer and why you should retain the services of Sherayzen Law Office, Ltd. – an international tax law firm that provides FBAR services […]
On August 1, 2016, the IRS scored another victory in a case involving Israeli Bank Accounts; the IRS and the DOJ announced that Mr. Masud Sarshar, a California businessman, was charged with one count of conspiracy to defraud the United States and one count of corruptly endeavoring to impair and impede the due administration of […]
If you reside in Austin, Texas, and you are a US beneficiary or a US owner of a foreign trust, you need the help of an experienced Austin Foreign Trust Lawyer as soon as possible due to very high penalties associated with US tax noncompliance regarding foreign trust reporting. However, a question arises: who is […]
Finding a good Denver FBAR Lawyer is not easy, especially if you do not know what exactly Denver FBAR Lawyer means. In this essay, I will define what lawyers fit into the definition of a Denver FBAR Lawyer and why you should retain the services of my firm, Sherayzen Law Office, Ltd. Denver FBAR Lawyer […]
Do you reside in Madison and have undisclosed foreign accounts? Are you searching for a highly-knowledgeable Madison FBAR Attorney to help you resolve this situation? Then, read this essay in order to understand who is considered to be a Madison FBAR Attorney and and why you should retain the services of my firm, Sherayzen Law […]
Are you looking for a highly-skilled Philadelphia FBAR Attorney? Then, you are among many Philadelphians who need to report their foreign accounts, but do not know how to find appropriate legal help. Often, they find the attorney that they like lives outside of Philadelphia and they are not sure if they should prefer him over […]
Often, people are searching for a Boston FATCA lawyer without a clear definition of who a Boston FATCA lawyer is. Indeed, who is a Boston FATCA Lawyer? Just a lawyer who resides in Boston or can a lawyer who resides outside of Boston qualify as a Boston FATCA lawyer? Is it any lawyer or only […]
FBAR PFIC Reporting is an important issue for U.S. shareholders of passive foreign investment companies (“PFICs”). I will now briefly explore the FBAR PFIC Reporting requirement and when it applies to U.S. shareholders of a PFIC. FBAR PFIC Reporting: FBAR Background FinCEN Form 114, the Report of Foreign Bank and Financial Accounts, commonly known as […]
There are two definitions of who qualifies to be Seattle FATCA lawyers. First, Seattle FATCA lawyers are lawyers who are work in Seattle and who specialize in helping U.S. taxpayers and/or foreign financial institutions with FATCA compliance. The second type of international tax attorneys who can qualify as Seattle FATCA lawyers became possible as a […]
There is a confusion in general public about the H1B holder FATCA requirements. The key concept that lies at the heart of the U.S. tax obligations of an H1B holder is tax residency (which is very different from the definition of a U.S. permanent resident in immigration law). In this article, I will discuss the […]
“I am working in US on L1 Visa and I have foreign accounts” – this is the phrase that I often hear from various callers. Usually, these persons know very little about their US tax obligations and are concerned about their US tax compliance. Let’s analyze this phrase – “I am working in US on L1 Visa […]
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Mexican Fideicomiso is one of the most convenient ways for U.S. persons to purchase land in Mexico. Of course, one can purchase the land through a Mexican corporation, but such an arrangement will require additional tax planning and higher annual compliance costs, including potentially filing form 5471, Form 8938 and other forms. Therefore, most U.S. […]
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Recently, there have been signs that the IRS is pondering the future of its flagship Offshore Voluntary Disclosure Program (2014 IRS OVDP): does this means that there is a potential for the 2014 IRS OVDP to end soon? TIGTA Report and 2014 IRS OVDP The latest warning signal came on June 2, 2016. On that […]
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Foreign Gift Requirements is one of the most important topics for U.S. taxpayers with foreign relatives. In this article, I would like to quickly overview foreign gift requirements for U.S. tax purposes. Foreign Gift Requirements: What is a Foreign Gift? Legally, the term “gift” means a definite, voluntary and gratuitous transfer of property from one individual to […]
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For several years now, Sherayzen Law Office has been warning U.S. taxpayers about the ever-increasing IRS interest in undeclared accounts in Singapore. On June 22, 2016, the IRS announced that UBS AG has complied with the IRS summons for bank records held in its Singapore office. This news come after repeated initiatives by the IRS […]
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On June 22, 2016, the IRS and the US DOJ successfully brought to conclusion the Bergantino Case with a guilty plea by Mr. Michele Bergantino (a citizen of Italy and a resident of Switzerland) to charges related to aiding and assisting U.S. taxpayers in evading their income taxes. Mr. Bergantino, a former Credit Suisse AG […]
Foreign Inheritance Form 8938 reporting has quickly turned into one of the most important tax reporting requirements despite being one of the newest tax forms that debuted barely four years ago in 2012 (for the tax year 2011). In this article, I will discuss when Form 8938 needs to be filed with respect to inherited […]
There are two types of international tax lawyers who can qualify as Denver FATCA lawyers. First, Denver FATCA lawyers are lawyers who live and work in Denver and who specialize in helping U.S. taxpayers and/or foreign financial institutions with FATCA compliance. The second type of international tax lawyers who can qualify as Denver FATCA lawyers […]
Who is considered to be Houston OVDP tax attorney? Initially, most taxpayers would say that this is a strange question to ask, because the answer is very simple: Houston OVDP tax attorney is an attorney who resides in Houston and specializes in helping U.S. taxpayers disclose their undeclared foreign accounts. This answer, however, is anachronistic […]
FATCA Form 8938 Foreign Life Insurance Policy reporting is one of the most obscure US tax requirements with which many US taxpayers fail to comply. In this article, I would like to explore FATCA Form 8938 foreign life insurance policy reporting. FATCA Form 8938 Foreign Life Insurance Reporting: Types of Foreign Life Insurance Policies In […]
On June 17, 2016, the IRS again reminded U.S. taxpayers with foreign accounts to file their 2015 FBARs by Thursday, June 30, 2016. U.S. taxpayers have to file 2015 FBARs if they had financial interest in or signatory authority (or other authority) over foreign accounts with values which, in the aggregate (i.e. all accounts added […]
Foreign Inheritance FBAR Reporting is one of the most common issues among U.S. taxpayers with foreign parents, uncles, aunts, siblings and other relatives. The issue discussed in this article is not reporting foreign inheritance itself (although this is an important concern which I already addressed in other articles), but whether FBAR needs to be filed […]
Foreign Life Insurance Policies are very popular around the world, especially in India, Germany and France (Assurance Vie accounts). Yet, very few U.S. taxpayers (especially H-1B holders and U.S. permanent residents) are aware of the fact that these policies may be subject to numerous and complex IRS tax reporting requirements in the United States. In […]
On March 9, 2016, the IRS announced the first conviction of Non-Swiss Financial Institutions for tax evasion conspiracy. At Sherayzen Law Office, we have been predicting now for years that the IRS would expand its prosecution of financial institutions far beyond the Swiss borders, specifically pointing to tax shelters such as Cayman Islands. Now that […]
On February 4, 2016, the US DOJ announced that it filed criminal charges against Bank Julius Baer & Co. Ltd. (“Julius Baer” or “the company”). At the same time, the DOJ announced a Julius Baer Deferred Prosecution Agreement. Let’s explore this event in more detail. Julius Baer Deferred Prosecution Agreement Background Unlike many other Swiss […]
No FBAR Penalty is the result that every taxpayer wishes to achieve. Indeed, having no FBAR penalty is a realistic objective, but only in certain situations. One of such situations is currently offered by the IRS through Delinquent FBAR Submission Procedures. History of the IRS Procedures Regarding No FBAR Penalty Option There is a relatively […]
The Internal Revenue Service recently announced that Third Quarter of 2016 IRS Interest Rates will remain the same for the. Third quarter begins on July 1, 2016 and ends on September 30, 2016) The Third Quarter of 2016 IRS Interest Rates: four (4) percent for overpayments [three (3) percent in the case of a corporation]; […]
Most U.S. taxpayers who need international tax services look for an experienced international tax law firm to help them. Sherayzen Law Office, Ltd. is a highly experienced international tax law firm. In this essay, I will conduct the analysis explaining why Sherayzen Law Office is considered such an experienced international tax law firm. Areas of […]
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In the Cambata case, the IRS successfully demonstrated once again that renunciation of U.S. citizenship will not protect a taxpayer from being pursued for unreported income from foreign accounts. On February 3, 2016, Mr. Albert Cambata pleaded guilty to filing a false income tax return with respect to his unreported Swiss account income. Facts Related […]
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2015 FBAR is one of the most important tax information returns required by the IRS this year. While the 2015 FBAR is not the most complicated form, it is definitely the one that is associated with the most severe penalties. 2015 FBAR History The FBAR is an abbreviation for the Report of Foreign Bank and […]
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Over eight million U.S. taxpayers are expected to receive FATCA letters from their foreign banks. The first reaction of most taxpayers is to ask: “What is a FATCA letter?” The next question is: “What should I do if I receive(d) a FATCA Letter?” This article intends to answer both questions. The FATCA Letter A FATCA […]
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Liquidating trusts are common in today’s business environment and it is highly important to understand how they are taxed in the United States. This article is a continuation of a series of articles on the general overview of U.S. taxation of different types of foreign and domestic trusts with the focus on liquidating trusts. Liquidating […]
After the IRS imposes an FBAR penalty on the taxpayer, the IRS will send the taxpayer IRS Letter 3708 to demand the payment of the part of the FBAR Penalty that remains unpaid. In this article, I would like to discuss IRS Letter 3708 in more detail, particularly focusing on the various FBAR Penalty Collection […]
In April of 2016, the IRS acknowledged its participation in meetings with Joint International Tax Shelter Information and Collaboration network (“JITSIC”), International Monetary Fund (IMF) and World Bank to take advantage of the data about more than 200,000 offshore companies identified in the Panama Papers. At the same time, the IRS urged noncompliant U.S. taxpayers […]
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This article on investment trusts continues a series of articles on classification of foreign trusts. In earlier essays, I explored the definition of foreign trusts and some of the exceptions to this definition. In the present writing, I would like to discuss the general circumstances when investment trusts would be treated as corporations or partnerships […]
As I mentioned in an earlier article, U.S. tax law includes a number of important exceptions to legal definition of a foreign trust – i.e. an entity can be classified as a foreign trust for legal purposes and not as a trust (but as a corporation or a partnership) for U.S. tax purposes. This is […]
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This article begins to explore one of the most obscure, yet highly important questions in U.S. international tax law – foreign trust classification and what law is relevant in the determination of such a classification. This area of law is very complex and I cannot hope for more than providing just some general contours of […]
While the United Kingdom signed its FATCA implementation treaty in 2014, UK FATCA letters (i.e. FATCA letters from UK financial institutions) continue to pour into the mailboxes of U.S. taxpayers. In this article, I would like to discuss the purpose and impact of UK FATCA Letters. UK FATCA Letters UK FATCA Letters play an integral […]
As the FATCA deadline to report Indian preexisting accounts approaches for Indian foreign financial institutions, more and more Indian-Americans and Indians who live and work in the United States receive Indian FATCA Letters (i.e. FATCA letters from Indian foreign financial institutions). Many U.S. taxpayers of Indian origin are completely unprepared for Indian FATCA Letters and […]
On March 15, 2016, the IRS announced that there was continuous growth in the FBAR and Form 8938 filings. While the IRS attributes this growth in FBAR and Form 8938 filings to the greater awareness of taxpayers, one cannot underestimate the impact of the FATCA letter and the increasing knowledge of foreign financial institutions with […]
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Tata Mutual Fund FATCA Letters were some of the first FATCA letters received by U.S. investors in India. A lot of these U.S. investors were Indians born in India, but living and working in the United States. However, the process of sending FATCA letters is not over at this point. Therefore, more and more Indian-Americans […]
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As FATCA continues its triumphant march across the globe, banks from more and more countries continue to send out FATCA letters to their US customers. Recently, the banks in the Kingdom of Jordan sent out additional FATCA letters (hereinafter, “Jordanian Bank FATCA Letters”). Jordanian Bank FATCA letters caught many U.S. taxpayers by surprise; some even refuse […]
A lot of tax professionals and taxpayers fail to recognize the vital connection between a tax return filing deadline (like April 18, 2016) and the determination of the SDOP Voluntary Disclosure Period. In this article, I will explain what the SDOP Voluntary Disclosure Period and how it is related to tax return filing deadlines. SDOP […]
On March 16, 2016, the Internal Revenue Service announced that interest rates have increased for the second quarter of 2016, which began on April 1, 2016 and ends on June 30, 2016. The second quarter of 2016 IRS interest rates will be: four (4) percent for overpayments [three (3) percent in the case of a […]
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One of the most fundamental distinctions in US foreign trust law is the difference between an inbound foreign trust and an outbound foreign trust. This distinction was emphasized by the landmark piece of legislation “The Small Business Job Protection Act of 1996″ and should be clearly understood by US tax lawyers as well as US […]
Despite its appearances, the calculation of the Streamlined Domestic Offshore Procedures Title 26 Miscellaneous Offshore Penalty (“Streamlined Five Percent Offshore Penalty) may actually be a complex process. Moreover, the correct calculation of the Streamlined Five Percent Offshore Penalty may lead to some paradoxical conclusions, including a preference for the OVDP Penalty (now closed). Due to […]
A question that I would like to explore in this article is: Who is considered to be an Austin FBAR tax lawyer? It seems to be an odd question, because a lot of people would say that an Austin FBAR tax lawyer is an attorney who resides in Austin and does FBAR law. This, however, […]
If you are looking for a New York FBAR Lawyer, you should consider retaining the services of Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. While Mr. Sherayzen is not physically located in New York, he has a considerable number of clients in the City of New York and the State of New York. It […]
Over the years, the US tax treatment of foreign trusts has undergone dramatic changes. It is important to study and understand this history in order to properly understand and interpret current US tax laws concerning foreign trust. In this essay, I will provide a broad overview of the history of foreign trust tax treatment in […]
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Pre-immigration tax planning is done by very few of the millions of immigrants who come to the United States. This is highly unfortunate because US tax laws are highly complex and it is very easy to get into trouble. The legal and emotional costs of bringing your tax affairs back into US tax compliance (after […]
On February 5, 2016, the IRS again stated that avoiding U.S. taxes by hiding money or assets in unreported offshore accounts remains on its annual list of tax scams known as the “Dirty Dozen” for the 2015 filing season. The problem with offshore accounts is two-fold. On the one hand, there are numerous con-artists who […]
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On February 18, 2016, Mr. Sherayzen, in cooperation with two lawyers (an immigration lawyer and a business lawyer) completed another immigration and international tax law seminar “Foreign Investment in the United States: Key Immigration, Business and Tax Considerations”. During this immigration and international tax law seminar, the immigration lawyer, Mr. Streff, covered a wide range […]
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On January 27, 2016, the US Department of Justice (DOJ) declared the last Swiss Bank Program Category 2 Resolution. The Swiss Bank Program was proclaimed on August 29, 2013, and constituted an unprecedented triumph of US economic might over the most formidable bank secrecy bulwark (though, already a greatly weakened one since the 2008 UBS […]
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Currency conversion is a critical part of preparing 2015 FBAR and Form 8938. This is why 2015 Form 8938 and FBAR Currency Conversion Rates are so important. The 2015 Form 8938 and FBAR Currency Conversion Rates are the December 31, 2015 rates officially published by the U.S. Department of Treasury (they are called “Treasury’s Financial […]
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If you are looking for a Minneapolis FBAR Attorney, a recommended suggestion would be to retain the services of Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Mr. Sherayzen is a Minneapolis FBAR Attorney and founder of Sherayzen Law Office. Minneapolis FBAR Attorney: Sherayzen Law Office FBAR Specialization Sherayzen Law Office specializes […]
The OVDP Preclearance Request is a very important document that is required to be filed in order to commence a US taxpayer’s voluntary disclosure under the 2014 IRS Offshore Voluntary Disclosure Program (2014 OVDP) which is still in existence at the time of this writing. This is why it is important to understand what actually […]
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Financial accounts maintained by a Foreign Financial Institution constitute one of the main categories of Specified Foreign Financial Assets that need to be reported on IRS Form 8938. While it seems trivial, it is important to understand what is meant by “Foreign Financial Institution” within the context of Form 8938 – i.e. what is the Form […]
December of 2015 was one of the most successful months for the DOJ’s Swiss Bank Program as nearly a record number of banks signed non-prosecution agreements. This success for the DOJ means that more and more of non-compliant US taxpayers with foreign accounts are likely to deal with Higher OVDP Penalty with respect to their […]
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The 50% Offshore Penalty is a unique feature of the 2014 OVDP. What is so unusual about this penalty is that its impact widens with each passing month and year to include and affect more and more US taxpayers. In this article, I would like to explore the emergence of the 50% Offshore Penalty and […]
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On December 23, 2015, as US Department of Justice (DOJ) announced that it reached resolutions with Bank J. Safra Sarasin AG, Coutts & Co Ltd, Gonet & Cie and Banque Cantonal du Valais, it also announced that Swiss Bank Program Penalties reached a landmark – more than $1 Billion. At that time, in addition to […]
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As a result of the FEMA’s state of disaster declaration, certain Mississippi Storm victims will now benefit from the extension of the 2015 tax return filing and tax payment deadlines. In particular, the residents of Benton, Coahoma, Marshall, Quitman and Tippah counties (as well as other counties that may be added at a later time) […]
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There is a common misconception among Green Card Holders (a common name for US permanent residents) that their US income tax obligations are limited in nature in comparison to US citizens. In this article, I seek to dispel this erroneous myth and provide some general outlines of the US income tax obligations of Green Card […]
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With the commencement of the new year, it is very important for business owners and corporate executives to focus on the main 2016 business income tax deadlines. In this short review of 2016 business income tax deadlines, I will focus only on the most common income tax deadlines of a corporation that operates on a […]
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There has been a lot of confusion surrounding the new FBAR deadline. Since the FBAR is one of the most important US international tax deadlines, it is important to clarify the change in the FBAR filing deadline. What is “FBAR”? FinCEN Form 114, commonly known as FBAR, is the Report of Foreign Bank and Financial […]
As the New Year festivities are drawing to an end, the attention of hundreds of millions of US taxpayers focuses more and more on its annual US tax compliance in the calendar year 2016. In this brief article, I would like to summarize some of the most important deadlines of the calendar year 2016. Obviously, […]
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The IRS underpayment and overpayment interest rates are highly important in US tax law in general, and offshore voluntary disclosures in particular. Not only do these rates determine the interest on additional tax liability on the amended tax returns, but the same rates are sued to determine the PFIC interest rate on “excess distributions”. During the […]
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On December 17, 2015, the IRS issued its 2016 standard mileage rates to calculate deductible automobile operation costs for business, charitable, medical or moving purposes. The 2016 standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 54 cents per mile for business miles driven, down from 57.5 […]
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Most tax practitioners are familiar with the general rules of assessment statute of limitation for US tax returns. However, very few of them are aware of the danger of potentially indefinite extension of the statute of limitations contained in IRC Section 6501(c)(8). In this article, I would like to do offer a succinct observation of […]
A recent article from Reuters discusses the appearance of the new Indian Gold Monetisation Scheme. The idea is to allow Indians to deposit gold into the banks in return for interest payments; in return, the Indian government is hoping to utilize the gold hoarded by its citizens to reduce gold imports. While the idea is […]
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As of August 25, 2015, and as a result of increasing number of DOJ Swiss Bank Program Non-Prosecution agreements, 2015, higher OVDP penalties (50 %) apply to US account holders of 43 banks. Between August 1 and August 20, 2015, six more banks were added to the 50% penalty list. In this article, I would […]
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On August 20, 2015, the US Department of Justice announced another Swiss Bank Program update – Bank Zweiplus AG (Bank Zweiplus) and Banca dello Stato del Cantone Ticino (Banca Stato) have reached resolutions under the department’s Swiss Bank Program. The Swiss Bank Program, which was announced on August 29, 2013, provides a path for Swiss […]
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India has joined the U.S. in a broad FATCA tax disclosure agreement that will force many American citizens and green card holders to declare Indian accounts. In the long run, it will have even bigger implications. read »
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On July 9, 2015, India finally signed the Intergovernmental Agreement (IGA) to implement FATCA. The fact is that the Indian signed FATCA Agreement has significant implications for millions of Indian-Americans who reside in the United States as well as outside of the United States. India Signed FATCA: Background Information on FATCA The Foreign Account Tax […]
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On July 2, 2015, the US Department of Justice announced that Privatbank Von Graffenried AG became the fifteenth bank to sign a Non-Prosecution Agreement under the DOJ’s Swiss Bank Program. It also became the 27th bank on the 50% penalty list for US taxpayers who wish to enter the OVDP. Background Information Von Graffenried is […]
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On June 26, 2015, the US Department of Justice announced that Ersparniskasse Schaffhausen AG (Ersparniskasse Schaffhausen) signed a Non-Prosecution Agreement under the department’s Swiss Bank Program. Ersparniskasse Schaffhausen Background Ersparniskasse Schaffhausen was founded in 1817 and is wholly owned by a Swiss charitable foundation. It is headquartered in the city and canton of Schaffhausen, Switzerland. […]
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On June 19, 2015, the Department of Justice announced that Bank Sparhafen Zurich AG (Bank Sparhafen) has reached resolution under the department’s Swiss Bank Program. Bank Sparhafen Background Information Bank Sparhafen was founded in 1850 and has its sole office in Zurich. Bank Sparhafen knew that U.S. persons had a duty under U.S. law to […]
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On June 19, 2015, the Department of Justice announced that Bank Linth LLB AG (Bank Linth) signed a Non-Prosecution agreement pursuant to the DOJ’s Swiss Bank Program. Bank Linth Background Bank Linth, one of the largest regional banks in Eastern Switzerland, was founded in 1848. It is headquartered in Uznach, Switzerland, which is approximately 35 […]
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On June 9, 2015, the Department of Justice announced that Berner Kantonalbank AG (Berner Kantonalbank), signed a Non-Prosecution Agreement with the DOJ pursuant to the department’s Swiss Bank Program. Swiss Bank Program Background The Swiss Bank Program, which was announced on August 29, 2013, provided a path for Swiss banks to resolve potential criminal liabilities […]
On June 9, 2015, the Department of Justice announced that Société Générale Private Banking (Suisse) SA has reached a resolution under the DOJ’s Swiss Bank Program. According to the terms of the non-prosecution agreement, Société Générale Private Banking agreed to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop […]
With FATCA, offshore account compliance is even more important. And picking between the several IRS amnesty programs can be nuanced. Be realistic about your facts, and choose carefully. read »
On June 3, 2015, the US Department of Justice (“DOJ”) announced that Banca Credinvest SA (Credinvest Bank), together with Rothschild Bank, signed a Non-Prosecution Agreement that finalized Credinvest Bank’s participation in the DOJ Program for Swiss Banks. Credinvest Bank History Located in Lugano, Switzerland, Credinvest Bank started operations as a fully licensed bank in 2005. […]
On June 3, 2015, the US Department of Justice (“DOJ”) announced that Rothschild Bank AG (Rothschild bank) have reached resolution under the department’s Swiss Bank Program. Rothschild Bank Facts Rothschild Bank was founded in 1968 and is headquartered in Zurich, Switzerland. Rothschild Bank offered services that it knew could and did assist U.S. taxpayers in […]
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On May 28, 2015, four Swiss Banks – Société Générale Private Banking (Lugano-Svizzera), MediBank AG, LBBW (Schweiz) AG and Scobag Privatbank AG – signed Non-Prosecution Agreements under the Department of Justice Swiss Bank Program. These four Swiss banks now increased the list of the Swiss Banks that reached the resolution under the Program to the total […]
On May 15, 2015, Finter Bank Zurich AG (Finter Bank) became the third Swiss bank to sign a Non-Prosecution Agreement with US DOJ according to the terms of the DOJ Program for Swiss Banks. DOJ Program for Swiss Banks On August 29, 2013, the DOJ announced the creation of the “The Program for Non-Prosecution Agreements […]
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On May 8, 2015, Vadian Bank AG (Vadian) became the second bank to sign a Non-Prosecution Agreement with the US Department of Justice (DOJ) pursuant to the DOJ Program for Swiss Banks. Program for Swiss Banks: Background Information On August 29, 2013, the DOJ announced the creation of the “The Program for Non-Prosecution Agreements or […]
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On March 30, 2015, the US Department of Justice announced that BSI SA, one of the 10 largest private banks in Switzerland, was the first bank to reach a resolution under the DOJ Swiss Bank Program. Background Information The Swiss Bank Program, which was announced on August 29, 2013, provides a path for Swiss banks […]
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As a Minneapolis MN FATCA Tax Lawyer, I often receive questions about what US tax forms precisely are affected by the implementation of the Foreign Account Tax Compliance Act (FATCA). Here is a list of the tax forms most affected by FATCA: 1. Minneapolis MN FATCA Tax Lawyer: IRS Form 1042 and 1042-S Form 1042 […]
On March 20, 2015, the Cayman Islands FATCA Registration Portal was launched by the Department for International Tax Cooperation (which is a department within Cayman Islands Tax Information Authority). Cayman Islands FATCA Background The Cayman Islands FATCA Registration Portal is part of the long process of Cayman Islands FATCA compliance. Cayman Islands FATCA IGA (Model […]
On March 13, 2015, the IRS announced that the underpayment and overpayment interest rates for the calendar quarter beginning April 1, 2015, will remain unchanged. The rates will be: three (3) percent for overpayments [two (2) percent in the case of a corporation];three (3) percent for underpayments;five (5) percent for large corporate underpayments; andone-half (0.5) […]
Americans abroad usually assume their first $100K of earnings are tax-free. It’s not that simple, and several years of earnings may be at stake when you find out, making FATCA and FBAR problems even worse. read »
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For years, the Vatican Bank has sidestepped EU regulations intended to bring about greater transparency in the financial sector. That was before Pope Francis, who has pledged to restore public confidence in the administration of the Roman Catholic Church. This week we learned the United States and the Holy See have brokered a FATCA agreement for […] read »
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Thanks to FATCA (the Foreign Account Tax Compliance Act), the IRS is now receiving important data on formerly hidden bank accounts, but tax administrators in other countries aren’t so fortunate. Their enforcement efforts are stymied by a lack of information on offshore income. As the current spat between Colombia and Panama illustrates, revenue […] read »
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FATCA is Revolutionizing tax compliance Worldwide. Now, the OECD has assembled 51 Nations that are All on the Hunt for tax and Offshore Account Data. read »
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There’s a direct correlation between the severity of a tax code and the level of effort individuals are willing to put into avoiding or evading taxes. Attempting to address the latter while ignoring the former is a fool’s errand. read »
Global financial firms breathed a brief sigh of relief this week on news that the U.S. Treasury will temporarily relax enforcement on the Foreign Account Tax Compliance Act (FATCA). read »
Various Form 5471 penalties are associated with failure to file Form 5471 or the filing of an incorrect Form 5471. In this article, I will describe the most important of these penalties. IRS Form 5471 The IRS Form 5471 is an extremely complex form that is used to satisfy the reporting requirements of two esoteric […]
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One of the key concepts in FATCA compliance is a “financial institution”. The definition of a financial institution (“FATCA Financial Institution”) is contained in the FATCA Model IGAs. In this article, I will explore some of the general concepts central to defining a FATCA Financial Institution. Four Types of FATCA Financial Institutions The concept of […]
It has become common for U.S. citizens to engage in business abroad through a foreign corporation. Costa Rica is definitely one of the most favored countries in Central America, partially due to its reputation for stability. It is important to understand, however, that U.S. citizens who engage in business abroad through a foreign corporation must […]
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Choosing your lawyer among International Tax Lawyers Austin Texas is not a simple task, especially for a US taxpayer thinking about doing an offshore voluntary disclosure. One of the critical questions often arises is whether it is better to retain an international tax lawyer in Austin or in Minneapolis if you live in Austin? It […]
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2014 FBAR may be the most important (in terms of potential penalties) of all 2014 information tax returns. The FBAR is an abbreviation for the Report of Foreign Bank and Financial Accounts (the “FBAR”). The current official name of the FBAR is FinCEN Form 114 (prior to mandatory e-filing, Form TD F 90-22.1 was the […]
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Despite their enormous importance to tax compliance, there is a shocking level of ignorance of the US international tax anti-deferral regimes that is being displayed by US taxpayers, foreign bankers, foreign accountants, foreign attorneys, US accountants and even many US tax attorneys. In this article, for educational purposes only, I would like to provide a […]
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As a US international tax attorney, I am fully aware of the crucially important role that the US international tax anti-deferral regimes (the Subpart F rules and PFIC rules) play in the Internal Revenue Code. Yet, the enormous complexity of the US international anti-deferral regimes often makes some people wonder about why we even have […]
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The Foreign Account Tax Compliance Act (FATCA) created a worldwide international tax compliance regime that has influenced more industries than simply foreign financial institutions. FATCA compliance presents a formidable challenge even to hedge funds. FATCA Compliance Challenges for Hedge Funds The challenges that FATCA compliance poses to hedge funds is best understood by analyzing what […]
As FATCA is being adopted by more and more countries, it is important to understand that there are two types of model FATCA IGAs (i.e. intergovernmental agreements to implement FATCA) that are signed between various countries and the United States. Both model FATCA IGAs were issued by the US Treasury Department and both model FATCA […]
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On March 4, 2015, Gregg A. Kaminsky, a former UBS client, was sentenced for willfully failing to file a Foreign Bank Account Report (the “FBAR”) with the U.S. Department of Treasury in connection with his concealment of income and assets in accounts in Switzerland, Hong Kong, and Thailand over several years, as well as his […]
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The FATCA Letter Notice is a critical component of a FATCA Letter that is causing significant problems for millions of US owners of foreign financial accounts. Yet, a lot of the FATCA letter recipients are completely unaware of the full impact of the FATCA Letter Notice. In this article, I will provide a general explanation […]
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On February 2, 2015, one of Bank Leumi clients, Dr. Baruch Fogel of Laguna Beach, California, pleaded guilty today in the U.S. District Court for the Central District of California to willfully failing to file a Report of Foreign Bank and Financial Accounts (FBAR) for tax year 2009. In this article, I would like to […]
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IRS Form 1041 (“U.S. Income Tax Return for Estates and Trusts”) is used by a fiduciary of a domestic decedent’s estate, trust, or bankruptcy estate for a number of important reporting reasons. It is utilized to report income, deductions, gains, losses, and related items of an estate or trust; income that is either accumulated or […]
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This week, UBS Group AG confirmed that it was under a new investigation over whether the Switzerland bank sold unregistered securities to US taxpayers in violation of US law. This article will discuss the new UBS probe and the threat it poses to US owners of undisclosed UBS accounts who never went through an offshore […]
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IRS Form 14654 is probably the most important part of the taxpayer’s voluntary disclosure under the Streamlined Domestic Offshore Procedures (“SDOP”). In this article, I would like to explore the various parts of IRS Form 14654 and explain why this form is so important. Please, note that IRS Form 14654 was just revised in January […]
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According to the June 2014 FBAR currency conversion rates instructions published by FinCEN, in order to determine the maximum value of a foreign bank account, the Treasury’s Financial Management Service (still called so even though Financial Management Service was consolidated into the Bureau of the Fiscal Service within the Treasury Department) rates must be used. […]
On February 3, 2015, the IRS said using abusive tax shelters and structures to avoid paying taxes continues to be a problem and remains on its annual list of tax scams known as the “Dirty Dozen” for the 2015 filing season. “The IRS is committed to stopping complex tax avoidance schemes and the people who […]
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On December 19, 2014, a federal jury sitting in Los Angeles convicted two California tax return preparers of one count of conspiracy to defraud the Internal Revenue Service (IRS) and two counts of willfully failing to file a Report of Foreign Bank and Financial Accounts (FBAR) with respect to secret Israeli Offshore Accounts. Israeli Offshore […]
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The Internal Revenue Service Criminal Investigation Division (IRS-CI) and Her Majesty’s Revenue & Customs (HMRC) co-hosted a three-day International Criminal Tax Symposium in Washington, D.C. on January 27 – 29, 2015. The symposium focused on combating offshore tax evasion and international financial crimes. It is worth mentioning that delegates from criminal tax and enforcement programs […]
In a previous article, I discussed the eligibility requirement with respect to the Streamlined Domestic Offshore Procedures. In this article, I would like to explore the specific filing requirements under the Streamlined Domestic Offshore Procedures. As a side note, it is important to emphasize that this is just an educational article on the general overview […]
The Title 26 Miscellaneous Offshore Penalty (“Miscellaneous Offshore Penalty”) is one of the most critical aspects of the Streamlined Domestic Offshore Procedures (“SDOP”). In this article, I want to conduct a general overview of how the Miscellaneous Offshore Penalty is calculated. As a side note, it is important to keep in mind that this is an […]
One of the most important tax aspects involving trusts in cross-border tax situations is the determination of the residency of a trust- i.e. whether it is a domestic or foreign trust for US tax purposes. This determination of the residency of a trust will have important tax consequences for US taxpayers. In this article we […]
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On January 12, 2015, the IRS announced the opening of the International Data Exchange Service (IDES) for enrollment. The appearance of IDES is not a surprise to FATCA Attorneys, because most FATCA attorneys knew IDES was the next logical step since its purpose is going to be for foreign financial institutions (FFIs) and host country […]
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Form 1120-F (“U.S. Income Tax Return of a Foreign Corporation”) is used to report the income, gains, losses, deductions, credits, and to figure the U.S. income tax liability of a foreign corporation. The form is also used to claim any refund due, to transmit Form 8833 (“Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b)”), […]
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In a previous article, I started the discussion of various FATCA letters issued by banks around the world by concentrating on the HSBC FATCA letter. In this article, I would like to shift focus to a different part of the world and discuss the Swiss format with BCGE FATCA Letter. BCGE FATCA Letter: General Format […]
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Last month, a federal jury in Fort Lauderdale, Florida acquitted Raoul Weil, a former top UBS Swiss banking executive, of tax evasion charges. Weil was indicted in 2008 under 18 U.S.C. § 371 (“Conspiracy to commit offense or to defraud United States”) and it was alleged that he helped nearly 17,000 wealthy US persons hide […]
The IRS recently announced annual inflation adjustments for more than 40 tax provisions, including the tax rate schedules, and other tax changes. Revenue Procedure 2014-61 provides details about these 2015 inflation adjustments. In this writing, I would like to highlight main 2015 inflation adjustments. 1. 2015 inflation adjustments for income tax brackets. The tax rate […]
Form 1041 (“U.S. Income Tax Return for Estates and Trusts”) is used by a fiduciary of a domestic decedent’s estate, trust, or bankruptcy estate for a number of important reporting reasons. Interest may be charged and various penalties may be assessed for failure to meet reporting requirements and to pay necessary taxes. In this article, […]
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Form 1042 (“Annual Withholding Tax Return for U.S. Source Income of Foreign Persons”) serves a number of important reporting purposes. In general, it is used to report the tax withheld under chapter 3 of the Internal Revenue Code (“IRC”) on certain income of foreign persons (such as nonresident aliens, foreign partnerships, foreign corporations, foreign estates, […]
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U.S. Attorney Preet Bharara for the Southern District of New York and Acting Special Agent in Charge Shantelle P. Kitchen of the Internal Revenue Service-Criminal Investigation (IRS-CI) New York Field Office announced on November 18, 2014, the unsealing of an indictment against Peter Canale, a U.S. citizen and resident of Kentucky, for conspiring to defraud […]
In a previous article, I explained why FATCA Letters mark a critical event for the voluntary disclosure process of a US taxpayer with undisclosed foreign accounts. While I mentioned that the content of a FATCA letter is usually more or less the same, I emphasized that the actual format of a FATCA letter may differ […]
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In 2014, the IRS issued both final (T.D. 9667), and proposed (REG-114942-14) regulations amending the rules for filing Form 5472, (“Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business”). Form 5472 is used to provide the information required under Internal Revenue Code (“IRC”) Sections 6038A […]
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Following the implementation of Foreign Account Tax Compliance Act (“FATCA”) on July 1, 2014, foreign banks around the world started sending out FATCA Letters to their US (or suspected US) customers who had accounts on record prior to as well as on June 30, 2014. In a previous article, I discussed the reason for FATCA […]
The long-awaited Brazil FATCA IGA (Intergovernmental Agreement) was finally signed on September 23, 2014. This is an event of high importance and, in this article, I would like to explore Brazil FATCA IGA in more detail. FATCA & Model Treaties FATCA (“Foreign Account Tax Compliance Act”) was signed into law in 2010. This is a […]
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Less than a month ago, Irish Finance Minister Michael Noonan announced in an address introducing the 2015 budget to the Irish parliament that the country will be changing its tax code to require all companies registered in Ireland to be tax residents, thereby ending the so-called Double Irish loophole utilized by many US companies and […]
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On September 22, 2014, the Department of the Treasury (“Treasury”) and the Internal Revenue Service (“IRS”) issued Notice 2014-52, “Rules Regarding Inversions and Related Transactions” in the wake of recent inversions. In previous articles on Hopscotch loans and de-control of CFCs, we covered certain aspects of the new regulations to be issued. This article will […]
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On October 20, 2014, the Justice Department and the IRS announced that Menashe Cohen pleaded guilty in the U.S. District Court for the District of New Hampshire to filing a false federal income tax return for tax year 2009. In addition, Mr. Cohen has agreed to resolve his civil liability for failure to report his […]
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On September 22, 2014, the Department of the Treasury (“Treasury”) and the Internal Revenue Service (“IRS”) issued Notice 2014-52, “Rules Regarding Inversions and Related Transactions” (“Notice”) in the wake of the recent wave of inversions. In a previous article, we covered the new regulations to be issued regarding Internal Revenue Code (“IRC”) Section 956 so-called […]
Since July 1, 2014, the most feared US legislation regarding international tax enforcement – Foreign Account Tax Compliance Act (“FATCA”) – is being implemented by most banks around the world. As part of this compliance, foreign banks are sending out so-called FATCA letters to their customers seeking to verify certain types of information. In this […]
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On October 23, 2014, the Internal Revenue Service (IRS) announced the tax-year 2015 cost of living adjustments (COLAs) affecting the dollar limitations for pension plan contributions and plan contributions for other retirement-related plans. While many pension plan limitations will change for 2015 because the COLAs met the statutory thresholds triggering their adjustment, not all limitations […]
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On September 22, 2014, the Department of the Treasury (“Treasury”) and the Internal Revenue Service (“IRS”) issued Notice 2014-52, “Rules Regarding Inversions and Related Transactions” (“Notice”) in the wake of recent inversions conducted by many US companies such as by Medtronic, Chiquita Brands, Pfizer and others. Treasury and the IRS highlighted in the Notice that […]
On September 3, 2014, the IRS announced that the underpayment and overpayment interest rates for the fourth quarter of 2014 will remain the same The rates will be: three (3) percent for overpayments (two (2) percent in the case of a corporation); three (3) percent for underpayments; five (5) percent for large corporate underpayments; and […]
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In this article we will briefly examine the treatment of the business profits of a resident of a contracting State under the Canada-US Income Tax Convention, and the important definition of a “permanent establishment” for purposes of determining the potential taxability of income of such profits. This article is intended to provide informative material for […]
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There is a great deal of confusion about the reporting of foreign gold and silver storage accounts on the Report of Foreign Bank and Financial Accounts (FBAR). In this article, I would like to set forth the general legal framework for the analysis of the reporting requirements for the foreign gold and silver storage accounts. […]
For OVDP lawyers, one of the most significant recent developments in the US international tax law enforcement was the Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (“Program”) announced by the US Department of Justice (“DOJ”) on August 29, 2013. Since the Program began functioning, more than a hundred Swiss banks (out of […]
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In an earlier article, we referred to a case where a investment advisors used offshore accounts in the Caribbeans to launder and conceal funds. On September 5, 2014, the IRS ad the DOJ announced one of these advisors, Mr. Joshua Vandyk, was sentenced to serve 30 months in prison. Mr. Vandyk, a U.S. citizen, and […]
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In order to bring back into the system the non-compliant taxpayers with undisclosed foreign assets, the IRS created various offshore voluntary disclosure programs. The voluntary disclosure programs have been part of a wider effort to stop offshore tax evasion, which includes enhanced enforcement, criminal prosecutions and implementation of third-party reporting via the Foreign Account Tax […]
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Underpayment and Overpayment Interest Rates are important to all taxpayers who are either due a refund or owe taxes to the IRS, because the interest on the refund or the amount due will be calculated based on these Interest Rates. This essay reminds U.S. taxpayers that the IRS announced that the interest rates will remain […]
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On July 11, 2014, the DOJ and the IRS announced that Joshua Vandyk, a U.S. citizen, and Eric St-Cyr and Patrick Poulin, Canadian citizens, have each pleaded guilty to conspiring to launder monetary instruments and conceal funds using Cayman Islands bank accounts (mostly through foreign corporations). Patrick Poulin, 41, pleaded guilty on July 11, 2014, […]
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In a previous article, I discussed the eligibility requirements and the general process of the Streamlined Foreign Offshore Procedures. In this article, I would like to explore further the specific filing requirements that should be met under the Streamlined Foreign Offshore Procedures. As a side note, while this article contains an overview of filing instructions, […]
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One of the most significant changes introduced by the 2014 update to the voluntary disclosure structure is the unprecedented introduction of the streamlined voluntary disclosure option to the U.S. taxpayers who reside in the United States – the so called, Streamlined Domestic Offshore Procedures. The introduction of the Streamlined Domestic Offshore Procedures means that the […]
One of the key issues facing U.S. taxpayers who wish to use the Streamlined Foreign Offshore Procedures is meeting the non-residency requirement. If the non-residency requirement is not met (and assuming the regular delinquent FBAR submission procedure is not applicable), the U.S. taxpayer faces the less pleasant choice of either following the Streamlined Domestic Offshore […]
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One of the most dramatic changes to the voluntary disclosure process made by the IRS on June 18, 2014, was the complete revamping of the Streamlined Foreign Offshore Procedure. As long as the taxpayer can honestly certify that his prior violations of U.S. tax laws were non-willful, the Streamlined Foreign Offshore Procedure offers a unique opportunity […]
If there is anything familiar left of the old offshore voluntary disclosure landscape for an Offshore Accounts Tax Lawyer after the 2014 update to the IRS Offshore Voluntary Disclosure Program (“OVDP”), it will be the submission of delinquent FBARs under the old FAQ 17. Of course, under the new 2014 OVDP, there is no FAQ 17. […]
2014 OVDP Lawyers identified August 4, 2014, as an important filing deadline to any U.S. taxpayers who intend to enter into the IRS Offshore Voluntary Disclosure Program (“OVDP”). This new deadline stems directly from the recent 2014 update to the OVDP. In this article, I want to briefly describe the deadline and its background, and […]
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In a series of articles, we covered the U.S. Department of Justice’s new voluntary disclosure program for Swiss banks and the four filing categories involved. In June of 2014, a number of important developments regarding the DOJ Program for Swiss Banks occurred. In this article, we will explain some of these new developments. This article […]
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The most dangerous information report – the Report of Foreign Bank and Financial Accounts (the “FBAR”) – is due at the end of this month. The 2013 FBAR (i.e. the FBAR for the calendar year 2013) is due on June 30, 2014. Pursuant to the Bank Secrecy Act, 31 U.S.C. §5311 et seq., the Department […]
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On June 18, 2014, the IRS made a major upgrade to its existing Offshore Voluntary Disclosure Program (“OVDP”). The new OVDP will now be called 2014 OVDP. While the changes to the OVDP rules are significant, the new rules regarding the Streamlined Procedure are maybe even more important. Here is a summary of the 2014 […]
On May 19, 2014, Credit Suisse AG pleaded guilty to conspiracy to aid and assist U.S. taxpayers in filing false income tax returns and other documents with the IRS. Credit Suisse agreed to pay huge fines and disclose certain information to the IRS and the US DOJ. Let’s look closer at certain parts of this […]
Previously, I already discussed the high exposure of the US-owned undisclosed bank accounts in Panama and Costa Rica. Last week, the IRS gave a perfect example (thought with an unusual set of facts) of such exposure of bank accounts in Panama and Costa Rica. On May 23, 2014, the Justice Department and Internal Revenue Service […]
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On May 7, 2014, the IRS and the DOJ announced the Robert C. Sathre was sentenced to serve thirty-six months in federal prison for tax evasion; Mr. Sathre was also ordered to pay $3,113,882 in restitution to the IRS and to serve three years of supervised release. Sathre pleaded guilty on February 26, 2014, to […]
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On March 18, 2014, the IRS and U.S. Department of Justice announced the California attorney Christopher M. Rusch was sentenced to serve 10 months in prison for helping his clients Mr. Stephen M. Kerr and Mr. Michael Quiel, both businessmen from Phoenix, hide millions of dollars in secret Swiss bank accounts at UBS AG and […]
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Liechtenstein offshore accounts no longer offer to U.S. taxpayers the bank secrecy protection for which they were famous for a very long time prior to 2008. In fact, after the Non-Prosecution Agreement between the U.S. Department of Justice (“DOJ”) and Liechtensteinische Landesbank AG, after the passage of the 2012 tax law in Liechtenstein, and after […]
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It is well-known that the IRS is in hot pursuit of U.S. taxpayers with undisclosed bank accounts in Mizrahi Bank. There have been a number of victories that the IRS has scored against Mizrahi Bank clients. The latest example of this is the case of Monajem Hakimijoo who plead guilty on February 13, 2014. According […]
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Some time ago, in a joint statement before the Permanent Subcommittee on Investigations Committee on Homeland Security and Government Affairs of the United States Senate for a hearing on “Offshore Tax Evasion: The Effort to Collect Unpaid Taxes on Billions in Offshore Accounts”, Deputy US Attorney General James M. Cole and Assistant Attorney General, Tax […]
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As is commonly known, US taxpayers who file on a calendar year basis have a filing due date of April 15th. In general, if a tax is owed, it should be paid by the due date of your tax return, without regard to any extension of time for filing the return. Most US taxpayers who […]
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If you have a corporation that you have liquidated, or plan to liquidate, you need to be aware of the requirements of the IRS Form 966. Form 966 (“Corporate Dissolution or Liquidation”) must be filed by corporations (including for corporations filing Form 1120, 1120-L, 1120-IC-DISC, 1120S, and farmer’s cooperatives) if they have adopted a resolution […]
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Health Savings Accounts (HSAs) were created in 2003 as a means of addressing increasing health care costs. HSAs give individuals enrolled in high-deductible health plans (HDHPs) tax-preferred treatment for money saved for medical expenses. In general, HSAs allow for individuals to defer taxes when money is contributed (even if a taxpayer does not itemize on […]
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The new Net Investment Income Tax imposed by Internal Revenue Code Section 1411 went into effect on January 1, 2013 for income tax returns of individuals, estates and trusts, beginning with their first taxable year starting on (or after) January 1, 2013. The Net Investment Income Tax applies at a rate of 3.8% on certain […]
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On March 12, 2014, the IRS and the DOJ announced that Andreas Bachmann, 56, of Switzerland, pleaded guilty to conspiring to defraud the Internal Revenue Service (IRS) in connection with his work as a banking and investment adviser for U.S. customers. It appears (at least from the perspective of an FBAR Tax Attorney St Louis) […]
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With the costs of higher education increasing each year, the deductibility of interest paid on student loans is an important tax topic for many younger individuals. However, taxpayers are sometimes surprised to learn that there is a phase-out for various applicable income levels for this deduction, and above certain income levels, the deduction is completely […]
Form 5472 (“Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business”) occupies a place of special importance for an international tax attorney. The chief reason is because, unlike most other international tax forms familiar to an international corporate tax attorney, Form 5472 deals with corporate […]
It is surprising how often international tax planning lawyers ignore the importance of business purpose doctrine to international tax planning. It seems that a lot of U.S. accountants and, to a smaller degree, attorneys have been limited to the parochial view of the application of the doctrine within the borders of the United States, whereas […]
On March 20, 2014, the politics and FBAR criminal enforcement met again in a new case, U.S. v. Victor Lipukhin – a case of continuous interest for a Swiss Accounts IRS Tax Lawyer. While the timing is most likely driven by politics, this case also resulted from the fallout of the UBS 2009 settlement; under […]
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The Swiss Bank letters continue to pour into the mailboxes of U.S. taxpayers with bank and financial accounts in Switzerland as the April 30th deadline approaches for many Swiss banks that participate in the ongoing U.S. Department of Justice (“DOJ”) The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the “Program”). In an […]
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There used to be a time when quiet disclosures with respect to offshore income and accounts were routinely recommended by accountants and even attorneys. Even as the tide turned against non-compliant U.S. taxpayers with offshore accounts in 2008-2009 with the spectacular IRS success in the UBS case and the announcement of the 2009 Offshore Voluntary […]
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Choosing the right Offshore Voluntary Disclosure Lawyer is a very important decision that may determine the fate of your entire offshore voluntary disclosure case. While making this choice, I recommend that you consider the following five main factors while choosing your Offshore Voluntary Disclosure Lawyer. 1. Areas of Practice of Your Offshore Voluntary Disclosure Lawyer […]
This Lebanon FATCA update is intended to provide a broad analysis of the impact of the U.S. Foreign Account Tax Compliance Act (“FATCA”) on the numerous U.S. accountholders in Lebanon. Lebanon FATCA: Background Information The Lebanese banking secrecy rules, commonly known as the “1956 Law”, have earned the country the unofficial title of the “Switzerland […]
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Since the last quarter of 2013, an increasing number of U.S. taxpayers with accounts in Swiss banks have received letters from Swiss Banks regarding participation in the U.S. Department of Justice (“DOJ”) The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the “Program”). It is very important to react to these letters in […]
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On March 14, 2014, the IRS announced that the underpayment and overpayment interest rates will remain the same for the calendar quarter beginning April 1, 2014. The rates will be: three (3) percent for overpayments [two (2) percent in the case of a corporation]; three (3) percent for underpayments; five (5) percent for large corporate […]
This is a natural question for an OVDP International Tax Attorney: in light of the ongoing U.S. Department of Justice (“DOJ”) The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the “Program”), should every U.S. taxpayer with undisclosed Swiss accounts enter the Program? As everything in international tax law, the answer of whether […]
As many OVDP Foreign Accounts Lawyers know, April 30, 2014 is a crucial deadline for the U.S. Department of Justice (“DOJ”) The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the “Program”). By this date, numerous Swiss banks will have to disclose the names of US accountholders, account balance information, and various other […]
Minnesota tax attorneys and attorneys in other states warn their clients that there are two important IRS deadlines next Monday, March 17, 2014. First, corporate income tax returns are due for corporations with fiscal year ending on December 31, 2013. Normally, the deadline would be on March 15, but because this date falls on Saturday, […]
On February 5, 2014, the U.S. Department of the Treasury announced that the United States signed an intergovernmental agreement (IGA) with Canada to implement the Foreign Account Tax Compliance Act (FATCA). Since Treasury last announced multiple IGA signings in mid-December 2013, agreements have also been signed with Italy and Mauritius, the latter of which also […]
As an OVDP International Tax Lawyer, I continue to point out the centrality of the current U.S. Department of Justice (“DOJ”) The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the “Program”) to the global international tax compliance efforts of the United States. As previous explained, the Program basically operates as a voluntary […]
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Foreign Partnership Tax Attorneys should point out to their clients that Form 8865 should be used by US taxpayers to report the information required under IRC section 6038 (reporting regarding controlled foreign partnerships), section 6038B (reporting of transfers made to foreign partnerships), and/or section 6046A (reporting of acquisitions, dispositions, and changes in foreign partnership interests). […]
Upper-income US taxpayers should be aware that new deduction phase-out IRS rules in effect for 2013 tax returns to be filed in 2014 may increase their tax liabilities or reduce refunds. Two new important changes for high-earning individuals or couples are the new itemized deduction phase-outs and personal and dependent exemption deduction phase-outs. Because of […]
This post describes the Official 2008 FBAR Conversion Rates that should be used by U.S. taxpayers engaged in a voluntary disclosure of foreign financial accounts and filing late FBARs for 2008. Every year, the U.S. Department of Treasure publishes its official currency conversion rates (they are called “Treasury’s Financial Management Service rates”); I will refer […]
These Official Treasury 2009 FBAR Conversion Rates are posted here due to the fact that U.S. taxpayers who are doing voluntary disclosure for prior years with respect to delinquent FBARs are required to use these rates to prepare the FBARs for 2009. Every year, the U.S. Department of Treasure publishes its official currency conversion rates […]
Every year, the U.S. Department of Treasure publishes its official currency conversion rates (they are called “Treasury’s Financial Management Service rates”); I will refer to the “FBAR Conversion Rates”. Recently, the Treasury Department published the FBAR Conversion rates for December 31, 2013. While there are other good reasons for the existence of these rates, the […]
US taxpayers who itemize their deductions on Schedule A of Form 1040 should be aware that new IRS rules are in effect for 2013 tax returns to be filed in 2014. Under the new rules, the threshold for unreimbursed medical and dental expenses paid by taxpayers for themselves, spouses or dependents have increased for most […]
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On December 19, 2013, the U.S. Department of the Treasury announced that the United States has signed bilateral agreements with six additional jurisdictions to implement the information reporting and withholding tax provisions commonly known as the Foreign Account Tax Compliance Act (FATCA). The six jurisdictions are: Malta, the Netherlands, The Islands of Bermuda, and three […]
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As an IRS tax attorney, I foresee that 2014 is likely to be a continuation of the global tax enforcement trends that started in the earlier years. Specifically, I believe the following three moves by the IRS will form the core of the US international tax enforcement efforts in 2014. IRS Tax Attorney Top Trend […]
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Most French citizens who come to the United States with Assurance Vie accounts are completely unaware of the serious implications that Assurance Vie may have with respect to their U.S. tax reporting requirements. What is even more problematic is that tax advisors in France and even United States are not even aware of how bad […]
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Several weeks ago, in another article, I detailed some of the recent developments in the US-Switzerland Bank Program, officially called The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the “US-Switzerland Bank Program”) between the U.S. Department of Justice (“DOJ”) and the government of Switzerland, and noted that Valiant Holdings AG had officially […]
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If you have undisclosed foreign financial accounts that should have been reported on the Report of Foreign Bank and Financial Accounts (“FBAR”), you may be facing FBAR penalties. By far, the FBAR contains the most severe civil penalties and significant criminal penalties among all international tax forms. It is important to understand that these penalties, despite […]
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As a foreign accounts tax attorney, I get a lot of questions from US taxpayers with undisclosed offshore accounts with respect to what FATCA means for the purposes of global transparency. As any foreign accounts tax attorney would tell you, FATCA will and already does make a huge dent in U.S. tax non-compliance. The purpose […]
On December 13, 2013, two Swiss Banks, Raiffeisen and Postfinance, joined the growing number of Swiss Banks who announced their participation in the The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the “Program”) initiated by the U.S. Department of Justice (“DOJ”) on August 29, 2013 – an event long anticipated by many […]
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On December 9, 2013, the IRS announced that the underpayment and overpayment interest rates will remain the same for the calendar quarter beginning January 1, 2014. The rates will be: three (3) percent for overpayments [two (2) percent in the case of a corporation]; three (3) percent for underpayments; five (5) percent for large corporate […]
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With the Swiss Financial Market Supervisory Authority (“FINMA”) deadline ending today on December 9, 2013, Valiant Holding AG made it official – it is the first bank to officially announce its intention to enter the The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the “Program”). While the first one to do it, […]
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Retaining an international tax attorney is a very important decision. One of the frequent issues that my clients in Florida face is whether it is better to retain an international tax attorney in Orlando or in Minneapolis if you live in Orlando, Florida? If you were to search “Orlando international tax attorney”, Sherayzen Law Office, […]
Since September, an increasing number of my clients come to me with respect to the offshore voluntary disclosure of Swiss accounts. No doubt that the increase in the offshore voluntary disclosure of Swiss accounts comes from The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the “Program”) initiated by the U.S. Department of […]
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One of the important issues that US taxpayers with undisclosed foreign accounts face is whether it is better to retain an international tax attorney in Savannah or in Minneapolis if you live in Savannah, Georgia? If you were to search “Savannah international tax attorney”, Sherayzen Law Office, Ltd. (which is based in Minneapolis) is likely […]
With the DOJ Program for Swiss Banks raging in Switzerland, an obvious question arises about whether this program would be applicable in other places, most prominently, to undisclosed bank accounts in Israel. It is my opinion, as an international tax attorney, that the DOJ will attempt to apply its Swiss Program for Banks to other […]
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The IRS recently announced the 2014 individual income tax rates with inflation adjustments wit respect to each tax bracket. Remember, since the American Taxpayer Relief Act of 2012 was signed into law on January 2, 2013, a new tax bracket of 39.4% appeared. Also, note that the 2014 individual income tax rates listed below do […]
Below, I list the information provided by the Minnesota Department of Revenue with respect to 2013 Minnesota Income Tax Rates. Notice, the new 9.85% tax bracket that was created last year and introduced a radical new change to 2013 Minnesota Income Tax Rates. Taxpayers who file estimated taxes may use this information to plan and […]
On November 18, 2013, the IRS announced that the foreign earned income exclusion amount under §911(b)(2)(D)(i) is going to be $99,200 for tax year 2014. This up from $97,600 in 2013 and $95,100 in 2012. Generally, if a qualified individual meets certain requirements of I.R.C. §911, he may exclude part or all of his foreign […]
The Internal Revenue Service recently announced an annual inflation adjustments for the tax year 2014 for more than 40 tax provisions, including the tax rate schedules, and other tax changes. Revenue Procedure 2013-35 provides details about these annual adjustments. The tax items for tax year 2014 of greatest interest to most taxpayers include the following […]
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On October 31, 2013, the Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2014. Some pension limitations such as those governing 401(k) plans and IRAs will remain unchanged because the increase in the Consumer Price Index did not meet the statutory thresholds […]
As the voluntary disclosure program for Swiss Banks proceeds at a rapid pace, the question number one among U.S. international tax attorneys is what will happen to the undisclosed bank accounts in Switzerland. In order to understand the impact of the US Department of Justice (“DOJ”) the Program for Non-Prosecution Agreements or Non-Target Letters for […]
On November 14, 2013, the U.S. Department of the Treasury announced that the United States has signed an intergovernmental agreement (IGA) with France to implement the Foreign Account Tax Compliance Act (FATCA). Enacted in 2010, France FATCA IGA aims to curtail offshore tax evasion by facilitating the exchange of tax information. With France FATCA IGA, […]
FATCA Switzerland: FATCA Legislation Approved On September 23, 2013, Swiss Senate voted to approve the implementation of Foreign Account Tax Compliance Act (FATCA). This event came barely a few weeks after the Swiss House of Representative approved the same legislation. At this point, Swiss Banks have a clear way to cooperate with the IRS and […]
As offshore voluntary disclosure lawyers know very well, Switzerland continues to be the center of the unprecedented IRS and US Department of Justice enforcement of U.S. international tax laws, including FATCA. In a recent article, I described a new initiative, The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the “Program”), which is […]
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While looking for a San Francisco international tax lawyer, one of the important issues that clients face is whether it is better to retain an international tax attorney in San Francisco or in Minneapolis if you live in San Francisco? If you were to search “San Francisco international tax lawyer”, Sherayzen Law Office, Ltd. (which […]
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Retaining the right Philadelphia international tax attorney is not easy. One of the important issues that taxpayers face is whether it is better to retain an international tax attorney in Philadelphia or in Minneapolis if you live in Philadelphia? If you were to search “Philadelphia international tax attorney”, Sherayzen Law Office, Ltd. (which is based […]
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You may be eligible for a tax credit if you make eligible contributions (other than rollover contributions) to an employer-sponsored retirement plan or to an individual retirement arrangement. Eligible Plans The eligible plans for the retirement savings contribution credit include: traditional and Roth IRAs, 401(k), 403(b), governmental 457, SEP, SIMPLE, 501(c)(18)(D) and contributions to a […]
In recent years, I have received a number of questions from my Polish clients about whether “Lokata” accounts are reportable on the FBARs. The short answer is “Yes”. Lokata Accounts Lokata is a fixed-term deposit account which is very common in Polish banks; a Lokata is very similar to U.S. CD-type of accounts. There are […]
In response to numerous requests made by the international tax attorneys and individual FBAR filers of the Reports of Foreign Bank and Financial Accounts (FBARs) jointly with spouses, or wish to submit them via third-party preparers, the Financial Crimes Enforcement Network (FinCEN) introduced FinCEN Form 114(a), Record of Authorization to Electronically File FBARs. A copy […]
On October 1, 2013, in response to various requests from FBAR tax lawyers and accountants, FinCEN updated the online FBAR filing form. There are various new technical additions and a much friendlier user interface, but the inclusion of the explanation for the delay in FBAR filing is definitely the key new feature for the FBAR […]
Since the early 2000s, the IRS has engaged in a multi-layered effort to enforce U.S. tax laws overseas, in particular (at least from the perspective of an offshore voluntary disclosure attorney) curb tax evasion in Switzerland with the emphasis on undisclosed Swiss financial accounts (mainly FBAR compliance). In 2008, the U.S. Department of Justice (DOJ) […]
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There is a great confusion among international tax attorneys and Offshore Voluntary Disclosure Program (OVDP) applicants with respect to the OVDP Offshore Penalty and how it differs from the FBAR penalties. I already described in another article the OVDP penalties. In this article, I would like to compare and contrast some of the major features […]
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If you paid or accrued foreign taxes to a foreign country on foreign source income and are subject to U.S. tax on the same income, you may be able to take these qualified foreign taxes as a tax credit to offset (in part or in full) your U.S. tax liability. An important questions arises for […]
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The underpayment and overpayment interest rates will remain the same for the calendar quarter beginning October 1, 2013. The rates will be: three (3) percent for overpayments [two (2) percent in the case of a corporation]; three (3) percent for underpayments; five (5) percent for large corporate underpayments; and one-half (0.5) percent for the portion […]
The IRS recently announced a delay of approximately one to two weeks to the start of the 2014 filing season to allow adequate time to program and test tax processing systems following the 16-day federal government closure. The IRS is exploring options to shorten the expected delay and will announce a final decision on the […]
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On October 29, 2013, many Austin FATCA tax lawyers received the news that the U.S. Department of the Treasury and the Internal Revenue Service issued a notice for foreign financial institutions (FFIs) to comply with the information reporting and withholding tax provisions of the Foreign Account Tax Compliance Act (FATCA). FATCA is rapidly becoming the […]
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Individual taxpayers who filed Form 4868 to request a six-month extension to file their 2012 tax returns should be cognizant of the fast-approaching October 15, 2013 final deadline to timely file these extended tax returns. This is also the last day the IRS will accept an electronically filed tax return for the year 2012. The […]
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On August 29, 2013, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) ruled that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes. The ruling applies regardless of whether the couple lives in a jurisdiction that recognizes same-sex marriage or a […]
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Retaining a Boston international tax attorney is a very important decision. One of the basic issues that taxpayers face is whether it is better to retain an international tax attorney in Boston or in Minneapolis if you live in Boston? If you were to search “international tax attorney Boston”, Sherayzen Law Office, Ltd. (which is […]
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Is it is better to retain an international tax attorney in Austin or in Minneapolis if you live in Austin? If you were to search “international tax attorney Austin”, Sherayzen Law Office, PLLC (which is based in Minneapolis) is likely to come out on the first page together with other international tax attorneys in Austin. […]
On August 22, 2013, the Internal Revenue Service announced the opening of a new online registration system for financial institutions that need to register with the IRS under the Foreign Account Tax Compliance Act (FATCA). Financial institutions that must register with the IRS to meet their FATCA obligations can now begin the process of registering […]
If you were to search “Minneapolis international tax attorney”, Sherayzen Law Office, PLLC (which is based in Minneapolis) is likely to come out on the first page together with other Minneapolis international tax attorneys. The question is: should the geographical proximity of an attorney play a role in the retainer decision? The answer depends on […]
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Is it is better to retain an international tax attorney in Boca Raton or in Minneapolis if you live in Boca Raton? Oftentimes, if you were to search “international tax attorney boca raton”, Sherayzen Law Office, PLLC (which is based in Minneapolis) will come out on the first page as other international tax attorneys in […]
As an international tax attorney who constantly deals with expatriates, I am often contacted by individuals who are thinking about renouncing their U.S. citizenship. If you are consideration going down this path, you should understand the very serious legal and tax implications of this strategy. On the tax side, you should be especially aware of […]
Form W-8BEN, (“Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding”) may be used by foreign persons who receive certain types of income to establish that they are non-U.S. persons, or to claim a reduced rate of (or exemption from) withholding as a resident of a foreign country with which the U.S. […]
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Do you take the home office expense on Schedule C for your small business? While taking the home office expense can help reduce your tax liability, you should be aware of a potential significant downside: unrecaptured Section 1250 gain on depreciation. This article will explain the basics of unrecaptured Section 1250 gain; it is not […]
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The IRS recently issued a proposed rule entitled, “Minimum Value of Eligible Employer-Sponsored Plans and Other Rules Regarding the Health Insurance Premium Tax Credit” (see, 26 CFR Part 1) regarding the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, and related rules and laws (generally, “PPACA”). In […]
The Internal Revenue Service recently released its Statistics of Income Studies (SOI) reports concerning data for 2010 foreign trusts that have U.S. persons as grantors, transferors, or beneficiaries. The data shows that, despite the various compliance costs associated with reporting requirements, use of foreign trusts by U.S. taxpayers continues to increase. This article will briefly […]
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Form 8865 (“Return of U.S. Persons With Respect to Certain Foreign Partnerships”) is an important international tax form which is used to report the information required under section 6038 (reporting with respect to controlled foreign partnerships), section 6038B (reporting of transfers to foreign partnerships), or section 6046A (reporting of acquisitions, dispositions, and changes in foreign […]
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As most international tax attorneys in Minneapolis would point out, Form 8865 (“Return of U.S. Persons With Respect to Certain Foreign Partnerships”) is used to report the information required under section 6038 (reporting with respect to controlled foreign partnerships), section 6038B (reporting of transfers to foreign partnerships), or section 6046A (reporting of acquisitions, dispositions, and […]
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IRS Form 1042-S (“Foreign Person’s U.S. Source Income Subject to Withholding”) is used to report various items of income, amounts withheld under Chapter 3 of the Internal Revenue Code, and distributions of effectively connected income by a publicly traded partnership or nominee. The items subject to reporting on Form 1042-S involve amounts paid to foreign […]
On May 23, 2013, the Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning July 1, 2013, as in the prior quarter. The rates will be: • three (3) percent for overpayments [two (2) percent in the case of a corporation]; • three (3) percent for underpayments; […]
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U.S. citizens and resident aliens, including those with dual citizenship who have lived or worked abroad during all or part of 2012, may have a U.S. tax liability and a filing requirement in June of 2013. June 17, 2013 – Tax Returns to U.S. Citizens and Resident Aliens Living Overseas; May Also Apply to Nonresident […]
The Department of Justice issued a release on April 30, 2013 that a federal court in San Francisco has entered an order authorizing the Internal Revenue Service (IRS) to serve a “John Doe” summons seeking information about U.S. taxpayers who may hold offshore accounts at Canadian Imperial Bank of Commerce FirstCaribbean International Bank (FCIB) through […]
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On May 15, 2013, the Internal Revenue Service announced additional details about the closures planned for May 24, June 14, July 5, July 22 and August 30, 2013. Due to the current budget situation, including the sequester, all IRS operations will be closed on those days. This means that all IRS offices, including all toll-free […]
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The Fifth Protocol to the Canada-US Income Tax Convention (also known as the Canada-US Income Tax Treaty) was signed in 2007 and ratified by the U.S. Senate the following year, making significant changes to the then existing treaty. This article will briefly explain some of the major Fifth Protocol (“Protocol”) changes to the US-Canada Income […]
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On April 16, 2013, the Internal Revenue Service announced a three-month tax filing and payment extension to Boston area taxpayers and others affected by April 15, 2013 explosions. This relief applies to all individual taxpayers who live in Suffolk County, Mass., including the city of Boston. It also includes victims, their families, first responders, others […]
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Are you a U.S. person for living overseas who is required to file U.S. taxes? Then you should be especially aware of U.S. filing deadlines, and the importance of timely filing your tax return under IRC Section 7502. Filing a tax return is often stressful enough for most people living in the U.S. Filing a […]
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Under the IRS “Subpart F” rules (26 USC Part III, Subpart F), certain categories of income of controlled foreign corporations (“CFCs”) must be included in the gross income of specified U.S. shareholders, even though the income may not have been distributed. In this article, we will explain the basics of Subpart F income. It is […]
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Do you own or work for a closely-held corporation? Do you make frequent payments between your small C corporation and your shareholders? Then you should be especially careful about the constructive dividend rules. Under these rules, the IRS can deem certain payments made to or on behalf of its shareholders as dividends, even though they […]
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Because partnerships have many different features from corporations, a question is frequently asked concerning partnerships: when do they officially end? While corporations theoretically have an indefinite life and identifying the closure of a corporation may sometimes be regarded as relatively easy, it may not always be as apparent when a partnership has terminated. This article […]
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Have your tax returns been subject to an IRS audit? You should be aware that IRS procedures may allow you to contest the findings through IRS Audit Reconsideration, provided that you meet certain requirements. If the amount is significant or you believe that the IRS was erroneous in its determination, you contact Sherayzen Law Office, […]
In general, when a non-controlling partner makes a transaction with his or her partnership in a non-partner capacity, any resulting gain or loss is likely be recognized, because the transaction is treated as at arm’s length and occurring with a third party. Such transactions may involve sales, loans, rental payments, services provided and other related […]
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The rise in the voluntary disclosures of offshore assets caught the accounting profession by surprise. The great majority of the accountants were not trained in international tax matters and learned about the existence of FinCEN Form 114 formerly known as TD F 90-22.1 (commonly known as “FBAR”) from their clients. However, in their ignorance of […]
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The past decade brought on a wave of new international tax legislation as well as unprecedented enforcement of older tax laws. From FinCEN Form 114 (formerly Form TD F 90-22.1) (commonly known as “FBAR”) to new FATCA legislation that led to the creation of Form 8938, the current US tax regime with respect to international […]
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It is terrifying that so many accountants who take on the legal issue of FBAR disclosure are not trained in issue spotting. It may be the number one of the top reasons why so many voluntary disclosures handled by accountants and even attorneys have gone so wrong. A lot of tax professionals who are familiar […]
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FBAR (FinCEN Form 114 formerly Form TD F 90-22.1) penalties can be absolutely draconian. However, with a help of an experienced international tax attorney, they do not have to be so brutal. Unfortunately, the IRS, accountants and even many lawyers present an overly simplistic view of the FBAR penalty structure. They start out with the […]
Every year, the U.S. Department of Treasure publishes its official currency conversion rates (they are called “Treasury’s Financial Management Service rates” or the “FMS rates”). Recently, the Treasury Department published the FMS rates for December 31, 2012. While there are other good reasons for the existence of these rates, the FMS rates for December 31 […]
The IRS has established various rules regarding required tax years in order to prevent excess deferral of taxes by partnerships, S corporations, and personal service corporations. In certain circumstances, however, under Internal Revenue Code Section 444, partnerships, S corporations, and personal service corporations may elect to use a tax year other than their required tax […]
A lot of taxpayers are still confused about whether they need an attorney or an accountant to file delinquent Forms 8938. As I explain below, Form 8938 is an essentially legal disclosure form and its voluntary disclosure should be handled by an experienced international tax attorney. Form 8938 Requires Legal Disclosure It is important to […]
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For taxpayers with undisclosed offshore accounts and who are looking to do an FBAR voluntary disclosure with the IRS, it is crucially important to understand that FBAR disclosure is a legal issue that should be handled by an international tax attorney. Confusion Over the Roles of Legal and Accounting Professions in FBAR Disclosures I receive […]
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The IRS recently released Rev. Proc. 2013-21 detailing the updated price inflation adjustment limitations on depreciation deductions and lease inclusion amounts for passenger automobiles first placed in service during calendar year 2013. These adjustments are required under Internal Revenue Code Section 280F. If you need advice relating to these matters, or any other tax or […]
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On March 6, 2013, the IRS issued statistics for the tax year 2008 with respect to foreign corporations controlled by U.S. corporations. These statistics emphasize the important growth in controlled foreign corporations (“CFCs”) and Form 5471. IRS Statistics Published in Statics of Income Bulletin (Winter 2013) In the tax year 2008, some 83,642 foreign corporations […]
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In an earlier article, I already explained why the FBAR disclosure is a legal issue. In terms of their lineage, Forms 8938 are very similar to the FBARs. While the FBARs are the creation of Bank Secrecy Act, Form 8938 is a creation of a legislation of a similar nature – FATCA (Foreign Account Tax […]
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With the uncertain economic environment in the past few years, many individuals who own rental estate property have faced substantial losses. A question that often arises is whether such losses can be deducted, and if so, by how much? This article strives to answer these questions in general and provide a basic understanding of the […]
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Do you own interest in an S-Corporation (“S-Corp”)? If so, the IRS at-risk rules may apply to you and may limit the loss deductions you will be allowed to take. The IRS at-risk rules may also apply to partnerships, LLCs and closely-held C corporations (subject to certain exceptions), so they may be important to learn […]
Paradoxically, one of the obstacles currently facing U.S. taxpayers who wish to file their delinquent FBARs and conduct a voluntary disclosure of their foreign assets are their own accountants – more precisely, the inability of many accountants to understand that FBAR disclosure is a legal matter to a much greater extent than an accounting matter. […]
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Are you planning on starting a partnership for business purposes? Usually, partnerships will incur various costs while forming a partnership. Some of these costs may be deductible or amortizable, others will not. This article will examine the deductibility of the most common costs in the formation of a partnership. Partnerships often involve complex legal and […]
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On March 1, 2013, the IRS announced that the underpayment and overpayment interest rates will remain the same for the calendar quarter beginning April 1, 2013. The rates will be: three (3) percent for overpayments [two (2) percent in the case of a corporation]; three (3) percent for underpayments; five (5) percent for large corporate […]
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In another essay, I previously discussed the possible inclusion of the business ownership interests in the calculation of the OVDP (2012 Offshore Voluntary Disclosure Program) Offshore Penalty. In this article, I would like to explore in more depth the application of the Offshore Penalty to ownership of business interests. OVDP Offshore Penalty It is a […]
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The taxpayers who enter into the IRS Offshore Voluntary Disclosure Program (“OVDP”) often have failed to file an FBAR to report an account over which the taxpayer has signature authority. The question arises about whether such accounts should be included in the calculation of the OVDP Offshore Penalty? The answer to this question is – […]
In an earlier article, I introduced the structure of the OVDP (Offshore Voluntary Disclosure Program) Offshore Penalty. In this essay, I would like to explore one aspect of that structure – the possibility of reducing the Offshore Penalty to 12.5%. Offshore Penalty The taxpayers who enter the OVDP must pay the Offshore Penalty. This penalty […]
Before one enters into the 2012 Offshore Voluntary Disclosure Program (“OVDP”), it is highly important to understand what kind of assets are covered by the OVDP Offshore Penalty. In this essay, I intend to broadly outline some of the major types of assets covered by the OVDP Offshore Penalty. From the outset, it is important […]
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A Minneapolis attorney recently said to me that he has a client who has not filed the FBARs but that client has a number of small accounts and no large accounts; the attorney wanted my opinion on whether it is worth it for smaller clients to go through the trouble of disclosing the accounts to […]
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The American Taxpayer Relief Act of 2012 (the “Act”) was signed into law on January 2, 2013. The Act contains numerous important tax provisions aimed at stabilizing the tax environment and averting the so-called “fiscal cliff.” One of the most important effects of the Act is its impact on the marginal individual income tax rates. […]
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The official IRS Offshore Voluntary Disclosure Program (OVDP) constitutes a viable voluntary disclosure option for many taxpayers. However, whether this is the best voluntary disclosure option will, in large part, depend on whether the OVDP penalties are lower than the penalties that a taxpayer would be facing under alternative voluntary disclosure options. The answer to […]
The Voluntary Disclosure Period for the taxpayers who entered into the now closed IRS Offshore Voluntary Disclosure Program (“OVDP”) encompasses an eight-year period during which the FBAR form may have been modified more than once. The question arises about what version of the FBAR form should be used in the OVDP. FBAR Background Pursuant to […]
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In an earlier article, I already described the general process of the Offshore Voluntary Disclosure Program. In that article, I mentioned that you must make a complete submission of your Voluntary Disclosure Package within 90 days of the date of the preliminary acceptance letter from the IRS Criminal Investigation. What if you cannot make a […]
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On February 14, 2013, the U.S. Department of the Treasury announced that it has signed a bilateral agreement with Switzerland to implement the information reporting and withholding tax provisions commonly known as the Foreign Account Tax Compliance Act (FATCA). Enacted by Congress in 2010, FATCA targets non-compliance by U.S. taxpayers using foreign accounts. The bilateral […]
In an earlier article, I discussed the key requirements of the Offshore Voluntary Disclosure Program (OVDP) now closed. In this essay, I would like to outline the general OVDP administrative process from initial pre-clearance through the execution of the Closing Agreement. General Description In order to participate in the OVDP, the taxpayer must first be […]
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There are some taxpayers who should not be using the official IRS Offshore Voluntary Disclosure Program (OVDP) now closed. The IRS expressly singled out one category of such taxpayers in its Q&A 17 of the OVDP Rules. Q&A 17 only applies to the taxpayers who reported and paid tax on all their taxable income for […]
In my practice I have encountered situations where a taxpayer has delinquent Form 5471 or Form 3520, but there is no additional tax liability associated with the delinquent forms. In these situations, a natural questions arises on how to best deal with this situation. One of the options is to follow Q&A 18 of the […]
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As the IRS engages in negotiations with foreign governments to implement FATCA (Foreign Account Tax Compliance Act) overseas, there is a rising pressure from some countries for reciprocity – the implementation of FATCA-like disclosure of foreign clients’ U.S. accounts to those clients’ home governments. FATCA Background FATCA was enacted in 2010 and set to begin […]
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One of the most critical aspects of the 2012 Offshore Voluntary Disclosure Program (2012 OVDP) are the rules pertaining to the voluntary disclosure period – i.e. what years are involved in calculating the Offshore Penalty and for how many years back should the tax returns be amended (with the corresponding consequences for the additional tax […]
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Sometimes a taxpayer who enters 2012 OVDP also has undisclosed domestic tax liability and the question arises with respect to how to handle this additional liability. As was the case with the 2009 OVDP and the 2011 OVDI, the 2012 OVDP is available to taxpayers who have both offshore and domestic issues to disclose. The […]
One of the most dramatic effects of the American Taxpayer Relief Act of 2012 (ATRA) was felt in the area of gift and estate taxes. Pre-ATRA Situation In 2012, the estate and gift tax exemptions, indexed for inflation, were set at $5,120,000 each (up from $5,000,000 in 2011). Moreover, in 2012, the surviving spouse could […]
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In an earlier article, I discussed the general Offshore Voluntary Disclosure Program eligibility requirements now closed, particularly those spelled out in the Internal Revenue Manual (IRM). In this essay, I would like to provide certain examples of when a taxpayer’s disclosure fails to meet IRM 9.5.11.9 requirements. Note, these examples are not specific to offshore […]
If a taxpayer is about to conduct a voluntary disclosure of his offshore accounts, a question arises about his eligibility to do so in a situation where the IRS already served a “John Doe” summons or made a treaty request seeking information that may identify a taxpayer as holding an undisclosed foreign account or undisclosed […]
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In its Revenue Procedure 2013-15, the IRS stated that, for the 2013 taxable year, the $2,500 maximum deduction for interest paid on qualified education loans under IRC § 221 begins to phase out under IRC § 221(b)(2)(B) for taxpayers with modified adjusted gross income in excess of $60,000 ($125,000 for joint returns). It is completely […]
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Generally, unless ineligible under specific rules, U.S. taxpayers who have undisclosed offshore accounts or assets and meet certain requirements are eligible to apply for IRS Criminal Investigation’s Voluntary Disclosure Practice and the OVDP penalty regime. In this article, I will only strive to broadly outline the 2012 OVDP (Offshore Voluntary Disclosure Program) and 2014 OVDP […]
2012 Offshore Voluntary Disclosure Program (2012 OVDP) now closed may offer tremendous benefits to certain types of taxpayers, but it may not be as beneficial in other circumstances. Whether to enter the 2012 OVDP is a decision that should be made by the taxpayer only after he had an opportunity to discuss this matter in […]
Partnerships offer many tax advantages for their partners. One such benefit is that when property is contributed to a partnership in return for a partnership interest, typically no gain or loss will be recognized. This general rule applies both to partnerships already in existence as well as newly-formed partnerships. However, this is not always the […]
On January 30, 2013, the Internal Revenue Service opened the 2013 filing season by announcing a variety of enhanced products and services to help taxpayers prepare and file their tax returns by the April 15 deadline. The IRS began accepting and processing most individual tax returns on January 30, 2013, after updating forms and completing […]
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Family partnerships can offer an advantageous method for splitting business income between family members who may be taxed at lower income rate brackets. This can result in substantial tax savings. However, because of the potential for widespread abuse of this device by shifting income to close relatives who may perform little or no actual work […]
2012 OVDP (Offshore Voluntary Disclosure Program) (now closed) may present a great opportunity for certain U.S. taxpayers to deal with their current as well prior non-compliance with U.S. tax laws. However, 2012 OVDP is not for everyone; while for certain categories of taxpayers it is the best option, other taxpayers may have additional choices that […]
One of the most important tax compliance forms for businesses and individuals is the Report of Foreign Bank and Financial Accounts (the “FBAR”), FinCEN Form 114 Formerly TD F 90-22.1. Pursuant to the Bank Secrecy Act, 31 U.S.C. §5311 et seq., the Department of Treasury (the “DOT”) has established certain recordkeeping and filing requirements for […]
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Failure to conduct voluntary disclosure may mean heavy penalties for U.S. taxpayers are not in compliance with international tax laws established by U.S. government. In this article, I summarize some of the key penalties that such non-compliant U.S. taxpayers may face once the IRS finds them. Penalties in General In general, if the IRS verifies […]
As 2012 OVDP (Offshore Voluntary Disclosure Program) now closed enters its second tax season, it is important to review once again the reasons behind the existence of the program, what it offers to the IRS and how it may benefit currently non-compliant U.S. taxpayers. Focus on International Tax Compliance Since 2003, the IRS has conducted […]
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In FinCEN Notice 2012-2, the Financial Crimes Enforcement Network (FinCEN) announced a third extension of time for certain Report of Foreign Bank and Financial Accounts (FBAR) filings in light of ongoing consideration of questions regarding the filing requirement and its application to individuals with signature authority over but no financial interest in certain types of […]
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If you are looking for an attorney to help you with your FBAR issues, contact Sherayzen Law Office. Sherayzen Law Office is an international tax and business law firm that specializes in FBAR compliance among other international tax issues. Our office is located in Minneapolis, but we have clients throughout the United States and overseas. […]
Sherayzen Law Office is a premier international law firm that specializes in FBAR compliance among other international tax issues. The firm is headquartered in Minneapolis, but it serves clients throughout the United States and overseas. FinCEN Form 114 formerly Form TD F 90-22.1, the Report of Foreign Bank and Financial Accounts (commonly known as the […]
The IRS released the statement describing its performance in the Fiscal Year 2012. The general results continued last year’s trend. In the enforcement area, audits of individuals topped 1 million for the sixth year in a row, with a 1.03% coverage rate out of all tax returns filed. Audits in the upper income ranges remained […]
On January 18, 2013, the IRS announced that it will issue guidance in the near future to provide relief from the estimated tax penalty for farmers and fishermen unable to file and pay their 2012 taxes by the March 1 deadline due to the delayed start for filing tax returns. The delay stems from this […]
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The voluntary disclosure programs provided the IRS with an enormous amount of information regarding countries, banks and individuals involved in US taxpayers’ non-compliance with U.S. tax laws. With so much information, it was reasonable to expect that the IRS would not be satisfied with solely prosecuting Swiss banks. Year 2012 confirmed these expectations; building up […]
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On January 16, 2013, the IRS confirmed that certain owners of individual retirement arrangements (IRAs) have a limited time to make tax-free transfers to eligible charities and have them count for tax-year 2012. Pursuant to the American Taxpayer Relief Act of 2012, Congress extended for 2012 and 2013 the tax provision authorizing qualified charitable distributions […]
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On January 15, 2013, the IRS today announced a simplified option for claiming home office deduction (i.e. deduction for the business use of a home). The new optional deduction, capped at $1,500 per year based on $5 a square foot for up to 300 square feet, will reduce the paperwork and recordkeeping burden on small […]
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The American Taxpayer Relief Act of 2012 added a limitation for itemized deductions claimed on 2013 returns of individuals with incomes of $250,000 or more ($300,000 for married couples filing jointly). In reality this is not a new law; this is basically a re-birth of the famous “Pease limitation” that was the part of the […]
On January 3, 2013, Wegelin & Co., the oldest Swiss private bank announced that it will close down following its guilty plea to criminal charges of conspiracy to help wealthy U.S. taxpayers evade taxes through secret financial accounts. The guilty plea and the closure of one of the most prestigious European banks that served its […]
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On January 11, 2013, the IRS announced annual inflation adjustments for the tax year 2013, including the tax rate schedules, and other tax changes from the recently passed American Taxpayer Relief Act of 2012. Changes in Tax Brackets; Adjustment to Standard Deduction and Personal Exemption Starting tax year 2013, a new tax rate of 39.6 […]
The enactment of the Health Care and Education Reconciliation Act of 2010 (the “Act”) has profound implications for U.S. investors. The Act imposes a new tax on investment income of certain individuals, estates and trusts. The focus of this article is on the new tax on individuals and how it operates. IRC Section 1411: Imposition […]
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Following the passage of the American Taxpayer Relief Act of 2012, the IRS issued Notice 1036 with respect to withholding tables for the year 2013, which includes the 2013 Percentage Method Tables for Income Tax Withholding. Under the notice, the IRS requires the employers to implement the 2013 withholding tables as soon as possible, but […]
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Following the January tax law changes made by Congress under the American Taxpayer Relief Act (ATRA), the IRS announced on January 9, 2013, that it plans to open the 2013 filing season and begin processing individual income tax returns on January 30, 2013. The IRS will begin accepting tax returns on that date after updating […]
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Every now and then, I encounter foreign business structures built on the incorrect belief that only direct ownership matters for U.S. tax reporting purposes in general and Form 5471 purposes in particular. In this essay, I broadly address the question of Form 5471 reporting with respect to indirect ownership of a foreign company (I am […]
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The Treasury Department’s Financial Management Service (FMS) and the IRS are in the process of streamlining the lockbox network. Effective December 31, 2012, the IRS will close lockbox operations located in the Atlanta (State of Georgia) and St. Louis (State of Missouri) areas. Moreover, other P.O. box address closings affect addressed in Hartford, Connecticut and […]
In an earlier article, I discussed various penalties generally associated with late or inaccurate filing of Form 5471 (this form is required under IRC Section 6038(a) to provide information with respect to certain US shareholders of foreign corporations). These penalties are generally subject to “reasonable cause” exception and are not imposed in every case. Since […]
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Starting January 1, 2013, Additional Hospital Insurance Tax (Additional Medicare Tax) will come to life as a result of section 9015 of the Patient Protection and Affordable Care Act (PPACA) (as amended). In essence, PPACA increased the existing Medicare tax for high-income earners. Currently, the Medicare tax rate is a flat 2.9% tax on all […]
The 2012 tax season is nearing. As calendar year 2012 is drawing to its end, the time for any tax planning is getting shorter and shorter. In order to do the tax planning properly, it is essential to know what tax bracket you are likely to be in and whether you can lower this bracket. […]
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In recent years, a new retirement trend emerged among U.S. citizens – retirement abroad in relatively peaceful countries of Latin America. Panama appears to be one of the preferred destinations. Retirement is a process, though, and it takes time to set up properly. Therefore, U.S. citizens typically start their preparation for retirement abroad in their […]
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Certain categories of US shareholders of a foreign corporation are required to file Form 5471 with the IRS. Form 5471, however, is one of the most complex forms in the Internal Revenue Code and the compliance costs for such a corporation can be very high. Such costs can be especially disproportionate for an inactive corporation […]
SECTION I. PURPOSE This revenue procedure provides a summary filing procedure for filing Form 5471 with respect to dormant foreign corporations described in section 3 below. Persons complying with this revenue procedure satisfy their Form 5471 filing obligations under sections 6038(a)(1), 6038(a)( 4), and 6046(a)(3) with respect to dormant foreign corporations and will not be […]
On November 30, 2012, the IRS announced that the underpayment and overpayment interest rates will remain the same for the calendar quarter beginning January 1, 2013. The rates will be: three (3) percent for overpayments [two (2) percent in the case of a corporation]; three (3) percent for underpayments; five (5) percent for large corporate […]
In 1988, the United States Congress enacted the Exon–Florio Amendment to authorize the executive branch’s review foreign investment within the United States. The amendment was passed into law under the Omnibus Trade and Competitiveness Act of 1988 and amended Section 721 of Defense Production Act of 1950. Generally, pursuant to this provision the President of […]
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The U.S. Department of the Treasury recently announced that it is engaged with more than 50 countries and jurisdictions around the world to improve international tax compliance and implement the information reporting and withholding tax provisions commonly known as the Foreign Account Tax Compliance Act (FATCA). Enacted by Congress in 2010, these provisions target noncompliance […]
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On November 21, 2012, the Internal Revenue Service issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on January 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: […]
In U.S. v. Jacques Wajsfelner, the IRS’s criminal prosecution of the defendant for willful failure to file FBARs was completed when the defendant, Mr. Jacques Wajsfelner, decided to plead guilty. Mr. Wajsfelner pled guilty to willful failure to file the FBAR in Manhattan federal court and he now faces civil penalties of $2.84 million and […]
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The underpayment and overpayment interest rates will remain the same for the calendar quarter beginning October 1, 2012. The rates will be: three (3) percent for overpayments [two (2) percent in the case of a corporation]; three (3) percent for underpayments; five (5) percent for large corporate underpayments; and one-half (0.5) percent for the portion […]
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If a qualified individual meets certain requirements of I.R.C. §911, he may exclude part or all of his foreign earned income from taxable gross income for the U.S. income tax purposes. This income may still be subject to U.S. Social Security taxes. The IRS recently announced that the maximum foreign income exclusion amount for 2013 […]
On September 14, 2012, the U.S. Department of the Treasury announced that it has signed a bilateral agreement with the United Kingdom to implement the information reporting and withholding tax provisions commonly known as the Foreign Account Tax Compliance Act (FATCA). Enacted by Congress in 2010, these provisions target non-compliance by U.S. taxpayers using foreign […]
This year, the usual September deadline for estimated tax payments for the the third-quarter (June 1-August 31) of 2012 moves to September 17 due to the fact that the usual date for the estimated tax payments (September 15) falls on Saturday. This requirements applies individuals who are either not paying their income tax through withholding […]
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If your client’s offshore voluntary disclosure involves PFIC (Passive Foreign Investment Company) income, you should be aware that the 2012 OVDP now closed (Offshore Voluntary Disclosure Program) offers an alternative PFIC calculation method. In this article, I intend to outline broad contours of the alternative method and put it in a broader context of voluntary […]
Potentially, a person who willfully fails to file an FBAR or files a false FBAR may be subject to: A prison term of up to 10 years Criminal penalties of up to $500,000 or both When it comes to penalties, FinCEN Form 114 formerly Form TD F 90-22.1, Report on Foreign Bank and Financial Accounts […]
Failure to do timely voluntary disclosure may expose non-compliant U.S. taxpayers with foreign bank and financial accounts to tremendous amount of audit penalties. In this article, I will describe these penalties which may apply to non-compliant U.S. taxpayers during an IRS audit (remember, the application of these penalties in your particular case will depend on […]
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On June 26, 2012, the IRS published the instructions for the 2012 Offshore Voluntary Disclosure Program (“OVDP”). The program was originally announced on January 9, 2012, but there were no instructions with respect to the program aside from modifications in the 2011 penalty structure and general references to the 2011 OVDI. The new 2012 OVDP […]
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The IRS announced on June 26, 2012, that its offshore voluntary disclosure programs have exceeded the $5 billion mark. “We continue to make strong progress in our international compliance efforts that help ensure honest taxpayers are not footing the bill for those hiding assets offshore,” said IRS Commissioner Doug Shulman. “People are finding it tougher […]
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With the cost of higher education sky-rocketing, it may make financial sense for students and families to consider grants and fellowships. But what about the tax consequences of receiving a grant or fellowship payment? Are grants and fellowship taxable? The question depends upon whether the individual is a degree candidate. A degree candidate can exclude […]
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Pursuant to the Bank Secrecy Act, 31 U.S.C. §5311 et seq., the Department of Treasury (the “DOT”) has established certain recordkeeping and filing requirements for United States persons with financial interests in or signature authority (and other comparable authority) over financial accounts maintained with financial institutions in foreign countries. If the aggregate balances of such […]
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Estimated tax payments for the second quarter (April 1 – May 31) of 2012 are due on June 15, 2012. The estimated tax payments should be made using Form 1040-ES. Note, if the due date for an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be considered on time […]
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Every year, the President has to submit a budget request to U.S. Congress for federal agencies, including the Internal Revenue Service. In February of 2012, the IRS posted the following information regarding its budget. Administration’s fiscal year (FY) 2013 budget request for the Internal Revenue Service is approximately $12.8 billion, a $944.5 million increase (8%) […]
The IRS announced today that it is expanding its “Fresh Start” initiative to provide for more flexible terms to its Offer in Compromise (OIC) program. In general, an OIC is an agreement between a taxpayer and the IRS, settling the taxpayer’s tax liabilities for less than the full amount due (subject to compliance with the […]
On May 22, 2012, the IRS announced that the interest rates will remain the same for the calendar quarter beginning July 1, 2012. The rates will be: three (3) percent for overpayments [two (2) percent in the case of a corporation]; three (3) percent for underpayments; five (5) percent for large corporate underpayments; and one-half […]
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In a previous article, we explained the basics of criminal tax investigations. In this article, we will examine further two investigatory methods available to the IRS. Search Warrants IRS Special Agents may request for a search warrant in certain cases. In order for a search warrant to be granted, IRS Counsel generally must first approve […]
Starting tax year 2011, the IRS imposed a new tax reporting requirement on individual taxpayers who hold specified foreign financial assets with an aggregate value exceeding a relevant threshold. In its instructions to Form 8938, the IRS lists five main categories of taxpayers and assigns distinct reportable threshold to each category. Let’s explore each category.1. […]
The Foreign Account Tax Compliance Act (FATCA), was enacted in 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act, and mandates new reporting requirements, and amends existing IRC Sections. Recently, the IRS issued final regulations and guidance regarding the reporting interest paid to nonresident aliens by certain financial institutions, as well as […]
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A lot of taxpayers are still unaware that awards and prizes may be potentially subject to U.S. federal income taxation. In general, prizes and awards (other than certain types of fellowship grants and scholarships) should be included in gross income and subject to federal taxation. Awards for religious, charitable, scientific, educational, artistic, literary or civic […]
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Restricted Stock Units (RSUs) have become prominent in the news recently as a result of the Facebook IPO. Many of Facebook’s employees received RSUs in addition to their wages, and will soon be paying a heavy tax bill. Facebook has estimated that its employees’ total tax liability will be approximately $4 Billion dollars. In fact, […]
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This article will explain the basics of criminal tax investigations. It is extremely important if you find yourself under such an investigation, or believe that the potential for a criminal investigation exists in your case, that you obtain an experienced attorney to represent you. Internal Revenue Code (IRC) Section 7608(b) grants the right to the […]
Virtually every business incurs some type of meal-related expenses. A question arises as to whether such meals are deductible and to what extent. This article provides a general overview of this topic; remember, though, that the deductibility of meals is highly fact-dependent and this article only provides an educational background to this issue, NOT a […]
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The Internal Revenue Code (IRC) permits individual and business taxpayers to deduct various types of taxes imposed by some tax authorities. However, some types of taxes are not deductible under the IRC. Here is a brief summary of most common non-deductible taxes: 1. Generally, federal income taxes, including social security and railroad retirement taxes paid […]
The purpose of the article is to provide a brief historical overview of the circumstances leading up to the enactment of the famous “Subpart F” rules through the year 1962. Subpart F of Subtitle A, Chapter 1, Subchapter N, Part III of the Internal Revenue Code (IRC Sections 951-965) was first enacted by the U.S. […]
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In U.S. tax law, classification of income plays a very important role in determining your tax liability. One of the most important classifications is whether you have qualified dividend income eligible reduced tax rates applicable to certain capital gains – in most case, this means 15% tax rate. As with almost every issue in U.S. […]
The Alternative Minimum Tax (the “AMT”) attempts to ensure that anyone who benefits from certain tax advantages pays at least a minimum amount of tax. Congress created the AMT in 1969, targeting higher-income taxpayers who could claim so many deductions they owed little or no income tax. The AMT provides an alternative set of rules […]
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The Internal Revenue Service, Deputy Commissioner (International), Large Business and International Division (“LB&I”), announced certain organizational and administrative changes and transitional procedures in connection with the creation of the Advance Pricing and Mutual Agreement (“APMA”) program. Prior to February 26, 2012, the Advance Pricing Agreement (“APA”) program was part of the Office of the Associate […]
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The U.S. Department of Treasure recently published its official currency conversion rates for December 31, 2011 (they are called “Treasury’s Financial Management Service rates”). These rates are important for many reasons, but one reason especially stands out for persons who are required to file the FBARs. The latest (January 2012) FBAR instructions require the use […]
The Foreign Account Tax Compliance Act (“FATCA”) produced a major catalyst for the usage of Form W-9 by the banks in order to identify whether their clients are U.S. taxpayers. This article explores the connection between the IRS Form W-9, FATCA and FBAR compliance. IRS Form W-9 The essence of the IRS Form W-9 is […]
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General Obligations To Deposit Payroll and Income Tax Withholdings Under federal law, employers must withhold Social Security, Medicare and Federal income taxes from their employees’ paychecks and deposit them with the federal government (together with the employer’s own payroll tax contributions). In addition to the deposit requirements, the employers are also obligated to file Form […]
In January of 2012, the IRS issued a new version of the Treasury FinCEN Form 114 formerly Form TD F 90-22.1, popularly known as the “FBAR” (the Report on Foreign Bank and Financial Accounts). This is a third revision of the FBAR in less than one year. In March of 2011, the IRS made substantial […]
Under the current U.S. tax law, canceled debt is normally taxable to you, but there are exceptions. One of those exceptions came into existence under the Mortgage Forgiveness Debt Relief Act of 2007. Under this law, married homeowners whose mortgage debt is partly or entirely forgiven during tax years 2007 through 2012 may exclude up […]
On February 23, 2012, the IRS announced that the underpayment and overpayment interest rates will remain the same for the calendar quarter beginning April 1, 2012. The rates will be: three (3) percent for overpayments (two (2) percent in the case of a corporation) three (3) percent for underpayments five (5) percent for large corporate […]
On February 23, 2012, the Internal Revenue Service released revised Form 941 enabling employers to properly report the newly-extended payroll tax cut benefiting nearly 160 million workers. The IRS needed to revise Form 941 due to the Middle Class Tax Relief and Job Creation Act of 2012 (enacted on February 22, 2012). Under the new law, […]
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A W-2 is required to be filed by every employer who is engaged in a trade or business paying remuneration (including noncash payments) of $600 or more for a year in which services are performed by an employee. A W-2 must be filed for each employee for whom income, Social Security, or Medicare tax was […]
For the U.S. tax compliance purposes, it is very important to properly classify foreign business entities, because there are special IRS requirements associated with ownership of foreign business entities. For instance, a list of various tax forms is tied to particular classification (for example, certain U.S. taxpayers are required to file Form 5471 with respect […]
The Alternative Minimum Tax (AMT) is an additional tax that certain individuals must pay on top of their regular tax liability. When the original “minimum tax” was enacted in 1969, its purpose was to limit the ability of high-income earners from paying little or no tax by using certain tax breaks. Tax breaks that may […]
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In a previous article, we covered some of the basics of Form 941. In this article, we will explore some of the major penalties that may apply for failure to comply with the requirements of Form 941. These penalties may be severe and, in certain circumstances, may even lead to criminal charges. Failure to File […]
On February 8, 2012, the U.S. Treasury Department and the Internal Revenue Service issued proposed regulations for the next major phase of implementing the Foreign Account Tax Compliance Act (FATCA). FATCA and FFI Reporting under Proposed Regulations FATCA was enacted by the U.S. Congress in 2010 as part the Hiring Incentives to Restore Employment (HIRE) […]
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The purpose of this article is provide a general background to one of the most important terms in international contract drafting, Incoterms 2010 CPT. General Provisions of CPT CPT (Carriage Paid To) means that the seller delivers the goods to the carrier of another person nominated by the seller at an agreed place and that […]
The recent oil boom in regions such as the Bakken Oil Field has created millionaires overnight based upon royalty interests in oil and gas leases of investors. While fortunes can be made from such payments, it is important to understand that there may be various potential risks involved, as well as numerous taxes. This article […]
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This article provides some general background to IRC Section 7201 criminal tax evasion charges and describes Section 7201 principal criminal penalties. As you will see, the penalties are severe, and you should immediately seek the advice of a tax attorney if you have any doubts as to whether you are complying with the law […]
With the Federal government searching for much-needed revenues, it is very likely that the IRS will be watching much more closely for unpaid payroll taxes, as it has been in recent years. This article will explain the purpose of Form 941 and when it needs to be filed. In a future article, we will cover […]
Some taxpayers may be tempted, especially in situations involving related parties, to arbitrarily shift the source of income or allocation of deductions, in order to avoid or lessen taxes. Congress, however, enacted IRC Section 482 to give the IRS wide power to prevent such actions. This article will give a brief overview of some aspects […]
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This article offers an important strategic perspective on the foreign financial accounts disclosure in the year 2012. In particular, it appears that, this year, U.S. taxpayers who have not fully disclosed their foreign financial accounts and foreign assets should make the urgent decision to bring their tax affairs into full compliance. Three Trends Greatly Enhanced […]
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In a previous article, we covered the basics of the IRS Form 5472. In this article we will explain the penalties that may apply for failure to comply with the form’s requirements. Main Failure to File and Failure to Maintain Records Penalties If a corporation fails to timely file the required Form 5472, a $10,000 […]
In a previous article, I already discussed some of the major differences between 501(c)(3) and 501(c)(6) organizations. However, this discussion was limited to characteristics of these organizations as opposed to dynamic developments that these organizations may experience during their existence. While most of these organizations tend to be stable once a particular type of tax-exempt […]
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The announcement by the IRS of the opening of the new Offshore Voluntary Disclosure Program (OVDP) on January 9, 2012 (now closed) came as a surprise to most tax practitioners, especially since the 2011 OVDI just ended on September 9, 2011. Yet, if one analyzes the number of new developments in international tax compliance over […]
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The new IRS Form 8938 is not just another tax form that a taxpayer needs to file. Its reach and impact on taxpayer compliance and IRS ability to verify it are far more profound. Yet, while the addition of Form 8938 to the long list of international tax compliance forms has created a burst of […]
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The focus of this article is to provide some basic information on the IRS Form 5472, an Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. The purpose of Form 5472 is to provide information required by the IRS when “reportable transactions” occur during the […]
As the United States government has increasingly searched for needed revenues, and some members of Congress have called for higher taxes on hedge fund managers and various other new tax proposals have been suggested. One such proposal is the “Enterprise Value Tax”, which passed in the House of Representatives in 2010 (as part of “H.R. […]
Are you thinking of creating a tax-exempt organization under federal income tax law? Tax-exempt organizations can provide extraordinary benefits to their members and society, but forming such organizations may entail significant knowledge of the law, as well as the ability to pay expensive application fees. In this article I will briefly explain the basic differences […]
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The Internal Revenue Service recently released new “tax gap” estimates for tax year 2006, showing that taxpayers owe $385 Billion (an increase of about 1/3 over the tax gap from tax year 2001). The tax gap is defined as the amount of tax liability owed by taxpayers that is not timely paid. The tax gap […]
On January 9, 2012, the Internal Revenue Service announced that it opens another offshore voluntary disclosure program – 2012 Offshore Voluntary Disclosure Program or 2012 OVDP – to help people hiding offshore accounts get current with their taxes and announced the collection of more than $4.4 billion so far from the two previous international programs. […]
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In November of 2011, the Social Security Administration announced that the wage base (also known as “contribution and benefit base”) used for computing the social security tax is increased to $110,100 in the tax year 2012. The wage base is used to compute the maximum amount of income subject to the Social Security taxes. This […]
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On January 4, 2012, the Internal Revenue Service announced that the taxpayers will have until April 17, 2012 (Tuesday) to file their 2011 tax returns and pay any tax due. This is because April 15, 2012, falls on a Sunday, and Emancipation Day, a holiday observed in the District of Columbia, falls this year on […]
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Are you thinking of transferring appreciated property to a foreign corporation in order to utilize the corporate “non-recognition” rules, and to possibly avoid further US taxes? You should be aware that while in certain circumstances it is feasible to transfer such property in order to properly run a business, there are many limitations placed upon […]
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With the new year upon us, it’s a good time to review the federal estate and gift tax rules in order to utilize them to their maximum effect. Taxpayers should also be aware that certain beneficial gift and estate tax laws may expire at the end of this year and revert back to the pre-Economic […]
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Estimated tax payments for the fourth-quarter of 2011 are due on January 17, 2012. The estimated tax payments should be made using Form 1040-ES. Note, if the due date for an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be considered on time if it is made on the […]
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This is a copy of the Minnesota Court of Appeals unpublished opinion in the case recently won by Mr. Eugene Sherayzen, the owner of Sherayzen Law Office, on November 21, 2011. This opinion will be unpublished and may not be cited except as provided by Minn. Stat. § 480A.08, subd. 3 (2010). STATE OF […]
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On November 21, 2011, the Minnesota Court of Appeals ruled in favor of Helpful Hands Transportation, Inc. (HHT) – the client of Sherayzen Law Office – and reversed the unemployment law judge’s (ULJ) determination that HHT’s workers should be classified as employees. Judge Kalitowski wrote the opinion. Two respondents were listed as “pro se”, but […]
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As discussed in an earlier article, Form 8938 is used by specified individuals to report the ownership of specified foreign financial assets if the total value of those assets exceeds an applicable threshold amount. Similarly to most international tax forms issued by the IRS, Form 8938 has its own system of penalties. What makes Form […]
In November of 2011, the U.S. Department of the Treasury issued a new version of Form TD F 90-22.1, now known as FinCen Form 114 commonly known as FBAR. All filers must now use this form in order to report their foreign bank and financial accounts. The main difference between the previous (March 2011) version […]
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The tax effects to shareholders of liquidating a corporation are largely governed by IRC Sections 331, 332 (liquidations of subsidiaries) and 338 (dealing with certain stock purchases treated as asset acquisitions). This article will examine only the general tax rule found in Section 331 (keep in mind that there are numerous exceptions and variations depending […]
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In an earlier article, I discussed in general that the IRS imposed a new tax reporting requirement on individual taxpayers who hold specified foreign financial assets with an aggregate value exceeding a relevant threshold. Such taxpayers will need to report those assets on the new IRS Form 8938, which must be attached to the taxpayer’s […]
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If you are a U.S. citizen or a dual citizen of the United States and another country (or countries) the IRS expects you to comply with certain individual tax reporting requirements even you reside outside of the United States. The purpose of this article is to outline some of the most important of these reporting […]
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The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extended the two percentage point payroll tax cut for employees, continuing the reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through February 29, 2012. This reduced Social Security withholding will have no effect on employees’ future […]
Recently, the Organization for Economic Co-operation and Development (OECD) Committee on Fiscal Affairs asked for public comments concerning the interpretation of the term “beneficial owner” in the OECD Model Tax Convention. Since the OECD Model Tax Convention functions as a template for many nations negotiating bilateral tax treaties, any changes or clarifications to the model […]
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On November 21, 2011, the VOW to Hire Heroes Act of 2011 was signed into law. The new law provides an expanded work opportunity tax credit to businesses that hire eligible unemployed veterans and for the first time also makes part of the credit available to tax-exempt organizations. Businesses can claim the credit as part […]
On December 16, 2011, the IRS announced that certain tax-exempt organizations with January and February filing due dates will have until March 30, 2012, to file their annual returns. The IRS is granting this extension of time to file because the part of the e-file system that processes electronically filed returns of tax-exempt organizations will […]
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This article will explain Internal Revenue Code Section 338(g), which allows corporations, that buy a certain percentage of a target corporation’s stock and meet certain requirements, to make an election to treat the acquisition as an asset purchase instead of a stock purchase. In the right circumstances, a Section 338(g) election can be a very […]
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According to Reuters and Sonntags Zeitung, U.S. officials are offering eleven Swiss banks (including Credit Suisse, Julius Baer, Basler Kantonalbank and HSBC Switzerland) a deal that allows them to avoid criminal prosecution in exchange for revealing details of their U.S. offshore business to the U.S. government. Allegedly, in exchange to dropping the criminal prosecution, the […]
On December 15, 2011, the Internal Revenue Service stated that it will soon release the final version of a new information reporting form that taxpayers will use starting this coming tax filing season to report specified foreign financial assets for tax year 2011. Form 8938 (Statement of Specified Foreign Financial Assets) will be filed by […]
IRS Form 1065 (U.S. Return of Partnership Income) is an information return used to report the income, gains, losses, deductions, credits, and related items from the operation of partnerships. Partnerships generally do not pay taxes because they are pass-through entities. Instead, profits or losses, and related items, are reported by partners (typically based upon their […]
Whether an account is reportable for FBAR purposes can sometimes be a relatively complicated question. It is true that it is easy to see that foreign bank and investment accounts should be reported on the FBAR as long as all other requirements are met. It is also well-established that a gold bullion account is reportable […]
Are you interested in reducing the amount of possible estate taxes you may have to pay? Do you desire to avoid paying gift taxes, but have concerns about gifting your children or grandchild large sums of money when they are perhaps too young to handle it responsibly? Then a Crummey Trust may be the answer […]
Form 1120S (US Income Tax Return for an S Corporation) is used to report the income, gains, losses, deductions, credits, and related items, for any tax year covered, of a domestic corporation or other entity that elects to be treated as an S corporation by filing Form 2553. If the IRS accepts the election, Form […]
Do you own a residential rental property that you plan to convert into your primary residence? Are you wondering if by doing so, you could still qualify for the capital gains exclusion on sales of a primary residence, when you do eventually sell? This article will examine these questions, and will explain some of the […]
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At certain times, tax planning may involve taking a position on a tax return that is uncertain, or even controversial. If the position involves a potentially large liability, taxpayers may be left with the undesirable choices of either taking a risk in reporting the position or deciding not to and paying a much larger tax. […]
On December 9, 2011, the Internal Revenue Service issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on January 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: […]
US persons are taxed on their worldwide income, but are allowed a foreign tax credit (FTC) for foreign taxes paid. In most cases, the FTC gives taxpayers a dollar-for-dollar credit against their US tax liability. However, the FTC may be limited for Alternative Minimum Tax (AMT) purposes in order to ensure that a taxpayer’s US […]
On July 18, 2011, the Financial Crimes Enforcement Network (FinCEN) announced that it has developed an electronic filing system that will accept Form 114 formerly Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (commonly known as “FBAR”). Once the FBAR is filed electronically, the filers will receive an acknowledgment of each report […]
Since the enrollment into the 2011 Offshore Voluntary Disclosure Initiative (“OVDI”) closed on September 9, 2011, I have been asked repeatedly by new and prospective clients about their post-OVDI options – i.e. is there a voluntary disclosure option for clients who were not able to enroll into the program by the September 9 deadline? The […]
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Do you own, or are you thinking of owning, foreign rental property? While investing in foreign rental property may have many advantages and can be a potentially lucrative enterprise, you should be aware that, among other aspects, the IRS treats rental properties located outside of the United States differently than rental properties in the United […]
IRS Form 8865 (“Return of U.S. Persons with Respect to Certain Foreign partnerships”) is used to report information required under IRC section 6038 (reporting with respect to controlled foreign partnerships), IRC section 6038B (reporting of transfers to foreign partnerships), and IRC section 6046A (reporting of acquisitions, dispositions, and changes in foreign partnership interests) for those […]
For taxpayers who are required to file IRS Form 8865 (“Return of U.S. Persons with Respect to Certain Foreign partnerships”) is used to report required information under IRC section 6038 (reporting with respect to controlled foreign partnerships), IRC section 6038B (reporting of transfers to foreign partnerships), and IRC section 6046A (reporting of acquisitions, dispositions, and […]
A Limited Liability Limited Partnership (LLLP) is a relatively recent modification of a traditional limited partnership, and about half of the states in the U.S. have adopted statutes for their formation. In this article, I will highlight some of the most prominent features of the LLLPs. As I already mentioned above, LLLPs are a modification […]
On November 29, 2011, the Internal Revenue Service announced that underpayment and overpayment interest rates will remain the same for the calendar quarter beginning January 1, 2012. The rates will be: three (3) percent for overpayments (two (2) percent in the case of a corporation) three (3) percent for underpayments five (5) percent for large […]
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In its continuous efforts to combat tax evasion, the IRS imposed a brand-new foreign asset reporting requirements on U.S. persons. For the very first time, starting tax year 2011 (with certain exceptions), certain individuals must file the new Form 8938 to report the ownership of specified foreign financial assets if the total value of those […]
The term limited liability partnership (“LLP”) is often used in public discourse- often erroneously. What exactly is an LLP, and what are its features compared to a traditional, general partnership? This article will attempt to answer that question and provide you with some basic understanding of LLPs. Please note that this article is intended to […]
A partnership is defined to mean the relationship between two or more persons to carry on a trade or business, with each person contributing money, property, labor, or skill, and each expecting to share in profits and losses. This article will provide a broad overview of some of the tax consequences of cash and property […]
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This brief case note describes one of the recent cases of the U.S. tax court. This description is not a legal advice and may not be relied upon as such. On September 20, 2011, the tax court ruled in favor of the taxpayer and found that he engaged in his business activities for profit (see […]
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Unlike U.S. citizens, U.S. resident aliens and domestic corporation which are taxed under the Internal Revenue Code on their worldwide income, the IRS applies a special tax regime to foreign persons. The general rule (subject to numerous exceptions) is that foreign persons are only taxed on their U.S.-source income of specified types and income effectively […]
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When we are talking about nonrecognition transactions, we generally mean mergers, spinoffs, and contributions of capital. When such transactions involve foreign corporations, U.S. tax laws impose a number of reporting requirements. In this brief essay, I will generally discuss the top three reporting requirements for U.S. persons who are involved in nonrecognition transactions involving foreign […]
If a U.S. person owns or is considered to be the owner of a Foreign Disregarded Entity (“FDE”), then he must file Form 8858. In general, there are three different groups of persons who may be required to file the Form. 1. Direct “Tax Owners” of FDE The instructions to Form 8858 define a “tax […]
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In my international tax practice, I have encountered frequent examples where business owners fail to comply with the U.S. tax reporting requirements with respect to a “foreign disregarded entity” (“FDE”). Therefore, in this essay, I will try to make some very broad observations with respect to the entity and Form 8858. FDE is a business […]
The U.S. government allows eligible parents to take a tax credit for up to $1,000 per qualifying child. In addition to various issues with respect to what constitutes a “qualifying child”, there are various complications with respect to the eligibility of the parents. In this short essay, I will concentrate solely on the interaction of […]
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The IRS recently announced that Schedule UTP must be filed with Forms 1120, 1120-F, 1120-L or 1120-PC, if an entity meets certain requirements. UTP stands for “Uncertain Tax Positions”, and the purpose of the schedule is for corporate taxpayers to provide concise disclosure of uncertain tax issues relating to the reporting of reserves in their […]
The IRS recently released Notice 2011-55, partially suspending certain Foreign Account Tax Compliance Act (“FATCA”) information reporting requirements until Form 8938, (Statement of Specified Foreign Financial Assets), and a revised Form 8621, (Return by a Shareholder of a Passive Foreign Investment Company or a Qualified Electing Fund) are released. It is important to note that […]
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A Simplified Employee Pension (“SEP”) is a written plan that allows you to make contributions toward your own retirement as well as your employees’ retirement while avoiding the complexity of various qualified plans. Under a SEP, you make contributions to a traditional IRA set up by or for each eligible employee. It is important to […]
Due to the cost of living adjustments, many of the pension plan limitations will change for 2012, but others will remain the same. Section 415 of the Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. Section 415(d) requires that the Commissioner annually adjust these limits for cost of […]
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In a previous essay, I already explained the importance of Incoterms to drafting of international contracts and discussed one of the Incoterms 2010 (EXW). In this article, I will provide a brief overview of another and more common Incoterms 2010 – FCA. FCA (Free Carrier) means that the seller delivers (the Incoterms 2010 rules specify […]
Incoterms (the ICC rules on the use of domestic and international trade terms) constitute a critical part of an international sales contract. Their most important contribution to the contract consist of a clear delineation of the parties’ respective obligations, thereby reducing the risk of misunderstanding and litigation. Moreover, Incoterms are regularly updated and, therefore, incorporate […]
Under I.R.C. §911, if certain conditions are met, a qualified individual can exclude his foreign earned income from taxable gross income for the U.S. income tax purposes. This income may still be subject to U.S. Social Security taxes. The income exclusion amount for 2011 has increased to $92,900 (in 2010, it was $91,500). Remember, if […]
The Internal Revenue Service recently announced that for tax year 2012, personal exemptions and standard deductions will increase, and tax bracket thresholds will rise because of inflationary effects. This article will explain some of these changes. Personal Exemptions, Standard Deductions and Tax Bracket Changes The increased amount of each personal and dependent exemption will be […]
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The individuals who fall within the four categories of U.S. persons who are required to file Form 5471 find out very fast just how incredibly complex this Form is. In addition to various problems associated with GAAP compliance, tax year adjustments, understanding very complex corporate tax and accounting rules (as well as the difference between […]
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The new Incoterms 2010 replace and update a number of various features of Incoterms 2000. The new rules took effect on January 1, 2011. The following is a very brief description of some of the most prominent changes. 1. Reduced Number of Incoterms The number of Incoterms rules has been reduced from 13 to 11. […]
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On October 3, 2011, the Minnesota Department of Revenue announced the launch of its new e-Services online system. This new system is replacing e-File Minnesota and will offer a wider variety of services to 400,000 business taxpayers. The new system was the product of at least four years of diligent work by the Department. The […]
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On October 6, 2011, The Internal Revenue Service announced that it is issuing proposed regulations that would require paid tax return preparers, beginning in 2012, to file a due diligence checklist, Form 8867, with any federal return claiming the Earned Income Tax Credit (EITC). It is the same form that is currently required to be […]
October 17, 2011 is the deadline for most of those individual taxpayers who filed Form 4868 to request a six-month extension on filing of their tax returns. Traditionally, October 15 would have been the deadline, but it falls on Saturday this year. Therefore, the IRS extended the deadline until October 17, 2011. Note that this […]
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Do you own 10% or more of the shares in a foreign corporation? Then you may be required to file IRS Form 5471 (“Information Return of U.S. Persons With Respect to Certain Foreign Corporations”). IRS Form 5471 Form 5471 is a required informational return for certain categories of filers (there are four different categories of […]
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On September 21, 2011, the Internal Revenue Service launched a new program, the Voluntary Classification Settlement Program (“VCSP”) that will enable many employers to resolve past worker classification issues and achieve certainty under the tax law at a low cost by voluntarily reclassifying their workers. The main benefit of the new program is that it […]
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On September 14, 2011, the Internal Revenue Service issued guidance designed to clarify the tax treatment of employer-provided cell phones. The guidance relates to Section 2043 of the Small Business Jobs Act of 2010, Pub.L.No. 111-240 (enacted last fall) that removed cell phones from the definition of listed property, a category under tax law that […]
With the price of commodities sky-rocketing in the past decade, many individuals have made substantial gains by directly investing in physical gold and other precious metals, especially in popular investment vehicles such as gold Exchange Traded Funds (ETF’s). However, there may be a downside for unsuspecting investors when it comes to paying taxes on those […]
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US tax residents and citizens are taxed based upon their worldwide income. This can often result in individuals being subject to double taxation. To provide relief from this problem, the Foreign Tax Credit (FTC) provisions were enacted. There are two types of FTC’s, the direct credit and the indirect credit. Direct Foreign Tax Credit In […]
Are you a US taxpayer earning income in Canada? Do you rely upon the US-Canada tax treaty (officially known as, The Convention with Respect to Taxes on Income and on Capital, U.S.-Can., Sept. 26, 1980, T.I.A.S. No. 11,087) exemptions to claim deductions or limit reporting of income for US tax purposes? If so, then you […]
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As discussed in an earlier article, I already explained the essence of a new Voluntary Classification Settlement Program (“VCSP”) announced by the IRS earlier this week. I then explored the application process. In this essay, I would like to explore the general eligibility requirements for the VCSP. Generally, the VCSP is available for to many […]
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As was discussed in an earlier article, the IRS announced a new Voluntary Classification Settlement Program that offers concrete benefits to participating employers. Among the chief benefits are substantially lower payment by employers of the potentially overdue taxes (without any interests and penalties) and a relatively simple way of resolving this potentially grave problem. Additional […]
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On September 21, 2011, the IRS announced and explained its new Voluntary Classification Settlement Program (VCSP) that provides partial relief from federal employment taxes for eligible taxpayers that agree to prospectively treat their workers as employees (see Announcement 2011-64). In essence, eligible employers may voluntary elect to participate in the VCSP in order to limit […]
The Internal Revenue Service has achieved significant success in combating international tax non-compliance. The total number of voluntary disclosures up to 30,000 since 2009. In all, 12,000 new applications came in from the 2011 offshore program that closed last week. The IRS also announced today it has collected $2.2 billion so far from people who […]
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Estimated tax payments for the third-quarter (June 1-August 31) of 2011 are due on September 15, 2010. The estimated tax payments should be made using Form 1040-ES. Note, if the due date for an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be considered on time if it is […]
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Non-Resident Indian (NRI) is an Indian citizen who has migrated to another country, a person of Indian origin who is born outside India, or a person of Indian origin who resides permanently outside India. A large number of the NRIs left India as a result of a job offer, for example as a software engineer […]
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On September 1, 2011, the Internal Revenue Service announced that it is granting taxpayers whose preparers were affected by Hurricane Irene until September 22, 2011 to file returns normally due September 15. The taxpayer’s preparer must be located in an area that was under an evacuation order or a severe weather warning because of Hurricane […]
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Due to the potential impact of Hurricane Irene, the IRS has extended the due date for offshore voluntary disclosure initiative requests until September 9, 2011. For those taxpayers who have not yet submitted their request and any documents, the following actions are necessary by September 9, 2011: Identifying information must be submitted to the Criminal […]
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On August 18, 2011, the Internal Revenue Service announced that interest rates will decrease for the calendar quarter beginning October 1, 2011. The rates will be: three (3) percent for overpayments (two (2) percent in the case of a corporation); three (3) percent for underpayments; five (5) percent for large corporate underpayments; and zero and […]
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Introduction: OVDI Deadline is August 31, 2011 On February 8, 2011, the Internal Revenue Service initiated 2011 Offshore Voluntary Disclosure Initiative (OVDI), a special voluntary disclosure initiative, designed to bring offshore money back into the U.S. tax system and help people with undisclosed income from hidden offshore accounts get current with their taxes. While this […]
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This is a reminder that the 2011 Offshore Voluntary Disclosure Initiative (OVDI) will expire on August 31, 2011. The 2011 OVDI was announced on February 8, 2011, and follows the 2009 Offshore Disclosure Program (OVDP). The 2011 initiative offers clear benefits to certain taxpayers who currently face far higher penalties along with potential criminal charges […]
The IRS is currently examining new procedures and policies regarding transfer pricing audits. Recently, the IRS developed a “Transfer Pricing Practice” within its Large and Mid-Size Business (LMSB) operating division, and last August, the IRS realigned its Large Business & International (LB&I) operating division to handle international tax matters more effectively. The Service intends to […]
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On August 5, 2011, the Internal Revenue Service issued guidance on the treatment of basis for certain estates of decedents who died in 2010. The guidance assists executors who are making the choice to opt out of the estate tax and have the carryover basis rules apply. Form 8939, the basis allocation form required to […]
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On July 27, 2011, the IRS announced that it is taking additional steps in its continuing efforts to improve the agency’s international operations. First, the IRS Advance Pricing Agreement (APA) Program, concerned exclusively with reaching pre-filing agreements with taxpayers on transfer pricing, will shift from the office of IRS Chief Counsel to an office under […]
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On July 15, 2011, the IRS advised truckers and other owners of heavy highway vehicles that their next federal highway use tax return (which is usually due on August 31) will instead be due on November 30, 2011. IRS Notice 2011-77 explains that the main reason for the extension of the deadline is to alleviate […]
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On June 23, 2011, the IRS announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes. In recognition of recent rise in the price of gasoline, the IRS […]
On July 7, 2011, Eugene Sherayzen, Esq., was re-appointed for the third time to the Minnesota State Bar Association Publications Committee. The Committee is responsible for overseeing the budget and publication of the most important Minnesota legal journal, “Bench & Bar”.
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It comes as a surprise to most taxpayers the Canadian Registered Retirements Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs) must be reported in the United States. Yet, any U.S. citizen or resident who is a beneficiary of an RRSP or RRIF must complete Form 8891 and attach it to Form 1040. A U.S. […]
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While gifts and bequests from nonresident aliens are usually not taxable, they must be reported to the IRS if they are above a certain threshold. Generally, U.S. persons who receive the aggregate amount of $100,000 or more in gifts and/or bequests from nonresident aliens or a foreign estate (including foreign persons related to that nonresident […]
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On June 16, 2011, the Internal Revenue Service issued IRS Notice 2011-54, granting additional relief to persons with signature or other authority over, but no financial interest in, a foreign financial account held during calendar year 2009 or earlier calendar years. Previous, IRS Notices 2009-62 and 2010-23 already extended this deadline until June 30, 2010: […]
On May 31, 2011, and June 17, 2011, in FinCEN Notices 2011-1 and 2011-2, the Internal Revenue Service and the Financial Crimes Enforcement Network (FinCEN) announced that a small subset of individuals, who are required to file the Report of Foreign Bank and Financial Accounts (FBAR), will receive a one-year extension beyond the recent filing […]
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A frequent question in my practice is whether a foreign account holding gold bullion is required to be reported on FinCEN Form 114 formerly Form TD F 90-22.1, usually referred to as “FBAR” (Report on Foreign Bank and Financial Accounts). FBAR is required to be filed by any U.S. person who has a financial interest […]
On June 28, 2011, Mr. Eugene Sherayzen, Esq. was elected to be the new vice-chairman of the International Business Law Section of the Minnesota State Bar Association.
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The IRS generally taxes U.S. taxpayers on all income, from any source derived. Foreign taxpayers, on the other hand, will usually only pay U.S. taxes on income sourced in the U.S. However, under The Foreign Investment in Real Property Tax Act (“FIRPTA”), the IRS treats gain on the disposition of certain U.S. property and interests […]
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A frequently asked tax question is whether capital gains may push a taxpayer into a higher tax bracket. This article will examine some of the tax possibilities with respect to this question. Background In general, capital gains are subject to the 0% or 15% capital gain rate. Generally, for 2010, if all of a taxpayer’s […]
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Pursuant to the Bank Secrecy Act, 31 U.S.C. §5311 et seq., the Department of Treasury (the “DOT”) has established certain recordkeeping and filing requirements for United States persons with financial interests in or signature authority (and other comparable authority) over financial accounts maintained with financial institutions in foreign countries. If the aggregate balances of such […]
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Estimated tax payments for the second quarter (April 1 – May 31) of 2011 are due on June 15, 2011. The estimated tax payments should be made using Form 1040-ES. Note, if the due date for an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be considered on time […]
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This article deals with a situation where a person wishes to purchase a membership interest in the LLC and the agreement has been reached by all parties (i.e. the negotiations are over and there is an agreement with respect to main substantive issues, such as price, timing, assets, et cetera). In particular, I will focus […]
On May 16, 2011, the Internal Revenue Service announced that interest rates for the calendar quarter beginning July 1, 2011, will remain the same as in the previous quarter. The rates will be: four (4) percent for overpayments (three (3) percent in the case of a corporation); four (4) percent for underpayments; six (6) percent […]
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Often, I receive specific questions from my clients with respect to whether certain types of accounts should be reported on the Report of Foreign Bank and Financial Accounts (“FBAR”). Recently, one of my clients wanted to know whether he needs to report his personal and homeowner’s lines of credits on the FBAR. A little disclaimer […]
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Every quarter the U.S. Department of Treasury publishes its official currency conversion rates (they are called “Treasury’s Financial Management Service rates). While there are many uses for these rates, the current (March 2011 revision) FBAR instructions require their use, if available, to determine the maximum value of a foreign bank account. In particular, the FBAR […]
This article will cover the options that are available for married couples where one spouse is a non-resident alien and the other is a U.S. citizen. A nonresident alien is an alien who has not passed the green card test or the “substantial presence test” under IRS rules. For the purposes of this article, a […]
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The Foreign Accounts Tax Compliance Act (FATCA) was enacted as part of the Hiring Incentives to Restore Employment Act of 2010 (“HIRE Act” or “Act”). In addition to specific requirements and a withholding tax, FATCA imposed a new foreign asset disclosure requirements on U.S. persons. This article will give a general summary about FATCA disclosure […]
Once in a while, I get a question from my clients on how long and what type of records they need to keep after they file their tax returns. Generally, you should keep any and all documents that may have an impact on your federal tax return. For example, it is a good idea to […]
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This is a reminder to the individual taxpayers that they have until the April 18, 2011, to file their 2010 tax returns. Taxpayers have an extra weekend to file this year because of a District of Columbia holiday on April 15. If you cannot meet the April 18 deadline, file an extension (Form 4868, Application […]
The purpose of this article is to provide you with a simple three-step plan on how to deal with a situation where you have not disclosed foreign income and foreign assets, including bank and financial accounts, to the IRS. 1. Call Sherayzen Law Office to Schedule a Confidential and Attorney-Client Privileged Consultation The first step […]
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If an individual taxpayer cannot file his tax return by the due date of the return, the IRS allows most of such taxpayers to request an automatic six-month extension of time to file the return. In order to do so, the taxpayer should file Form 4868, Application for Automatic Extension of Time to File U.S. […]
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Before filing your tax return, you should review it to make sure it is correct and complete. Here are the five most common errors on an individual tax return: 1. Incorrect or missing Social Security numbers. 2. Incorrect tax entered based on taxable income and filing status. 3. Withholding and/or estimated tax payments entered on […]
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Tax treaties are bilateral agreements between two countries that generally provide relief from taxation for individuals who are covered. The U.S. has tax treaties with more than 50 different countries. The U.S. has a formulated a Model Income Tax Treaty to assist in negotiations of future tax treaties. In general, treaties will grant one country […]
The sourcing of income has very important tax consequences for U.S. and foreign taxpayers. The IRS taxes U.S. taxpayers on all income, from any source derived; however, U.S. taxpayers will be relieved of double taxation and may utilize the foreign tax credit in many circumstances involving non-purely domestic taxation. Foreign taxpayers, on the other hand, […]
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Normally, debt forgiveness results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million of debt forgiven on your principal residence during tax years 2007 through 2012. The limit is $1 million for a married person filing a separate return. You may […]
Tax laws provide tax benefits for certain kinds of income and allow special deductions and credits for certain expenses. These benefits can drastically reduce some taxpayers’ tax obligations. Congress created the Alternative Minimum Tax AMT in 1969, targeting higher-income taxpayers who could claim so many deductions they owed little or no income tax. The AMT […]
The Internal Revenue Service announced that the interest rates for the calendar quarter beginning April 1, 2011, will increase by one percentage point. Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 […]
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As I already described in an earlier article, the IRS instituted a new voluntary disclosure program, called 2011 Offshore Voluntary Disclosure Initiative (“OVDI”). One of the most problematic areas under OVDI is the length of the examination period. Agreeing to assessment of taxes and penalties for all voluntary disclosure years is part of the resolution […]
Today, the IRS announced that it has started processing individual tax returns affected by legislation enacted in December. On Monday, IRS systems began to accept and process both e-file and paper tax returns claiming itemized deductions on Form 1040, Schedule A, as well as deductions for state and local sales tax, higher education tuition and […]
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The IRS just instituted a new voluntary disclosure program for taxpayers who have offshore accounts or assets and who failed to properly report them to the IRS and pay appropriate U.S. taxes. It is called 2011 Offshore Voluntary Disclosure Initiative (“2011 OVDI”). While 2011 OVDI is not available for everyone and some particular circumstances of […]
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On February 8, 2011, the Internal Revenue Service announced that a new special voluntary disclosure initiative, designed to bring offshore money back into the U.S. tax system and help people with undisclosed income from hidden offshore accounts get current with their taxes, will be available through August 31, 2011. The IRS decision to open a […]
Generally, most income you receive is considered taxable. However, the tax code is riddled with various exceptions where certain types of income are partially taxed or not taxed at all. For instance, here is a non-exclusive list of common examples of types of income usually excluded from taxable income: Adoption Expense Reimbursements for qualifying expenses […]
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It may be possible for you to be able to deduct medical and dental care expenses incurred in the tax year 2010. This deduction, however, is available only if you itemize your deductions on Schedule A (Form 1040). This deduction is allowed only for expenses primarily paid for the prevention or alleviation of a physical […]
Closing agreements constitute an important part of tax representation and tax planning. A “closing agreement” is a final agreement between the IRS and the taxpayer on a specific issue or liability. Closing agreements are entered into pursuant to IRC Section 7121. Usually, closing agreements may be entered into when it is beneficial to permanently and […]
Understanding how to cite Treasury Regulations is crucial to being able to find the regulations relevant to a tax case. This is why I devote this brief essay to explaining the location and basics of citation of Treasury Regulations. Treasury Regulations are located in Title 26 of the Code of Federal Regulations (“C.F.R.”). This corresponds […]
In previous article, I discussed what type of information you should bring to your Minneapolis business attorney. In this essay, I shift the focus toward the second part of the preparation which is about what type of questions you need to ask your business lawyer. Usually, the questions that you want your Minneapolis business lawyer […]
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Preparing for the initial consultation with your Minneapolis business lawyer usually involves at least two steps. First, gathering the information you need to supply to your business attorney. Second, preparing the questions you want to ask your business lawyer. This essay deals with the first part of the preparation. It is important to understand that […]
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Although there is a general misconception that U.S. citizens can relinquish their citizenship in order to escape high U.S. taxes, most of the time this is not true. If you are contemplating such a move, it is essential to understand the basic rules relating to expatriation for purposes of tax avoidance, as the taxes and […]
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Minnesota’s “Truth in Repairs Act” (Minn. Stat. §325F.56 through §325F.65) spells out the rights and obligations of repair shops and their customers for repairs costing more than $100 and less than $7,500. Here are some basic highlights of your rights as a customer: a). You have the right to receive a written estimate for repair […]
Making Work Pay Tax Credit is a refundable tax credit of available to many taxpayers in the tax year 2010. The credit is up to $400 for individuals and up to $800 for married taxpayers filing joint returns. Taxpayers who file Form 1040 and 1040A must use Schedule M to figure out their Making Work […]
If you need to obtain certain prior year tax return information, it is possible to a copy of the actual processed return from the IRS. Often, however, the information you need may be contained in a tax transcript, which can also be obtained directly from the IRS. Tax Return Transcript versus Tax Account Transcript There […]
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On January 20, 2011, the IRS announced that it plans to start process tax returns, which were delayed as a result of the last month’s tax law changes, on February 14, 2011. It should be remembered that the taxpayers can begin preparing their tax returns immediately because many software providers are ready now to accept […]
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Most trademark lawyers in Minneapolis recommend that a cease and desist letter regarding trademark violation should contain, at the very minimum, the following components: 1. Trademark Owner’s Identity The cease and desist notice should identify who is the trademark owner. If the letter is being drafted by a trademark owner’s representative, then representative should identify […]
This is an education tax credit update from a Minneapolis tax lawyer. American Opportunity Tax Credit and the Lifetime Learning Tax Credit are two federal tax credits designed to help eligible taxpayers offset their higher education expenses. To qualify for either credit, a taxpayer must pay postsecondary tuition and fees for himself, spouse or dependent. […]
Prior to engaging in expensive trademark litigation, it is common for Minnesota trademark lawyers to send the violating parties a notice of infringement, demanding that the violators comply with certain demands of the trademark owner and threatening lawsuit otherwise. This notice is usually called “cease and desist letter”, because it demands that the violator: ceases […]
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Most small business lawyers in St. Paul deal with closely held corporations. In order to understand this form of business entity, it is useful to explore the essential characteristics shared by the predominant majority of closely held corporations. The purpose of this article is to provide a general overview of the four most common characteristics […]
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This is a Small Business Health Care Tax Credit update from a tax attorney in Minneapolis. Generally, the Small Business Health Care Tax Credit is available to small employers that pay at least half of the premiums for single health insurance coverage for their employees. It is specifically targeted to help small businesses and tax-exempt […]
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Due to the enactment of the Small Business Jobs Act of 2010, self-employed taxpayers who pay their own health insurance costs can now reduce their net earnings from self-employment by these costs. Previously, the self-employed health insurance deduction was allowed only for income tax purposes. For tax year 2010, however, self-employed taxpayers can also reduce […]
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On January 4, 2011, IRS extended the tax filing and tax payment deadline for individual taxpayers until April 18, 2011. The extension is made due to the Emancipation Day, a holiday observed in the District of Columbia, which falls this year on Friday, April 15, 2011. Taxpayers who request an extension will have until October […]
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While for most taxpayers, the 2011 tax filing season starts on schedule. Due to tax law changes enacted by Congress in December, however, some taxpayers need to wait until mid – to late February of 2011 to file their 2010 tax returns in order to give the IRS time to reprogram its processing systems. This […]
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On January 4, 2011, IRS extended the tax filing and tax payment deadline for individual taxpayers until April 18, 2011. The extension is made due to the Emancipation Day, a holiday observed in the District of Columbia, which falls this year on Friday, April 15, 2011. Taxpayers who request an extension will have until October […]
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In some case, you may want to file a tax return even though you do not have to. Here are the top seven reasons for this course of action for the tax year 2010. 1. Tax Refund. If federal income tax was withheld from your paycheck, you made estimated tax payments, or had a prior […]
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Legal fees usually constitute a top concern for potential clients who wish to retain a St. Paul contract attorney. In this essay, I would like to point out the top three legal fee issues that are usually associated with retaining a contract lawyer in St. Paul, Minnesota. 1. Payment Structure There are three main models […]
In previous article, I discussed the first part of preparation for an initial consultation with Minneapolis tax lawyers; the first part was mainly concerned with what type of information you should bring to your Minneapolis tax attorney. In this essay, I shift the focus toward the second part of the preparation which is about what […]
A little disclaimer first: this article is concerned only with individuals contacting Minneapolis tax lawyers for a consultation. I will discuss preparation of business owners for an initial tax consultation in another article. There are two sides to your preparation for the initial consultation with your Minneapolis tax lawyer. First, the information you need to […]
Prior to the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “Act”) and after abolishment of the estate tax for decedents dying in 2010, the estate tax was scheduled to return in the tax year 2011 with a maximum tax rate of 55% and a $1 million exclusion. Under the Act, […]
One of the most important provisions of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “Act”), which was signed into law on December 17, 2010, deals with Social Security tax reduction for employees. The Act reduces the employee’s share of Social Security tax from 6.2% to 4.2% for wages earned […]
Do you frequently trade stocks or purchase options? Then you should be aware of the wash-sales rules. In some extreme circumstances, the wash-sales rules can have drastic negative effects on your taxes, so they are well worth knowing. A wash-sale occurs when stock, securities, or options are sold for a loss, and within a 61-day […]
Under the U.S. tax laws, partnership income and expenses flow through to each partner in a partnership, at a partnership’s tax year-end. Generally, the tax year of a partnership must conform to the tax years of its partners. In some situations, however, a partner, or multiple partners, and the partnership itself may have different tax […]
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Corporations that make valid election to be taxed under Subchapter S (“S corporation”) are treated as pass-through entities. This means that the S corporation’s gains, losses, income and expenses are passed onto shareholders who will pay the applicable federal income taxes; the S corporation itself does not pay any taxes (as opposed to a regular […]
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “Act”) was singed into law on December 17, 2010. One of the most important tax provisions in the Act deals with the alternative minimum (“AMT”) tax patch. Under the Act, the AMT exemption amounts for the tax year 2010 will be $72,450 […]
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Member Control Agreement can be the most important governance document in the process of the LLC Formation because it may provide the LLC members with maximum governance flexibility, including overruling some provisions of the Minnesota Limited Liability Company Act. In fact, a Member Control Agreement may completely reorganize the governance structure of an LLC away […]
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Pursuant to the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “Act”), which was singed into law on December 17, 2010, the tax cuts on capital gains and qualified dividends have been extended through the tax year 2012. Generally, long-term capital gains of individuals will be taxed at a maximum rate […]
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The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “Act”) was singed into law on December 17, 2010. Prior to the Act, the previous tax cuts were scheduled to expire and the marginal federal income tax rates for individuals were scheduled to return to 15%, 28%, 31%, 36% and 39.6%. Under […]
On December 17, 2010, the President signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “Act”). The new law preserves the 2001 and 2003 tax cuts through the year 2012, reduces the estate tax to 35 percent and allows a $5 million individual exemption, cuts the Social Security […]
When you are about to hire a business lawyer in Minneapolis, you need to discuss the following top three legal fee issues: 1. Payment Structure There are three main models of payment that lawyers use: hourly fee, contingency fee, and flat fee. The hourly fee is the most common form of business lawyer compensation in […]
In previous articles I have discussed a few broad methods for getting out of contract in Minnesota, as well as how an opposing party may be able to stop you from claiming a right under contract by invoking equitable estoppel. This article is closely related with those topics and deals with the timing of claiming […]
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As noted in a previous article, I occasionally have clients who are looking for a way to get out of their contractual obligations. I mentioned five broad methods for getting out of contract: 1) exit provisions in the contract; 2) validity of the contract; 3) contract construction; 4) excuse for non-performance; and 5) breach. If […]
Selecting a trademark is a creative and legally important process. There are many issues that must be factored into the trademark selection process. One of the most important factors is the strength of the trademark; this is significant because the protection of your trademark against future infringement will depend on how strong the courts will […]
On December 9, 2010, in his prepared remarks before the “23rd Annual Institute on Current Issues in International Taxation IRS” (in Washington, D.C.), Commissioner Doug Shulman hinted that the IRS is considering whether to renew the Voluntary Disclosure Program. The new Voluntary Disclosure Program would have tougher penalties that the original Program that ended in […]
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In the first part of this series, I mentioned that LLC Bylaws or Operating Agreement (as Bylaws were called in the original version of the Minnesota Limited Liability Company Act) is one of the essential documents and an integral part of LLC formation in Minnesota. Bylaws may be adopted by the organizers or the first […]
If you are required to register an assumed name for your business (to learn about who is required to register an assumed name, click here), it is important to follow through with all of the registration requirements. There are three basic step to registering an assumed name in Minnesota. 1. Fill-out Certificate of Assumed Name […]
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When you are about to hire a St Paul international tax lawyer to help you with an international tax issue, there are three fundamental questions that you need to ask him. Hiring St Paul International Tax Lawyer Question #1: How Will I Be Billed? Generally, a St Paul international tax lawyer will bill you on […]
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Over the years, as a business lawyer in St. Paul, I have had questions from my clients about whether they are supposed to register their assumed name with the Minnesota Secretary of State. In this short essay, I briefly address this issue. Generally, pursuant to Minn. Stat. §333.01, Subd. 1, any individual, corporation, limited partnership […]
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In the first two parts of the series, I have mentioned more than once that the Articles of Organization is the key document for LLC formation. LLC is formed by filing the Articles of Organization with the Office of the Minnesota Secretary of State. The Articles become effective on filing and payment of the $160 […]
In the previous article, I already discussed some of the essential documents that are necessary for formation of a Limited Liability Company (“LLC”) in Minnesota. In this article, I would like to explore the basic mechanics of LLC formation. Who can form an LLC? One or more natural persons at least 18 years of age […]
Penalties and interest may be impose d by the IRS relating to various tax underpayments. Taxpayers should understand some of the basic tax penalties detailed in this article (many of which can be quite sever) in order to avoid such penalties if possible, and to perhaps mitigate any imposed penalties. Accuracy-Related Penalties An accuracy-related penalty […]
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It is conventional wisdom that forming a Limited Liability Company (“LLC”) in Minnesota is not hard. Furthermore, a lot of people believe that, in order to form an LLC, the only (and the easiest) thing to do is to file the Articles of Organizations – a one-page fill-in form prepared by the Secretary of State […]
On December 3, 2010, Internal Revenue Service issued the 2011 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on January 1, 2011, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: a) […]
Are your structured settlement payments taxable? For federal income tax purposes, it is not relevant whether a plaintiff receives proceeds from a judgment or settlement. No matter how the result is reached, amounts received are characterized either as income, or are specifically excluded from income. Section 104 of the Internal Revenue Code generally excludes from […]
The following are some upcoming tax deadlines and reminders for the December of 2010. (This list may not include all applicable tax deadlines for your situation, and does not constitute tax advice; please, consult Sherayzen Law Office for more information and assistance with your tax planning needs.) Selected General Deadline Reminders for Individuals: December 31, […]
Assuming that a taxpayer does not use the IRS standard mileage deduction, for qualifying vehicles used for business purposes and placed in service in 2009 or 2010, taxpayers may deduct various costs including depreciation, registration fees, insurance, and many others under the actual expense method. This article will examine depreciation deductions for certain categories of […]
While the exact schedule of your business tax planning reviews may often depend on the exact nature of your business, I want to point out in this article certain events which should trigger a review of your tax strategies by a Minnesota business tax lawyer. A. Business Formation A review of your business tax strategies […]
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If you appealed your business license denial and your case is pending effectively in the Office of Administrative Hearings, it is essential to understand the procedural rules of this administrative court as well as your procedural rights. This means that you and/or your attorney must have a good understanding of the sources of the administrative […]
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Section 179 of the Internal Revenue Code allows taxpayers to purchase certain types of vehicles for business purposes and write off the cost. Specifically, taxpayers may expense up to $25,000 of the cost of any “heavy” SUV, pickup or van placed into service during the tax year, and used for over 50% for business purposes. […]
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Using Technology to Improve Delivery of Legal Services At Sherayzen Law Office, we are always thinking about how to use new technology to improve the delivery of legal services to our clients. For this reason, we have been investing in the acquisition of new technologies and finding better ways to use the existing ones. Starting […]
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Congress enacted the Passive Foreign Investment Company provisions (PFIC) as part of the Tax Reform Act of 1986 in order to deter U.S. investors from deferring or avoiding payment of U.S. taxes by investing in offshore entities. The PFIC rules are structured to provide a disincentive for U.S. investors to defer investment income taxes by […]
Capital gains and losses defined Capital gains and losses result from the taxable realized sale or exchange of capital assets. In general, capital assets include investments (such as stocks and real estate) and fixed assets, as opposed to personal-use property. Capital gains result when the sale or exchange price is greater than the adjusted basis […]
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Since most of the business-to-business relationships are organized on the basis of written business contracts, it is inevitable that contract disputes would arise between businesses. Frequently, these disputes are serious enough to lead to business contract litigation between the relevant parties Therefore, it is important for any business to prepare for such a possibility ahead […]
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This is an odd article to write for a Minnesota contract lawyer who spends most of his contract law practice making sure that the terms of a contract are enforceable. Yet, occasionally, I have clients who are looking for a way to get out of a contract for many reasons. Some of these clients suddenly […]
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Contract litigation permeates the very fabric of advanced economic societies. The primary reason for this widespread presence of this type of litigation is because contracts provide the most common and basic means of conducting transactions between individuals and especially businesses. Contracts, whether written or oral, govern the everyday economic relations. Every time you buy something […]
When taxpayers file their income tax returns, a determination of tax is made. The IRS must then “assess” a tax liability in order to collect the amount owed. Generally, the period for assessment is three years from the due date, or from the date the return is filed, whichever is later (see this article for […]
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In many industries, obtaining a business license is one of the most significant prerequisites for doing business in Minnesota. Paradoxically, despite its importance, too many businesses resist involving Minnesota business lawyers in this process from the very beginning – at the stage of the business license application preparation. Instead, attorneys throughout Minnesota (including Minneapolis business […]
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In general, a husband and wife are jointly and separately liable for any tax, penalty and interest owed for a year in which they have filed a joint tax return. This means that the IRS can collect the entire amount of tax owed from either spouse alone, regardless of who reported income, or who may […]
Are you a small business owner who frequently sells goods or services over the Internet, or a consumer who purchases expensive products online? Then you may be responsible for charging sales taxes as a seller, or reporting unpaid use taxes as a consumer under new laws that have been passed by various states. As states […]
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Despite the potentially grave consequences, many U.S. taxpayers are completely unaware of the extensive reporting requirements under the Bank Secrecy Act, particularly of the disclosure of ownership or other interest in or authority over financial accounts in a foreign country by filing the Report of Foreign Bank and Financial Accounts (the “FBAR”). While one can […]
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Minnesota Unemployment Insurance Appeal Hearing (“UI hearing”) is a serious legal event for many small- and mid-size businesses that may have far-reaching tax and employment law consequences for these businesses, especially when the hearing is about such a delicate and important issue as classification of workers as independent contractors. Yet too many business owners are […]
If your business license was denied by a government agency in Minnesota, you need to act immediately to secure an administrative appeals lawyer to analyze the facts of your case from a legal perspective. In almost all cases, a license denial by a government agency can be appealed for additional review. This right to appeal, […]
If you filed Form 4868 to request a six-month extension to file your tax return, beware that October 15, 2010 is the fast-approaching deadline to file your tax returns. The IRS expects to receive as many as ten million tax returns from such extension filers. The other important group of filers are small nonprofit organizations […]
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One of the most crucial distinctions in employment and tax law is one made between employees and independent contractors. The applicability of a whole host of labor and tax provisions hinges on how the worker is classified. In Minnesota, most statutory provisions that deal with these issues (including Minnesota Unemployment Insurance) incorporate in one way […]
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On September 7, 2010, the Internal Revenue Service released a draft version of the form 8941 that small businesses and tax-exempt organizations will use to calculate the small business health care tax credit when they file income tax returns next year. The small business health care tax credit was created as part of the Affordable […]
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Determining the business relationship between your business and your workers can be one of the most important aspects of your business and tax planning. The consequences of worker mis-classification can carry a heavy penalty for your businesses, including liablity for employment taxes for misclassified workers. There are many various competing definitions of how a worker […]
The International Chamber of Commerce (“ICC”) has announced that Incoterms 2010 is scheduled to be launched in September and come into effect on January 1, 2011. Incoterms is the abbreviation for “International Commercial Terms” and were introduced by the ICC back in 1936 to provide people engaging in international trade a common set of trade […]
Estimated tax payments for the third-quarter (June 1-August 31) of 2010 are due on September 15, 2010. The estimated tax payments should be made using Form 1040-ES. Note, if the due date for an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be considered on time if it is […]
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When a business entity applies for a Minnesota money transmitter license, the applicant must be aware that, in addition to answering the questions on the application, the Department of Commerce (“Department”) requires a large number of additional documents that must accompany the original license application. While the precise nature of the required documentation varies depending […]
Applying for a money transmitter license in Minnesota can be an expensive enterprise, and the applicant should make sure that he will be able to maximize the benefits that can be derived from the license. The definition of the licensed period, therefore, becomes one of the most important considerations. The Department of Commerce (“Department”) states […]
One of the major requirements that gives rise to the obligation to file the FBAR is that a U.S. person has either a financial interest in, or a signature authority or other comparable authority over the relevant foreign financial accounts. In deciding whether the FBAR is required, it is useful to go through all three […]
In this essay, I would like to discuss some of the penalties that may be imposed as a result of the failure to file the FBAR even though you were required to do so. In particular, I will focus on three general scenarios describing specific penalties commonly attributed to each of them. The first scenario […]
FBAR filing is required only if the aggregate balances of a U.S. person‘s foreign financial accounts exceed $10,000. Despite appearances, the requirement that the aggregate value of all of the foreign financial accounts exceeds $10,000 at any time during a calendar year is not without complications. In order to figure out the account value in […]
The term “foreign financial accounts” is described expansively and includes any bank, brokerage, securities, securities derivatives and other financial instruments accounts located outside of the United States and its territories. In the instructions to the FinCEN Form 114 Foreign Bank Accounts Reporting (FBAR) formerly Form TD F 90-22.1, the IRS also includes in this definition […]
On August 19, 2010, the IRS announced that interest rates for the calendar quarter beginning October 1, 2010, will remain the same as follows: 1. Individual underpayment and overpayment: 4%; 2. Corporate overpayment: 3% 3. Large corporate underpayment: 6% 4. Portion of corporate overpayment exceeding $10,000: 1.5% The interest rate is determined on a quarterly […]
If you are getting married this year, this may have a significant impact on your tax returns for the year 2010. While you are likely to deal with most of these changes when you will be filing your tax return for the tax year 2010, there are some basic administrative actions that you should be […]
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On July 26, 2010, the IRS instituted a one-time relief program under which that small nonprofit organizations at risk of losing their tax exempt status because they failed to file required returns for 2007, 2008 and 2009 can preserve their status by filing returns by October 15, 2010. The IRS also posted on its website […]
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In this article, I will discuss five most important issues that you need to know before you sign a fee agreement with tax lawyers in St. Paul. 1. How is the lawyer’s fee paid? There are three main models of payment that lawyers use: hourly fee, contingency fee, and flat fee. The hourly fee is […]
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Over the past fifteen to twenty years, the franchise agreements have grown tremendously in complexity and size. They also tend to be more and more favorable toward the franchisor. Therefore, if you are a potential franchisee, you must read the franchise agreement very carefully to make sure that you fully understand what the agreement is […]
While its definition varies, most attorneys would agree that “business litigation” is a complex area of law which includes a variety of contractual and tort claims. Examples of such claims include but not limited to: breach of contract, fraud, tortious interference with contract, breach of fiduciary duty, infringement of intellectual property rights, and unfair competition. […]
The statute of limitations limits the time for the IRS tax collection activities. Generally, there is a ten-year statute of limitations for the IRS collection of owed taxes. Thus, for assessments of tax or levy made after November 5, 1990, the IRS cannot collect or levy any tax ten years after the date of assessment […]
Whether you need to amend your previously-filed tax return depends on your particular situation. In some situations, such as simple math errors, the IRS will correct the return for you. In other situations, however, you should file an amended tax return. The most common situations occur when you need to change your: filing status, dependents, […]
The tax statute of limitations limits the time during which an action can be brought by the IRS for an audit. The general rule is that IRS has three years from the filing date to audit a tax return. 26 U.S.C. §6501(a) and Treas. Reg. §301.6501(a)-1(a). Similarly, under Treas. Reg. 301.6501(a)-1(b) no proceeding in court […]
A lot of businesses simply look at the tax returns as “adding numbers.” Yet, tax returns are so much more than that. A tax return is a result of a long series of decisions made by the business, such as elections, classifications, investment strategies, structuring of business transactions, and numerous other actions and inactions. Dealing […]
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Generally, a taxpayer may file a claim for a tax refund of an overpayment of any tax within three years from the time the tax return was filed with the IRS or two years from the time the tax was paid to the IRS, whichever period is later. If no tax return was filed with […]
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According to the IRS, in order to be able to claim “single” tax status, you must be “unmarried or legally separated from your spouse under a divorce or separate maintenance decree” on the last day of your tax year, and you do “not qualify for another filing status.” (See IRS Publication 501). Determining your marital […]
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The best way to understand the difference between the Self-Employment tax (“SE tax”) and the FICA (Federal Insurance Contributions Act) tax is by contrasting self-employment versus regular salary employment. In essence, the SE tax is a Social Security and Medicare tax imposed on individuals who for themselves, while FICA tax is paid in equal portions […]
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Figuring out your filing status is the first major step in filing your tax return. Your tax filing status not only will allow you to determine the correct tax (from the Tax Computation Worksheet or appropriate column in the Tax Table), but also it is crucial to understanding your eligibility for and the exact amount […]
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Under I.R.C. §911, if certain conditions are met, a qualified individual can exclude his foreign earned income from taxable gross income for the U.S. income tax purposes. This income may still be subject to U.S. Social Security taxes. The income exclusion amount for 2010 has increased to $91,500.
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On June 30, 2010, Eugene Sherayzen, Esq., was re-appointed for the second time to the Minnesota State Bar Association Publications Committee. The Committee is responsible for overseeing the budget and publication of the most important Minnesota legal journal, “Bench & Bar”.
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On June 30, 2010, Eugene Sherayzen, Esq. was elected to be the next treasurer of the International Business Law Section of the Minnesota State Bar Association.
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Under the Homebuyer Assistance and Improvement Act of 2010 (enacted on July 2, 2010), eligible homebuyers who entered into a binding purchase contract on or before April 30 to purchase a principal residence can now close on a home by September 30, 2010 in order to qualify for the First-Time Homebuyer Credit. Thus, under the […]
In this article, I will discuss five most important issues that you need to know before you sign a fee agreement with international tax lawyers in Minneapolis. * How is the international tax lawyer’s fee paid? There are three main models of payment that lawyers use: hourly fee, contingency fee, and flat fee. The hourly […]
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Obtaining federal registration of a trademark can bestow on the trademark owner (“registrant”) a number of evidentiary and substantive advantages: 1. Federal trademark registration is a prima facie evidence of the validity of a registered mark, the registrant’s ownership of the mark, the continued use since the filing date of the application and the exclusive […]
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The standard definition of a contract states that: a contract is a promise or set of promises, for breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty. Therefore, an enforceable contract, whatever its type or form, inevitably creates rights and obligations. This […]
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U.S. citizens and resident aliens (for U.S. tax purposes) who have financial interest in Canadian Registered Retirements Savings Plans RRSPs)and/or Registered Retirement Income Funds (RRIFs) must report their RRSP and RRIF income to the IRS by using Form 8891. The taxpayers (even if resident aliens from Canada) must comply with this reporting requirement even if […]
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Since October of 2008, the definition of a “U.S. person” has been going through a turbulent phase of uncertainty with periodic expansions and retractions. The pre-2008 FBAR instructions (dating back to July of 2000 version) defined the “U.S. person” broadly as: “(1) a citizen or resident of the United States, (2) a domestic partnership, (3) […]
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An applicant for a money transmitter license in Minnesota must comply with Minn. Stat. §53B.05 net worth requirements. Under Minnesota law, each licensee engaging in money transmission in three or fewer locations in the state, either directly or through authorized delegates, must have a net worth of at least $25,000. However, if a licensee engages […]
It is with pleasure that Sherayzen Law Office announces that on May 5, 2010, Eugene Sherayzen became a Legal Advisor to the Bright New Ideas (“BNI”), a Minnesota non-profit corporation devoted to the alleviation of worldwide poverty through the use of solar energy. In his new capacity, Mr. Sherayzen will help overview the BNI’s U.S. […]
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Under the Pension Protection Act of 2006, most tax-exempt organizations, with the exception of churches and church-related organizations, must file Form 990 with the IRS effective the beginning of year 2007. Any tax-exempt organization that fails to file the relevant version of the form for three consecutive years automatically loses its federal tax-exempt status. All […]
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It is impossible to know what issues will actually arise during the term of a lease. Hence, it is important for a landlord to hire an attorney to carefully analyze the landlord’s specific situation, spot potential problems and address them in the lease agreement. The process of addressing these issues in the lease, however, can […]
In this article, I will discuss three most important reasons for retaining a lawyer to represent you in a Contested Hearing conducted by the Office of Administrative Hearings (OAH). 1. Contested Hearing conducted by the OAH is an Administrative Version of a Trial Contested Hearing is an administrative trial. In most ways, it is highly […]
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On March 18, 2010, the Hiring Incentives to Restore Employment Act (“HIRE”) was enacted into law. The Act offers timely benefits to the employers who hire unemployed workers. HIRE Benefits Under the HIRE, qualified employers who hire unemployed workers may qualify for two main tax benefits. First, under the HIRE, Employers who hire unemployed workers […]
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Generally, all business entities in Minnesota can be organized into two large groups: incorporated business entities and unincorporated business entities. The first group mainly consists of corporations, limited liability companies (“LLC”), limited liability limited partnerships (“LLLP”), limited liability partnerships (“LLP”) and business trusts. If the incorporated entity operates in certain professions, the business title of […]
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New Deadlines While the maximum tax credit amount remains at $8,000 for a first-time homebuyer, the Worker, Homeownership, and Business Assistance Act of 2009 (“WHBAA”)extends the deadline for qualifying home purchases from November 30, 2009, to April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has […]
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On January 15, 2010, the IRS released a new Form 5405 that eligible homebuyers need to claim the first-time homebuyer credit this tax season and announced new documentation requirements to deter fraud related to the first-time homebuyer credit. The new form and instructions follow the major changes to the homebuyer credit made by the Worker, […]
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In this article, I will discuss five most important issues that you need to know before you sign a fee agreement with tax lawyers in Minneapolis. 1. How is the lawyer’s fee paid? There are three main models of payment that lawyers use: hourly fee, contingency fee, and flat fee. The hourly fee is the […]
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In this article, I will discuss five most important issues that you need to know before you sign a fee agreement with business lawyers in Minneapolis. 1. How is the lawyer’s fee paid? There are three main models of payment that lawyers use: hourly fee, contingency fee, and flat fee. The hourly fee is the […]
http://sherayzenlaw.com/wp-content/uploads/2018/01/sherlawltd_logo.png00Managerhttp://sherayzenlaw.com/wp-content/uploads/2018/01/sherlawltd_logo.pngManager2010-01-19 00:56:082015-03-18 16:43:34Fee Agreement Arrangements with Business Lawyers in Minneapolis: 5 Most Important Issues
Reporting Payments to Independent Contractors: Form 1099-MISC If you hire an independent contractor to do work for your business, you may have to report to the IRS your payments to him by filing Form 1099-MISC (Miscellaneous Income) if the following four conditions are met: 1. The payee is not your employee; 2. The payment was […]
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If you changed your last name last year as a result of getting married or divorced, you need to make sure that the name on your tax return matches the name registered with the Social Security Administration (the “SSA”). This is because the new name which you adopted as a result of marriage (or an […]
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In this article, I will discuss five most important issues that you need to know before you sign a fee agreement with contract lawyers in Minneapolis. 1. How is the lawyer’s fee paid? There are three main models of payment that lawyers use: hourly fee, contingency fee, and flat fee. The hourly fee is the […]
http://sherayzenlaw.com/wp-content/uploads/2018/01/sherlawltd_logo.png00Managerhttp://sherayzenlaw.com/wp-content/uploads/2018/01/sherlawltd_logo.pngManager2010-01-13 17:43:332015-03-18 17:11:09Fee Agreement Arrangements with Contract Lawyers in Minneapolis: 5 Most Important Issues
When you are about to hire a tax lawyer to help you with a tax issue, there are three fundamental questions that you need to ask him. 1. What percentage of the practice is devoted to the tax law? The purpose of this question is two-fold. First, you will figure out whether this tax lawyer […]
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When you are about to hire a business lawyer to help you with a business issue, there are three fundamental questions that you need to ask him. 1. What percentage of the practice is devoted to the business law? The purpose of this question is two-fold. First, you will figure out whether this business lawyer […]
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When you are about to hire a contract lawyer to help you with a contract issue, there are three fundamental questions that you need to ask him. 1. What percentage of the practice is devoted to the contract law? The purpose of this question is two-fold. First, you will figure out whether this contract lawyer […]
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In this essay, I would like to explore the relationship between the self-employment tax and the tax exclusion of income earned by the U.S. businesses abroad. The self-employment tax is a social security and Medicare tax on net earnings from self-employment. A self-employed U.S. citizen or resident must pay self-employment tax if his net earnings […]
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If you are considering whether to buy a new car, it is important to remember that, under the American Recovery and Reinvestment Act of 2009 (the “ARRA”), taxpayers may deduct state and local sales and excise taxes paid on the purchase of new passenger cars, light trucks, motor homes and motorcycles. The deduction is available […]
On December 9, 2009, the U.S. House of Representatives approved H.R. 4213, the “Tax Extenders Act of 2009.” The bill would extend for one more year more than forty tax provisions that are set to expire at the end of this year, including the research credit and a number of important tax breaks for individuals. […]
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The Internal Revenue Service today issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car will be: 50 cents per mile for business miles driven 16.5 […]
Under the Bank Secrecy Act, each United States person must file a Report of Foreign Bank and Financial Accounts (the “FBAR”) with the U.S. Department of Treasury if two conditions apply.
The first condition is that the U.S. person must have either a financial interest in or signature authority (or other comparable authority)over one or more financial accounts in a foreign country. Several clarifications are necessary in order to understand the applicability of this first condition. First, for the purposes of the FBAR, the definition of a “U.S. person” includes U.S. citizens, U.S. residents, and persons in, and doing business in, the United States. “Person” is defined to include not only individuals, but also all forms of business entities, trusts, and estates.
http://sherayzenlaw.com/wp-content/uploads/2018/01/sherlawltd_logo.png00Managerhttp://sherayzenlaw.com/wp-content/uploads/2018/01/sherlawltd_logo.pngManager2009-11-02 15:13:192024-11-01 21:50:11Report on Foreign Bank and Financial Accounts (FBAR): General Requirements
When dealing with the international transactions, the United States tax law usually divides income into two broad categories: foreign source income and the U.S. source income. The determination of whether the income is foreign or U.S. in origin depends on a set of rules – the source-of-income rules – created by Congress, elaborated by the U.S. Treasury regulations, refined in courts, and further modified by the international treaties. While jurisdictional in nature, the income source rules are fundamentally and critically important to the understanding and operation of international transactions, primarily because these rules generate real operational consequences that affect a variety of substantive U.S. tax provisions. For the purposes of this essay, these consequences may be classified according to the grouping of the affected taxpayers.
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Under I.R.C. §911, if certain conditions are met, a qualified individual can exclude as much $91,400 (for tax year 2009) of foreign earned income from taxable gross income. Two questions arise: what is earned income, and when is such income considered to be foreign earned income?
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Under I.R.C. §911, a U.S. citizen or resident can elect to exclude as much as $91,400 (for tax year 2009) of foreign earned income and some or all foreign housing costs from taxable gross income if two conditions are met.
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On June 30, 2009, Eugene Sherayzen was re-appointed to the Minnesota State Bar Association Publications Committee. The Committee is responsible for overseeing the budget and publication of the most important Minnesota legal journal, “Bench & Bar”.
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On January 28, 2009, Eugene Sherayzen was appointed to the Minnesota State Bar Association Publications Committee. The Committee is responsible for overseeing the budget and publication of the most important Minnesota legal journal, “Bench & Bar”.
Standing at the crossroads of tax and employment law, the perennial problem of whether a worker is an employee or an independent contractor has been among the most important and common unemployment insurance tax issues. This problem is particularly complex in the trucking industry, due to the special conditions present in that industry’s working environment. In fact, it became so complicated that Minnesota legislators found it necessary to deal with it specifically in Minnesota Statute 268.035. In this article, I will rely on my own experience to explain the requirements of this legislation as it pertains to independent contractors in the trucking industry, and offer practical guidelines in certain common situations in that industry.
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2024 Form 3520 Deadline in 2025 | Foreign Trust Tax Lawyer & Attorney
/in Form 3520, Form 3520 tax lawyers, Legal Notes /by ManagerForm 3520 is one of the most important US international information returns. Due to its severe penalty structure, it is important to file it timely. In this brief essay, I will discuss the tax year 2024 Form 3520 deadline. 2024 Form 3520 Deadline: What is Form 3520 IRS Form 3520 is a US international information return. The IRS uses this Form […]
First Quarter 2025 IRS Interest Rates on Overpayment & Underpayment of Tax
/in IRS Lawyers, Legal Notes /by ManagerOn November 18, 2024, the IRS announced that the First Quarter 2025 IRS interest rates on overpayment and underpayment of tax will decrease from the Fourth Quarter of 2024. This means that the First Quarter 2025 IRS interest rates will be as follows: seven (7) percent for overpayments (six (6) percent in the case of a corporation); seven (7) percent for underpayments; nine (9) […]
FinCEN Form 114 Indian Financial Accounts Obligations | FBAR Attorney
/in FBAR Lawyers, Legal Notes /by ManagerFinCEN Form 114, the Report of Foreign Bank and Financial Accounts, commonly known as “FBAR”, is one of the most important requirements that Indian Americans face as part of their US tax compliance concerning their Indian Financial Accounts. This articles provides an overview of the Indian American’s FBAR compliance requirements with the particular focus on […]
Orlando Foreign Trust Attorney | International Tax Lawyers Florida
/in foreign trust lawyer, Legal Notes /by ManagerIf you live in Orlando, Florida, and you are an owner or a beneficiary of a foreign trust, you need to secure the help of a Orlando Foreign Trust Attorney to properly comply with US international tax laws. You should consider retaining Sherayzen Law Office as your Orlando Foreign Trust Attorney. Sherayzen Law Office is […]
Miami Foreign Trust Attorney | International Tax Lawyers Florida
/in foreign trust lawyer, Legal Notes /by ManagerIf you live in Miami, Florida, and you are an owner or a beneficiary of a foreign trust, you need to secure the help of a Miami Foreign Trust Attorney to properly comply with US international tax laws. You should consider retaining Sherayzen Law Office as your Miami Foreign Trust Attorney. Sherayzen Law Office is […]
Athens FBAR Attorney | International Tax Lawyer Georgia
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Athens, Georgia and have unreported foreign bank and financial accounts, you may be looking for a Athens FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Athens FBAR Attorney: International […]
Fourth Quarter 2024 IRS Interest Rates on Overpayment & Underpayment of Tax
/in irs lawyer minneapolis, Legal Notes /by ManagerOn August 21, 2024, the IRS announced that the Fourth Quarter 2024 IRS interest rates on overpayment and underpayment of tax will remain the same as in the Third Quarter of 2024. This means that, the Fourth Quarter 2024 IRS interest rates will be as follows: eight (8) percent for overpayments (seven (7) percent in the case of a corporation); eight (8) percent for underpayments; […]
Atlanta Foreign Trust Attorney | International Tax Lawyers Georgia
/in foreign trust lawyer, Legal Notes /by ManagerIf you live in Atlanta, Georgia, and you are an owner or a beneficiary of a foreign trust, you need to secure the help of a Atlanta Foreign Trust Attorney to properly comply with US international tax laws. You should consider retaining Sherayzen Law Office as your Atlanta Foreign Trust Attorney. Sherayzen Law Office is […]
San Antonio FBAR Tax Attorney | International Tax Lawyer Texas
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in San Antonio, Texas, and have unreported foreign bank and financial accounts, you may be looking for a San Antonio FBAR Tax Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. […]
Start-Up Year PFIC Exception | International Tax Lawyer & Attorney
/in Legal Notes, PFIC tax lawyer /by ManagerPassive Foreign Investment Company (PFIC) classification of a foreign corporation may have highly undesirable consequences for its US shareholders. In addition to high PFIC tax, these taxpayers face expensive and burdensome tax reporting requirements. This is why US taxpayers and their tax advisers generally try to avoid PFIC designation. This article explores a possible way […]
FBAR Financial Accounts Definition | International Tax Lawyer & Attorney
/in FBAR Lawyers, FBAR lawyers New York, Legal Notes /by ManagerIn the realm of US international tax compliance, few topics are as crucial as the reporting of foreign financial accounts, particularly The Foreign Bank and Financial Accounts Report (FBAR). This article focuses on one specific aspect of FBAR compliance: what accounts need to be disclosed on FBAR. In particular, we will delve into the intricacies of […]
Knoxville FBAR Attorney | International Tax Lawyer Tennessee
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Knoxville, Tennessee and have unreported foreign bank and financial accounts, you may be looking for a Knoxville FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Knoxville FBAR Attorney: International […]
Fort Collins FBAR Tax Attorney | International Tax Lawyer Colorado
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Fort Collins, Colorado, and have unreported foreign bank and financial accounts, you may be looking for a Fort Collins FBAR Tax Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. […]
Chattanooga FBAR Attorney | International Tax Lawyer Tennessee
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Chattanooga , Tennessee and have unreported foreign bank and financial accounts, you may be looking for a Chattanooga FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Chattanooga […]
Nashville FBAR Attorney | International Tax Lawyer Tennessee
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Nashville, Tennessee and have unreported foreign bank and financial accounts, you may be looking for a Nashville FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Nashville FBAR Attorney: International […]
Colorado Springs FBAR Tax Attorney | International Tax Lawyer Colorado
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Colorado Springs, Colorado, and have unreported foreign bank and financial accounts, you may be looking for a Colorado Springs FBAR Tax Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. […]
Corpus Christi Foreign Inheritance Lawyer | International Tax Attorney Texas
/in foreign inheritance, International Tax Attorney, Legal Notes /by ManagerRetaining a Corpus Christi foreign inheritance lawyer to deal with the IRS is very likely to be necessary if you reside in Corpus Christi, Texas and have received an inheritance from a non-resident alien (i.e. foreign inheritance). Sherayzen Law Office, Ltd. is a leader in US international tax compliance concerning foreign inheritance, including offshore voluntary disclosures concerning late disclosure of a foreign […]
Glenview FBAR Attorney | International Tax Lawyer Kentucky
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Glenview, Kentucky and have unreported foreign bank and financial accounts, you may be looking for a Glenview FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Glenview FBAR Attorney: International […]
Closer Connection Exception | International Tax Lawyer & Attorney
/in International Tax Attorney Minnesota Minneapolis, international tax lawyer, Legal Notes /by ManagerThe Closer Connection Exception is a very important provision in US international tax law, because it provides a potential way for individuals who meet the Substantial Presence Test to still be treated as nonresident aliens for US income tax purposes. This article explores the Closer Connection Exception, its requirements and its implications for US and foreign taxpayers. Understanding the Closer […]
Louisville FBAR Attorney | International Tax Lawyer Kentucky
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Louisville, Kentucky and have unreported foreign bank and financial accounts, you may be looking for a Louisville FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Louisville FBAR Attorney: International […]
Substantial Presence Test | US International Tax Lawyer & Attorney
/in international tax lawyer, Lead Article /by ManagerThe substantial presence test is one of the most important legal tests in the Internal Revenue Code (IRC), because it determines whether a person is a US tax resident solely by virtue of his physical presence in the United States. Additionally, this Test is essential to the determination of whether a person is a “US […]
Digital Currency Final Regulations: Broad Overview | Cryptocurrency Tax Attorney
/in cryto tax lawyer, Legal Notes /by ManagerOn June 28, 2024, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) have issued final regulations requiring brokers to report sales and exchanges of digital assets, including cryptocurrency. These digital currency final regulations aim to improve tax compliance and provide taxpayers with necessary information for accurate tax reporting. Digital Currency Final […]
Indianapolis FBAR Attorney | International Tax Lawyer Indiana
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Indianapolis, Indiana and have unreported foreign bank and financial accounts, you may be looking for a Indianapolis FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Indianapolis FBAR Attorney: International […]
Waco Foreign Inheritance Lawyer | International Tax Attorney Texas
/in foreign inheritance, International Tax Attorney, Legal Notes /by ManagerRetaining a Waco foreign inheritance lawyer to deal with the IRS is very likely to be necessary if you reside in Waco, Texas and have received an inheritance from a non-resident alien (i.e. foreign inheritance). Sherayzen Law Office, Ltd. is a leader in US international tax compliance concerning foreign inheritance, including offshore voluntary disclosures concerning late disclosure of a foreign inheritance, and […]
Abilene Foreign Inheritance Lawyer | International Tax Attorney Texas
/in foreign inheritance, Legal Notes /by ManagerRetaining a Abilene foreign inheritance lawyer to deal with the IRS is very likely to be necessary if you reside in Abilene, Texas and have received an inheritance from a non-resident alien (i.e. foreign inheritance). Sherayzen Law Office, Ltd. is a leader in US international tax compliance concerning foreign inheritance, including offshore voluntary disclosures concerning late disclosure of a foreign inheritance, and […]
Boulder FBAR Tax Attorney | International Tax Lawyer Colorado
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Boulder, Colorado, and have unreported foreign bank and financial accounts, you may be looking for a Boulder FBAR Tax Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Boulder […]
PFIC Compliance: Introduction | International Tax Lawyer & Attorney
/in Legal Notes, PFIC tax lawyer /by ManagerIn the intricate realm of US international tax law, few areas are as challenging and potentially costly as PFIC compliance. Understanding the nuances of Passive Foreign Investment Companies (PFICs) is crucial for US taxpayers with foreign investments. This article provides an introduction to PFIC compliance, outlining key concepts and reporting requirements. What is PFIC Compliance? […]
McKinney Foreign Inheritance Lawyer | International Tax Attorney Texas
/in foreign inheritance, Legal Notes /by ManagerRetaining a McKinney foreign inheritance lawyer to deal with the IRS is very likely to be necessary if you reside in McKinney, Texas and have received an inheritance from a non-resident alien (i.e. foreign inheritance). Sherayzen Law Office, Ltd. is a leader in US international tax compliance concerning foreign inheritance, including offshore voluntary disclosures concerning late disclosure of a foreign inheritance, and […]
Dallas Foreign Inheritance Lawyer | International Tax Attorney Texas
/in foreign inheritance, Legal Notes /by ManagerRetaining a Dallas foreign inheritance lawyer to deal with the IRS is very likely to be necessary if you reside in Dallas, Texas and have received an inheritance from a non-resident alien (i.e. foreign inheritance). Sherayzen Law Office, Ltd. is a leader in US international tax compliance concerning foreign inheritance, including offshore voluntary disclosures concerning late disclosure of a foreign inheritance, and […]
2024 Form 8938 Threshold | US International Tax Lawyers
/in Legal Notes /by ManagerUS taxpayers must file Form 8938 with their US tax returns if they hold foreign financial assets with an aggregate value exceeding a relevant balance threshold. This article discusses the 2024 Form 8938 threshold limits. 2024 Form 8938 Threshold: Form 8938 Background Form 8938 burst onto the US international compliance scene in 2011 as a result […]
Austin Foreign Inheritance Lawyer | International Tax Attorney Texas
/in foreign inheritance, international tax lawyer, Legal Notes /by ManagerRetaining a Austin foreign inheritance lawyer to deal with the IRS is very likely to be necessary if you reside in Austin, Texas and have received an inheritance from a non-resident alien (i.e. foreign inheritance). Sherayzen Law Office, Ltd. is a leader in US international tax compliance concerning foreign inheritance, including offshore voluntary disclosures concerning late disclosure of a foreign inheritance, and […]
Houston Foreign Inheritance Lawyer | International Tax Attorney Texas
/in foreign inheritance, International Tax Attorney, Legal Notes /by ManagerRetaining a Houston foreign inheritance lawyer to deal with the IRS is very likely to be necessary if you reside in Houston, Texas and have received an inheritance from a non-resident alien (i.e. foreign inheritance). Sherayzen Law Office, Ltd. is a leader in US international tax compliance concerning foreign inheritance, including offshore voluntary disclosures concerning late disclosure of a foreign inheritance, and […]
Minneapolis Foreign Inheritance Lawyer | International Tax Attorney Minnesota
/in foreign inheritance, International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerRetaining a Minneapolis foreign inheritance lawyer to deal with the IRS is very likely to be necessary if you reside in Minneapolis, Minnesota and have received an inheritance from a non-resident alien (i.e. foreign inheritance). Sherayzen Law Office, Ltd. is a leader in US international tax compliance concerning foreign inheritance, including offshore voluntary disclosures concerning late […]
Milwaukee FBAR Attorney | International Tax Lawyer Wisconsin
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Milwaukee, Wisconsin and have unreported foreign bank and financial accounts, you may be looking for a Milwaukee FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Milwaukee FBAR Attorney: International […]
2024 FBAR Civil Penalties | FBAR International Tax Lawyer & Attorney
/in FBAR Lawyers, Legal Notes /by ManagerThis article is an update of prior articles on the FBAR Civil Penalties. Since the US Congress mandated the IRS to adjust FBAR civil penalties for inflation on an annual basis, this article discusses the year 2024 FBAR Civil Penalties. 2024 FBAR Civil Penalties: Overview of the FBAR Penalty System FinCEN Form 114, the Report of Foreign Bank and […]
Denver FBAR Tax Attorney | International Tax Lawyer Colorado
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Denver, Colorado, and have unreported foreign bank and financial accounts, you may be looking for a Denver FBAR Tax Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Denver […]
Third Quarter 2024 IRS Interest Rates on Overpayment & Underpayment of Tax
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn May 9, 2024, the IRS announced that the Third Quarter 2024 IRS interest rates on overpayment and underpayment of tax will remain the same as in the Second Quarter of 2024. This means that, the Third Quarter 2024 IRS interest rates will be as follows: Internal Revenue Code (“IRC”) §6621 establishes the IRS interest rates on overpayments and underpayments of tax. Under §6621(a)(1), the […]
High Income Non-Filer IRS Compliance Campaign Update: Notice CP-59 With International Tax Compliance Focus
/in IRS Audit Lawyers, Legal Notes /by ManagerOn February 29, 2024, the IRS announced a major update to one of its compliance campaigns that focuses on high income non-filer taxpayers. Let’s discuss this major update to the High Income Non-filer IRS Campaign in more detail. High Income Non-Filer IRS Campaign: Background Information As part of its extensive tax enforcement planning in the […]
Garland FBAR Attorney | International Tax Lawyer Texas
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Garland, Texas and have unreported foreign bank and financial accounts, you may be looking for a Garland FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, consider us in your search. Let’s understand why this is the case. Garland FBAR Attorney: International Tax Lawyer First of […]
McKinney Foreign Trust Attorney | International Tax Lawyers Texas
/in foreign trust lawyer, Legal Notes /by ManagerIf you live in McKinney, Texas, and you are an owner or a beneficiary of a foreign trust, you need to secure the help of a McKinney Foreign Trust Attorney to properly comply with US international tax laws. You should consider retaining Sherayzen Law Office as your McKinney Foreign Trust Attorney. Sherayzen Law Office is […]
IRS Corporate Jet Audits Campaign | MN IRS Audit Tax Lawyer
/in international tax lawyer, IRS Audit Lawyers, Legal Notes /by ManagerOn February 21, 2024, the IRS announced that it will begin dozens of audits of business aircraft usage as part of a new tax enforcement campaign. In this short article, I will discuss these new IRS corporate jet audits in more detail. IRS Corporate Jet Audits: Focus on Personal Use of High-Net Individuals The IRS […]
Second Quarter 2024 IRS Interest Rates on Overpayment & Underpayment of Tax
/in IRS Lawyers, Legal Notes /by ManagerOn February 21, 2024, the IRS announced that the Second Quarter 2024 IRS interest rates on overpayment and underpayment of tax will remain the same as in the First Quarter of 2024. This means that, the Second Quarter 2024 IRS interest rates will be as follows: Internal Revenue Code (“IRC”) §6621 establishes the IRS interest rates on overpayments and underpayments of tax. Under §6621(a)(1), the overpayment […]
McKinney FBAR Attorney | International Tax Lawyer Texas
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in McKinney, Texas and have unreported foreign bank and financial accounts, you may be looking for a McKinney FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. McKinney FBAR Attorney: International […]
Dallas Foreign Trust Attorney | International Tax Lawyers Texas
/in foreign trust lawyer, Legal Notes /by ManagerIf you live in Dallas, Texas, and you are an owner or a beneficiary of a foreign trust, you need to secure the help of a Dallas Foreign Trust Attorney to properly comply with US international tax laws. You should consider retaining Sherayzen Law Office as your Dallas Foreign Trust Attorney. Sherayzen Law Office is […]
San Jose FBAR Attorney | International Tax Lawyer California
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in San Jose, California and have unreported foreign bank and financial accounts, you may be looking for a San Jose FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. San […]
Midland FBAR Attorney | International Tax Lawyer Texas
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Midland, Texas and have unreported foreign bank and financial accounts, you may be looking for a Midland FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Midland FBAR Attorney: International […]
TAS Significant Hardship Definition | International Tax Lawyer & Attorney
/in IRS Audit Lawyers, Legal Notes /by ManagerSometimes, a taxpayer may find himself in a situation where his problem cannot be resolved through normal IRS channels. In this case, one of the options is to secure the help of the Taxpayer Advocate Service (“TAS”). TAS can issue a Taxpayer Assistance Order (TAO) to require the IRS to desist from a certain action […]
Big Spring FBAR Attorney | International Tax Lawyer Texas
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Big Spring, Texas and have unreported foreign bank and financial accounts, you may be looking for a Big Spring FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Big […]
Offshore Voluntary Disclosure: Client Records | International Tax Lawyer
/in FBAR Lawyers, International Tax Attorney, Legal Notes /by ManagerOne of the first things a client must get in order to pursue an offshore voluntary disclosure are all of the client records from his former accountant. Sometimes, however, the clients are having difficulty obtaining their documents from their accountants. In this article, I would like to briefly describe an accountant’s obligations with respect to […]
Reasonable Cause Written Advice Standard | International Tax Lawyer
/in International Tax Attorney, Legal Notes /by ManagerReliance on a written advice of a tax practitioner (attorney, CPA, etc.) may provide the basis for a reasonable cause exception to imposition of IRS noncompliance or late filing penalties with respect to pretty much every single US international tax compliance requirement. In this short article, I will describe the reasonable cause written advice standard […]
Banque Pictet Deferred Prosecution Agreement | Offshore Voluntary Disclosure Lawyer
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn December 4, 2023, Banque Pictet et Cie SA (“Banque Pictet” – a Swiss private bank) entered into a deferred prosecution agreement with the US government. In this article, I will discuss Banque Pictet Deferred Prosecution Agreement and explain its importance. Banque Pictet Deferred Prosecution Agreement: Facts Leading Up to the Agreement The Pictet Group was […]
Minnesota Streamlined Disclosure Lawyer | International Tax Attorney
/in Legal Notes, Streamlined Domestic Offshore Procedures /by ManagerMinnesota has a sizable immigrant community with over 9% of the population foreign-born and another more than 7% of the population that has at least one immigrant parent. The top countries of original for immigrants are: Mexico, Somalia, India, Laos and Ethiopia. Many of these new US taxpayers own assets in foreign countries and receive income generated […]
Amarillo FBAR Attorney | International Tax Lawyer Texas
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Amarillo, Texas and have unreported foreign bank and financial accounts, you may be looking for a Amarillo FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Amarillo FBAR Attorney: International […]
Abilene Foreign Trust Attorney | International Tax Lawyers Texas
/in foreign trust lawyer, Legal Notes /by ManagerIf you live in Abilene, Texas, and you are an owner or a beneficiary of a foreign trust, you need to secure the help of a Abilene Foreign Trust Attorney to properly comply with US international tax laws. You should consider retaining Sherayzen Law Office as your Abilene Foreign Trust Attorney. Sherayzen Law Office is […]
Corpus Christi FBAR Attorney | International Tax Lawyer Texas
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Corpus Christi, Texas and have unreported foreign bank and financial accounts, you may be looking for a Corpus Christi FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Corpus […]
IRS Limited Practice Exceptions | Tax Lawyer St Paul Minnesota
/in Legal Notes, tax lawyer St. Paul Minnesota /by ManagerGenerally, only attorneys, CPAs, enrolled agents and enrolled actuaries can act as taxpayer representatives before the IRS. However, Circular 230 §10.7 contains several limited exceptions to this general requirement. Let’s explore these IRS limited practice exceptions. IRS Limited Practice Exceptions: Standard of Conduct Before we discuss the exceptions, I would like to point out that […]
Internal Revenue Manual: Introduction | IRS Audit Lawyer St Paul
/in IRS Audit Lawyers, Legal Notes /by ManagerInternal Revenue Manual: Description & Purpose Internal Revenue Manual (“IRM”) is the primary, official source of IRS instructions to staff that relate to the administration and operation of the IRS. The rules set in the IRM are meant to provide guidance to the IRS employees (including managers) in their daily work life. The IRM is […]
Abilene FBAR Attorney | International Tax Lawyer Texas
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Abilene, Texas and have unreported foreign bank and financial accounts, you may be looking for a Abilene FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case. Abilene FBAR Attorney: International […]
Florida Streamlined Disclosure Attorney | International Tax Lawyer
/in Legal Notes, Streamlined Domestic Offshore Procedures, Streamlined Foreign Offshore Procedures /by ManagerFlorida has a huge immigrant community with over 21% of the population foreign-born and another more than 12% of the population that has at least one immigrant parent. The top countries of original for immigrants are: Cuba, Haiti, Colombia, Mexico and Jamaica. Many of these new US taxpayers own assets in foreign countries and receive income generated by […]
Waco Foreign Trust Attorney | International Tax Lawyer Texas
/in foreign trust lawyer, Legal Notes /by ManagerIf you live in Waco, Texas, and you are an owner or a beneficiary of a foreign trust, you need to secure the help of a Waco Foreign Trust Attorney to properly comply with US international tax laws. You should consider retaining Sherayzen Law Office as your Waco Foreign Trust Attorney. Sherayzen Law Office is […]
Special October 7 FBAR Deadline for 2022 FBAR | International Tax Lawyer
/in FBAR Lawyers, Legal Notes /by ManagerIn this calender year 2024, there is a special October 7 FBAR deadline that was created by FinCEN in response to the October 7 terrorist attack against Israel. Let’s discuss discuss this special October 7 FBAR deadline in more detail. October 7 FBAR Deadline: Background Information The terrorist attack on Israel on October 7, 2023 […]
Waco FBAR Attorney | International Tax Lawyer Texas
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Waco, Texas and have unreported foreign bank and financial accounts, you may be looking for a Waco FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, consider us in your search. Let’s understand why this is the case. Waco FBAR Attorney: International Tax Lawyer First of […]
IRS Sports Industry Campaign: Sport Teams and Owners Targeted
/in Legal Notes, tax lawyer St. Paul Minnesota /by ManagerOn January 16, 2024, the IRS Large Business and International division announced a new compliance campaign: the IRS Sports Industry Campaign. While the announcement is recent and certain details are not yet available, let’s discuss the general direction of this IRS new compliance tax enforcement effort. IRS Sports Industry Campaign: Background Information In the mid-2010s, after […]
June 17 Connecticut Deadline Tax Relief | US Tax Lawyer & Attorney
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn January 22, 2024, the Internal Revenue Service announced tax relief for individuals and businesses in parts of Connecticut affected by severe storms, flooding and a potential dam breach that began on January 10, 2024. These taxpayers now have until June 17, 2024, to file various federal individual and business tax returns and make tax payments. June […]
Oklahoma Streamlined Disclosure Lawyer | International Tax Attorney
/in Legal Notes, Streamlined Domestic Offshore Procedures /by ManagerOklahoma is a home to a growing immigrant community with at least 6% of the population foreign-born and another 6% of the population that has at least one immigrant parent. The top countries of original for immigrants are: Mexico, Vietnam, India, Germany (a major surprise to many people) and Guatemala. Many of these new US taxpayers own […]
Plano Foreign Trust Attorney | International Tax Lawyer Texas
/in FBAR Lawyers, foreign trust lawyer, International Tax Attorney, Legal Notes /by ManagerIf you live in Plano, Texas, and you are an owner or a beneficiary of a foreign trust, you need to secure the help of a Plano Foreign Trust Attorney to properly comply with US international tax laws. You should consider retaining Sherayzen Law Office as your Plano Foreign Trust Attorney. Sherayzen Law Office is […]
Houston FBAR Attorney | International Tax Lawyer Texas
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Houston, Texas and have unreported foreign bank and financial accounts, you may be looking for a Houston FBAR Attorney. Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, consider us in your search. Let’s understand why this is the case. Houston FBAR Attorney: International Tax Lawyer First of […]
First Quarter 2024 IRS Interest Rates on Overpayment & Underpayment of Tax
/in Legal Notes, tax lawyer St. Paul Minnesota /by ManagerOn November 17, 2023, the IRS announced that the First Quarter 2024 IRS interest rates on overpayment and underpayment of tax will not change from the Fourth Quarter of 2023. This means that, the First Quarter 2024 IRS interest rates will be as follows: Internal Revenue Code (“IRC”) §6621 establishes the IRS interest rates on overpayments and underpayments of tax. Under §6621(a)(1), […]
2024 SDOP Audit | Streamlined Domestic Offshore Procedures Lawyer
/in IRS Audit Lawyers, Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerAn increasing number of submissions under the Streamlined Domestic Offshore Procedures (SDOP) has been subject to an IRS audit; this trend will undoubtedly continue in 2024. In this article, I will explain what an 2024 SDOP Audit is and what a taxpayer should expect during the Audit. 2024 SDOP Audit: Background Information on Streamlined Domestic Offshore Procedures Streamlined Domestic […]
Minneapolis Foreign Trust Attorney | International Tax Lawyer
/in foreign trust lawyer, Legal Notes /by ManagerIf you live in Minneapolis, Minnesota, and you are an owner or a beneficiary of a foreign trust, you need to secure the help of a Minneapolis Foreign Trust Attorney to properly comply with US international tax laws. You should consider retaining Sherayzen Law Office as your Minneapolis Foreign Trust Attorney. Sherayzen Law Office is […]
Denver FBAR Attorney | International Tax Lawyer Colorado
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Denver, Colorado and have unreported foreign bank and financial accounts, you may be looking for a Denver FBAR Attorney. Sherayzen Law Office, Ltd. (“Sherayzen Law Office”) is a leader in FBAR compliance and you should consider us in your search. Let’s understand why this is the case. Denver FBAR Attorney: International Tax Lawyer First of all, it […]
Streamlined Domestic Offshore Procedures Lawyer: 2024 SDOP Advantages
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis, Streamlined Domestic Offshore Procedures /by ManagerSince 2014, Streamlined Domestic Offshore Procedures (“SDOP”) has probably been the most popular offshore voluntary disclosure option, and I predict that it will remain so in the year 2024. In this article, I would like to explore main four 2024 SDOP advantages which US taxpayers should take into account while considering an offshore voluntary disclosure this year. 2024 […]
Indiana Streamlined Disclosure Lawyer | International Tax Attorney
/in Legal Notes, Offshore Voluntary Disclosure /by ManagerIndiana is a home to a small but growing immigrant community with at least 5% of the population foreign-born and another 5% of the population that has at least one immigrant parent. The top countries of original for immigrants are: Mexico, India, China, Myanmar and the Philippines. Many of these new US taxpayers own assets in foreign countries and […]
Cambridge FBAR Attorney | International Tax Lawyer Massachusetts
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Cambridge, Massachusetts and have unreported foreign bank and financial accounts, you may be looking for a Cambridge FBAR Attorney. Sherayzen Law Office, Ltd. (“Sherayzen Law Office”) is a leader in FBAR compliance and you should consider us in your search. Let’s understand why this is the case. Cambridge FBAR Attorney: International Tax Lawyer First of all, it […]
Streamlined Domestic Offshore Procedures Lawyer: 2024 SDOP Eligibility Requirements
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerThe introduction of the Streamlined Domestic Offshore Procedures (SDOP) in 2014 meant that the IRS finally recognized that there was a very large number of U.S. taxpayers who were non-willful with respect to their inability to comply with numerous obscure complex requirements of U.S. tax laws. Since 2014, SDOP has been a highly successful voluntary disclosure option that […]
Ohio Streamlined Disclosure Lawyer | International Tax Attorney
/in Legal Notes, Offshore Voluntary Disclosure /by ManagerOhio has a growing immigrant community with at least 5% of the population foreign-born and another 5% of the population that has at least one immigrant parent. The top countries of original for immigrants are: India, Mexico, China, the Philippines and Canada; more than half of them are naturalized US citizens and more than 42% of them […]
Worcester FBAR Attorney | International Tax Lawyer Massachusetts
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Worcester, Massachusetts, and you have unreported foreign bank and financial accounts, you may be looking for Worcester FBAR Attorney. In your search, please consider Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s understand why this is the case. Worcester FBAR Attorney: International Tax Lawyer First of all, it is very important to […]
Wisconsin Streamlined Disclosure Lawyer | International Tax Attorney
/in Legal Notes, Offshore Voluntary Disclosure /by ManagerWisconsin has a small but rapidly growing immigrant community with at least 5% of the population foreign-born and another 5% of the population that has at least one immigrant parent. The top countries of original for immigrants are: Mexico, India, China, Laos and the Philippines. Many of these new US taxpayers own assets in foreign countries […]
2024 IRS Standard Mileage Rates | IRS Tax Lawyer & Attorney
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerBeginning January 1, 2024, the IRS changed the optional standard mileage for the calculation of deductible costs of operating an automobile (sedans, vans, pickups and panel trucks) for business, charitable, medical or moving purposes. Let’s discuss in more detail these new 2024 IRS Standard Mileage Rates. 2024 IRS Standard Mileage Rates for Business Usage For the tax year 2024, […]
Boston FBAR Attorney | International Tax Lawyer Massachusetts
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Boston, Massachusetts, and you have unreported foreign bank and financial accounts, you may be looking for Boston FBAR Attorney. In your search, please consider Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s understand why this is the case. Boston FBAR Attorney: International Tax Lawyer First of all, it is very important to […]
Singapore Solution Fraud Scheme Co-Creator Pleads Guilty | SDOP lawyer Minneapolis
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn December 21, 2023, the IRS and the US Department of Justice announced that Mr. Rolf Schnellmann, a Swiss national, pleaded guilty to conspiring to defraud the United States for his role in the creation and implementation of a fraud scheme related to foreign accounts and foreign income called “Singapore Solution”. In this small essay, I […]
Duluth FBAR Attorney | International Tax Lawyer Minnesota
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Duluth, Minnesota, and you have unreported foreign bank and financial accounts, you may be looking for Duluth FBAR Attorney. In your search, please consider Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s understand why this is the case. Duluth FBAR Attorney: International Tax Lawyer First of all, it is very important to […]
2023 FBAR Conversion Rates | FBAR International Tax Lawyer
/in FBAR, Legal Notes /by ManagerThe 2023 FBAR conversion rates are very important for your US international tax compliance. The reason for their importance is their relation to FBAR (FinCEN Form 114) and the IRS Form 8938. The 2023 FBAR and 2023 Form 8938 instructions both require that 2023 FBAR conversion rates be used to report the required highest balances of foreign financial assets on these […]
St Paul FBAR Attorney | International Tax Lawyer Minnesota
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in St Paul, Minnesota, and you have unreported foreign bank and financial accounts, you may be looking for St Paul FBAR Attorney. In your search, please consider Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s understand why this is the case. St Paul FBAR Attorney: International Tax Lawyer First of all, it is […]
US GAAP Conversion of Foreign Financials: Most Common Issues | Form 5471 Lawyer
/in form 5471, Legal Notes /by ManagerForm 5471 generally requires US GAAP (Generally Accepted Accounting Practices) conversion of foreign financial statements for the purposes of reporting book income, because foreign accountants usually prepare these statements based on a different foreign standard. While Treas. Reg. Reg. §1.964-1(a)(2) contains a limited exception to the US GAAP conversion adjustments for “non-material” items (the same exception applies to […]
Plano FBAR Attorney | International Tax Lawyer Texas
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Plano, Texas, and you have unreported foreign bank and financial accounts, you may be looking for Plano FBAR Attorney. In your search, please consider Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s understand why this is the case. Plano FBAR Attorney: International Tax Lawyer First of all, it is very important to […]
Galveston FBAR Attorney | International Tax Lawyer Texas
/in FBAR Lawyers, Legal Notes /by ManagerIf you are a resident of Galveston, Texas, and you have unreported foreign bank and financial accounts, you may be looking for Galveston FBAR Attorney. In your search, consider Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s understand why this is the case. Galveston FBAR Attorney: International Tax Lawyer First of all, it is […]
Sugar Land FBAR Attorney | International Tax Lawyer Texas
/in FBAR Lawyers, Legal Notes /by ManagerIf you are a resident of Sugar Land (Texas) and you have unreported foreign bank and financial accounts, you may be looking for Sugar Land FBAR Attorney in Texas. In your search, you should consider Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s understand why this is the case. Sugar Land FBAR Attorney: International […]
The Woodlands FBAR Attorney | International Tax Lawyer Texas
/in FBAR Lawyers, Legal Notes /by ManagerIf you are a resident of The Woodlands (Texas) and you have unreported foreign accounts, you may be looking for The Woodlands FBAR Attorney in Texas. In your search, you should consider Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s explore in more detail why this is the case. The Woodlands FBAR Attorney: International […]
2024 Form 5471 Penalties | International Tax Lawyer & Attorney
/in IRS Form 5471, Legal Notes /by ManagerFailure to timely and correctly submit Form 5471 with a US tax return may lead to an imposition of Form 5471 penalties. In this article, I will discus the most important 2024 Form 5471 penalties that US taxpayers may face if they fail to comply with the Form 5471 requirements. 2024 Form 5471 Penalties: Purpose of Form 5471 We first need to understand […]
2024 Streamlined Domestic Offshore Procedures: Pros and Cons
/in Lead Article, offshore voluntary disclosure lawyers Minneapolis, Streamlined Domestic Offshore Procedures /by ManagerAs was the case in the year 2023, I expect that Streamlined Domestic Offshore Procedures will continue to be the flagship offshore voluntary disclosure option in 2024 for US taxpayers who reside in the United States. This is why noncompliant US taxpayers should understand well the main advantages and disadvantages of participating in the 2024 Streamlined Domestic […]
Happy New Year 2024 From International Tax Law Firm Sherayzen Law Office!!!
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerDear clients, followers, readers and colleagues: Mr. Eugene Sherayzen, an international tax attorney, and the entire international tax team of Sherayzen Law Office, Ltd. wishes you a very Happy New Year 2024!!! Dear clients and prospective clients, in the New Year 2024, you can continue to rely on Sherayzen Law Office for: In resolving all of your current […]
Minnesota FBAR Tax Attorney | International Tax Lawyer
/in FBAR lawyers Minnesota, Legal Notes /by ManagerIf you are looking for a Minnesota FBAR tax attorney, consider retaining the services of Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Mr. Sherayzen is an international tax attorney and founder of Sherayzen Law Office. Minnesota FBAR tax attorney: FBAR Specialization of an International Tax Attorney The definition of a Minnesota FBAR tax attorney includes […]
2023 Form 3520-A Deadline in 2024 | Foreign Trust Tax Lawyer & Attorney
/in foreign trust lawyer, Legal Notes /by ManagerForm 3520-A is a very important US international information return. It can be very complex and has somewhat tricky filing requirements as well as significant noncompliance penalties. In order to avoid these penalties, you need to file a correct Form 3520-A timely. In this essay, I will discuss the 2023 Form 3520-A deadline in the calendar year 2024. 2023 Form 3520-A Deadline: […]
2023 Form 3520 Deadline in 2024 | Foreign Trust Tax Lawyer & Attorney
/in foreign trust lawyer, Legal Notes /by ManagerForm 3520 is one of the most important US international information returns. Due to its severe penalty structure, it is important to file it timely. In this brief essay, I will discuss the tax year 2023 Form 3520 deadline. 2023 Form 3520 Deadline: What is Form 3520 IRS Form 3520 is a US international information return used by the IRS to collect […]
2023 Form 5471 Deadline in 2024 | International Tax Lawyer & Attorney
/in IRS Form 5471, Legal Notes /by ManagerIRS Form 5471 is one of the most important US international information returns. In this brief essay, I will discuss the tax year 2023 Form 5471 deadline in the calendar year 2024. 2023 Form 5471 Deadline: What is Form 5471 Form 5471 is a US international information return. In general, the IRS uses Form 5471 to collect information about certain US persons who are officers, directors, or shareholders in […]
2023 FBAR Deadline in 2024 | FinCEN Form 114 International Tax Lawyer & Attorney
/in FBAR, Legal Notes /by ManagerThe 2023 FBAR deadline is a critical deadline for US taxpayers this calendar year 2024. What makes FBAR so important are the draconian FBAR penalties which may be imposed on noncompliant taxpayers. Let’s discuss the 2023 FBAR deadline in more detail. 2023 FBAR Deadline: Background Information The official name of FBAR is FinCEN Form 114, the Report of Foreign Bank and Financial Accounts. US […]
2024 Streamlined Foreign Offshore Procedures | US International Tax Law Firm
/in Lead Article, offshore voluntary disclosure lawyers Minneapolis, Streamlined Foreign Offshore Procedures /by ManagerStreamlined Foreign Offshore Procedures has been the best voluntary disclosure option since its creation in 2014 for eligible US taxpayers with undisclosed foreign assets and foreign income, and I predict that it will remain so in the year 2024. Let’s discuss in more detail the unique advantages of the 2024 Streamlined Foreign Offshore Procedures. 2024 Streamlined Foreign Offshore Procedures: Background […]
2024 Offshore Voluntary Disclosure Options | International Tax Lawyer
/in Lead Article, Offshore Voluntary Disclosure /by ManagerEven as the year 2023 nears its end, numerous taxpayers continue to be substantially noncompliant with various US international tax laws. Hence, it is important for US taxpayers with undisclosed foreign assets to consider their 2024 offshore voluntary disclosure options. In this essay, I would like to provide an overview of these 2024 offshore voluntary disclosure options. 2024 Offshore Voluntary Disclosure […]
2023 IRS Quarterly Interest Rates on Overpayment/Underpayment of Tax
/in Legal Notes, tax lawyer St. Paul Minnesota /by ManagerThe 2023 IRS quarterly interest rates IRS interest rates are relevant for a great variety of purposes. Let’s highlight three of its most important uses. First, these rates will determine the interest a taxpayer will get on any IRS refunds. Second, the 2023 IRS quarterly interest rates will also be used to establish the interest […]
2023 Streamlined Domestic Offshore Procedures: Pros and Cons
/in Lead Article, Streamlined Domestic Offshore Procedures /by ManagerUS taxpayers with undisclosed foreign assets and foreign income need to consider their 2023 offshore voluntary disclosure options. As was the case in the year 2022, I expect that Streamlined Domestic Offshore Procedures will continue to be the flagship voluntary disclosure option in 2023 for US taxpayers who reside in the United States. This is […]
Child FBAR Obligations | FBAR Tax Lawyer & Attorney
/in FBAR Lawyers, Legal Notes /by ManagerChild FBAR filing obligations is a topic that comes up fairly often in my practice. In this short essay, I will discuss whether a child is required to file an FBAR and how it should be done. Child FBAR Obligations: What is FBAR FBAR is a common abbreviation for the Report of Foreign Bank and […]
Tax Treaty Election FBAR Obligations | FBAR Lawyer & Attorney
/in FBAR Lawyers, Legal Notes /by ManagerIn my practice, I often receive calls from people who are confused about their FBAR obligations. A recent call raised an important issue of whether a tax treaty election may affect one’s FBAR obligations. In this brief article, I would like to address this issue of tax treaty election FBAR obligations.
Form 114 US Person Definition | FBAR Tax Lawyer
/in FBAR Lawyers, Legal Notes /by ManagerFinCEN Form 114 US Person definition is a highly important component of FBAR and US international tax compliance. In this essay, I will discuss in detail the FinCEN Form 114 US Person definition and highlight some common issues that arise with respect to this definition.
2022 FBAR Conversion Rates | FBAR Tax Lawyer & Attorney
/in FBAR, Legal Notes /by ManagerThe 2022 FBAR conversion rates are very important for your US international tax compliance. The reason for their importance is their relation to FBAR (FinCEN Form 114) and the IRS Form 8938. The 2022 FBAR and 2022 Form 8938 instructions both require that 2022 FBAR conversion rates be used to report the required highest balances […]
2022 Required Minimum Distributions | Tax Lawyer Minneapolis
/in international tax lawyer minnesota, Legal Notes /by ManagerOn December 12, 2022, the Internal Revenue Service reminded those who were born in 1950 or earlier that funds in their retirement plans and individual retirement arrangements face important upcoming deadlines for the 2022 required minimum distributions to avoid penalties. What are the 2022 Required Minimum Distributions? Required minimum distributions, or RMDs, are minimum amounts […]
2022 Fourth Quarter IRS Interest Rates (Underpayment & Overpayment)
/in irs lawyer minneapolis, Legal Notes /by ManagerOn August 15, 2022, the IRS announced that the 2022 Fourth Quarter IRS interest rates will again increase for both underpayment and overpayment cases. This increase closely follows the Federal Reserve’s recent increases in interest rates. This means that, the 2022 Fourth Quarter IRS interest rates will be as follows: Under the Internal Revenue Code, […]
Establishing Cost-Basis in Foreign Real Estate | IRS Audit Tax Lawyer & Attorney
/in International Tax Attorney, IRS Audit Lawyers, Legal Notes /by ManagerOne of the most challenging issues during an IRS audit is establishing cost-basis in foreign real estate. This issue most frequently comes up in the context of real estate that was obtained through inheritance or gift many years ago. In this article, based on my IRS audit experiences, I would like to discuss the main […]
Tax Residency Starting Date | International Tax Lawyer & Attorney
/in international tax lawyer, Legal Notes /by ManagerIn situations where a person was not classified as a resident alien at any time in the preceding calendar year and he became a resident alien at some point during current year, a question often arises concerning the tax residency starting date of such a person. This article seeks to provide a succinct overview of […]
2022 2Q IRS Interest Rates | US International Tax Lawyers
/in international tax lawyer, Legal Notes /by ManagerOn February 23, 2022, the Internal Revenue Service (“IRS”) announced that the 2022 Second Quarter IRS underpayment and overpayment interest rates (“2022 2Q IRS Interest Rates”) will increase from the first quarter of 2022. This means that, the 2022 2Q IRS interest rates will be as follows: The second quarter will start on April 1, […]
Offshore Voluntary Disclosure Seminar | MSBA, February 22 2022
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn February 22, 2022, Mr. Eugene Sherayzen, an international tax attorney and founder of Sherayzen Law Office, Ltd., presented at a seminar “IRS Voluntary Disclosure Options for U.S. Owners of a Foreign Business” (the “Offshore Voluntary Disclosure Seminar”). The Offshore Voluntary Disclosure Seminar was sponsored by the International Business Law Section of the Minnesota State […]
Austin Business Trip | February 2022 | International Tax Lawyer & Attorney
/in international tax lawyer, Legal Notes /by ManagerIn early February of 2022, Mr. Sherayzen, an international tax attorney and owner of Sherayzen Law Office, Ltd., traveled to Austin, Texas. Let’s discuss this Austin business trip in more detail. Austin Business Trip: Goals While the business trip to Austin was very short, Mr. Sherayzen set forth three main goals for the trip: (1) […]
2021 Form 3520-A Deadline in 2022 | Foreign Trust Tax Lawyer & Attorney
/in foreign trust lawyer, Legal Notes /by ManagerForm 3520-A is a very important US international information return. It can be very complex and has somewhat tricky filing requirements as well as significant noncompliance penalties. In order to avoid these penalties, you need to file a correct Form 3520-A timely. In this essay, I will discuss the 2021 Form 3520-A deadline in the […]
Austin Streamlined Disclosure Lawyer | International Tax Attorney
/in Legal Notes, Streamlined Domestic Offshore Procedures /by ManagerAustin is a fast-growing city which attracts a large number of immigrants with assets in foreign countries. These assets may also generate foreign income which their owners must disclose on their US tax returns. Unfortunately many of these new residents of Austin have not correctly reported their foreign assets and foreign income to the IRS. […]
2021 Form 5471 Deadline in 2022 | Foreign Business Tax Lawyer & Attorney
/in IRS Form 5471, Legal Notes /by ManagerIRS Form 5471 is one of the most important US international information returns. In this brief essay, I will discuss the tax year 2021 Form 5471 deadline in the calendar year 2022. 2021 Form 5471 Deadline: What is Form 5471 Form 5471 is a US international information return. In general, the IRS uses Form 5471 […]
2021 Form 3520 Deadline in 2022 | Foreign Trust Tax Lawyer & Attorney
/in foreign trust lawyer, Legal Notes /by ManagerThe beginning of a new tax season starts the clock on completing the required US international information returns, including Form 3520. In this brief essay, I will discuss the tax year 2021 Form 3520 deadline. 2021 Form 3520 Deadline: What is Form 3520 ? IRS Form 3520 is a US international information return used by […]
2021 FBAR Deadline in 2022 | FinCEN Form 114 International Tax Lawyer & Attorney
/in FBAR, Legal Notes /by ManagerThe 2021 FBAR deadline is a critical deadline for US taxpayers this calendar year 2022. What makes FBAR so important are the draconian FBAR penalties which may be imposed on noncompliant taxpayers. Let’s discuss the 2021 FBAR deadline in more detail. 2021 FBAR Deadline: Background Information The official name of FBAR is FinCEN Form 114, […]
2022 Offshore Voluntary Disclosure Options | US International Tax Lawyers
/in Lead Article, offshore voluntary disclosure lawyers Minneapolis /by ManagerWhile the year 2021 has ended, numerous taxpayers continue to be substantially noncompliant with various US international tax laws. Hence, it is important for US taxpayers with undisclosed foreign assets to consider their 2022 offshore voluntary disclosure options. In this essay, I would like to provide an overview of these 2022 offshore voluntary disclosure options. […]
San Antonio FBAR Attorney | International Tax Lawyers Texas
/in FBAR Lawyers, Legal Notes /by ManagerIf you have foreign financial accounts and reside in San Antonio (Texas), you would be looking for a San Antonio FBAR Attorney in Texas. In your search, you could consider out-of-state attorneys such as Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s explore in more detail why this is the case. […]
2021 FBAR Conversion Rates | FBAR Tax Lawyer & Attorney
/in FBAR, Legal Notes /by ManagerThe 2021 FBAR conversion rates are highly important in US international tax compliance. The 2021 FBAR and 2021 Form 8938 instructions both require that 2021 FBAR conversion rates be used to report the required highest balances of foreign financial assets on these forms (in the case of Form 8938, the 2021 FBAR conversion rates is […]
San Diego FBAR Attorney | International Tax Lawyers California
/in FBAR Lawyers, Legal Notes /by ManagerIf you have foreign financial accounts and reside in San Diego (California), you would be looking for a San Diego FBAR Attorney in California. In your search, you could consider out-of-state attorneys such as Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s explore in more detail why this is the case. […]
Factual Basis & Tax Planning | International Tax Lawyer & Attorney
/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerIn a previous article, I discussed the necessity of balancing international tax planning priorities in order to obtain an optimal tax result. In this article, I will explain why international tax planning should be based on a carefully-studied factual basis. Factual Basis as the Foundation for International Tax Planning Young inexperienced lawyers often come up […]
Los Angeles FBAR Attorney | International Tax Lawyer California
/in FBAR lawyers Los Angeles, Legal Notes /by ManagerIf you have foreign financial accounts and reside in Los Angeles (California), you would be looking for a Los Angeles FBAR Attorney in California. In your search, you might consider out-of-state attorneys such as Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s explore in more detail why this is the case. […]
Subsidiary vs. Branch | International Business Tax Lawyer Minneapolis
/in international tax lawyer, Legal Notes /by ManagerFor the purposes of US international tax laws, it is very important to distinguish a subsidiary from a branch. Let’s define both terms in this short essay. Subsidiary vs. Branch: Definition of a Branch A branch is a direct form of doing business by a corporation in another country where the corporation retains the direct […]
San Francisco FBAR Attorney | International Tax Lawyer California
/in FBAR Lawyers, Legal Notes /by ManagerIf you have foreign financial accounts and reside in San Francisco (California), you should be looking for a San Francisco FBAR Attorney in California. In your search, you could consider out-of-state attorneys such as Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s explore in more detail why this is the case. […]
International Tax Planning Priorities for US Corporations
/in business tax attorney Minneapolis, Legal Notes /by ManagerSometimes, I encounter in my practice one particularly damaging belief concerning international tax planning for US corporations that engage in cross-border transactions and maintain a foreign subsidiary or a network of foreign subsidiaries. This is a belief that international tax planning for such corporations should only focus on the reduction of its US taxes above […]
Foreign Partnership Definition | International Business Tax Lawyers
/in international tax lawyer, Legal Notes /by ManagerDefining a partnership as “foreign” or “domestic” can be highly important for US tax purposes. In this article, I will explain the foreign partnership definition and explain its significance. Foreign Partnership Definition: Importance There may be important US international tax law consequences that stem from whether a partnership is classified as “foreign” or “domestic”. These […]
Berkeley FBAR Attorney | International Tax Lawyers California
/in FBAR Lawyers, Legal Notes /by ManagerIf you have foreign financial accounts and reside in Berkeley (California), you would be looking for a Berkeley FBAR Attorney in California. In your search, consider out-of-state attorneys such as Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s explore in more detail why this is the case. Berkeley FBAR Attorney: International […]
Happy New Year 2022 From Sherayzen Law Office!!!
/in international tax lawyer, Legal Notes /by ManagerDear clients, followers, readers and colleagues: Sherayzen Law Office wishes you a very Happy New Year 2022!!! For those of you who are currently not in compliance with their US international tax reporting obligations, including FBAR or FinCEN Form 114, we wish you to successfully resolve your prior noncompliance in this new year 2022 with […]
Oakland FBAR Attorney | International Tax Lawyers California
/in FBAR Lawyers, Legal Notes /by ManagerIf you reside in Oakland (California) and have foreign accounts, you would be looking for a Oakland FBAR Attorney in California. In your search, consider out-of-state attorneys such as Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s explore in more detail why this is the case. Oakland FBAR Attorney: International Tax […]
Sacramento FBAR Attorney | International Tax Lawyer California
/in FBAR Lawyers, Legal Notes /by ManagerIf you are a resident of Sacramento (California) and you have foreign accounts, you would be looking for a Sacramento FBAR Attorney in California. In your search, you could consider out-of-state attorneys such as Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s explore in more detail why this is the case. […]
Bozeman FBAR Attorney | FATCA Tax Lawyer Montana
/in FBAR Lawyers, Legal Notes /by ManagerIf you are looking for a Bozeman FBAR Attorney in Montana, the recommendation is that you retain the services of Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Mr. Sherayzen is an FBAR Attorney and founder of Sherayzen Law Office. Bozeman FBAR Attorney: International Tax Attorney It is very important to understand […]
Oregon Streamlined Disclosure Lawyer | International Tax Attorney
/in Legal Notes, Streamlined Domestic Offshore Procedures, Streamlined Foreign Offshore Procedures /by ManagerOregon is a lovely state which hosts a number of immigrants from many different countries (especially in Portland, but also Salem and Eugene). Many of these new US taxpayers own assets in foreign countries and receive income generated by these assets. Unfortunately a number of these taxpayers are not in compliance with their US international […]
Foreign Real Estate US Taxpayer Definition | International Tax Lawyer
/in international tax lawyer, Legal Notes /by ManagerThis essay seeks to identify those considered to be a “US Taxpayer” with respect to reporting foreign real estate or income from it to the IRS. In other words, today, I will discuss the foreign real estate US Taxpayer definition. Foreign Real Estate US Taxpayer Definition: IRC §7701(a) The definition of “US taxpayer” for the […]
2022 Form 5471 Penalties | International Tax Lawyer & Attorney
/in IRS Form 5471, Legal Notes /by ManagerFailure to timely and correctly submit Form 5471 with a US tax return may lead to an imposition of Form 5471 penalties. In this article, I will discus the most important 2022 Form 5471 penalties that US taxpayers may face if they fail to comply with the Form 5471 requirements. 2022 Form 5471 Penalties: Purpose […]
2022 Streamlined Foreign Offshore Procedures | International Tax Lawyer
/in Lead Article, offshore voluntary disclosure lawyers Minneapolis, Streamlined Foreign Offshore Procedures /by ManagerStreamlined Foreign Offshore Procedures has been the best voluntary disclosure option for eligible US taxpayers with undisclosed foreign assets and foreign income, and I predict that it will remain so in the year 2022. Let’s discuss in more detail the unique advantages of the 2022 Streamlined Foreign Offshore Procedures. 2022 Streamlined Foreign Offshore Procedures: Background […]
Florida Streamlined Disclosure Lawyer | International Tax Attorney
/in International Tax Attorney, Legal Notes, Streamlined Domestic Offshore Procedures /by ManagerFlorida is one of the most favorite destinations for immigrants as well as US citizens who do business overseas. Many of these taxpayers own assets in foreign countries and receive income generated by these assets. For this reason, Florida is also one of the leading states when it comes to individuals who wish to go […]
2022 Streamlined Domestic Offshore Procedures: Pros and Cons
/in Lead Article, offshore voluntary disclosure lawyers Minneapolis, Streamlined Domestic Offshore Procedures /by ManagerAs the year 2021 winds down, US taxpayers with undisclosed foreign assets and foreign income need to consider their 2022 offshore voluntary disclosure options. As it has been the case since the second half of 2014 (really the year 2018 when the 2014 OVDP was closed), I expect that Streamlined Domestic Offshore Procedures will continue […]
Texas Streamlined Disclosure Lawyer | FBAR FATCA Tax Attorney
/in Legal Notes, Offshore Voluntary Disclosure /by ManagerThe increased emigration to Texas of foreigners and Americans from other states resulted in a higher portion of Texans with undisclosed foreign assets. The vast majority of these Texans are non-willful with respect to their prior reporting noncompliance and, once they discover their prior noncompliance, they look for professional help resolve their US tax noncompliance […]
California Streamlined Disclosure Lawyer | FBAR FATCA Tax Attorney
/in Legal Notes, Streamlined Domestic Offshore Procedures /by ManagerIf you are a California resident with undisclosed foreign assets and you believe that you were non-willful with respect to your prior reporting noncompliance, you would be looking for professional help to bring your US tax affairs into full compliance with US international tax law through Streamlined Domestic Offshore Procedures. In other words, you are […]
Offshore Accounts Voluntary Disclosure Lawyer Spring Texas
/in Legal Notes, Offshore Voluntary Disclosure /by ManagerIf you have undisclosed foreign accounts and you are a resident of Spring, Texas, it is important for you to understand your options in terms of who can help you with the voluntary disclosure of your noncompliant offshore accounts. In this article, I will help you understand your offshore accounts voluntary disclosure lawyer Spring Texas […]
First Quarter 2022 IRS Interest Rates on Overpayment & Underpayment of Tax
/in IRS Lawyers, Legal Notes /by ManagerOn November 23, 2021, the IRS announced that the First Quarter 2022 IRS interest rates on overpayment and underpayment of tax will not change from the Fourth Quarter of 2021. This means that, the First Quarter 2022 IRS interest rates will be as follows: Internal Revenue Code (“IRC”) §6621 establishes the IRS interest rates on […]
CFC Income Recognition: Five Groups | International Tax Lawyer & Attorney
/in International Tax Attorney, Legal Notes /by ManagerOwnership of a Controlled Foreign Corporation (“CFC”) presents unique income tax challenges under US international tax law. One of them is the fact that US shareholders of a CFC may have to recognize CFC income on their US tax returns beyond what is required under US domestic tax laws. In this article, I will introduce […]
Brazilian Mutual Funds: US Tax Obligations | International Tax Lawyer & Attorney
/in international tax lawyer, Legal Notes /by ManagerIt is a common, almost default practice in Brazil to invest in Brazilian mutual funds. While this practice is perfectly innocent for majority of Brazilians, it may present a huge compliance issue for Brazilians who are also US taxpayers. The problem is that this type of an investment draws at least two important US tax […]
2021 FBAR Civil Penalties | IRS FBAR Tax Lawyer & Attorney
/in FBAR Lawyers, Lead Article /by ManagerAs if they were not high enough, the US Congress has obligated the IRS to adjust FBAR civil penalties for inflation on an annual basis. In this article, I will provide a broad overview of the current FBAR penalty system and describe the current 2021 FBAR civil penalties. 2021 FBAR Civil Penalties: Overview of the […]
Pakistani Bank Accounts FBAR & FATCA Compliance | International Tax Lawyer
/in FATCA, FBAR, Legal Notes /by ManagerUS international tax attorney discusses FBAR and FATCA compliance concerning Pakistani bank accounts.
Indian Mutual Funds & US Person’s Tax Obligations | International Tax Attorney
/in international tax lawyer, Lead Article /by ManagerAfter having handled so many offshore voluntary disclosures for my Indian and Indian-American clients, I can clearly see that US tax reporting obligations concerning Indian mutual funds is one of the most troublesome areas for my clients. In this article, I will focus on the three most important US tax reporting requirements that may be […]
2020 FBAR Conversion Rates | FBAR Tax Lawyer & Attorney
/in FBAR, Legal Notes /by adminThe 2020 FBAR conversion rates are highly important in US international tax compliance. The 2020 FBAR and 2020 Form 8938 instructions both require that 2020 FBAR conversion rates be used to report the required highest balances of foreign financial assets on these forms (in the case of Form 8938, the 2020 FBAR conversion rates is […]
2020 FBAR Deadline in 2021 | FinCEN Form 114 International Tax Lawyer & Attorney
/in FBAR Lawyers, Legal Notes /by ManagerThe 2020 FBAR deadline is one of the most important deadlines for US taxpayers this calendar year 2021. What makes FBAR so important are the draconian FBAR penalties which may be imposed on noncompliant taxpayers. Let’s discuss the 2020 FBAR deadline in more detail. 2020 FBAR Deadline: Background Information The official name of FBAR is […]
2021 Tax Filing Season for Tax Year 2020 Starts on February 12 2021
/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerOn January 15, 2021, the IRS announced that the 2021 tax filing season for the tax year 2020 will start on Friday, February 12, 2021. On that day, the IRS will begin accepting and processing 2020 tax year returns. The February 12 start date for individual tax return filers allows the IRS time to do […]
January 28 2021 Inbound Transactions Seminar | US International Tax Lawyer
/in International Tax Attorney, Legal Notes /by ManagerOn January 28, 2021, Mr. Eugene Sherayzen, an international tax attorney and founder of Sherayzen Law Office, Ltd., co-presented with a business lawyer a seminar titled “Investing in US Businesses by Foreign Persons – Common Business and Tax Considerations” (the “Inbound Transactions Seminar”). The Inbound Transactions Seminar was sponsored by the International Business Law Section […]
Inbound Transactions: Non-US Person Definition | International Tax Attorney
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerIn a previous article, I described the analytical framework for conducting tax analysis of inbound transactions. In this article, I will focus on the first issue of this framework – the Non-US Person definition. Non-US Person Definition: Importance in the Context of Inbound Transactions Before we delve into the issue of Non-US Person definition, we […]
Inbound Transactions Tax Framework | US International Tax Lawyer & Attorney
/in International Tax Attorney, Legal Notes /by ManagerInbound transactions deal with Non-US persons who operate in and/or derive income from the United States. This introductory essay opens a series of articles concerning US taxation of inbound transactions. Today, I will set forth the general inbound transactions tax framework; in future articles, I will explore in more detail each element of this framework. […]
2020 FBAR Criminal Penalties | FBAR International Tax Lawyers
/in FBAR Lawyers, Legal Notes /by Manager2020 FBAR criminal penalties is a potential threat to any US taxpayer who willfully failed to file his FBARs or knowingly filed a false FBAR. In this essay, I would like to review the 2020 FBAR criminal penalties that these noncompliant US taxpayers may have to face. 2020 FBAR Criminal Penalties: Background Information A lot […]
FBAR Voluntary Disclosure | International Tax Lawyer & Attorney
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerI often receive calls from prospective clients who talk about FBAR voluntary disclosure. They usually have no clear idea of what is meant by this term and what its requirements are. In this article, I will discuss this concept of FBAR Voluntary Disclosure and explain how this concept covers a variety of offshore voluntary disclosure […]
Beware of Flat-Fee Lawyers Doing Streamlined Domestic Offshore Procedures
/in International Tax Attorney, Legal Notes /by ManagerRecently, I received a number of phone calls and emails from people who complained about incorrect filing of their Streamlined Domestic Offshore Procedures (“SDOP”) packages by lawyers who took their cases on a flat-fee basis. In this article, I would like to discuss why a flat fee is generally not well-suited for a proper SDOP […]
October 31 2020 FBAR Deadline | FBAR Tax Lawyer & Attorney
/in FBAR Lawyers, Legal Notes /by ManagerUS taxpayers can still timely file their 2019 FBAR (Report of Foreign Bank and Financial Accounts) by the new October 31 2020 FBAR deadline. This FBAR deadline extension is highly unusual and requires some explanation. October 31 2020 FBAR Deadline: What is FBAR? The Report of Foreign Bank and Financial Accounts (“FBAR”) is officially known […]
26 U.S.C. Subpart A: Taxation of Recipients of Corporation Distributions
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerThis article is a second installment of our series of articles on corporate distributions. Today’s topic is the description of 26 U.S.C. Subpart A, which contains the most important tax provisions for our subsequent discussions of this subject. 26 U.S.C. Subpart A: Purpose 26 U.S.C Subpart A is the first part of Part I of […]
Introduction to Corporate Distributions | US Business Tax Law Firm
/in business tax lawyers minneapolis, Legal Notes /by ManagerThis essay opens our new series of articles which focuses on corporate distributions. The new series will cover the classification, statutory structure and tax treatment of various types of corporation distributions, including redemptions of corporate stock. This first article seeks to introduce the readers to the overall US statutory tax structure concerning corporate distributions. Corporation […]
The Tinkov Case: Concealment of Foreign Assets During Expatriation
/in international tax lawyer, Legal Notes /by ManagerOn March 5, 2020, the Internal Revenue Service (“IRS”) and the U.S. Department of Justice (“DOJ”) announced that Mr. Oleg Tinkov was arrested in London in connection with an indictment concerning concealment of about $1 billion in foreign assets and the expatriation income in connection with these assets. Let’s discuss the Tinkov case in more […]
§318 Entity-Member Attribution Summary | International Tax Lawyer
/in international tax lawyer, Legal Notes /by ManagerIn a previous article, I discussed the IRC (Internal Revenue Code) §318 sidewise attribution limitation. This limitation was the last piece in the jigsaw puzzle of the §318 entity-member attribution rules; now, we are ready to summarize these rules in light of this exception. This is the purpose of this article – state the §318 […]
July 15 Deferral: More Deadlines Affected | US International Tax News
/in International Tax Attorney, Legal Notes /by ManagerOn April 9, 2020, the IRS announced additional relief to taxpayers by moving the due date for more deadlines to July 15, 2020. Let’s discuss this additional July 15 Deferral in more detail. July 15 Deferral: Background Information On March 13, 2020, in response to the 2019 coronavirus (also called “COVID-19″) pandemic, President Trump issued […]
Employee Retention Credit | US Tax Lawyers & Attorneys
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn March 31, 2020, the IRS launched the Employee Retention Credit. This new tax credit is designed to encourage businesses to keep employees on their payroll. Let’s discuss the Employee Retention Credit in more detail. Employee Retention Credit: Eligibility Criteria Two categories of employers are not eligible to apply for the Employee Retention Credit: (a) […]
§318 Sidewise Attribution Limitation | US International Tax Attorney
/in International Tax Attorney, Legal Notes /by ManagerThis article explores the third main limitation on the general IRC (Internal Revenue Code) §318 corporate stock re-attribution rules – §318 Sidewise Attribution Limitation. §318 Sidewise Attribution Limitation: What is “Sidewise Attribution”? A sidewise attribution occurs when corporate stock owned by an owner of a business entity (or a beneficiary of a trust or estate) […]
Critical Business Exemption | Minnesota Shelter-In-Place Order
/in business tax lawyers minneapolis, Legal Notes /by ManagerOn March 25 , 2020, the Honorable Tim Walz, Governor of the State of Minnesota, issued a “Shelter-In-Place” Emergency Executive Order 20-20. The Executive Order mandates all persons in Minnesota to stay at home or in their place residence, unless they go out to engage in certain activities or do work for a business which […]
Coronavirus Offshore Voluntary Disclosure: Problems & Opportunities
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerThe advancement of coronavirus in the United States and around the world has significantly disrupted the normal conditions and assumptions for a US taxpayer who engages in an offshore voluntary disclosure of his unreported foreign income and foreign assets. I will refer to a voluntary disclosure conducted in this context of the coronavirus disruptions as […]
New July 15 Deadline for 2019 Tax Compliance | International Tax News
/in International Tax Attorney, Legal Notes /by ManagerOn March 21, 2020, the IRS moved the federal income tax filing and tax payment due date from April 15, 2020, to July 15, 2020. Let’s discuss the new July 15 deadline in more detail. July 15 Deadline: Why the IRS Moved the Tax Deadline to July 15, 2020? The IRS moved the deadline because […]
Coronavirus & Chinese Offshore Voluntary Disclosures | SDOP Tax Law Firm
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerThe ongoing coronavirus pandemic has disrupted many areas of human activity around the planet. The coronavirus even affected the IRS offshore voluntary disclosures concerning US taxpayers’ unreported financial assets and income in China (“Chinese Offshore Voluntary Disclosures”). In fact, the impact of coronavirus on the Chinese Offshore Voluntary Disclosures has been severe and extremely disruptive. […]
Family Re-Attribution Limitation Under §318 | International Tax Lawyers
/in international tax lawyer, Legal Notes /by ManagerThis article explores the second limitation on the IRC (Internal Revenue Code) §318 re-attribution rule – family re-attribution limitation. Family Re-Attribution Limitation: General §318 Re-Attribution Rule The general §318 re-attribution rule states that a constructively-owned corporate stock should be treated as actually owned for the purpose of further re-attribution of stock to other persons. §318(a)(5)(A). […]
Hindu Undivided Family (HUF) US Tax Classification | Foreign Trust Lawyer
/in foreign trust lawyer, Legal Notes /by ManagerThis article continues a series of articles concerning US tax classification of unusual foreign entities; our focus is on the determination whether these entities should be classified as foreign business entities or foreign trusts. Today’s topic is the Hindu Undivided Family, the preferred legal entity for managing family estates for a large number of wealthy […]
§318 Double-Inclusion Prohibition | International Tax Lawyers Tampa FL
/in international tax lawyer, Legal Notes /by ManagerIn a previous article, I discussed the IRC (Internal Revenue Code) §318 general rule on the re-attribution of corporate stock; in that context, I mentioned that there are certain restrictions on §318 re-attribution. Today, I would like to discuss one of such restrictions – §318 double-inclusion prohibition. §318 Double-Inclusion Prohibition: General Re-Attribution Rule Before we […]
2020 2Q IRS Interest Rates | US International Tax Law Firm
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerOn February 28, 2020, the Internal Revenue Service (“IRS”) announced that the 2020 Second Quarter IRS underpayment and overpayment interest rates (“2020 2Q IRS Interest Rates”) will not change from the first quarter of 2020. This means that, the 2020 2Q IRS interest rates will be as follows: Under the Internal Revenue Code, these interest […]
2020 SDOP Penalty | Offshore Voluntary Disclosure International Tax Attorney
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerIn an earlier article, I discussed the advantages of the Streamlined Domestic Offshore Procedures (“SDOP”) in the year 2020. Among the advantages, I mentioned the SDOP Miscellaneous Offshore Penalty (hereinafter “SDOP Penalty”), but never explained this concept. The focus of this article is on the 2020 SDOP Penalty and how one generally should calculate it. […]
§318 Re-attribution: General Rule | International Tax Lawyers Miami
/in international tax lawyer, Legal Notes /by ManagerThis article continues a series of articles on the Internal Revenue Code (“IRC”) §318 constructive ownership rules. Today, I would like to focus on the §318 re-attribution rule. In this article, I will explain the general §318 re-attribution rule and mention the exceptions. I will discuss the exceptions in more detail in future articles. §318 […]
Liechtenstein Stiftung: US Tax Classification | Foreign Trust Tax Lawyer
/in foreign trust lawyer, Legal Notes /by ManagerThis article continues a series of articles on foreign trust classification with respect to various foreign entities. Today’s topic is the US tax treatment of a Liechtenstein Stiftung. Liechtenstein Stiftung: Formation A Liechtenstein Stiftung, or Foundation, is a legal entity under Liechtenstein law. It may be formed by filing a foundation charter or by will […]
Liechtenstein Anstalt: US Tax Treatment | Foreign Trust Lawyer & Attorney
/in foreign trust lawyer, Legal Notes /by ManagerOver the years, the IRS has made a number of rulings with respect to whether certain foreign entities should be considered trusts for US tax purposes. In this article, I would like to discuss the US tax classification of Liechtenstein Anstalt based on the 2009 IRS Chief Counsel Advice Memorandum, AM 2009-012. Liechtenstein Anstalt: Creation […]
New Form 1040-SR for Seniors | US Tax Lawyers & Attorneys
/in Legal Notes, tax lawyers st paul /by ManagerFor the very first time, the IRS has created a new tax form called Form “1040-SR”. “SR” here standards for “seniors”. The idea is that the new form will be used by senior taxpayers. Let’s discuss Form 1040-SR in more detail. Form 1040-SR: Reasons for Its Creation The reason for the creation of Form 1040-SR […]
Form 114 Trust Filers | FBAR Tax Lawyer & Attorney Nevada Las Vegas
/in FBAR Lawyers, Legal Notes /by ManagerFinCEN Form 114 trust filers constitute a highly problematic category of FBAR filers. Form 114 trust filers are problematic not so much because the FBAR requirement itself is unclear, but, rather, because the trustees do not realize that this requirement applies to them. In this article, I would like to educate potential Form 114 trust […]
§318 Option Attribution | International Tax Lawyers United States
/in international tax lawyer, Legal Notes /by ManagerA previous article defined “option” for the purposes of the IRC (Internal Revenue Code) §318(a)(4). Today, I will discuss the main §318 option attribution rule. §318 Option Attribution: Main Rule Under §318(a)(4), “if any person has an option to acquire stock, such stock shall be considered as owned by such person.” For the purposes of […]
§318 Option Definition | US International Tax Lawyer & Attorney
/in international tax lawyer, Legal Notes /by ManagerThis article continues our series of articles on the IRC (Internal Revenue Code) §318 constructive ownership rules. In this article, I would like to introduce the readers to the infamous §318 option attribution rules. Before we delve into the discussion of the constructive ownership rules for options, however, it is important to understand what “option” […]
§318 Upstream Corporate Attribution | International Tax Lawyers Florida
/in International Tax Attorney, Legal Notes /by ManagerIn a previous article, I discussed the rules for the downstream attribution of corporate stocks under the IRC (Internal Revenue Code) §318. Today, I would like to discuss the §318 upstream corporate attribution rules. §318 Upstream Corporate Attribution: Two Types of Attribution There are two types of §318 corporate attribution rules: downstream and upstream. Under […]
§318 Downstream Corporate Attribution | Corporate Tax Lawyer & Attorney
/in FBAR Lawyers, international tax lawyer, Legal Notes /by ManagerThis article continues a series of articles on the constructive ownership rules of the IRC (Internal Revenue Code) §318. Today, we will discuss corporate attribution rules, even more specifically the §318 downstream corporate attribution rules. §318 Downstream Corporate Attribution: Two Types of Attribution There are two types of §318 corporate attribution rules: downstream and upstream. […]
2020 IRS Standard Mileage Rates | IRS Tax Lawyer & Attorney
/in International Tax Attorney, Legal Notes /by ManagerBeginning January 1, 2020, the IRS changed the optional standard mileage for the calculation of deductible costs of operating an automobile (sedans, vans, pickups and panel trucks) for business, charitable, medical or moving purposes. Let’s discuss in more detail these new 2020 IRS Standard Mileage Rates. 2020 IRS Standard Mileage Rates for Business Usage For […]
Indian US Dollar Remittances | International Tax Lawyer & Attorney
/in International Tax Attorney, Legal Notes /by ManagerFor some years now, India has remained at the top of all countries that receive remittances in US dollars. A lot of these funds flow from Indian-Americans and Indians who reside in the United States. The problem is that a lot of them are not in compliance with respect to their US international tax obligations […]
§318 Employee Trust Attribution | Foreign Trust US Tax Law Firm
/in foreign trust lawyer, Legal Notes /by ManagerIn a previous article, I explained special §318 rules concerning grantor trusts as an exception to the general §318 trust attribution rules. Today, I will discuss the special §318 employee trust attribution rules as another exception to the general §318 trust attribution rules. §318 Employee Trust Attribution: Focus on Tax-Exempt Employee Trusts First of all, […]
§318 Grantor Trust Attribution | Foreign Trust Tax Lawyer & Attorney
/in foreign trust lawyer, Legal Notes /by ManagerIn previous articles, I discussed the §318 downstream and upstream attribution rules; in that context, I also mentioned that there were special rules concerning grantor trusts and tax-exempt employee trusts. This article will cover the special §318 grantor trust attribution rules. §318 Grantor Trust Attribution: Definition of Grantor Trust A grantor trust is any trust […]
§318 Upstream Trust Attribution | US Foreign Trust Tax Lawyer & Attorney
/in foreign trust lawyer, Legal Notes /by ManagerIn a previous article, I discussed the Internal Revenue Code (“IRC”) §318 downstream trust attribution rules. Today, I would like to focus on the §318 upstream trust attribution rules. §318 Upstream Trust Attribution: Downstream vs. Upstream There are two types of §318 trust attribution: downstream and upstream. In a previous article, I already covered the […]
US Information Returns: Introduction | International Tax Lawyer Minnesota
/in international tax lawyer, Legal Notes /by ManagerIn this article, I would like to introduce the readers to the concept of US information returns; I will also explore the differences between US information returns and US tax returns. US Information Returns: Two Types of Returns The US tax system is a self-assessment system where taxpayers must file certain forms or returns developed […]
FinCEN Form 114 Estate Filers | FBAR Tax Lawyer & Attorney
/in FBAR Lawyers, Legal Notes /by ManagerMany taxpayers and even tax professionals are completely unaware of the fact that FBAR needs to be filed not just by individuals, businesses and trusts, but also by estates. In this article, I will discuss FinCEN Form 114 Estate filers (i.e. estates that need to file FinCEN Form 114). FinCEN Form 114 Estate filers: FBAR […]
§318 Downstream Trust Attribution | Foreign Trust Tax Lawyer & Attorney
/in International Tax Attorney, Legal Notes /by ManagerThe attribution of stock ownership to constructive owners is a highly important feature of US domestic and international tax law. The Internal Revenue Code (“IRC”) §318 contains complex constructive ownership rules concerning corporate stock; these rules vary depending on a specific §318 relationship. This article focuses on an important category of §318 relationships – trusts. […]
§318 Upstream Estate Attribution | International Tax Lawyer & Attorney
/in International Tax Attorney, Legal Notes /by ManagerThis article continues a series of articles concerning the constructive ownership rules of the Internal Revenue Code (“IRC”) §318. Today’s focus is on the §318 upstream estate attribution rules. §318 Estate Attribution Rules: Downstream Attribution vs. Upstream Attribution There are two types of the IRC §318 estate attribution rules: downstream and upstream. In a previous […]
§318 Estate Beneficiary Definition | US International Tax Law Firm
/in international tax lawyer, Legal Notes /by ManagerThe Internal Revenue Code (“IRC”) §318 contains corporate stock attribution rules between an estate and its beneficiaries. In order to apply these rules correctly, one must understand how §318 defines “beneficiary” for the purposes of upstream and downstream estate attribution rules. This articles will introduce the readers to this §318 estate beneficiary definition. §318 Estate […]
§318 Downstream Estate Attribution | International Tax Lawyer & Attorney
/in international tax lawyer, Legal Notes /by ManagerThis article continues a series of articles on the Internal Revenue Code (“IRC”) §318 constructive ownership rules. Today, the topic is §318 estate attribution rules – i.e. attribution of ownership of corporate stock from estate to its beneficiaries and vice versa. Since this is a long topic, I will divide it into three articles. This […]
2020 SDOP Eligibility Requirements | SDOP Tax Lawyer & Attorney
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis, Streamlined Domestic Offshore Procedures /by ManagerIn a recent article, I mentioned that Streamlined Domestic Offshore Procedures (“SDOP”) will continue to be the most important voluntary disclosure option in 2020 for US taxpayers who reside in the United States. However, not all taxpayers will qualify to participate in the 2020 SDOP. In this article, I will discuss the main 2020 SDOP […]
§318 Partnership Attribution | International Corporate Tax Lawyers
/in business tax lawyers minneapolis, Legal Notes /by ManagerThis article continues a series of articles on the Internal Revenue Code (“IRC”) §318 constructive ownership rules. In this essay, we will discuss the §318 partnership attribution rules – i.e. attribution of ownership of shares from partnership to partners and vice versa. §318 Partnership Attribution Rules: Two Types There are two types of the IRC […]
Ukrainian FATCA IGA Enters Into Force | FATCA Tax Lawyer & Attorney
/in FATCA Lawyers, Legal Notes /by ManagerOn November 18, 2019, the Ukrainian FATCA IGA entered into force. Sherayzen Law Office already wrote on this subject a little more than three years ago. This essay updates the status of the Ukrainian FATCA IGA. Ukrainian FATCA IGA: Background Information The Foreign Account Tax Compliance Act (FATCA) was enacted into law in 2010 and […]
2019 FBAR Conversion Rates | FBAR Tax Lawyer & Attorney
/in FBAR, Legal Notes /by ManagerThe 2019 FBAR conversion rates are highly important in US international tax compliance. The 2019 FBAR and 2019 Form 8938 instructions both require that 2019 FBAR conversion rates be used to report the required highest balances of foreign financial assets on these forms (in the case of Form 8938, the 2019 FBAR conversion rates is […]
2020 Streamlined Domestic Offshore Procedures: Pros and Cons
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis, Streamlined Domestic Offshore Procedures /by ManagerNoncompliant US taxpayers with undisclosed foreign assets and foreign income should consider their voluntary disclosure options in this new year 2020. Similarly to 2019, I expect that this year Streamlined Domestic Offshore Procedures will continue to be the flagship voluntary disclosure option for such taxpayers who reside in the United States. In order for the […]
IRC §318 Family Attribution | International Tax Law Firm Minnesota
/in International Tax Attorney, Legal Notes /by ManagerIn a previous article, I outlined six main relationship categories of the Internal Revenue Code (“IRC”) §318. In this article, I will focus on the first of these categories: the IRC §318 family attribution rules. §318 Family Attribution: General Rule §318(a)(1)(A) describes the §318 family attribution rule . It states that an individual is a […]
2020 Offshore Voluntary Disclosure Options | US International Tax Lawyers
/in Lead Article, offshore voluntary disclosure lawyers Minneapolis /by ManagerAs the new year 2020 begins, it is important for US taxpayers with undisclosed foreign assets to consider their 2020 offshore voluntary disclosure options. Unlike last year, there have not been any drastic changes to the voluntary disclosure options since 2019. In this article, I would like to generally explore the 2020 offshore voluntary disclosure […]
2019 Tax Filing Season for Individual Filers Opens on January 27 2020
/in international tax lawyer minnesota, Legal Notes /by ManagerOn January 6, 2020, the IRS announced that the 2019 tax filing season will commence on Monday, January 27, 2020. In other words, on that date, the IRS will begin accepting and processing the 2019 tax returns. This year the deadline for the filing of the 2019 tax returns as well as any payment of […]
Partnership Related Party Loss Disallowance | Tax Lawyer & Attorney
/in business tax lawyers minneapolis, Legal Notes /by ManagerIn a series of articles concerning Internal Revenue Code (“IRC”) §267, I discussed various rules concerning related party loss disallowance. In this article, I would like to focus on special rules concerning partnership related party loss disallowance. Partnership Related Party Loss Disallowance: Main IRC Provisions Three IRC sections are most relevant to special rules of […]
§318 Relationship Categories | International Business Tax Lawyer & Attorney
/in International Tax Attorney, Legal Notes /by ManagerIn a previous article I discussed the importance of the Internal Revenue Code (“IRC”) §318 constructive stock ownership rules. Today, I would like to introduce the readers to the various §318 relationship categories – i.e. what types of taxpayers are affected by this section’s constructive ownership rules. §318 Relationship Categories: Related Persons Congress created IRC […]
IRC §318 Importance | International Tax Lawyer & Attorney
/in international tax lawyer, Legal Notes /by ManagerIt is difficult to overstate the significant role the Internal Revenue Code (“IRC”) §318 plays in US corporate tax law and US international tax law. In this article, I will explain the §318 importance and list out major IRC provisions which reference §318. IRC §318 Importance: Fundamental Purpose §318 sets forth the circumstances when the […]
The IRS Hiring Spree in 2019 and 2020 | Tax Lawyer & Attorney
/in Legal Notes, tax lawyer St. Paul Minnesota /by ManagerThe IRS stated in December of 2019 that it hired about 9,500 people during the fiscal year 2019 and it is trying to add another about 5,300 employees as soon as possible. This new IRS hiring spree is meant to reverse the long-term declining trend in IRS employment. The IRS Hiring Spree: 2009-2018 Trend Between […]
§267 Family Attribution | International Tax Lawyer & Attorney
/in international tax lawyer, Legal Notes /by ManagerIn a previous article, I introduced the constructive ownership rules of the Internal Revenue Code (“IRC”) §267. Today, I would like to discuss one of them in more detail – §267 family attribution. §267 Family Attribution: General Rule The §267 family attribution rule is described in §267(c)(2). It states that, for the purposes of determining […]
§267 Entity-to-Member Attribution | International Tax Lawyer & Attorney
/in international tax lawyer minnesota, Legal Notes /by ManagerIn a previous article, I introduced the Internal Revenue Code (“IRC”) §267 constructive ownership rules. Today, I would like to focus specifically on the §267 entity-to-member attribution rule. §267 Entity-to-Member Attribution: General Rule §267(c)(1) describes the §267 entity-to-member attribution rule. It states that stocks owned by a corporation, partnership, estate or trust will be treated […]
§267 Constructive Ownership Rules | International Tax Lawyer & Attorney
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerIn a previous article, I discussed the related person definition for the purposes of the Internal Revenue Code (“IRC”) §267. That article, however, focused on the definition itself rather than on a host of supplementary rules necessary to fully understand this definition. In this article, I would like to discuss one set of these rules […]
Related Person Definition – IRC §267 | International Tax Lawyer & Attorney
/in International Tax Attorney, Legal Notes /by ManagerInternal Revenue Code (“IRC”) §267 imposes significant restrictions on the ability of related persons to recognize loss from a transaction that involves a sale or exchange of property. Hence, it is important for a tax attorney who advises on such a transaction to understand the concept of a “related person” in order to properly advise […]
Happy New Year 2020 from Sherayzen Law Office!
/in International Tax Attorney, Legal Notes /by ManagerSherayzen Law Office wishes everyone a very happy and prosperous New Year 2020! We also wish you stay in full US tax compliance with US international tax laws while your tax burden decreases! And, we are here to help our clients to turn these wishes into reality! In the year 2020, Sherayzen Law Office will […]
IRC §267 Purpose | International Tax Lawyer & Attorney Austin TX
/in international tax lawyer, Legal Notes /by ManagerThis brief essay explores the IRC §267 purpose of existence – i.e. Why did Congress decide to enact IRC §267 and in what situations does it generally apply? IRC §267 Purpose: Problematic Scenarios When Congress enacted IRC §267, it meant to address a very specific problem in the context of two scenarios. The problem was […]
Attribution Rules: Introduction | International Tax Lawyer & Attorney
/in International Tax Attorney, Legal Notes /by ManagerOne of the most popular tax reduction strategies is based on shifting an ownership interest in an entity or property to related persons or related entities. In order to prevent the abuse of this strategy, the US Congress has enacted a large number of attribution rules. In this brief essay, I will introduce the concept […]
2020 First Quarter IRS Interest Rates | International Tax Lawyers
/in International Tax Attorney, Legal Notes /by ManagerOn December 6, 2019, the Internal Revenue Service (“IRS”) announced that the 2020 First Quarter IRS underpayment and overpayment interest rates will not change from the 4th Quarter of 2019. This means that, the 2020 First Quarter IRS underpayment and overpayment interest rates will be as follows: Under the Internal Revenue Code, the rate of […]
Post-OVDP Audits | Offshore Voluntary Disclosure Lawyer & Attorney
/in IRS Audit Lawyers, Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerA significant number of US taxpayers who went through the OVDP mistakenly believed that they were immune from the IRS post-OVDP audits concerning their post-voluntary disclosure compliance. Sherayzen Law Office has repeatedly warned in the past that these taxpayers were mistaken with respect to their exposure to potential post-OVDP audits. The recent announcement of a […]
The Norman Case: Willful FBAR Penalty Upheld | FBAR Lawyers Miami
/in FBAR audit tax attorney, Legal Notes /by ManagerOn November 8, 2019, the Federal Circuit Court of Appeals (the “Court”) upheld the decision of the Court of Federal Claims to uphold the IRS assessment of a willful FBAR penalty in the amount of $803,530 with respect to Ms. Mindy Norman’s failure to file her 2007 FBAR. The Norman case deserves special attention because […]
New FBAR Filing Verification Submission Process | FBAR Lawyer & Attorney
/in FBAR Lawyers, Legal Notes /by ManagerOn November 19, 2019, the IRS announced changes to the current FBAR filing verification submission process. The change is technical, but not without importance.
November 21 2019 BSU Seminar in Minsk, Belarus | International Tax News
/in International Tax Attorney, Legal Notes /by ManagerOn November 21, 2019, Mr. Eugene Sherayzen, an international tax attorney and founder of Sherayzen Law Office, Ltd., conducted a seminar at the Belarusian State University Law School (the “2019 BSU Seminar”) in Minsk, Belarus. Let’s explore the 2019 BSU Seminar in more detail. 2019 BSU Seminar: Topic and Attendance The topic of the seminar […]
Greek Flat Tax Residency: Draft Bill | International Tax Lawyer News
/in International Tax Attorney, Legal Notes /by ManagerThe new Greek government headed by Prime Minister Kyriakos Mitsotakis wishes to reach 2.8% economic growth next year. Part of the plan to achieve this goal includes a tax reform which introduces a curious new concept of Greek flat tax residency for wealthy foreign investors. Let’s discuss this interesting idea in more detail. Greek Flat […]
Foreign Income Reporting Without Forms W-2 or 1099 | Tax Lawyer
/in international tax lawyer, Legal Notes /by ManagerThere is a surprisingly large number of US taxpayers who believe that reporting foreign income that was not disclosed on a Form W-2 or 1099 is unnecessary. Even if they honestly believe it to be true, this erroneous belief exposes these taxpayers to an elevated risk of imposition of high IRS penalties. In this article, […]
The Pursley Case: Offshore Tax Evasion Leads to Criminal Conviction
/in International Tax Attorney, Legal Notes /by ManagerOn September 6, 2019, the Tax Division of the US Department of Justice (“DOJ”) announced another victory against Offshore Tax Evasion. This time, a Houston lawyer, Mr. Jack Stephen Pursley, was convicted of one count of conspiracy to defraud the United States and three counts of tax evasion. Let’s discuss this Pursley Case in more […]
The Booker Case: ex-CPA Indicted for FBAR violations | FBAR Lawyer News
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn August 27, 2019, the US Department of Justice (“DOJ”) announced that a federal grand jury returned a superseding indictment charging Mr. Brian Booker, a former resident of Fort Lauderdale, Florida, whose business specialized in international trade, with failing to file Reports of Foreign Bank and Financial Accounts (“FBARs”) and filing false documents with the […]
July 2019 IRS Compliance Campaigns | International Tax Lawyer & Attorney
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerOn July 19, 2019, the IRS Large Business and International division (LB&I) announced the approval of another six compliance campaigns. Let’s discuss in more detail these July 2019 IRS compliance campaigns. July 2019 IRS Compliance Campaigns: Background Information In the mid-2010s, after extensive tax planning, the IRS decided to restructure LB&I in a way that […]
Child’s FBAR Requirements | FBAR Tax Lawyer & Attorney
/in FBAR Lawyers, Legal Notes /by ManagerI often receive questions concerning a child’s FBAR requirements. Many taxpayers automatically assume that, if their children are below the age of majority, these children do not have to file FBARs. Unfortunately, this is not the case – a child’s FBAR requirements are every bit as extensive of those of his parents. Child’s FBAR Requirements: […]
2019 Fourth Quarter IRS Interest Rates | PFIC Tax Lawyers
/in International Tax Attorney, Legal Notes /by ManagerOn August 28, 2019, the Internal Revenue Service (“IRS”) announced that the 2019 Fourth Quarter IRS underpayment and overpayment interest rates will not change from the 3rd Quarter of 2019. This means that, the 2019 Fourth Quarter IRS underpayment and overpayment interest rates will be as follows: Under the Internal Revenue Code, the rate of […]
Sherayzen Law Office Successfully Completes its 2019 Fall Tax Season
/in International Tax Attorney, Legal Notes /by ManagerOn October 15, 2019, Sherayzen Law Office, Ltd., successfully completed its 2019 Fall Tax Season. It was a challenging and interesting tax season. Let’s discuss it in more detail. 2019 Fall Tax Season: Sherayzen Law Office’s Annual Compliance Clients Annual tax compliance is one of the major services offered by Sherayzen Law Office to its […]
Fundamental Form 5471 Concepts | Form 5471 Tax Lawyer & Attorney
/in IRS Form 5471, Legal Notes /by ManagerForm 5471 tax attorney discusses fundamental Form 5471 concepts of US Person, US Shareholder & CFC (Controlled Foreign Corporation)
FATCA Criminal Penalties | International Tax Lawyer & Attorney
/in FATCA Tax Attorney, Legal Notes /by ManagerWhile there are a number of articles in professional publications and attorneys’ blogs covering the civil penalties associated with a failure to comply with the Foreign Account Tax Compliance Act (“FATCA”), there is almost a complete silence with respect to FATCA criminal penalties. This essay intends to fill this gap by introducing its readers to […]
2019 Minsk Seminar: US International Corporate Tax Reform | GILTI & FDII
/in International Tax Attorney, Legal Notes /by ManagerOn August 28, 2019, Mr. Eugene Sherayzen, the owner and founder of Sherayzen Law Office, Ltd, gave a seminar at Minsk City Bar Association (“MCBA”) in Minsk, Belarus. The focus of the seminar was on the 2017 Tax Cuts and Jobs Act (“2017 TCJA” or “2017 tax reform”) changes in the US international corporate tax […]
Partnership International Tax Issues | International Tax Lawyer & Attorney
/in International Tax Attorney, Legal Notes /by ManagerThis article introduces readers to potential US international tax issues that a business entity may face when it elects to operate as a partnership for US tax purposes (all together “partnership international tax issues”). The focus of this article is on partnership international tax issues, particularly where US partnerships have a foreign partner and foreign […]
IRS Acquires Phone-Hacking Software | IRS Lawyer News
/in IRS Lawyers, Legal Notes /by ManagerIt seems that the IRS audit powers are increasing more and more at the expense of taxpayers’ privacy rights. In June of 2019, the IRS posted a procurement notice on its website to award a contract to a company Cellebrite, an Israeli company that specializes in smartphone decryption software and equipment. In other words, the […]
Minnesota Sales Tax Responsible Person Legal Standard | Audit Tax Lawyer
/in Legal Notes, minneapolis tax lawyer /by ManagerIn this article, I would like to discuss the legal definition of Responsible Person under Minn. Stat. § 270C.56 – I will refer to this term as Minnesota sales tax responsible person legal standard. Minnesota Sales Tax Responsible Person: Background Information Minnesota imposes a sales tax “on the gross receipts from retail sales.” Minn. Stat. […]
2019 Zurich Trip Completed | Zurich US International Tax Lawyer & Attorney
/in International Tax Attorney, Legal Notes /by ManagerIn July of 2019, Mr. Eugene Sherayzen, an international tax attorney and owner of Sherayzen Law Office, Ltd., completed his business trip to Zurich, Switzerland. Let’s discuss in more detail this 2019 Zurich Trip, its goals and accomplishments. 2019 Zurich Trip: Goals Mr. Sherayzen outlined the firm’s goals for the Zurich trip during the Sherayzen […]
2019 Karlovy Vary Trip Completed | US International Tax Lawyer & Attorney
/in International Tax Attorney, Legal Notes /by ManagerMr. Eugene Sherayzen, an international tax attorney and owner of Sherayzen Law Office, Ltd., completed his trip to Karlovy Vary, Czech Republic, on July 10, 2019. Let’s discuss in more detail this brief 2019 Karlovy Vary trip, its motivations and results. 2019 Karlovy Vary Trip: Reasons for this Excursion There were several reasons why Mr. […]
Legal Entity Identifiers: Introduction to LEI | International Tax Lawyer & Attorney
/in business tax lawyers minneapolis, Legal Notes /by ManagerThe Legal Entity Identifiers (“LEI”) is a method to identify legal entities that engage in financial transactions. Let’s discuss LEI in more detail. LEI: Background Information The establishment of LEI was driven by the recognition by regulators around the world that there is a complete lack of transparency with respect to identifying parties to international […]
IRS Appeals Video Conference | IRS Tax Lawyer & Attorney
/in IRS Lawyers, Legal Notes /by ManagerIn May of 2019, Mr. Andrew Keyso, a deputy chief of the IRS Office of Appeals, stated that the Appeals Office is in the early stages of rolling out the technology to conduct video conferences as an option for Appeals conferences. This is great news for tax practitioners – an IRS Appeals video conference is […]
Finnish US Bank Accounts Face IRS John Doe Summonses | FATCA News
/in FATCA Lawyers, Legal Notes /by ManagerOn May 1, 2019, the United States District Court for the Western District of North Carolina (the “Court”) authorized the IRS to serve John Doe Summonses seeking information about Finnish residents who own secret US bank accounts (collectively Finnish US Bank Accounts). Let’s discuss this development concerning Finnish US bank accounts in more depth. Finnish […]
PLR TAM Comparison | IRS International Tax Lawyer & Attorney
/in International Tax Attorney, Legal Notes /by ManagerThe IRS Private Letter Rulings (“PLR”) and the IRS Technical Advice Memoranda (“TAM”) often get confused by non-practitioners. In this small essay, I will engage in a brief PLR TAM comparison in order to clarify the similarities and differences between both types of IRS administrative guidance. PLR TAM Comparison: Similarities Let’s begin our PLR TAM […]
IRS Issues FBAR Fact Sheet | FBAR FATCA Tax Lawyer & Attorney
/in FBAR Lawyers, Legal Notes /by ManagerOn April 4, 2019, the IRS issued the FBAR Fact Sheet in order to acquaint US taxpayers with this highly important reporting requirement for foreign accounts held by US persons. Let’s analyze the new fact sheet in more detail. FBAR Fact Sheet: Organizational Structure of the Fact Sheet The IRS FBAR Fact Sheet can be […]
FY 2018 DOJ Criminal Case Statistics | Tax Lawyer & Attorney Minneapolis
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerAn analysis of the fiscal year 2018 DOJ criminal case statistics reveals certain interesting patterns about federal criminal tax prosecution in that year. Let’s explore in more detail these patterns. 2018 DOJ Criminal Case Statistics: Typical Tax Criminal The analysis of the FY 2018 DOJ criminal case statistics reveals an interesting fact – a typical […]
CRS Success: 47 Million Financial Accounts Reported | FATCA Lawyer News
/in FATCA Lawyers, Legal Notes /by ManagerOn June 7, 2019, the Organization for Economic Cooperation and Development (“OECD”) announced that countries shared information concerning 47 million financial accounts under the OECD’s Common Reporting Standard (“CRS”). Let’s explore this CRS success in more detail. Measuring CRS Success: What is CRS? CRS can be called the response of the rest of the world […]
Hungarian Bank Accounts | US International Tax Lawyer & Attorney
/in international tax lawyer, Legal Notes /by ManagerUS taxpayers who own Hungarian bank accounts may have to comply with a large number of US tax reporting requirements. In particular, they need to be concerned about reporting income generated by their Hungarian bank accounts as well as disclosing the ownership of these accounts on FBAR and Form 8938. Other requirements may apply, but […]
2019 Third Quarter IRS Interest Rates | MN International Tax Law Firm
/in international tax lawyer, Legal Notes /by ManagerOn June 5, 2019, the Internal Revenue Service announced 2019 Third Quarter IRS Interest Rates. This quarter, the IRS interest rates will be reduced for the first time in years. 2019 Third Quarter IRS Interest Rates: 3rd Quarter and Interest Rates Defined Third quarter of 2019 begins on July 1, 2019 and ends on September […]
Minneapolis MN International Tax Lawyer & Attorney | PLR 201922010
/in international tax lawyer, Legal Notes /by ManagerOn May 31, 2019, the IRS released a Private Letter Ruling (“PLR”) on the extension of time to make an election to be treated as a disregarded entity for US tax purposes under Treas. Reg. Section 301.7701 (26 CFR 301.7701-3). Let’s explore this PLR 201922010 in more detail. PLR 201922010: Fact Pattern PLR 201922010 deals […]
IRC 965 Tax: Introduction | US International Tax Lawyer & Attorney
/in international tax lawyer, Legal Notes /by ManagerThe 2017 Tax Reform created the Internal Revenue Code Section 965, which requires US shareholders of foreign corporations to pay a new transition tax (hereinafter, “IRC 965 Tax”) in certain circumstances. In this short article, I will introduce the readers to the IRC 965 Tax. IRC 965 Tax: Taxpayers Who Are Targeted by the New […]
International Tax Lawyer & Attorney | April 2019 IRS Compliance Campaigns
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerOn April 16, 2019, the IRS Large Business and International division (LB&I) announced the approval of three additional compliance campaigns. Let’s discuss in more detail these April 2019 IRS compliance campaigns. April 2019 IRS Compliance Campaigns: Background Information In the mid-2010s, after extensive planning, the IRS decided to move LB&I toward issue-based examinations and a […]
Taylor Lohmeyer Law Firm Clients Face Potential IRS Audit | FBAR News
/in FBAR audit tax attorney, Legal Notes /by ManagerOn May 15, 2019, a Texas federal court ruled that the IRS can enforce a John Doe Summons for client information from Taylor Lohmeyer Law Firm because the firm failed to demonstrate that the attorney-client privilege protected this information. This is bad news for Taylor Lohmeyer Law Firm clients who now may have to face […]
Panamanian Bank Accounts | US International Tax Lawyer & Attorney
/in International Tax Attorney, Legal Notes /by ManagerA large number of US taxpayers own Panamanian bank accounts. These taxpayers have bank accounts in Panama for a variety of reasons: personal, business, tax planning and/or estate planning. Many of these account holders still do not realize that their Panamanian bank accounts may be subject to numerous reporting requirements in the United States. In […]
October 2018 IRS Compliance Campaigns | International Tax Lawyer & Attorney News
/in international tax lawyer, Legal Notes /by ManagerOn October 30, 2018, the IRS Large Business and International division (LB&I) has announced five additional compliance campaigns. Let’s discuss in more detail these October 2018 IRS compliance campaigns. October 2018 IRS Compliance Campaigns: Background Information By the middle of the 2010s, the IRS realized that the then-existing structure of the LB&I was not the […]
Employee Stock Option Sourcing Rules | International Tax Lawyer & Attorney
/in International Tax Attorney, Legal Notes /by ManagerEmployee stock option sourcing rules govern the US tax classification of income generated by stock options as US-source income or foreign-source income. In this article, I will provide a general overview of the employee stock option sourcing rules. Employee Stock Option Sourcing Rules: Importance of Income Sourcing Rules Income sourcing rules are very important in […]
September 2018 IRS Compliance Campaigns | International Tax Lawyer & Attorney News
/in international tax lawyer, Legal Notes /by ManagerOn September 10, 2018, the IRS Large Business and International division (“LB&I”) announced the creation of another five compliance campaigns. Let’s explore in more depth these September 2018 IRS Compliance Campaigns. September 2018 IRS Compliance Campaigns: Background Information Since January of 2017, the IRS has been regularly adding more and more compliance campaigns. The compliance […]
July 2018 IRS Compliance Campaigns | International Tax Lawyer & Attorney
/in international tax lawyer, Legal Notes /by ManagerOn July 2, 2018, the IRS announced the creation of another five compliance campaigns. Let’s discuss these July 2018 IRS Compliance Campaigns in more detail. July 2018 IRS Compliance Campaigns: Background Information The IRS compliance campaigns is the end result of a long period of planning by the IRS Large Business and International division (“LB&I”). […]
IRS Large Corporate Compliance Program | IRS Lawyer & Attorney
/in IRS Audit Lawyers, Legal Notes /by ManagerOn May 16, 2019, the IRS Large Business and International Division (“LB&I”) announced the creation of a new compliance program for the large corporations – Large Corporate Compliance program. The Large Corporate Compliance program will cover the oversight of the LB&I’s largest corporate taxpayers. It replaces the existing Coordinated Industry Case program. The replacement of […]
May 2018 IRS Compliance Campaigns | International Tax Lawyer & Attorney
/in irs lawyer minneapolis, Legal Notes /by ManagerOn May 21, 2018, the IRS announced the creation of another six compliance campaigns. Let’s explore these May 2018 IRS Compliance Campaigns in more detail. May 2018 IRS Compliance Campaigns: Background Information After a long period of planning, the IRS Large Business and International division (“LB&I”) finalized its new restructuring plan in 2017. Under the […]
FDII Export Incentive | Foreign Business Income Tax Lawyer & Attorney
/in international tax lawyer, Legal Notes /by ManagerThe 2017 Tax Cuts and Jobs Act (the “2017 tax reform” or “TCJA”) enacted a highly-lucrative incentive for US corporations to export directly from the United States – the Foreign-Derived Intangible Income (“FDII”) regime. In this article, I would like to introduce the readers in a general manner to the FDII export incentive contained in […]
2019 IRS Hiring Spree Targets US International Tax Compliance
/in FBAR audit tax attorney, Legal Notes /by ManagerOn May 11, 2019, the IRS Commissioner Chuck Rettig stated that the IRS is rapidly increasing the number of agents in certain divisions. US international tax compliance is the primary target of this 2019 IRS hiring spree. 2019 IRS Hiring Spree: Affected IRS Divisions The Commissioner announced this news while speaking at the American Bar […]
Offshore Bank Accounts Remain on the IRS 2019 Dirty Dozen List
/in FATCA Lawyers, Legal Notes /by ManagerOn March 15, 2019, the IRS announced that it will keep undisclosed offshore bank accounts on its 2019 Dirty Dozen list. 2019 Dirty Dozen List: Background Information The “Dirty Dozen” list is complied annually by the IRS. It consists of common tax scams and noncompliance schemes that the IRS prioritizes in its enforcement efforts. Many […]
March 2018 IRS Compliance Campaigns | International Tax Lawyer & Attorney
/in irs lawyer minneapolis, Legal Notes /by ManagerWith this article, we begin a series of articles dedicated to the description of the IRS compliance campaigns initiated between March of 2018 and April of 2019. This article is dedicated to the March 2018 IRS Compliance Campaigns. March 2018 IRS Compliance Campaigns: Background Information On March 13, 2018, the IRS Large Business and International […]
Noncompetition Agreement Income Sourcing | International Tax Lawyer
/in international tax lawyer, Legal Notes /by ManagerOftentimes, as part of their noncompetition agreement, a taxpayer may receive income for restraining from competing with another party in certain areas. An issue often arises with respect to international noncompetition agreement income sourcing rules – i.e. should the income paid as part of such a noncompetition agreement be considered US-source income or foreign-source income? […]
Amato Case: 5-Years in Prison for Secret Russian Bank Accounts | FBAR News
/in FBAR Litigation Lawyer & Attorney, Legal Notes /by ManagerFailure to file FBARs for secret Russian bank accounts and income tax evasion led to the imposition of a five-year prison sentence on a New Jersey chiropractor. This is the essence of the new IRS victory in the Amato case. Let’s explore this case in more detail, because the case demonstrates the long reach of […]
Czech Digital Tax Proposal | Digital Currency Tax Lawyer & Attorney
/in cryto tax lawyer, Legal Notes /by ManagerThe Czech Republic just joined an ever increasing list of countries who are introducing their own versions of the digital tax. Let’s explore this development in more detail. Czech Digital Tax Proposal: Overview The Czech Republic’s ministry of finance just announced that it will introduce by the end of May of this year a 7% […]
Polish Bank Accounts | International Tax Lawyer & Attorney Chicago IL
/in International Tax Attorney, Legal Notes /by ManagerA large number of Polish immigrants in the United States continue to maintain close ties to Poland, including the ownership of Polish bank accounts. The same is true for Polish citizens with “green cards” who reside outside of the United States during most of the year. Many of these new American tax residents do not […]
Business Service Income Sourcing | Business Tax Lawyer & Attorney Delaware
/in business tax lawyers minneapolis, Legal Notes /by ManagerBusiness service income sourcing is a highly important issue in US international tax law. In this article, I will explain the concept of business service income sourcing and discuss the general rules that apply to it. Please, note that this is a discussion of general rules only; there are important complications with respect to the […]
FFI FATCA Requirements: Introduction | FATCA Tax Lawyer & Attorney
/in FATCA Lawyers, Legal Notes /by ManagerSince July 1, 2014, the Foreign Account Tax Compliance Act (“FATCA”) has imposed heavy compliance burden on Foreign Financial Institutions (“FFIs”). In this brief essay, I want to provide a general overview of these FFI FATCA requirements so that the readers can begin to develop an understanding of FATCA.
IRS Interest Rates for the Second Quarter of 2019 | PFIC Tax Lawyer & Attorney
/in Legal Notes, tax lawyer St. Paul Minnesota /by ManagerOn February 25, 2019, the IRS announced that the IRS underpayment and overpayment interest rates will remain the same for the second quarter of 2019 as they were in the first quarter of 2019. The second quarter of 2019 begins on April 1, 2019 and ends on June 30, 2019. This is an important announcement […]
Sherayzen Law Office Successfully Completes 2019 April 15 Tax Season
/in International Tax Attorney, Legal Notes /by ManagerSherayzen Law Office successfully completes 2019 April 15 tax season. Our international tax team filed hundreds of complex tax forms and FBARs during this tax season.
German Bank Accounts | International Tax Lawyer & Attorney Minneapolis MN
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerMinneapolis MN international tax lawyer & attorney discusses US tax reporting of German bank accounts.
South African Bank Accounts | International Tax Lawyer & Attorney Los Angeles California
/in international tax lawyer, Legal Notes /by ManagerDue to various waves of emigration from South Africa since early 1990s, there is a significant number of South Africans who live in the United States. Many of these new US taxpayers continue to maintain their South African bank accounts even to this very day. These taxpayers need to be aware of the potential US […]
FBAR Financial Interest Definition | FBAR International Tax Lawyer & Attorney | FinCEN Form 114
/in FBAR, Lead Article /by ManagerFBAR tax lawyer and attorney explains the FBAR financial interest definition. FBAR tax lawyer discusses six different categories of FBAR financial interest.
FBAR Maximum Account Value Determination | FBAR Tax Lawyer & Attorney
/in FBAR Lawyers, Legal Notes /by ManagerFBAR lawyer discusses FBAR maximum account value determination
Joint Account FBAR Reporting | FBAR Tax Lawyer & Attorney
/in FBAR Lawyers, Legal Notes /by ManagerFBAR tax lawyer & attorney constantly deals with the issues of joint account FBAR reporting.
Disregarded Entity FBAR Obligations | FBAR Tax Lawyer & Attorney Houston
/in FBAR Lawyers, Legal Notes /by ManagerFBAR tax lawyer & attorney Houston discusses disregarded entity FBAR obligations. FBAR is not a tax form; hence taxpayers must ensure their disregarded entity FBAR compliance.
New Zealand Bank Accounts | International Tax Lawyer & Attorney Madison Wisconsin
/in FBAR Lawyers, Legal Notes /by ManagerThere is a vibrant community of New Zealanders in Wisconsin (though New Zealanders can be found in many other places in the United States). Many members of this community continue to maintain their pre-immigration New Zealand bank accounts. Some of these owners of New Zealand bank accounts are aware of at least some US tax […]
2018 FinCEN Form 114 Deadline | FBAR International Tax Lawyer & Attorney
/in FinCEN Form 114, Legal Notes /by ManagerThe 2018 FinCEN Form 114 deadline is approaching fast. It is definitely one of the most important deadlines that US taxpayers face in 2019. It is also one of the most confusing ones, because this form is not filed with a federal income tax return. Moreover, some taxpayers mistakenly treat 2018 FinCEN Form 114 as […]
2018 FBAR Deadline in 2019 | FinCEN Form 114 International Tax Lawyer & Attorney
/in FBAR Lawyers, Legal Notes /by ManagerThe 2018 FBAR deadline is one of the most important deadlines for US taxpayers in the calendar year 2019. Since FBAR is not filed with the federal income tax return, many taxpayers may miss this deadline. This is why Sherayzen Law Office is publishing this notice to US taxpayers. 2018 FBAR Deadline: Background Information FBAR […]
Italian Bank Accounts | International Tax Lawyer & Attorney New York New Jersey
/in international tax lawyer, Legal Notes /by ManagerUS tax requirements concerning Italian bank accounts can be quite burdensome and complex. The chief three US reporting requirements applicable to Italian bank accounts are: worldwide income reporting, FBAR and FATCA Form 8938. Let’s discuss each of these requirements in more depth. Italian Bank Accounts: US Tax Residents and US Persons Before we delve into […]
2019 IRS Standard Mileage Rates | IRS Tax Lawyer & Attorney
/in Legal Notes, tax lawyer st paul /by ManagerOn December 14, 2018, the IRS issued the 2019 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Let’s discuss in a bit more depth these new 2019 IRS Standard Mileage Rates. Beginning on Jan. 1, 2019, the standard mileage rates for the […]
Premier Minneapolis Minnesota Voluntary Disclosure Lawyer | International Tax Attorney
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerMr. Eugene Sherayzen, the founder and owner of Sherayzen Law Office, Ltd., is a premier Minneapolis Minnesota Voluntary Disclosure Lawyer. Why is this the case? Let’s explore the top five reasons for it. Premier Minneapolis Minnesota Voluntary Disclosure Lawyer: Experience Mr. Sherayzen started practicing law at the end of 2005. In other words, he has […]
Costa Rican Bank Accounts | International Tax Lawyer & Attorney Miami
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerInternational tax lawyer & attorney Miami discusses US requirements concerning Costa Rican bank accounts. International tax lawyers point out 3 most important: worldwide income reporting, FBAR and Form 8938
FinCEN Form 114 Business Filers | FBAR Lawyer & Attorney Delaware
/in FBAR lawyers Minnesota, Legal Notes /by ManagerFinCEN Form 114 Business Filers definition provided by international tax lawyer & attorney Delaware. FBAR lawyer explains the general rule and exception.
SFOP Non-Residency | Streamlined Foreign Offshore Procedures Lawyer
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerStreamlined Foreign Offshore Procedures (“SFOP”) is currently the preferred offshore voluntary disclosure option for US taxpayers who reside overseas, recently came to the United States or recently left the United States. Hence, the issue of SFOP eligibility (i.e. the ability of a taxpayer to participate in this program) is very important for these taxpayers. Today, […]
FinCEN Form 114 Filers | FBAR Tax Lawyer & Attorney Minnesota Minneapolis
/in FBAR, Legal Notes /by ManagerThe Report of Foreign Bank and Financial Accounts, FinCEN Form 114 (a/k/a FBAR) is arguably the most important information return concerning foreign accounts. Its importance stems first and foremost from the extremely severe Form 114 penalties, which range from criminal penalties of up to 10 years in prison to willful and even non-willful penalties that […]
2019 Offshore Voluntary Disclosure Options | International Tax Lawyers
/in Lead Article, offshore voluntary disclosure lawyers Minneapolis /by ManagerThe closure of the IRS flagship 2014 Offshore Voluntary Disclosure Program (“OVDP”) in September of 2018 posed a critical issue of the 2019 offshore voluntary disclosure options available to US taxpayers. This is precisely the issue that I would like to explore today – the 2019 offshore voluntary disclosure options available to US taxpayers who […]
FBAR United States Definition | FBAR Lawyer & Attorney Minneapolis MN
/in FBAR lawyers Minnesota, Legal Notes /by ManagerThe United States is defined differently with respect to different parts (and, sometimes even within the same part) of the United States Code. There is a specific definition of the United States for FBAR Purposes. In this brief essay, I would like to discuss the FBAR United States Definition and explain its importance to FBAR […]
Colombian Bank Accounts | International Tax Lawyer & Attorney Miami
/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerEven today many US owners of Colombian bank accounts remain completely unaware of the numerous US tax requirements that may apply to them. The purpose of this essay is to educate these owners about the requirement to report income generated by these accounts in the United States as well as the FBAR and FATCA obligations […]
Main Worldwide Income Reporting Myths | International Tax Attorney St Paul
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerIn a previous article, I discussed the worldwide income reporting requirement and I mentioned that I would discuss the traps or false myths associated with this requirement in a future article. In this essay, I will keep my promise and discuss the main worldwide income reporting myths. Worldwide Income Reporting Myths: the Source of Myths […]
Worldwide Income Reporting Requirement | IRS International Tax Lawyer
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerWorldwide income reporting is at the core of US international tax system. Yet, every year, a huge number of US taxpayers fail to comply with this requirement. While some of these failures are willful, most of this noncompliance comes from misunderstanding of the worldwide income reporting requirement. In this essay, I will introduce the readers […]
Mexican Bank Accounts & US Tax Obligations | International Tax Lawyers
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerIn this essay, I would like to discuss three main US tax obligations concerning Mexican bank accounts: the worldwide income reporting requirement, FBAR and Form 8938. I will only concentrate on the obligations concerning individuals, not business entities. Mexican Bank Accounts and US Tax Residents Before we delve into the discussion concerning US tax obligations, […]
Foreign Inheritance Definition | International Tax Lawyer & Attorney
/in foreign inheritance, Legal Notes /by ManagerForeign inheritance definition is a topic of crucial importance for both US income and US estate tax compliance, because domestic inheritance and foreign inheritance have vastly different income tax results and reporting requirements. Hence, the topic of foreign inheritance definition directly concerns millions of Americans who reside overseas and tens of millions of Americans who […]
IRS Waives 2018 Estimated Tax Penalty for Certain Taxpayers | Tax News
/in Legal Notes, tax lawyer St. Paul Minnesota /by ManagerOn January 16, 2019, the IRS announced that it would waive the 2018 estimated tax penalty for taxpayers who paid at least 85% of their total tax liability during 2018, either through federal income tax withholding, quarterly estimated tax payments or the combination of both of these payment methods. These changes will be integrated in […]
2018 FBAR Currency Conversion Rates | FBAR Tax Lawyer & Attorney
/in FBAR Lawyers, Legal Notes /by Manager2018 FBAR and 2018 Form 8938 instructions both require that 2018 FBAR Currency Conversion Rates be used to report the required highest balances of foreign financial assets on these forms. In the case of 2018 Form 8938, the 2018 FBAR Currency Conversion Rates is the default choice, not an exclusive one. The U.S. Department of Treasury […]
2019 Tax Filing Season Will Begin on January 28, 2019 | Tax Lawyer News
/in International Tax Attorney, Legal Notes /by ManagerOn January 7, 2019, the IRS confirmed that the 2019 tax filing season will begin on January 28, 2019. In other words, the 2019 tax filing season will begin on schedule despite the government shutdown. 2019 Tax Filing Season for 2018 Tax Returns and 2018 FBAR During the 2019 tax filing season, US taxpayers must […]
Sherayzen Law Office, Ltd. Conducts Foreign Inheritance Seminar | News
/in foreign inheritance, Legal Notes /by ManagerOn January 17, 2019, Mr. Eugene Sherayzen, an international tax attorney and owner of Sherayzen Law Office, Ltd., conducted a foreign inheritance seminar for the International Business Law and Probate and Trust Law Sections of the Minnesota State Bar Association. The title of the seminar was “Foreign Inheritance – the Pandora’s Box of U.S. International […]
2017 Tax Reform Seminar | U.S. International Tax Lawyer & Attorney
/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerOn April 19, 2018, Mr. Eugene Sherayzen, an international tax lawyer, co-presented with an attorney from KPMG at a seminar entitled “The 2017 U.S. Tax Reform: Seeking Economic Growth through Tax Policy in Politically Risky Times” (the “2017 Tax Reform Seminar”). This seminar formed part of the 2018 International Business Law Institute organized by the […]
EU Market Entry Seminar | US International Tax Lawyer & Attorney
/in business tax attorney Minneapolis, Legal Notes /by ManagerOn February 8, 2018, Mr. Eugene Sherayzen, an international tax lawyer, co-presented with three other attorneys in a seminar titled “EU Market Entry: Business and Tax Considerations” (the “EU Market Entry” seminar). The EU Market Entry Seminar was co-sponsored by the Business Law Section and International Business Law Section of the Minnesota State Bar Association. […]
FACC Seminar (French-American Chamber of Commerce Seminar) | News
/in business tax lawyers minneapolis, Legal Notes /by ManagerOn October 19, 2017, Mr. Eugene Sherayzen, an owner of Sherayzen Law Office and a highly experienced international tax attorney, conducted a seminar titled “Introduction to U.S. International Tax Compliance for U.S. Owners of Foreign Businesses” at the French-American Chamber of Commerce in Minneapolis, Minnesota (the “FACC Seminar”). The audience of the FACC Seminar consisted […]
Specified Domestic Entity Seminar | International Tax Lawyer & Attorney
/in FATCA Lawyers, Legal Notes /by ManagerOn August 17, 2017, the owner of Sherayzen Law Office, Mr. Eugene Sherayzen, conducted a seminar on the new FATCA reporting requirement concerning Form 8938, specifically the new filing category of Specified Domestic Entities (the “Specified Domestic Entity Seminar”). Mr. Sherayzen is a highly experienced attorney who specializes in U.S. international tax compliance, including FATCA […]
Minsk Seminar Conducted by US International Tax Lawyer & Attorney
/in international tax lawyer, Legal Notes /by ManagerOn June 9, 2017, Mr. Eugene Sherayzen, an international tax attorney and owner of Sherayzen Law Office, was the keynote speaker at a seminar “Introduction to U.S. Tax Compliance for U.S. Citizens and Green Card Holders Residing and Doing Business in Belarus” in Minsk, Republic of Belarus (the “Minsk Seminar”). The attorney conducted the entire […]
SLO’s 2017 Seminar on Business Lawyers’ International Tax Mistakes
/in international tax lawyer minnesota, Legal Notes /by ManagerOn February 23, 2017, Mr. Eugene Sherayzen, an international tax lawyer and owner of Sherayzen Law Office (“SLO”), conducted a seminar titled “Top 5 International Tax Mistakes Made by Business Lawyers”. The seminar was sponsored by the Corporate Counsel Section and International Business Law Section of the Minnesota State Bar Association. Mr. Sherayzen commenced the […]
Overseas Green Card Holder & US Tax Residency | Tax Lawyer & Attorney
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerWhile most US taxpayers understand that a US permanent resident who resides in the United States is a US tax resident, there seems to be a great deal of confusion over whether the same is true with respect to a US permanent resident who resides overseas (hereinafter, “Overseas Green Card Holder”). In other words, the […]
Employment Income Sourcing | International Tax Lawyer & Attorney
/in international tax lawyer, Legal Notes /by ManagerEmployment income sourcing is a very important tax issue for employees of US corporations sent overseas, employees of foreign corporations stationed in the United States and employees who work in different countries during a tax year. For employees who are tax residents of a foreign country, this issue will determine whether their income will be […]
FinCEN Form 114 and FBAR Are the Same Form | FBAR Tax Lawyers
/in FBAR, Legal Notes /by ManagerIn my practice, I often receive phone calls from prospective clients who treat FinCEN Form 114 and FBAR as two different forms. Of course, these are the same forms, but I have asked myself: why do so many taxpayers believe that FinCEN Form 114 and FBAR are two different forms? The simplest answer, of course, […]
Japanese Bank Accounts : Main US Tax Obligations | FATCA Tax Lawyer
/in FATCA Tax Attorney, Legal Notes /by ManagerDespite the fact that FATCA has been implemented already in July of 2014, a lot of US taxpayers are still unaware of their obligation to disclose their Japanese bank accounts in the United States. In this essay, I will discuss the three most important US international tax requirements concerning Japanese bank accounts: worldwide income reporting, […]
International Personal Services Sourcing Rules | International Tax Lawyer
/in international tax lawyer, Legal Notes /by ManagerIn a previous article, I explained that US tax law sources personal services to the place where these services are performed. What about a situation where such services are performed partially in the United States and partially outside of the United States (hereinafter, I will call such services “international personal services”)? In this article, I […]
Happy New Year 2019 from Sherayzen Law Office!
/in international tax lawyer, Legal Notes /by ManagerThe legal tax team of Sherayzen Law Office, Ltd. wishes a very Happy New Year 2019 to our clients, blog readers and all US taxpayers around the world! May this new year bring you good health, prosperity and happiness! And, of course, full and proper compliance with all US international tax laws. 2019 Will Be […]
Indian Bank Accounts : Key US Tax Obligations | International Tax Lawyer
/in FATCA Lawyers, Legal Notes /by ManagerDue to ongoing implementation of FATCA as well as the tax reform in India, more and more Indian Americans and US tax residents of Indian nationality are learning that they are required to disclose to the IRS their Indian bank accounts. Yet, there are still many more US taxpayers left who are either completely unaware […]
Personal Services Income Sourcing | International Tax Lawyer & Attorney
/in international tax lawyer, Legal Notes /by ManagerThis article continues our series of articles on the source of income rules. Today, I will explain the general rule for individual personal services income sourcing. I want to emphasize that, in this essay, I will focus only on individuals and provide only the general rule with two exceptions. Future articles will cover more specific […]
Bitcoin Payments Are Subject to UK Income Tax | International Tax News
/in cryto tax lawyer, Legal Notes /by ManagerOn December 19, 2018, the UK officials confirmed that Bitcoin payments received by UK tax residents will be subject to UK taxation. The HMRC is now clear: digital currency is not a currency or money. The exact purpose of a Bitcoin transaction seems to determine the exact tax treatment of it. For example, if you […]
Italian & French Digital Services Tax | Cryptocurrency Tax Lawyer
/in cryto tax lawyer, Legal Notes /by ManagerAs the EU talks on the single digital services tax have stalled, some major individual-member countries have moved to impose one independently in their own jurisdictions. On December 17 and 20, 2018, France and Italy announced their plans to impose their national digital services taxes. Spain and the United Kingdom already stated that they will […]
2018 Individual Tax Rates | International Tax Lawyer & Attorney
/in Legal Notes, tax lawyer St. Paul Minnesota /by ManagerThe Tax Cuts and Jobs Act of 2017 modified the tax brackets that existed in tax year 2017. In this short essay, I will discuss the new 2018 individual tax rates. 2018 Individual Tax Rates: Historical Background Tax rates seem to change every time there is a new President. For example, when President Bush got […]
Interest Income Sourcing | International Tax Lawyer & Attorney
/in international tax lawyer, Legal Notes /by ManagerThis article is a continuation of a recent series of articles on the US source of income rules. In this article, I would like to introduce the readers to the interest income sourcing rules. Interest Income Sourcing: Definition of “Interest” Let’s first understand what is meant by the word “interest”. It is very curious that […]
H.R. 7358 & Modified Residency-Based Taxation | International Tax News
/in Legal Notes, Taxation Law /by ManagerOn December 20, 2018, Congressman George Holding, a Republican from North Carolina and a member of the House Ways and Means Committee, introduced The Tax Fairness for Americans Abroad Act of 2018 (H.R. 7358). According to the analysis below, Sherayzen Law Office believes that H.R. 7358 seeks to modify it in a manner that moves […]
Source of Income: Sale of Real Property | International Tax Law Firm
/in International Tax Law, Legal Notes /by ManagerOne of the most common questions that often arises is whether a sale of real property is considered to be a foreign-source or US-source income. In this short essay, I will briefly describe the source of income rule for the sale of real property and discuss its importance. Sale of Real Property: What is “Source […]
Dividend Income Sourcing | International Tax Lawyer & Attorney
/in international tax lawyer, Legal Notes /by ManagerOne of the most important issues in US international tax law is the sourcing of income – i.e. the determination of whether the income is foreign or domestic for US tax purposes. In this article, I will introduce readers to US tax rules concerning dividend income sourcing (note, I will not be discussing substitute dividends […]
2019 First Quarter IRS Interest Rates Increase | Tax Lawyers MN
/in IRS Lawyers, Legal Notes /by ManagerOn December 6, 2018, the IRS announced that the 2019 First Quarter IRS interest rates for the underpayment and overpayment purposes will increase again. The increase in the 2019 First Quarter IRS interest rates follows the recent increases in interest rates by the Federal Reserve. After the new increase, the 2019 First Quarter IRS interest […]
Singapore Central Provident Fund & US Tax Compliance | FATCA Lawyer
/in international tax lawyer, Legal Notes /by ManagerThe Singapore Central Provident Fund is an important compliance issue for US owners of foreign accounts in Singapore. In fact, it could be the most common problem for these taxpayers. In this article, I would like to provide an overview of the main US tax compliance requirements for US taxpayers who have a Singapore Central […]
French Bank Accounts FBAR / FATCA Obligations | FATCA Law Firm
/in International Tax Attorney, Legal Notes /by ManagerThe FBAR and FATCA obligations with respect to French bank accounts are extensive and can often be quite burdensome for US owners of these accounts. This is one of the main reasons why France has been consistently one of the top sources of clients for my firm with respect to offshore voluntary disclosures. In this […]
Spanish Bank Accounts & US Tax Compliance | International Tax Lawyer
/in International Tax Attorney, Legal Notes /by ManagerDespite the surge in FATCA letters from Spanish banks in the past two years, there is a significant number of US taxpayers with Spanish bank accounts who still have not complied with their US tax obligations. In this essay, I would like to discuss the most common US tax reporting requirements of individual US owners […]
Lebanese Bank Accounts & US Taxes | Lebanon FATCA Lawyer & Attorney
/in FATCA Lawyers, Legal Notes /by ManagerDespite the domination of international tax compliance by FATCA since at least July of 2014, many US owners of Lebanese bank accounts are still not compliant with their US tax obligations. In fact, for many of them, the receipt of a FATCA letter is a huge surprise. In this essay, I would like to discuss […]
OVDP Closure Sets the Stage for a Dramatic Increase in IRS FBAR Audits
/in Lead Article, offshore voluntary disclosure lawyers Minneapolis /by ManagerThere has been virtually no discussion of the impact of the OVDP closure beyond how it affects the ability of willful taxpayers to settle their past noncompliance. This is very unfortunate, because there is a direct correlation between OVDP and IRS tax enforcement activities. In this article, I will discuss how the OVPD closure sets […]
SDOP Real Estate Penalty | Offshore Voluntary Disclosure Law Firm
/in Legal Notes, Streamlined Domestic Offshore Procedures /by ManagerOne of the most important considerations in an offshore voluntary disclosure is the type of assets that form the Penalty Base for the imposition of the Miscellaneous Offshore Penalty. In this article, I would like to explore the issue of whether there is such a thing as SDOP Real Estate Penalty. SDOP Real Estate Penalty: […]
4th Quarter 2018 Underpayment and Overpayment Interest Rates
/in International Tax Law, Legal Notes /by ManagerOn September 7, 2018, the IRS announced that the 4th Quarter 2018 underpayment and overpayment interest rates will not change from the 3rd Quarter of 2018. This means that, the 4th quarter 2018 IRS underpayment and overpayment interest rates will be as follows: five (5) percent for overpayments (four (4) percent in the case of […]
Sherayzen Law Office Successfully Completes October 2018 Tax Season
/in international tax lawyer, Legal Notes /by ManagerSherayzen Law Office, Ltd., successfully ended yet another tax season. The October 2018 tax season presented formidable challenges not only due to the diversity of the issues involved, but also the sheer volume of deadlines that needed to be completed between September 16 and October 15, 2018. Let’s analyze the October 2018 tax season in […]
October 15 2018 Deadline for FBARs and Tax Returns | US Tax Law Firm
/in international tax lawyer, Legal Notes /by ManagerWith just a week left before October 15 2018 deadline, it is important for US taxpayers to remember what they need to file with respect to their income tax obligations and information returns. I will concentrate today on four main requirements for US tax residents. 1. October 15 2018 Deadline for Federal Tax Returns and […]
2018 Egyptian Tax Amnesty | International Tax Lawyer & Attorney
/in FATCA, Legal Notes /by ManagerEgyptian Law 174 of 2018 announced the 2018 Egyptian Tax Amnesty program that commenced on August 15, 2018. Egypt is no stranger to tax amnesties; in fact, the very first documented tax amnesty program in the world is believed to be the one announced by Ptolemy V Epiphanes in 197 B.C. The 2018 Egyptian Tax […]
August 24 OVDP Deadline | OVDP Tax Lawyer & Attorney
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerThe fact that the IRS Offshore Voluntary Disclosure Program (“OVDP”) closes on September 28, 2018, obscured another important deadline that is much closer – the August 24 OVDP Deadline to submit the Preclearance Request. August 24 OVDP Deadline: What is a Preclearance Request? The Preclearance Request is basically a pre-application process to make sure that […]
Mizrahi-Tefahot Bank Rejects DOJ Settlement Offer | FATCA Tax Lawyer
/in FATCA, Legal Notes /by ManagerOn August 8, 2018, Mizrahi-Tefahot Bank (“Mizrahi-Tefahot”) informed the Tel Aviv Stock Exchange that its Board of Directors rejected a settlement offer from the US Department of Justice (“DOJ”). It appears that the DOJ offer was received by the bank on August 7, 2018. The DOJ proposed that Mizrahi-Tefahot pay $342 million to settle the […]
NPB Neue Privat Bank Signs Non-Prosecution Agreement | OVDP Lawyer
/in Legal Notes, Offshore Voluntary Disclosure /by ManagerOn July 18, 2018, the US Department of Justice (the “DOJ”) announced that it signed a Non-Prosecution Agreement with NPB Neue Privat Bank AG (“NPB”). Let’s explore in more detail the history of this case and its resolution. Background Information: 2001 QI Agreement between NPB and the IRS NPB is a Swiss private bank based […]
US Taxpayers with Lombard Odier Bank Accounts At Risk | OVDP News
/in FATCA Lawyers, Legal Notes /by ManagerOn July 31, 2018, the US Department of Justice (“DOJ”) announced that it signed an Addendum to a non-prosecution agreement with Bank Lombard Odier & Co., Ltd. (“Lombard Odier). The Addendum requires Lombard Odier to disclose additional 88 accounts; in other words, US taxpayers who own these additional Lombard Odier bank accounts are now at […]
FBAR Noncompliance & Taxpayer’s Options | FBAR Lawyer & Attorney
/in FBAR, Legal Notes /by ManagerFBAR noncompliance is the worst nightmare for US taxpayers due to enormous FBAR penalties even for non-willful taxpayers. US Taxpayers who are not facing an IRS examination or a DOJ (US Department of Justice) lawsuit have three options with respect to their FBAR noncompliance: (1) do nothing with respect to correcting their prior FBAR noncompliance, […]
Understand How IRS Amnesty Works Before Entering 2014 OVDP
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerLess than two months are left before the 2014 IRS Offshore Voluntary Disclosure Program (“2014 OVDP”) closed on September 28, 2018. 2014 OVDP may offer great benefits to taxpayers with undisclosed foreign accounts, such as the possibility of avoiding criminal penalties and greatly reducing FBAR civil penalties. Yet, entering 2014 OVDP also implies a great […]
Schedule C IRS Audit | Business Tax Lawyer & Attorney
/in IRS Audit Lawyers, Legal Notes /by ManagerOne of the most common types of IRS audits is the Schedule C IRS audit. In this article, I would like to introduce the readers to the Schedule C IRS audit. In particular, I would like to discuss the type of taxpayers who are affected by an IRS audit of Schedule C and the key […]
Streamlined Domestic Offshore Procedures Audits | SDOP Tax Lawyer
/in IRS Audit Lawyers, Legal Notes, Streamlined Domestic Offshore Procedures /by ManagerThe great majority of offshore voluntary disclosures are currently done through Streamlined Filing Compliance Procedures. Hence, the majority of IRS audits concerning offshore voluntary disclosures are focused on Streamlined Filing Compliance Procedures – the most common type is the Streamlined Domestic Offshore Procedures Audit. This article discusses the main stages of the Streamlined Domestic Offshore […]
Amending Tax Returns during An IRS Audit | IRS Audit Lawyer & Attorney
/in IRS Audit Lawyers, Legal Notes /by ManagerOne of the most interesting questions that arise during an IRS audit is whether a taxpayer (or his tax attorney) should amend his tax returns during an IRS audit. Amending tax returns during an IRS audit may offer great benefits as long as it is done properly, but this is not a strategy available in […]
2018 FBAR Civil Penalties | FBAR Tax Lawyer & Attorney
/in FBAR, Legal Notes /by ManagerFollowing the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, the FBAR civil penalties are adjusted every year by the IRS for inflation. In this brief article, I would like to describe the new 2018 FBAR Civil Penalties that may be assessed by the IRS with respect to FBAR noncompliance. 2018 FBAR Civil […]
Passport Revocation and Denial for Tax Debt | IRS Tax Lawyer & Attorney
/in irs lawyer minneapolis, Legal Notes /by ManagerStarting January 1, 2018, the State Department commenced to deny the requests for US passport issuance and renewal made by individuals with “seriously delinquent tax debt”. Moreover, the State Department has been granted the authority for US passport revocation with respect to these individuals. Let’s explore this new law on passport revocation and denial for […]
2018 FSI Ranks United States as Second Largest Secrecy Haven | FATCA
/in FATCA, Legal Notes /by ManagerParadoxically, while demanding that other countries comply with FATCA, the United States itself has become the second largest secrecy haven in the world according to the Financial Secrecy Index (“FSI”) released by the Tax Justice Network (“TJN”) at the end of January of 2018. Let’s explore why the 2018 FSI considers the United States a […]
IRS Prioritizes Combating Offshore Tax Cheating | Offshore Tax Lawyer
/in international tax lawyer, Legal Notes /by adminOn March 20, 2018, the IRS announced that offshore tax cheating – i.e. hiding money and other assets in unreported foreign accounts – remains on the IRS “Dirty Dozen” tax scams for the year 2018. Offshore Tax Cheating: What is the “Dirty Dozen” List? The IRS uses the “Dirty Dozen” list to describe various scams […]
Uruguay-US Social Security Agreement Sent to Congress | Tax Lawyer
/in international tax lawyer, Legal Notes /by adminOn March 19, 2018, President Trump sent the Uruguay-US Social Security Agreement to the US Senate. This is an important step toward the final ratification of the treaty that promises to benefit the citizens of both countries. Uruguay-US Social Security Agreement: What is a Social Security Agreement? A Social Security Agreement (also called a Totalization […]
FATCA Criminal Case Filed Against Foreigners | FATCA Lawyer & Attorney
/in FATCA Tax Attorney, Legal Notes /by adminOn March 22, 2018, the US Department of Justice (“DOJ”) announced that it charged four foreign residents – Panayiotis Kyriacou (resides in London, UK), Arvinsingh Canaye (resides in Mauritius), Adrian Baron (resides in Budapest, Hungary), and Linda Bullock (resides in St. Vincent/Grenadines) – with conspiracy to defraud the United States by failing to comply with […]
OECD Harmful Tax Practices & FDII | International Tax Law Firm
/in International Tax Law, Legal Notes /by adminThe Organization for Economic Co-operation and Development (“OECD”) has detailed base erosion and profit-shifting (“BEPS”) rules. Among these rules are the OECD rules for countering harmful tax practices (“OECD Harmful Tax Practices Rules”). The 2017 Tax Cuts and Jobs Act introduced a new tax concept in the US Internal Revenue Code – foreign-derived intangible income […]
3 Main Streamlined Domestic Compliance Disadvantages | SDOP Lawyer
/in Legal Notes, Streamlined Domestic Offshore Procedures /by adminIn a previous article, I described the three main advantages of doing an offshore voluntary disclosure through Streamlined Domestic Offshore Procedures (“Streamlined Domestic Compliance”). Today, I would like to discuss three main Streamlined Domestic Compliance disadvantages. Streamlined Domestic Compliance Disadvantages: Audit Risks The first main disadvantage of Streamlined Domestic Compliance is the potential IRS audit […]
2017 FBAR Currency Conversion Rates | FBAR Lawyer and Attorney
/in FBAR Lawyers, Legal Notes /by adminUsing proper currency conversion rates is a very important part of preparing 2017 FBAR and 2017 Form 8938. The instructions to both forms require (in case of FATCA Form 8938, this is the default choice) US taxpayers to use the 2017 FBAR Currency Conversion Rates published by the Treasury Department. The 2017 FBAR Currency Conversion […]
Streamlined Domestic Disclosure: Main Advantages | SDOP Attorney
/in Legal Notes, Streamlined Domestic Offshore Procedures /by adminAt this point, Streamlined Domestic Offshore Procedures (“Streamlined Domestic Disclosure”) is undoubtedly the most popular offshore voluntary disclosure option. Let’s explore three main reasons for this preference of Streamlined Domestic Disclosure among US taxpayers. Streamlined Domestic Disclosure: Background Information and General Requirements The IRS created the Streamlined Domestic Disclosure as an offshore voluntary disclosure option […]
2018 Post-OVDP Options | Foreign Accounts IRS Lawyer & Attorney
/in Lead Article, Streamlined Domestic Offshore Procedures /by adminIn a previous article, I discussed the recent IRS announcement with respect to the closure of the IRS Offshore Voluntary Disclosure Program (“OVDP”) on September 28, 2018. Today, I would like to predict the range of the 2018 post-OVDP options for offshore voluntary disclosures starting October of 2018. 2018 Post-OVDP Options: Streamlined Compliance Procedures As […]
IRS OVDP to End on September 28, 2018 | US OVDP Tax Law Firm
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by adminOn March 13, 2018, the IRS announced that it will be closing its flagship 2014 Offshore Voluntary Disclosure (“OVDP”) program on September 28, 2018. The closure of the IRS OVDP was already predicted by Sherayzen Law Office last year. Let’s analyze further this important development. Historical Overview of the IRS OVDP I already provided a […]
IRS Increases Interest Rates for the Second Quarter of 2018
/in IRS Lawyers, Legal Notes /by adminOn March 7, 2018, the Internal Revenue Service announced that the IRS underpayment and overpayment interest rates have increased for the second quarter of 2018. The second quarter of 2018 begins on April 1, 2018 and ends on June 30, 2018. The second quarter of 2018 IRS interest rates will increase by one percent and […]
Bitcoin is Property Under Israeli Tax Law | Cryptocurrency Tax Lawyer
/in cryto tax lawyer, Legal Notes /by adminOn February 19, 2018, the Israel Tax Authority (“ITA”) stated in a circular to tax professionals that cryptocurrencies, such as Bitcoin, are property under Israeli tax law. This view brings the Israeli tax law very much in line with the IRS position in the United States. Cryptocurrency is Property under Israeli Tax Law and Subject […]
IRS Requests Comments on OVDP Information Collection | OVDP Lawyer
/in Legal Notes, Offshore Voluntary Disclosure /by adminOn February 28, 2018, the IRS issued a request for comments from the general public with respect to the its OVDP Information Collection practices. Let’s explore this new development in more detail. OVDP Information Collection: Background Information on the OVDP The IRS Offshore Voluntary Disclosure Program (“OVDP” now closed) remains today the primary voluntary disclosure […]
South Korean Cryptocurrency Taxation of Exchanges | IRS Tax Lawyer
/in IRS Lawyers, Legal Notes /by adminIn January of 2018, South Korea announced that it will start taxing cryptocurrency exchanges. This is a highly important development in international tax law concerning cryptocurrencies, because South Korea is a major hub for cryptocurrency trading. Let’s delve a bit deeper into South Korean cryptocurrency taxation. South Korean Cryptocurrency Taxation of Exchanges The first important […]
IRS Fails to Recover a Large Erroneous Refund | Litigation Tax Attorney
/in IRS Lawyers, Legal Notes /by adminIn a recent case, the IRS failed to recover a large erroneous refund of $21 million that it gave to a company called Starr International Co. Inc. (“Starr”). The opinion was released on January 31, 2018 by the District Judge Christopher R. Cooper (U.S. District Court for the District of Columbia) who granted Starr’s summary […]
2017 FBAR Deadline | FinCEN Form 114 FBAR Lawyer & Attorney
/in FBAR Lawyers, Legal Notes /by adminFinCEN recently confirmed the 2017 FBAR deadline and the automatic extension option. 2017 FBAR Deadline: FBAR Background FinCEN Form 114, the Report of Foreign Bank and Financial Accounts, is commonly known as FBAR. US taxpayers should use this form to report their financial interest in or signatory authority over foreign financial accounts. Failure to timely […]
Section 1041 Definition of Divorce | Divorce Tax Attorney & Lawyer
/in IRS Lawyers, Legal Notes /by admin26 U.S.C. §1041(a)(2) states that transfers of property between former spouses are not taxable as long as they are “incident to divorce”. The question is what is the definition of divorce for Section 1041 purposes? Section 1041 Definition of Divorce: 26 U.S.C. §71(b)(2) The Treasury regulations specifically refer to 26 U.S.C. §71(b)(2) for the definition […]
Sherayzen Law Office Ltd | US International Tax Law Firm
/in International Tax Attorney, Legal Notes /by adminSherayzen Law Office PLLC hereby gives notice that, as of January 1, 2018, its official owner is Sherayzen Law Office, Ltd (“Sherayzen Law Office Ltd”). Sherayzen Law Office Ltd will continue to utilize “Sherayzen Law Office” as its trade name. Furthermore, Sherayzen Law Office Ltd will continue to maintain the disregarded entity (for tax purposes) […]
Overcoming Late IRC Section 1041 Transfer Presumption | IRS Lawyer & Attorney
/in IRS Lawyers, Legal Notes /by adminIn a previous article, I discussed that a late IRC Section 1041 transfer between former spouses is presumed to be unrelated to the cessation of the marriage. This means that such a transfer may not be considered tax-free for US tax purposes. In this article, I would like to explain what a late IRC Section […]
Ex-Spouse Property Transfers Incident to Divorce | Tax Lawyer & Attorney
/in IRS Lawyers, Legal Notes /by adminThis article introduces a series of articles on 26 U.S.C. §1041 and specifically the issue of tax treatment of ex-spouse property transfers incident to divorce. As a result of a divorce, it is very common for ex-spouses to transfer properties to each other as part of their settlement agreement. A question arises: are these ex-spouse […]
South Korean Inheritance Leads to Criminal Sentence for FBAR Violations
/in international tax lawyer, Legal Notes /by adminOn January 25, 2018, a South Korean citizen and a US Permanent Resident, Mr. Hyong Kwon Kim, was sentenced to prison for filing false tax returns and willful FBAR violations; additionally, he had to pay over $14 million in FBAR willful civil penalties. I already discussed Mr. Kim’s guilty plea and the main facts of […]
Broadcom Re-domiciliation Approved | International Tax Lawyer & Attorney
/in International Tax Law, Legal Notes /by adminOn January 29, 2018, Broadcom Board of Directors approved the plan for Broadcom re-domiciliation in the United States. This move was expected after Broadcom’s November of 2017 pledge to president Trump that the company would return to the United States. Broadcom Re-domiciliation: A Story of Tax Inversion and Tax Remorse The story of the Broadcom […]
2018 FBAR Criminal Penalties | FBAR Lawyer & Attorney
/0 Comments/in FBAR, Legal Notes /by admin2018 FBAR criminal penalties should be on the mind of any US taxpayer who willfully failed to file his FBARs or knowingly filed a false FBAR. In this essay, I would like to do an overview of the 2018 FBAR criminal penalties that these noncompliant US taxpayers may have to face. 2018 FBAR Criminal Penalties: […]
US Taxpayers’ Nightmare Continues: FBAR Penalty Inflation Adjustment
/0 Comments/in FBAR, Legal Notes /by adminAs if the FBAR penalties were not frightening enough, Congress has mandated the IRS to adjust the FBAR penalties to account for inflation. As a result, the already complicated and severe system of FBAR penalties became even more complex and ruthless. In this article, I would like provide a general overview of the FBAR penalty […]
Cyprus Tax Amnesty Extended | FATCA Lawyer & Attorney
/0 Comments/in FATCA, Legal Notes /by adminFor the second time now, the Cyprus Tax Amnesty has been extended. Let’s discuss in more detail the new deadline and the terms of the Cyprus Tax Amnesty. Cyprus Tax Amnesty: Deadline Extensions The original deadline for the Scheme for the Settlement of Overdue Taxes (the official name of the Cyprus Tax Amnesty) was October […]
Specified Domestic Entity: Passive Test | FATCA Form 8938 Lawyer & Attorney
/0 Comments/in IRS Form 8938 tax attorney, Legal Notes /by adminThis article is published as part of a long series of articles on the Specified Domestic Entity (“SDE”) Definition. In a previous article, I stated that the term “formed or availed of” consists of two legal tests: the Closely-Held Test and the Passive Test. Since I already explained the general requirements of the Closely-Held Test […]
Shakira Tax Evasion is Reportedly Investigated by Spain | Tax Law News
/0 Comments/in IRS Lawyers, Legal Notes /by adminOn January 23, 2018, the Spanish Newspaper based in Madrid “El País” broke the news that the Colombian Singer Shakira (full name Shakira Isabel Mebarak) is being reportedly investigated by the Spanish tax authorities for tax evasion. Let’s explore the alleged Shakira tax evasion investigation in more detail. Alleged Shakira Tax Evasion Investigation is Centered […]
Swiss Voluntary Disclosures Rise as Swiss AEOI Compliance Nears
/0 Comments/in FATCA, Legal Notes /by adminThe voluntary disclosures by Swiss taxpayers jumped dramatically in 2017. The most likely reason for the increase is the fact that the Swiss government started to collect information under its numerous Automatic Exchange of Information (“AEOI”) agreements. Let’s analyze in more detail this connection between the Swiss voluntary disclosures and the Swiss AEOI Compliance. Swiss […]
IMF Wants “Modern” Croatian Real Estate Tax | Tax Lawyer News
/0 Comments/in international tax lawyer, Legal Notes /by adminOn January 16, 2018, the International Monetary Fund (“IMF”) released its 2017 Article IV consultation notes with respect to Croatia. Among its recommendations is the introduction of a modern Croatian Real Estate Tax. Croatian Real Estate Tax: IMF assessment of Croatian Economy The IMF began on the positive note stating that, in 2017, Croatia continued […]
Form 8938 Filing Thresholds | FATCA Tax Lawyer and Attorney Update
/0 Comments/in FATCA, Legal Notes /by adminForm 8938 is one of the most important US international tax forms with its own sophisticated penalty structure. Hence, taxpayers should strive to understand when they are required to file the form. In this context, I would like to focus in this essay on the Form 8938 Filing Thresholds. General Relevant Criteria in the Determination […]
2018 Government Shutdown is the IRS Nightmare | IRS Lawyer & Attorney
/0 Comments/in IRS Lawyers, Legal Notes /by adminA government shutdown is always bad for the normal functioning of federal agencies, but the 2018 government shutdown spells disaster for the IRS, especially if it lasts for a significant amount of time. 2018 Government Shutdown Comes at the Worst Time for the IRS What makes the current 2018 government shutdown so bad is the […]
Specified Domestic Entity Form 8938 Filing Threshold | FATCA Lawyer
/0 Comments/in IRS Form 8938 tax attorney, Legal Notes /by adminThe Specified Domestic Entity Form 8938 filing threshold is likely to be very easily satisfied by the majority of Specified Domestic Entities. With the major tax return filing deadlines just two or three months away (depending on whether an entity is a corporation, a partnership or a trust), every Specified Domestic Entity must assess whether […]
Home Equity Tax Deduction Eliminated in 2018 | Tax Lawyers News
/0 Comments/in Legal Notes, tax lawyer St. Paul Minnesota /by ManagerThe Home Equity Tax Deduction used to be one of the most common deductions used by US taxpayers. The Tax Cuts and Jobs Act of 2017 eliminated this deduction. Let’s take a brief look at the Home Equity Tax Deduction and what its elimination may mean for your US tax return. Home Equity Tax Deduction: […]
Specified Domestic Entity: Closely-Held Test | 8938 Lawyer & Attorney
/0 Comments/in Form 8938 lawyers, Legal Notes /by ManagerIn a previous article, I introduced the key term of the Specified Domestic Entity (“SDE”) Definition for corporations and partnerships that may be required to file FATCA Form 8938: “formed or availed of”. At that point, I stated that this term required that a business entity satisfies two legal tests. One of these tests is […]
Specified Domestic Entity: Formed or Availed Of | FATCA Lawyer & Attorney
/0 Comments/in Form 8938 lawyers, Legal Notes /by ManagerWe are continuing our series of articles on the Specified Domestic Entity definition. In previous articles, I already explained what entities are considered to be domestic and what kind of foreign assets are included in the Specified Foreign Financial Assets. In this article, I would like to introduce the key part of the definition of […]
Specified Individual | FATCA International Tax Lawyers and Attorneys
/0 Comments/in Form 8938 lawyers, Legal Notes /by ManagerSpecified Individual is a key tax term that must be correctly understood in order to properly identify the persons who are required to file FATCA Form 8938. In this brief article, I will describe the general definition of a Specified Individual for Form 8938 purposes. Specified Individual: FATCA Form 8938 Background In 2010, one of […]
Specified Domestic Entity: Domestic Entity | FATCA Lawyer & Attorney
/0 Comments/in IRS Form 8938 tax attorney, Legal Notes /by ManagerThis is the second article from the series of articles concerning the definition of a Specified Domestic Entity. Today, I will explore what business entities are considered to be “Domestic”. Specified Domestic Entity Background Information Specified Domestic Entity is a new category of FATCA Form 8938 filers. Under FATCA, Form 8938 has to be filed […]
Treasury List of Boycott Countries Published | Tax Lawyer & Attorney
/0 Comments/in IRS Lawyers, Legal Notes /by ManagerOn January 8, 2018, the US Treasury Department published a list of boycott countries. Let’s analyze what is meant here by Boycott Countries. Boycott Countries: The Meaning of Boycott Under IRC Section 999(b)(3) IRC Section 999(a)(3) requires the Department of the Treasury to publish (at least on a quarterly basis) a current list of countries […]
Disclosure of Swiss Bank Staff Details to the IRS Blocked by Swiss Court
/0 Comments/in FATCA, Legal Notes /by ManagerOn January 3, 2018, a decision of the Swiss Federal Court (the nation’s highest court) dated December 18, 2017, was published, prohibiting automatic disclosure of the Swiss bank staff details to the IRS and the US DOJ. Let’s analyze this decision in more detail. Disclosure of Swiss Bank Staff Details: History of the Case The […]
Toledo Tax Lawyer and Attorney | Ohio Tax Lawyers
/0 Comments/in international tax lawyer, Legal Notes /by ManagerA Toledo Tax Lawyer who specializes in international tax law does not necessarily have to be a tax lawyer who actually resides in Toledo. An international tax lawyer who offers US international tax law services to residents of Toledo, Ohio, may also be considered a Toledo Tax Lawyer. Let’s analyze a bit deeper why this […]
Tampa Foreign Accounts Lawyer and Attorney | Florida Tax Lawyers
/0 Comments/in international tax lawyer, Legal Notes /by ManagerTampa Foreign Accounts Lawyer is an interesting specialty among international tax lawyers who offer their foreign account tax compliance services to residents of Tampa, Florida. The term Tampa Foreign Accounts Lawyer does not simply refer to a lawyer who is physically located in Tampa, but also covers lawyers who reside outside of Tampa. Let’s explore […]
Ireland-Kazakhstan Tax Treaty Ratified | International Tax Lawyer News
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerOn December 29, 2017, the President of Kazakhstan Nazarbayev signed the law for the ratification of the Ireland-Kazakhstan Tax Treaty for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income. History of the Ireland-Kazakhstan Tax Treaty The Ireland-Kazakhstan Tax Treaty was originally signed in Astana on April […]
Guam & American Samoa Are Non-Cooperative Tax Jurisdictions | News
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerOn December 5, 2017, the European Union (the EU) Council published its list of the non-EU non-cooperative tax jurisdictions. The list included American Samoa and Guam unleashing strenuous objections from the United States. Full List of Non-Cooperative Tax Jurisdictions A total of seventeen countries made it to the list of non-cooperative tax jurisdictions: American Samoa, […]
Cyprus-Saudi Arabia Tax Treaty Signed | International Tax Lawyers
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerOn January 3, 2018, the “Convention for the Avoidance of Double Taxation with respect to Taxes on Income and for the Prevention of Tax Evasion between the Republic of Cyprus and the Kingdom of Saudi Arabia” or the Cyprus-Saudi Arabia Tax Treaty was signed in Riyadh, Saudi Arabia. The Cyprus-Saudi Arabia Tax Treaty was signed […]
EU Tax Harmonization Initiative Stalled by Ireland and Hungary | Tax News
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerThe EU Tax Harmonization initiative faced a joint opposition of Ireland and Hungary in early January of 2018. Both countries are vehemently opposed to any effort that would “tie their hands” in terms of their corporate tax policies. The EU Tax Harmonization Initiative Tax Harmonization is basically a policy that aims to adjust the tax […]
2018 Tax Filing Season | International Tax Lawyer News
/0 Comments/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerOn January 4, 2018, the IRS announced that the 2018 tax filing season for the tax year 2017 will commence on January 29, 2018. This date was chosen by the IRS to make sure its software incorporates the full impact of the Tax Cuts and Jobs Act of 2017 on the 2017 tax returns. 2018 […]
Streamlined Audit Interview | Streamlined Audit Tax Lawyers
/0 Comments/in IRS Audit Lawyers, Legal Notes /by ManagerIn an earlier article, I described the main features of an IRS audit of a voluntary disclosure made pursuant to the Streamlined Domestic Submission Procedures (“Streamlined Submission Audit”). Today, I would like to discuss a very specific feature of this process – Streamlined Audit Interview. Streamlined Audit Interview: Background Information on Streamlined Domestic Offshore Procedures […]
Belarus-Spain Tax Treaty Approved | FATCA Lawyer News
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerOn December 19, 2017, the Belarusian Council of the Republic, which is the upper chamber of the Belarusian parliament, approved a law on the ratification of the pending Belarus-Spain Tax Treaty. The Belarus-Spain Tax Treaty will cover both income and capital gain taxes and is meant to prevent the double taxation of the same income […]
Streamlined Submission Audit | SDOP Audit Tax Lawyer
/0 Comments/in FBAR audit tax attorney, Legal Notes /by ManagerAn increasing number of submissions under the Streamlined Domestic Offshore Procedures are subject to an IRS audit (hereinafter “Streamlined Submission Audit”). In this article, I will explain what a Streamlined Submission Audit is and what a taxpayer should expect during the Audit. Streamlined Submission Audit: Background Information on Streamlined Domestic Offshore Procedures Streamlined Domestic Offshore […]
IRS International No Rule List Updated | International Tax Lawyer News
/0 Comments/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerOn January 2, 2018, the IRS issued Rev. Proc. 2018-7 (2018-1 IRB 271) to update its existing international No Rule list. I will quickly overview what the No Rule List is and provide a copy of Sections 3 and 4 of the No Rule List. What is an International No Rule List? It may be […]
Happy New Year 2018 From Sherayzen Law Office
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerOur team at Sherayzen Law Office wishes a very Happy New Year 2018 to our clients; colleagues at other law firms; judges of state and federal courts; our website blog readers; and our followers on Facebook, Twitter, YouTube and other social media. Year 2017 was another highly successful year at Sherayzen Law Office. Our tremendous […]
Tax Cuts & Jobs Act: 2018 Standard Deduction and Exemptions
/0 Comments/in International Tax Lawyers Rochester Minnesota, Legal Notes /by ManagerThe Tax Cuts and Jobs Act of 2017 made dramatic changes that affected pretty much every US taxpayer. This is the first article of the series of articles on the Act. I will start this series with the discussion of simple US domestic issues (such as 2018 standard deduction and personal exemptions), then gradually turn […]
Prepaid 2018 Real Property Taxes as a Tax Strategy | Tax Lawyers News
/0 Comments/in Legal Notes, st paul tax lawyers /by ManagerThe Tax Cuts and Jobs Act of 2017 radically changed the US tax system with respect to deductible state and local income taxes, including real property taxes. Starting tax year 2018, real estate, person property, income taxes and sales taxes are deductible only up to $10,000. This means that people with high property taxes have […]
IRS 2018 Standard Mileage Rates | Tax Lawyers Twin Cities
/0 Comments/in Legal Notes, tax lawyers st louis park /by ManagerEarlier this month, the IRS issued the option IRS 2018 standard mileage rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.Earlier this month, the IRS issued the option IRS 2018 standard mileage rates to calculate the deductible costs of operating an automobile for business, charitable, medical or […]
First Quarter 2018 IRS Underpayment Interest Rates | Tax Lawyer MN
/0 Comments/in International Tax Law, Legal Notes /by ManagerOn December 5, 2017, the IRS announced that the First Quarter 2018 IRS underpayment interest rates and overpayment interest rates will remain the same as they were in the last quarter of 2017. This means that, the First Quarter 2018 IRS underpayment interest rates and overpayment interest rates will be as follows: On December 5, […]
Abandoned OVDP Preclearance Requests Are Targeted by IRS
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerSince January 31, 2017, all of the denied and abandoned OVDP Preclearance requests have become the target of a special IRS compliance campaign. Let’s analyze in more detail this important development and attempt to predict what may be its main consequences for noncompliant or formerly noncompliant US taxpayers. Denied and Abandoned OVDP Preclearance Requests: OVDP […]
New Irish Software to Combat Offshore Tax Evasion | Tax Lawyer News
/0 Comments/in FATCA Tax Attorney, Legal Notes /by ManagerThe Irish Revenue is expanding its tax enforcement capabilities through new Irish software. This new Irish software will provide the Irish Revenue with a unique type of a multilateral analysis of a taxpayer in order to combat offshore tax evasion. This is definitely a new development in international tax enforcement and it is the one […]
Reducing Form 5471 Penalties | Form 5471 Tax Lawyer & Attorney
/0 Comments/in IRS Form 5471, Legal Notes /by ManagerReducing Form 5471 penalties has become a big headache for US shareholders of foreign corporations due to a very aggressive enforcement stance by the IRS. In this essay, I would like to explore the main option for reducing Form 5471 penalties – the Reasonable Cause Exception. Reducing Form 5471 Penalties: What is Form 5471? 26 […]
IRS Written Advice Abatement Procedures | IRS Tax Lawyer
/0 Comments/in IRS Lawyers, Legal Notes /by ManagerThis is the concluding article in our series of articles on the topic of the IRS Written Advice Defense. In prior articles, we have outlined the general legal test of the IRS Written Advice Defense and described each of the three prongs of this test. In this article, I would like to discuss the IRS […]
IRS Written Advice Defense: Adequate & Accurate Information | Tax Lawyer
/0 Comments/in IRS Audit Lawyers, Legal Notes /by ManagerThis is the fourth article on the topic of the IRS Written Advice Defense under 26 U.S.C. §6404(f). The first three articles outlined the legal test for the Defense and described the first and the second prongs of the test. In this say, I will briefly discuss the final third prong of the IRS Written […]
IRS Written Advice Defense & The Written Request | Tax Lawyers MN
/0 Comments/in IRS Lawyers, Legal Notes /by ManagerThis article is a continuation of the series of articles on the IRS Written Advice Defense. In the first article of this series, I outlined the legal test for the Defense. The second article of the series focused on the first prong of that test. In this essay, I would like to briefly highlight the […]
IRS Written Advice Defense: Reasonable Reliance | International Tax Lawyer
/0 Comments/in irs lawyer minneapolis, Legal Notes /by ManagerIn a previous article, I outlined the three-prong legal test of the IRS Written Advice Defense. This article aims to explore the first prong of that test: the IRS written advice was reasonably relied upon by the taxpayer. In particular, I would like to explain two important concepts of this part of the test: “advice”and […]
IRS Written Advice – Legal Test | International Tax Lawyer & Attorney
/0 Comments/in IRS Audit Lawyers, Legal Notes /by ManagerIRS written advice can constitute a reasonable cause defense against an imposition of pretty much any tax penalty related to noncompliance that stemmed from that advice. This essay begins a series of articles with respect to various aspects of the IRS Written Advice Defense. Today, I will outline the statutory authority and the main legal […]
El Salvador Tax Amnesty Program | International Tax Lawyer & Attorney
/0 Comments/in International Tax Attorney, Legal Notes /by ManagerOn October 10, 2017, the Salvadorian Congress enacted the Legislative Decree No. 804, “La Ley Transitoria para el Cumplimiento Voluntario de Obligaciones Tributarias y Aduaneras”. After noting the experience of the past El Salvador voluntary disclosure options, the Decree announced a three-month long El Salvador Tax Amnesty Program. Let’s briefly explore the main contours of […]
OVDP & Streamlined Disclosure May Terminate Soon | Foreign Accounts Lawyer
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn November 15, 2017, the IRS sent yet another signal that certain offshore voluntary disclosure options, particularly the OVDP & Streamlined Disclosure options, will be significantly modified or even terminated as the IRS proceeds with the LB&I Compliance Campaigns. This means that US taxpayers with undisclosed foreign accounts need to hurry up if they wish […]
New PFIC Foreign Trust Rules by June of 2018 | PFIC Lawyer & Attorney
/0 Comments/in foreign trust, Legal Notes /by ManagerOn November 9, 2017, the IRS gave a clear signal that it is working on new PFIC Foreign Trust rules and hopes to have these new regulations published by June of 2018. The IRS also indicated that other areas of PFIC rules will be affected and it expects the Subpart F regulations to come out […]
Egyptian Bank Accounts & FATCA Letter | FATCA Lawyer & Attorney
/0 Comments/in FATCA Letter, Legal Notes /by ManagerYear 2017 marked an important increase in FATCA compliance throughout the Middle East, despite the fact that most countries of this region did not sign a FATCA implementation treaty. US owners of Egyptian bank accounts were among the most affected in the area. In this brief essay, I will explain what receiving a FATCA Letter […]
Manafort FBAR Violations Indictment | International Tax Lawyer & Attorney
/0 Comments/in FBAR Litigation Lawyer & Attorney, Legal Notes /by ManagerOn October 30, 2017, Mr. Paul Manafort was charged with FBAR violations among other charges. Manafort FBAR violations charges were filed as a result of an ongoing investigation led by special counsel Robert Mueller. While the investigation should have been searching for possible ties between Mr. Manafort and the Russian government, it found something completely […]
New 11 IRS Compliance Campaigns | International Tax Lawyer & Attorney
/0 Comments/in International Tax Attorney, Legal Notes /by ManagerOn November 3, 2017, the IRS Large Business and International Division (“LB&I”) announced the rollout of additional 11 IRS Compliance Campaigns in addition to the 13 already existing campaigns. Most of these campaigns directly address the IRS concerns with respect to US international tax law compliance. Let’s explore these new 11 IRS Compliance Campaigns. New […]
Sale of Russian Real Estate by US Residents | International Tax Lawyer
/0 Comments/in International Tax Attorney, Legal Notes /by ManagerSale of Russian Real Estate by US permanent residents was the subject of a recent guidance letter from the Russian Ministry of Finance (“MOF”). Guidance Letter 03-04-05/66382 (dated October 11, 2011, but released only earlier this week) provides a thorough analysis of questions concerning the sale of real estate in Russia by a US resident […]
2018 OVDP Changes Imminent | International Tax Lawyer & Attorney Update
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn October 26, 2017, the IRS sent a clear signal that OVDP changes are coming soon. The signal that the 2018 OVDP changes are imminent came from Mr. Daniel Price, an attorney with the IRS Office of Chief Counsel, Small Business/Self-Employed Division, who participated in a panel discussion of offshore accounts and compliance at the […]
2018 FBAR Audits Set to Increase | IRS FBAR Audit Lawyer & Attorney
/0 Comments/in FBAR audit tax attorney, Legal Notes /by Manager2018 FBAR audits are set to increase at a dramatic pace. In this article, I would like to discuss what the FBAR audits are and why 2017-2018 will be the period of time when we believe that the FBAR audits will gain as a percentage of the overall IRS audits compared to earlier years. 2018 […]
FBAR Safe Deposit Box Reporting | FBAR Tax Lawyer & Attorney
/0 Comments/in FBAR lawyers Minnesota, Legal Notes /by ManagerOne of the most common questions that US taxpayers have is regarding FBAR Safe Deposit Box reporting requirements. While the general answer is clear, there may be complications in certain cases. General FBAR Safe Deposit Box Reporting Requirements In general, a safe deposit box is not considered to be a financial account and, therefore, not […]
Lebanese Taxes Set to Increase in 2017 & 2018 | FATCA Lawyer Lebanon
/0 Comments/in international tax lawyer, Legal Notes /by ManagerOn October 9, 2017, the Lebanese Parliament passed for the second time a controversial tax bill which may increase several Lebanese taxes. The passage of this increase in Lebanese taxes comes after a turbulent legislative history and it is not yet certain that it will actually become the law and survive a Constitutional challenge. History […]
FBAR Litigation to Skyrocket in 2017 & 2018 | FBAR Lawyer & Attorney
/0 Comments/in FBAR Litigation Lawyer & Attorney, Legal Notes /by ManagerAfter the implementation of FATCA in 2014, Sherayzen Law Office made a prediction that there would be a major increase in FBAR litigation a few years later once the IRS is able to process data obtained through FATCA and the Swiss Bank Program. This prediction is now becoming a reality as the US Department of […]
IRS Announces 2018 Pension Plan Limitations | Tax Lawyer Update
/0 Comments/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn October 27, 2017, the IRS announced the cost of living adjustments affecting 2018 Pension Plan limitations. 2018 Pension Plan Limitations: Summary of Main Changes 1. The first main change in 2018 Pension Plan Limitations affects all employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan. In 2018, […]
Czech Bank Accounts: Lawyer Finds Compliance Problems With FBAR and FATCA
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerFor years, the Czech Republic has held a position within the top fifteen countries among our firm’s voluntary disclosure clients. At the end of May and early June of 2017, our firm’s owner, international tax attorney Eugene Sherayzen, made a trip to the Czech Republic to find out why there are so many clients with […]
4th Quarter 2017 Underpayment, Overpayment & PFIC Interest Rates
/0 Comments/in IRS Lawyers, Legal Notes /by ManagerOn September 8, 2017, the IRS announced that the 4th Quarter 2017 underpayment and overpayment interest rates will remain the same as they were in the third quarter of 2017. The IRS underpayment interests also govern the PFIC interest rates under the default Section 1291 method of calculation. PFIC interest rates are very important not […]
Specified Foreign Financial Assets | Form 8938 International Tax Lawyers
/0 Comments/in IRS Form 8938 tax attorney, Legal Notes /by ManagerSpecified Foreign Financial Assets is one of the most important terms in contemporary US international tax law. In this article, I will explore what these Specified Foreign Financial Assets are and why they play such an important role in modern US international tax compliance. Specified Foreign Financial Assets and FATCA In order to understand the […]
Specified Domestic Entity Definition | FATCA Form 8938 Tax Lawyers Update
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerThe recent introduction of the new concept of Specified Domestic Entity by the IRS represents a major expansion of the application of FATCA to US businesses and US trusts. For tax years beginning after December 31, 2015, a domestic corporation, partnership or trust classified as a Specified Domestic Entity must file FATCA Form 8938 with […]
HSBC Bangladesh FATCA Letter | FATCA Lawyers Paterson NJ
/0 Comments/in FATCA Letter, Legal Notes /by ManagerUS taxpayers who own accounts outside of the United States should remember that, in order to open a new account (even if you already have an existing account), foreign banks throughout the world require the submission of various documents pursuant to FATCA. In this legal note, I am providing a list of the documents required […]
False FBARs for German and Israeli Bank Accounts Lead to Criminal Indictment
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn July 20, 2017, the US Department of Justice announced that Mr. Teymour Khoubian was indicted by a federal grand jury in the Central District of California for corruptly endeavoring to impede the internal revenue laws, filing false tax returns and filing false FBARs regarding his German and Israeli bank accounts and making false statements […]
Former Credit Suisse Banker Pleads Guilty | FATCA Lawyer Duluth
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerOn July 19, 2017, Ms. Susanne D. Rüegg Meier, a citizen of Switzerland, pleaded guilty to conspiring to defraud the United States in connection with her work as the head of a team of bankers for Credit Suisse AG. The announcement of this plea by a former Credit Suisse Banker came from the U.S. Department […]
IRS Office of Appeals to Pilot Internet Virtual Conference Option
/0 Comments/in IRS Audit Lawyers, Legal Notes /by ManagerOn July 24, 2017, the IRS Office of Appeals announced that it will soon pilot a new Internet virtual conference option for taxpayers and their representatives. This new option will offer an additional choice for holding taxpayer conferences and will come as close as possible to a “face-to-face” meeting. Internet Virtual Conference Option: Existing Options […]
Precious Metals Broker Indicted for Using Shell Corporations to Conceal Income
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn April 12, 2017, a federal grand jury sitting in the Eastern District of New York returned an indictment, which was unsealed on May 24, 2017, charging Mr. Christopher Wolf, who operated Rothchild & Associates LLC (in New York), with tax evasion and aiding and assisting in the preparation of false tax returns achieved by […]
A Senior Citizen With Offshore Accounts in Panama Pleads Guilty | IRS News
/0 Comments/in FBAR Lawyers, Legal Notes /by ManagerOn May 26, 2017, the IRS scored another victory against Offshore Accounts in Panama and again against a senior citizen. This time, Ms. Joyce Meads, a 73-year old Texas resident, pleaded guilty to conspiring to defraud the United States by using offshore accounts in Panama to conceal more than $1.3 million in royalty income that […]
IRS Wins Against Wells Fargo’s Tax Shelter Scheme | Int’l Tax Lawyers MN
/0 Comments/in International Tax Law, Legal Notes /by ManagerOn May 25, 2017, the IRS sealed another victory against the infamous abusive tax shelter known as STARS (Structured Trust Advantaged Repackaged Securities). The actual victory occurred on November 17, 2016, when a jury in Minnesota found Wells Fargo guilty of engaging in abusive tax shelter and determined that Wells Fargo was not entitled to […]
IRS Wins Against a Lawyer’s Motion to Dismiss FBAR Penalties | FBAR Tax Lawyer
/0 Comments/in FBAR audit tax attorney, Legal Notes /by ManagerOn May 3, 2017, the IRS scored an important victory in United States v. Little, 2017 U.S. Dist. LEXIS 67580 (SD NY 2017) by defeating a Motion to Dismiss FBAR charges made by the defendant, Mr. Michael Little. The motion was based on an argument that is often used by opponents of FBAR penalties – […]
IRS Wins Another Case Against Secret Belize Bank Accounts | FATCA Lawyers
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerOn March 23, 2017, the IRS scored another major victory against using Belize bank accounts to hide income. On that day, Mr. Casey Padula pleaded guilty to conspiracy to commit tax and bank fraud, including using Belize bank accounts to conceal almost $2.5 million. Facts Concerning Using Belize Bank Accounts to Commit Tax Fraud According […]
IRS International Tax Campaigns | International Tax Attorney Houston
/0 Comments/in irs lawyer minneapolis, Legal Notes /by ManagerFive of the thirteen new IRS Campaigns directly target US international tax noncompliance. In this essay, I would like to provide a brief overview of these five IRS International Tax Campaigns. In the future articles, I will explain each of these campaigns in more detail. IRS International Tax Campaigns: Background Information After multiple years of […]
IRS Compliance Campaigns | US International Tax Attorney and Lawyer
/0 Comments/in irs lawyer minneapolis, Legal Notes /by ManagerOn January 31, 2017, the IRS announced a complete new approach to tax enforcement – Issue-Focused IRS Compliance Campaigns. A total of thirteen IRS compliance campaigns were announced; all of them will be administered by the LB&I (Large Business and International) division of the IRS. Let’s explore in more detail this highly important IRS announcement. […]
The IRS Large Business and International Division Organizational Structure
/0 Comments/in International Tax Attorney, Legal Notes /by ManagerAlmost two years ago, the IRS Large Business and International Division announced long-term changes in its structure as well as its approach to tax enforcement. In the fall of 2015, the IRS completed the first phase of the structural changes in the Division – re-organization of its administrative structure. This structure exists intact today and […]
US Bank Accounts Disclosed to Israel | FATCA Tax Lawyers Florida
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerMany persons have assumed that FATCA is a one-way street where only the United States is able to obtain tax information with respect to foreign accounts controlled by its citizens while the information about US bank accounts is never exchanged with other FATCA signatories. While, to some (or even to a large) degree this may […]
Greece Publishes the List of Noncooperative States | FATCA Lawyer Atlanta
/0 Comments/in international tax lawyer, Legal Notes /by ManagerOn February 28, 2017, the Ministry of Finance of Greece published a list of noncooperative states. What are Noncooperative States In order for a state to be designated as “noncooperative”, it has to satisfy the following four conditions: 1. The state is not a member of the European Union; 2. The state’s legal structure with […]
International Tax Lawyer Lectures on US Tax Reporting of Italian Assets and Income
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerOn February 2, 2017, Mr. Eugene Sherayzen, the founder and owner of Sherayzen Law Office (an international tax law firm headquartered in Minneapolis, Minnesota) gave a lecture at the Italian Cultural Center in downtown Minneapolis. The topic of the lecture was an introduction to US tax reporting of Italian assets and income for individual taxpayers. […]
IRS Cracks Down on Sovereign Debit Cards linked to Offshore Accounts
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn January 25, 2017, the federal court in Montana authorized the IRS to serve John Doe Summons on Michael Berg of Bozeman, Montana, seeking information about US taxpayers with offshore accounts established by Sovereign Management & Legal LTD (“Sovereign”), a Panamanian company. In particular, the IRS is interested in US taxpayers who use debit cards […]
Israeli IT Tax Breaks | Minnesota International Tax Lawyer and Attorney
/0 Comments/in business tax lawyers minneapolis, Legal Notes /by ManagerIsrael continues to solidify its leading positions in the IT market by using tax policy. On January 1, 2017, Amendment 73 to the Law for the Encouragement of Capital Investments of 1959 entered into force. The main goal of the Amendment is to clarify, extend and improve the Israeli tax breaks for IT companies operating […]
University Professor Sentenced to Prison with $100 Million FBAR Penalty
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn February 10, 2017, the IRS scored yet another victory in its fight against secret offshore accounts with the imposition of a $100 Million FBAR Penalty. Mr. Dan Horsky, a 71-year old retired university professor (he used to teach at a business school), was a spectacularly successful investor and a very unsuccessful tax evader. After […]
Importance of Outbound Business Tax Planning | International Tax Attorney
/0 Comments/in business tax lawyers minneapolis, Legal Notes /by ManagerOutbound business tax planning should form part of every outbound business transaction, whether it is in technology transfers, export of goods or an investment overseas. In this article, I would like to discuss the main goal of the outbound business tax planning and identify the overall “global” (i.e. looking at the entire genre of outbound […]
2016 FBAR Currency Conversion Rates | FBAR Lawyer and Attorney
/0 Comments/in FBAR, Legal Notes /by ManagerUsing proper currency conversion rates is a critical part of preparing 2016 FBAR and 2016 Form 8938. The instructions to both forms require (in case of Form 8938, this is the default choice) US taxpayers to use the 2016 FBAR Currency Conversion Rates published by the Treasury Department. The 2016 FBAR Currency Conversion Rates also […]
Nine Swiss AEOI Agreements in Force Since January 1 2017 | FATCA Lawyer
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerSwitzerland has recently become one of the most active countries with respect to expanding its network of automatic exchange of information agreements (Swiss AEOI Agreements). In fact, since January 1, 2017, nine Swiss AEOI Agreements entered into force. Nine Swiss AEOI Agreements All of the Swiss AEOI Agreements were signed via exchange of notes in […]
Argentinian Tax Information Exchange Agreement Signed | FATCA Lawyer
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerOn December 23, 2016, Argentina and the United States signed a Tax Informational Exchange Agreement (“Argentinian Tax Information Exchange Agreement” or “Argentinian TIEA”) in Buenos Aires. Let’s explore the main points of the Argentinian Tax Information Exchange Agreement. Argentinian Tax Information Exchange Agreement: Information to Be Exchanged The information to be exchanged under the Argentinian […]
Related-Statute IRC §6103(h) Violation As a Defense Against FBAR Audit
/0 Comments/in FBAR audit tax attorney, Legal Notes /by ManagerInternational tax lawyers should focus not only on substantive, but also on procedural defenses against the results of an FBAR audit. One such potential defense against FBAR audit is a related-statute IRC §6103(h) violation. Related-Statute IRC §6103(h) Violation: Background Information In a previous article, I already discussed the fact that IRC §6103(a) limits somewhat the […]
Guilty Pleas for Secret Swiss-Israeli Bank Accounts | FATCA Lawyer
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn January 18, 2017, three US taxpayers pleaded guilty for hiding millions of dollars in their secret Swiss and Israeli bank accounts (hereinafter “Swiss-Israeli Bank Accounts”) and failing to report these Swiss-Israeli Bank Accounts on their FBARs. Facts of the Case Involving Secret Swiss-Israeli Bank Accounts All three defendants are relatives – Mr. Dan Farhad […]
US-Slovenia Totalization Agreement Signed | International Tax Lawyer Ohio
/0 Comments/in international tax lawyer, Legal Notes /by ManagerOn January 17, 2017, US-Slovenia Totalization Agreement was signed in Slovenia. Ms. Anja Kopac Mrak, the Slovenian minister of labor, family, social affairs, and equal opportunities, signed on behalf of Slovenia. Mr. Brent Hartley, US Ambassador to Slovenia, signed on behalf of the United States. Signing of the US-Slovenia Totalization Agreement represents a major step […]
Taxation of Royalties Ceases Under Estonia-UK Tax Treaty | MN Tax Lawyer
/0 Comments/in international tax lawyer minnesota, Legal Notes /by ManagerOn January 18, 2017, the HM Revenue & Customs announced that the withholding tax on royalties under the 1994 Estonia-UK tax treaty has been eliminated retroactively as of October 16, 2015. Under the original Estonia-UK tax treaty, the rates had been 5 percent for industrial, commercial, and scientific equipment royalties and 10 percent in other […]
Belarus-Hong Kong Tax Treaty Signed | MN International Tax Attorney
/0 Comments/in International Tax Attorney, Legal Notes /by ManagerOn January 16, 2017, the Belarus-Hong Kong Tax Treaty was signed by government officials from both countries – K.C. Chan, Hong Kong’s secretary for financial services and the treasury, and Sergei Nalivaiko, Belarusian minister of taxes and duties. Let’s explore the most important provisions of the new Belarus-Hong Kong Tax Treaty. Elimination of Double-Taxation Under […]
IRS Civil Penalties and Voluntary Compliance | US International Tax Lawyer
/0 Comments/in international tax lawyer, Legal Notes /by ManagerThere has been a spectacular growth in the number of the IRS civil penalties. In 1955, there were about 14 penalties in the entire Internal Revenue Code (“IRC”); on the other hand, today, there are over 150 penalties. The most recent growth in penalties has been driven mostly by offshore compliance concerns and the appearance […]
UK Tax Haven May Be the Result of Brexit | US International Tax Attorney
/0 Comments/in International Tax Attorney, Legal Notes /by ManagerIn her January 17, 2017 speech, the British Prime Minister Theresa May confirmed that the United Kingdom (“UK”) will leave the European Union (“EU”) and seek a free trade deal with the EU. The Prime Minister also appears to have made the threat of creating a UK Tax Haven if the deal is not struck. […]
Audit Reconsideration | International Tax Lawyers Minnesota
/0 Comments/in International Tax Attorney, Legal Notes /by ManagerAudit Reconsideration is a very important IRS procedure that may provide a taxpayer with a “second chance” to challenge the results of an established IRS determination without going through the expensive process of tax litigation (assuming it is still available as an option). In this article, I will introduce and explore the concept of audit […]
FBAR Third-Party Verification and FATCA | FBAR Tax Lawyer Denver
/0 Comments/in FBAR, Legal Notes /by ManagerThere is an interesting relationship between the FBAR Third-Party Verification problem and the enaction of FATCA that I would like to explore in this brief article. Lack of FBAR Third-Party Verification FBAR is undoubtedly one of the most important information returns administered by the IRS. It is the reigning king with respect to reporting of […]
Voluntary Compliance with US Tax Laws | International Tax Attorney Austin
/0 Comments/in International Tax Attorney, Legal Notes /by ManagerThe IRS has repeatedly stated that the US tax system is a voluntary compliance system. Yet, what does “voluntary compliance” mean in this context? Does it mean that US taxpayers only need to comply with US tax laws whenever they wish to do it? Does it mean that any US taxpayer has a right to […]
Why the IRS Loves FBAR | International Tax Attorney Houston
/0 Comments/in FBAR, Legal Notes /by ManagerThe IRS loves FBAR. Undoubtedly, FATCA Form 8938 is a very serious rival, but even this form cannot match the FBAR’s popularity among the IRS agents with respect to foreign accounts. What is behind this popularity? Or, stated in another way, why does the IRS love FBAR and prefers them to any other international tax […]
FBAR Legislative History | FBAR Tax Attorney Minneapolis
/0 Comments/in FBAR, Legal Notes /by ManagerExploring the FBAR legislative history is not just a theoretical adventure which should interest only legal scholars. Rather, the FBAR legislative history allows us to understand the theoretical and historical basis for the high FBAR penalties and the legal arguments that may serve best to combat the imposition of these severe penalties. FBAR Legislative History: […]
Usefulness of FBARs for the IRS and DOJ | International Tax Law Firm
/0 Comments/in FBAR, Legal Notes /by ManagerThe usefulness of FBARs for the U.S. tax enforcement agencies may seem to be an odd issue, but, in reality, it concerns every taxpayer with foreign bank and financial accounts. Why the FBAR is important and how the IRS and the U.S. Department of Justice (“DOJ”) utilize it in their prosecution tactics is the subject […]
Indianapolis FBAR Lawyer | Foreign Accounts Tax Attorney
/0 Comments/in FBAR Lawyers, Legal Notes /by ManagerOne of the advantages of practicing US international tax law is that an international tax lawyer can offer his FBAR services throughout the United States. Why is this case? Why is an international tax lawyer who lives in Minneapolis considered as an Indianapolis FBAR Lawyer? Indianapolis FBAR Lawyer: FBAR is Federal Law, Not State Law […]
Swiss Bank Program Summary | Offshore Accounts Lawyer
/0 Comments/in offshore voluntary disclosure lawyers Minneapolis /by ManagerOn December 29, 2016, the US Department of Justice (“DOJ”) and the IRS announced that they have reached final resolutions with Swiss banks that have met the requirements of the Swiss Bank Program. In this article, I would like to provide the Swiss Bank Program summary and explain the importance of the Program to the […]
Adding Children to a Foreign Account and FBAR Issues | IRS FBAR Lawyer
/0 Comments/in FBAR Lawyers, Legal Notes /by ManagerFBAR problems and parental love – at first, it seems that nothing can be more contradictory. Yet, in reality, parental love may often cause grave US tax problems for children if this love extends to adding children to a foreign account, and especially if this is done without the knowledge of the children. In this […]
Happy New Year 2017! | International Tax Attorney Minneapolis
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerSherayzen Law Office, PLLC wishes a very Happy New Year 2017 to all of our clients and readers of our blog! We wish you great health, happiness and prosperity in this New Year 2017! And, to stay in full compliance with US tax laws! The New Year 2017 is going to be a complicated one […]
Latvian Micro-Enterprise Tax Law Update | International Tax Lawyer Cleveland
/0 Comments/in international tax lawyer, Legal Notes /by ManagerOn December 20, 2016, the Saeima (Latvian Parliament) approved new amendments to Latvian Micro-Enterprise tax law. While the modifications to the law represented a compromise solution, the overall tax rate went up. History of Latvian Micro-Enterprise Tax Law The Latvian Micro-Enterprise Tax Law first entered into force on September 1, 2010. It primary purpose was […]
Boston Foreign Trust Lawyer | International Tax Attorney
/0 Comments/in foreign trust lawyer, Legal Notes /by ManagerBostonians who are beneficiaries or owners of a foreign trust face a large number of very complex US tax requirements. Failure to properly identify and comply with these requirements may result in imposition of severe tax penalties. For this reason, these Bostonians need to secure the help of a Boston Foreign Trust Lawyer in order […]
Mistake as Reasonable Cause | Offshore Voluntary Disclosure Lawyer
/0 Comments/in Legal Notes, Streamlined Domestic Offshore Procedures /by ManagerThis article is a continuation of a series of articles on the Reasonable Cause Exception as a defense against various IRS penalties. Today, we will be exploring whether a mistake made by a taxpayer satisfies the ordinary business care and prudence standard and can be considered a reasonable cause. Mistake Alone Does Not Constitute Reasonable […]
Ordinary Business Care and Prudence Standard | International Tax Lawyer
/0 Comments/in International Tax Law, Legal Notes /by ManagerOrdinary Business Care and Prudence Standard is a requirement that is present, explicitly or implicitly, in all reasonable cause defenses. In this article, I would like to explain what Ordinary Business Care and Prudence Standard means and what are the main factors for analyzing whether a taxpayer met the burden of proof required under the […]
Streamlined Disclosure Attorney Madison | FATCA OVDP Lawyer
/0 Comments/in Legal Notes, Streamlined Domestic Offshore Procedures /by ManagerIn today’s world connected through an invisible network of new technologies, a great number of persons prefer to choose an attorney based on his qualities rather than his state of residence. The residents of Madison, Wisconsin, similarly search for such an attorney, especially in the area of Streamlined compliance procedures by utilizing the search words: […]
International Business Transactions | Business Tax Lawyer Minneapolis
/0 Comments/in business tax lawyers minneapolis, Legal Notes /by ManagerDespite their apparent diversity and complexity, international business transactions can be grouped into three categories: export of goods and services, licensing and technology transfer and foreign investment transactions. International Business Transactions: Export of Goods and Services The first category of international business transactions consists of exports involving a sale of a commodity, manufactured goods or […]
Serious Illness as Reasonable Cause | International Tax Lawyer
/0 Comments/in Legal Notes, minneapolis tax lawyer /by ManagerWe are continuing our series of articles on Reasonable Cause. Today, we will discuss whether a serious illness can establish a reasonable cause for abatement of the IRS penalties. It is important to note that this discussion of serious illness as a reasonable cause is equally applicable to death and unavoidable absence of the taxpayer […]
Credit Suisse and Italy Settle Dispute Over Undisclosed Offshore Accounts
/0 Comments/in Legal Notes, Offshore Voluntary Disclosure /by ManagerOn December 14, 2016, Credit Suisse and Italy settled their dispute over Credit Suisse undisclosed offshore accounts owned by Italian tax residents. The settlement between Credit Suisse and Italy was approved by a judge in Milan and obligates Credit Suisse to pay a total of 109.5 million euros – 101 million euros in taxes, interest […]
US Airspace and the Definition of the United States | US Tax Lawyers
/0 Comments/in international tax lawyer, Legal Notes /by ManagerThis article is a continuation of a recent series of articles on the exploration of the definition of the United States. As it was mentioned in a prior article, the general definition of the United States found in IRC § 7701(a)(9) has numerous exceptions throughout the Internal Revenue Code (“IRC”). The US airspace is another […]
US Continental Shelf Definition of the United States | US Tax Attorney
/0 Comments/in International Tax Attorney, Legal Notes /by ManagerThe US continental shelf presents a unique problem to the tax definition of the United States. It is governed by a special tax provision that sets it apart from any other tax definition. If fact, the US continental shelf is only considered to be part of the United States with respect to specific taxpayers who […]
Tax Definition of the United States | US Tax Lawyers
/0 Comments/in International Tax Attorney, Legal Notes /by ManagerThe tax definition of the United States is highly important for US tax purposes; in fact, it plays a key role in identifying many aspects of US-source income, US tax residency, foreign assets, foreign income, application of certain provisions of tax treaties, et cetera. While it is usually not difficult to figure out whether a […]
Legal Threats to Wealth | Asset Protection Lawyer Minneapolis
/0 Comments/in estate planning lawyers Minneapolis, Legal Notes /by ManagerLegal threats to wealth do not apply only to the wealthiest top 1% of US taxpayers. Rather, they also should concern middle and upper-middle classes of the United States, especially doctors, lawyers, small and mid-size business owners, professionals (self-employed and employed within by companies), high-salaried employees, corporate officers, high-net-worth families and investors. In this article, […]
IRS 2017 Standard Mileage Rates for Business, Medical and Moving
/0 Comments/in Legal Notes, minneapolis tax lawyer /by ManagerThe IRS recently issued the optional IRS 2017 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. According to the IRS Rev. Proc. 2010-51, a taxpayer may use the business standard mileage rate to substantiate a deduction equal to either the business standard mileage […]
Streamlined Disclosure Attorney Indianapolis | IRS OVDP Lawyer
/0 Comments/in Legal Notes, Streamlined Domestic Offshore Procedures /by ManagerStreamlined Disclosure Attorney Indianapolis is a common search by US taxpayers who are looking for legal help in Indianapolis with their streamlined voluntary disclosure of undeclared foreign assets and foreign income. Let’s analyze this search term – Streamlined Disclosure Attorney Indianapolis – to identify the type of attorney that fits this search best. Streamlined Disclosure […]
Indians working on H1 Visa Need to Pay US Taxes on Indian Income
/0 Comments/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerUS taxes on Indian income is one of the most important topics relevant to the everyday life of Indian-Americans and Indians who reside and work in the United States. In this article, I will focus on the issue of US taxes on Indian Income earned by H1 (mostly H1B) visa holders. US Taxes on Indian […]
2017 Tax Filing Season Begins January 23 & Tax Returns due April 18, 2017
/0 Comments/in International Tax Lawyers Rochester Minnesota, Legal Notes /by ManagerOn December 12, 2016, the IRS announced today that the 2017 tax filing season (for the tax year 2016) will begin on January 23, 2017. The 2017 tax filing season e-filings will be accepted by the IRS starting that date. The IRS again expects that more than four out of five tax returns will be […]
Hong Kong Shell Company and Secret Swiss Bank Account Result in Conviction
/0 Comments/in International Tax Attorney, Legal Notes /by ManagerOn October 7, 2016, the IRS and the DOJ (US Department of Justice) announced yet another conviction related to an undisclosed Swiss Bank Account owned through a Hong Kong shell company. Facts of the Case: Hong Kong Shell Company Used to Hold Undisclosed Swiss Bank Account The facts of the case contain a fairly typical […]
US International Tax Lawyer Lectures at Alliance Française on Offshore Reporting
/0 Comments/in international tax lawyer, Legal Notes /by ManagerOn December 7, 2016, Mr. Eugene Sherayzen, the founder of Sherayzen Law Office and a US international tax lawyer, gave a lecture at the Minneapolis chapter of Alliance Française. The topic of the lecture was an introduction to reporting of foreign income and foreign assets for individual taxpayers in the United States. The lecture was […]
Foreign Investment in Real Property Tax Act | US Real Estate Tax Attorney
/0 Comments/in FIRPTA, Legal Notes /by ManagerForeign Investment in Real Property Tax Act (also referred to as “FIRPTA”) is the most important tax law for foreign investors in US real estate. Not only does FIRPTA determine the tax treatment of the gains on the real estate owned by nonresident aliens, but it also establishes the famous FIRPTA tax withholding mechanism that […]
Streamlined Disclosure Attorney Austin | FATCA OVDP Lawyer
/0 Comments/in Legal Notes, Streamlined Domestic Offshore Procedures /by ManagerIf you are a resident of Austin, Texas, and you have undisclosed foreign accounts, it is highly likely that you have searched for Streamlined Disclosure Attorney Austin. Let’s analyze this search term – Streamlined Disclosure Attorney Austin – to understand exactly what kind of an attorney fits this search. Streamlined Disclosure Attorney Austin Search Applies […]
Bitcoin Offshore Abusive Tax Scheme | FATCA International Tax Lawyer
/0 Comments/in International Tax Attorney, Legal Notes /by ManagerBitcoin Offshore Abusive Tax scheme is now at the center of the new war against offshore tax noncompliance. The IRS started this war on November 17, 2016, with the John Doe Summons petition against Coinbase, Inc., the largest US bitcoin exchanger. In this petition, the IRS Revenue Agent David Utzke details one variation of the […]
First Quarter 2017 Underpayment and Overpayment Interest Rates
/0 Comments/in international tax lawyer, Legal Notes /by ManagerOn December 5, 2016, the IRS announced that the First Quarter 2017 underpayment and overpayment interest rates will remain the same from the Fourth Quarter of 2016. This means that, the First Quarter 2017 underpayment and overpayment interest rates will be as follows: four (4) percent for overpayments (two (3) percent in the case of […]
Atlanta FBAR Lawyer | FATCA International Tax Attorney
/0 Comments/in FBAR Lawyers, Legal Notes /by ManagerCan a lawyer who resides in Minneapolis be considered an Atlanta FBAR Lawyer? What kind of law should such a lawyer practice? These are the two questions that I seek to answer in this article. Atlanta FBAR Lawyer Definition: Legal FBAR Services Provided in Atlanta, Georgia Let’s start with the first question. The term Atlanta […]
Israeli-Swiss AEOI Declaration Signed | FATCA Lawyer New York
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerOn November 27, 2016, Israel and Switzerland signed a joint declaration committing to implement the automatic exchange of financial account information (AEOI). The joint declaration (the Israeli-Swiss AEOI Declaration) was signed by Moshe Asher, director of the Israel Tax Authority, and Joerg Gasser, Swiss state secretary for international financial matters, on behalf of their respective […]
Seattle FBAR Lawyer | IRS FATCA International Tax Attorney
/0 Comments/in FBAR Lawyers, Legal Notes /by ManagerI recently received a phone call from a person who was looking for a Seattle FBAR lawyer online and found my website. He asked me whether I can help him even though Sherayzen Law Office is based in Minneapolis, Minnesota. I responded to him: “yes, I can help you”. This conversation brought to light an […]
Swiss-Indian AEOI Declaration Signed | FATCA Lawyer New York
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerOn November 22, 2016, Switzerland and India signed a joint declaration on the introduction of the automatic exchange of information (AEOI) in tax matters on a reciprocal basis. The joint declaration (Swiss-Indian AEOI Declaration) was signed by Sushil Chandra, chair of India’s Central Board of Direct Taxes, and Gilles Roduit, deputy chief of mission of […]
Foreign Inheritance and Stepped-Up Basis | US International Tax Lawyer
/0 Comments/in foreign inheritance, Legal Notes /by ManagerIf you received a property as part of your foreign inheritance, one of the key questions that you are facing is whether this inherited property is entitled to a stepped-up basis in the United States. This issue was resolved some time ago by the IRS in Revenue Ruling 84-139, 1984-2 C.B. 168. What is a […]
IRS seeks Bitcoin Accountholder Data from Largest US Bitcoin Exchanger
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerOn November 17, 2016, the IRS and the US Department of Justice (the “DOJ”) opened a new front against offshore tax evasion – bitcoin accountholder data. On that day, the DOJ filed a petition (accompanied by the IRS memorandum) in the U.S. District Court for the Northern District of California seeking permission to serve a […]
IRS AI Software to Analyze Tax Data | IRS Tax Lawyer Minneapolis
/0 Comments/in irs lawyer minneapolis, Legal Notes /by ManagerOn November 18, 2016, Mr. Benjamin Herndon, the current IRS director for research and analytics, confirmed the recent rumors that the IRS AI Software is being tested to help IRS agents find patterns of tax noncompliance. The idea is to supplement human analysis of data with the IRS AI software that would analyze any piece […]
EU Automatic Exchange of Banking and Beneficial Ownership Data Approved
/0 Comments/in International Tax Lawyers Austin Texas, Legal Notes /by ManagerOn November 22, 2016, the European Parliament approved the automatic exchange of banking and beneficial ownership data across the European Union. The directive received an overwhelming support from the Parliament: 590 members voted “yes”, 32 – “no”, and 64 did not vote. Since the original proposal was already approved by the EU Council on November […]
What to do if the IRS Audits Your Quiet Disclosure | FBAR Lawyer Madison
/0 Comments/in FBAR audit tax attorney, Legal Notes /by ManagerThis essay is concerned with a situation where the IRS audits your quiet disclosure of foreign assets and foreign income. The IRS audit can be an absolute nightmare in this case. Not only will the audit examine the accuracy of the disclosure, but the IRS may actually raise the issue of willful and non-willful FBAR […]
Ukrainian FATCA Agreement Authorized for Signature
/0 Comments/in FATCA Tax Attorney, Legal Notes /by ManagerOn November 9, 2016, the Ukrainian government authorized the Ukrainian FATCA Agreement for signature. Let’s explore this new development in more depth. Ukrainian FATCA Agreement and FATCA Background The Ukrainian FATCA Agreement is one of the many bilateral FATCA implementation agreements signed by the great majority of jurisdictions around the world. The Foreign Account Tax […]
Russian Taxation of Gifts to Nonresidents: Recent Changes
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerThe Russian Ministry of Finance (“MOF”) recently issued Guidance Letter 03-04-06/64102 (dated October 31) regarding the taxation of gifts from Russian legal entities to nonresidents (i.e. the Russian taxation of gifts to nonresidents). This Letter will have a direct impact on the tax planning for Russians who are tax residents of the United States. Russian […]
Milwaukee FBAR Lawyer | IRS FATCA Tax Attorney
/0 Comments/in FBAR Lawyers, Legal Notes /by ManagerWho is considered to be a Milwaukee FBAR Lawyer? This is a question that is important to all residents of Milwaukee, Wisconsin. Let me try to answer this question. Milwaukee FBAR Lawyer Definition: Legal FBAR Services Provided in Milwaukee, Wisconsin The term Milwaukee FBAR Lawyer includes two broad categories of international tax lawyers. The first […]
FATCA PFIC Reporting | International Tax Attorney
/0 Comments/in Form 8938 tax attorney Minneapolis, Legal Notes /by ManagerFATCA PFIC Reporting is an important feature in today’s U.S. tax compliance. In this article, I will focus on the explanation of the FATCA PFIC Reporting requirement for U.S. shareholders of a PFIC. FATCA PFIC Reporting: FATCA Background The Foreign Account Tax Compliance Act (“FATCA”) is contained in Chapters 1471–1474 of the Internal Revenue Code […]
Offshore Voluntary Compliance Draws 100,000 Taxpayers and $10 Billion
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn October 21, 2016, the IRS announced that more than 100,000 US taxpayers participated in its Offshore Voluntary Compliance programs paying a total of more than $10 billion. Let’s explore these Offshore Voluntary Compliance numbers in more depth. OVDP is Still the King of Offshore Voluntary Compliance but Its Impact is More Targeted The IRS […]
IRS OVDPs Comparison For the Years 2009-2016
/0 Comments/in Legal Notes, Offshore Voluntary Disclosure /by ManagerBetween the years 2009-2016, the IRS created three different Offshore Voluntary Disclosure Programs (IRS OVDPs) for U.S. taxpayers to voluntarily disclose their undeclared foreign accounts: 2009 Offshore Voluntary Disclosure Program (2009 OVDP), 2011 Offshore Voluntary Disclosure Initiative (2011 OVDI), and 2012 Offshore Voluntary Disclosure Program (2012 OVDP). 2012 OVDP was subsequently profoundly modified in the […]
Form 872 Refund Claims | Foreign Accounts International Tax Lawyer
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerThe subject of this article is the discussion of the Form 872 Refund Claims, particularly whether filing Form 872 can extend the time for the taxpayer to claim a refund for the relevant years. Stated broadly, the key question that this article seeks to explore is whether an extension of time for assessment of tax […]
Totalization Agreement with Romania Progresses | Minnesota Tax Lawyer
/0 Comments/in International Tax Law, Legal Notes /by ManagerOn October 26, 2016, the Totalization Agreement with Romania entered a new stage – the government of Romania approved for signature a draft social security (also known as “Totalization”) agreement with the United States. The Totalization Agreements are authorized by Section 233 of the Social Security Act. The United States currently has Totalization Agreements with […]
PATH Act and New January 31 Filing Deadline | Tax Attorney News
/0 Comments/in Legal Notes, minneapolis tax lawyer /by ManagerOn October 28, 2016, the IRS reminded employers and small business owners of the new January 31, 2017 deadline as a result of the PATH Act. PATH Act’s Impact on the Filing Deadlines for Forms W-2 and 1099-MISC In the past, employers typically had until the end of February, if filing on paper, or the […]
Omaha FBAR Attorney | OVDP IRS International Tax Lawyer
/0 Comments/in FBAR Lawyers, Legal Notes /by ManagerAs the headquarters of Berkshire Hathaway, Omaha (Nebraska) draws a large number of foreign-born professionals. A high percentage of these professionals still have foreign accounts overseas and they are in great needs of assistance from an Omaha FBAR attorney. Oftentimes, they cannot find an attorney they like in Omaha (especially, since this is not a […]
Secret Bank Accounts in Israel and Switzerland Result in a Guilty Plea
/0 Comments/in Legal Notes, Offshore Voluntary Disclosure /by ManagerThe earlier IRS and DOJ (U.S. Department of Justice) investigations of secret bank accounts in Israel and Switzerland continue to produce new guilty pleas. On September 28, 2016, Mr. Markus Hager, a New York City resident, pleaded guilty to tax evasion for the tax years 2003-2005 and 2007-2010 with respect to his secret bank accounts […]
Guilty Plea for Hiding Income from Undeclared Panamanian Bank Account
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn September 21, 2016, the IRS and the DOJ scored yet another success in their fight against hiding income in Central American banks – Mr. Saul Hyatt pleaded guilty to hiding income from an undeclared Panamanian bank account. Facts of the Case: Undeclared Panamanian Bank Account The Hyatt case falls right within the type of […]
New York Foreign Trust Tax Lawyer | FATCA IRS Attorney
/0 Comments/in foreign trust lawyer, Legal Notes /by ManagerThe residents of New York who are beneficiaries or owners of a foreign trust are likely to find themselves facing a difficult legal situation and various US tax complications. Failure to properly identify and comply with their tax obligations may result in imposition of severe penalties. This is why they need the help of a […]
Streamlined Disclosure Attorney Minneapolis | FATCA OVDP Lawyer
/0 Comments/in Legal Notes, Streamlined Domestic Offshore Procedures /by ManagerStreamlined Disclosure Attorney Minneapolis is becoming a common search for an individual who is looking for professional help in Minneapolis with his streamlined voluntary disclosure of undeclared foreign assets and foreign income. Let’s analyze this search term – Streamlined Disclosure Attorney Minneapolis – to understand what kind of an attorney fits into this search. Streamlined […]
Hapoalim Prepares for Settlement with DOJ | FATCA Tax Attorney
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn October 6, 2016, Israeli bank Hapoalim Ltd. announced that, in order to cover the costs of a future settlement with the US Department of Justice (DOJ), it will add a $70 million charge to an existing $50 million provision in its third-quarter results. The expected settlement will cover Hapoalim’s role in helping US tax […]
How IRS Can Get $718 Billion in Tax Revenue | International Tax Lawyer
/0 Comments/in International Tax Law, Legal Notes /by ManagerOn October 4, 2016, the US Public Interest Research Group, Citizens for Tax Justice, and the Institute on Taxation and Economic Policy issued a report called “Offshore Shell Games 2016: the Use of Offshore Tax Havens by Fortune 500 Companies”. The report calculates that eliminating all tax deferral on Fortune 500 US companies’ foreign earnings […]
IRS FBAR Audit and IRC Section 6103 | FBAR Tax Attorney Minneapolis
/0 Comments/in FBAR audit tax attorney, Legal Notes /by ManagerThis article explores a certain relationship between tax returns and an IRS FBAR Audit. In particular, the critical question that I seek to answer in this writing is when the IRS is able to use US tax returns as evidence to support and/or commence an IRS FBAR Audit. IRS FBAR Audit and the IRS Examination […]
First Colombia-US Tax Treaty is Almost Ready | International Tax Lawyer
/0 Comments/in international tax lawyer, Legal Notes /by ManagerThe first Colombia-US Tax Treaty nears the final stage of negotiations. This announcement was made on September 28, 2016, in Bogota, Colombia, by Colombian Finance Minister Mauricio Cardenas and U.S. Treasury Secretary Jacob Lew (the details of the meeting were published on the Colombian president’s website). Despite the fact that United States and Colombia already […]
Poland AEOI Rules Still Not Implemented | FATCA Lawyers
/0 Comments/in FATCA, Legal Notes /by ManagerOn September 29, 2016, the European Commission announced that it had asked Poland to fully implement into its domestic law Council Directive 2014/107/EU on mutual assistance in income and capital taxation matters (which amends the earlier Directive 2011/16/EU on mandatory automatic exchange of information between member states). The request came in after the realization that […]
Seattle FBAR Attorney | FATCA International Tax Lawyer
/0 Comments/in FBAR, Legal Notes /by ManagerDue to Seattle’s proximity to Canada and a large amount of foreign professionals employed by high-tech firms (especially Microsoft), there is a large number of residents of Seattle, Washington, who have an obligation to report their foreign accounts. The great majority of these people need the assistance of professional Seattle FBAR attorney, but they find […]
Houston FBAR Lawyer | FATCA Tax Attorney
/0 Comments/in FBAR Lawyers, Legal Notes /by ManagerThe main thesis of this essay is that the designation of a Houston FBAR Lawyer should be applied based on the geography of services of an FBAR lawyer rather the physical location of a lawyer. Houston FBAR Lawyer Definition: Legal FBAR Services Provided in Houston, Texas The old designation where a Houston FBAR Lawyer designation […]
France Asks Switzerland for Names of UBS Accountholders
/0 Comments/in International Tax Attorney, Legal Notes /by ManagerThis is an international tax lawyer news update: on September 26, 2016, Swiss tax officials confirmed that France asked Switzerland to provide the names of the holders of more than 45,000 UBS bank accounts. The request covers years 2006-2008. Le Parisien newspaper, which first published extracts from the French request that the combined balance in […]
Madison Foreign Trust Lawyer | International Tax Attorney
/0 Comments/in foreign trust lawyer, Legal Notes /by ManagerIf you are a US beneficiary or a US owner of a foreign trust and you reside in Madison, Wisconsin, you need the help of an experienced Madison Foreign Trust Lawyer to properly comply with complex US tax reporting requirements regarding foreign trusts and avoid paying very high penalties. Who should you consider retaining as […]
IRS FBAR Audits Caused by Tax Returns | FBAR Audit Lawyer
/0 Comments/in FBAR audit tax attorney, Legal Notes /by ManagerIRS FBAR Audits can lead to catastrophic consequences for noncompliant US taxpayers. While there may be a numbers of factors that influence the IRS decision to commence such an audit, one of the leading sources of the IRS FBAR Audits are the US tax returns. In this article, I would like to explore the main […]
4th Quarter 2016 Underpayment and Overpayment Interest Rates
/0 Comments/in International Tax Lawyers Rochester Minnesota, Legal Notes /by ManagerOn September 14, 2016, the IRS announced that the 4th Quarter 2016 underpayment and overpayment interest rates will remain the same. This means that, the 4th quarter 2016 IRS underpayment and overpayment interest rates will be as follows: four (4) percent for overpayments (two (3) percent in the case of a corporation); four (4) percent […]
Ignorance of the Law and Reasonable Cause Exception
/0 Comments/in International Tax Attorney, Legal Notes /by ManagerIgnorance of the Law forms part of a much broader Reasonable Cause Exception which is almost a universal defense against the imposition of IRS civil penalties. Ignorance of the Law is often utilized as a defense against the US international tax information return penalties, including penalties envisioned under FBAR, Form 8938, Form 5471, Form 8865, […]
Boulder FBAR Lawyer | Offshore Accounts Tax Attorney
/0 Comments/in FBAR Lawyers, Legal Notes /by ManagerThe definition of a Boulder FBAR Lawyer is much broader than many people believe. In this brief essay, I would like to explain who is considered to be a Boulder FBAR Lawyer and why you should retain the services of Sherayzen Law Office, Ltd. for professional help with your FBAR issues. Boulder FBAR Lawyer Definition: […]
US–Hungary Totalization Agreement Enters Into Force
/0 Comments/in International Tax Attorney, Legal Notes /by ManagerOn September 1, 2016, the US–Hungary Totalization Agreement entered into force. In this article, I will briefly discuss the main benefits of this Agreement to US and Hungarian nations. US–Hungary Totalization Agreement: What is a Totalization Agreement? The Totalization Agreements are authorized by Section 233 of the Social Security Act for the purpose of eliminating […]
Miami FBAR Lawyer | Foreign Accounts Tax Attorney
/0 Comments/in FBAR Lawyers, Legal Notes /by ManagerAre you looking for a competent Miami FBAR Lawyer to help you with the filing current or delinquent FBARs? Then, you need to understand who is considered to be a Miami FBAR Lawyer and why you should retain the services of Sherayzen Law Office, Ltd. – an international tax law firm that provides FBAR services […]
Sarshar Guilty Plea & Undisclosed Israeli Bank Accounts | FBAR Lawyer
/0 Comments/in FBAR audit tax attorney, Legal Notes /by ManagerOn August 1, 2016, the IRS scored another victory in a case involving Israeli Bank Accounts; the IRS and the DOJ announced that Mr. Masud Sarshar, a California businessman, was charged with one count of conspiracy to defraud the United States and one count of corruptly endeavoring to impair and impede the due administration of […]
Austin Foreign Trust Lawyer | FATCA IRS Attorney
/0 Comments/in foreign trust lawyer, Legal Notes /by ManagerIf you reside in Austin, Texas, and you are a US beneficiary or a US owner of a foreign trust, you need the help of an experienced Austin Foreign Trust Lawyer as soon as possible due to very high penalties associated with US tax noncompliance regarding foreign trust reporting. However, a question arises: who is […]
Denver FBAR Lawyer | Foreign Accounts Tax Attorney
/0 Comments/in FBAR Lawyers, Legal Notes /by ManagerFinding a good Denver FBAR Lawyer is not easy, especially if you do not know what exactly Denver FBAR Lawyer means. In this essay, I will define what lawyers fit into the definition of a Denver FBAR Lawyer and why you should retain the services of my firm, Sherayzen Law Office, Ltd. Denver FBAR Lawyer […]
Madison FBAR Attorney | FBAR FATCA OVDP IRS Lawyer
/0 Comments/in FBAR Lawyers, Legal Notes /by ManagerDo you reside in Madison and have undisclosed foreign accounts? Are you searching for a highly-knowledgeable Madison FBAR Attorney to help you resolve this situation? Then, read this essay in order to understand who is considered to be a Madison FBAR Attorney and and why you should retain the services of my firm, Sherayzen Law […]
Philadelphia FBAR Attorney | Foreign Accounts Lawyers
/0 Comments/in FBAR Lawyers, Legal Notes /by ManagerAre you looking for a highly-skilled Philadelphia FBAR Attorney? Then, you are among many Philadelphians who need to report their foreign accounts, but do not know how to find appropriate legal help. Often, they find the attorney that they like lives outside of Philadelphia and they are not sure if they should prefer him over […]
Boston FATCA Lawyer
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerOften, people are searching for a Boston FATCA lawyer without a clear definition of who a Boston FATCA lawyer is. Indeed, who is a Boston FATCA Lawyer? Just a lawyer who resides in Boston or can a lawyer who resides outside of Boston qualify as a Boston FATCA lawyer? Is it any lawyer or only […]
FBAR PFIC Reporting | FBAR Tax Attorney
/0 Comments/in FBAR, Legal Notes /by ManagerFBAR PFIC Reporting is an important issue for U.S. shareholders of passive foreign investment companies (“PFICs”). I will now briefly explore the FBAR PFIC Reporting requirement and when it applies to U.S. shareholders of a PFIC. FBAR PFIC Reporting: FBAR Background FinCEN Form 114, the Report of Foreign Bank and Financial Accounts, commonly known as […]
Seattle FATCA Lawyers
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerThere are two definitions of who qualifies to be Seattle FATCA lawyers. First, Seattle FATCA lawyers are lawyers who are work in Seattle and who specialize in helping U.S. taxpayers and/or foreign financial institutions with FATCA compliance. The second type of international tax attorneys who can qualify as Seattle FATCA lawyers became possible as a […]
H1B Holder FATCA Requirements
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerThere is a confusion in general public about the H1B holder FATCA requirements. The key concept that lies at the heart of the U.S. tax obligations of an H1B holder is tax residency (which is very different from the definition of a U.S. permanent resident in immigration law). In this article, I will discuss the […]
I am Working in the US on L1 Visa and I have Foreign Accounts
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by Manager“I am working in US on L1 Visa and I have foreign accounts” – this is the phrase that I often hear from various callers. Usually, these persons know very little about their US tax obligations and are concerned about their US tax compliance. Let’s analyze this phrase – “I am working in US on L1 Visa […]
Mexican Fideicomiso is not a Foreign Trust | International Tax Attorney
/0 Comments/in international tax lawyer, Legal Notes /by ManagerMexican Fideicomiso is one of the most convenient ways for U.S. persons to purchase land in Mexico. Of course, one can purchase the land through a Mexican corporation, but such an arrangement will require additional tax planning and higher annual compliance costs, including potentially filing form 5471, Form 8938 and other forms. Therefore, most U.S. […]
2014 IRS OVDP Future is Uncertain Due to Recent TIGTA Report
/0 Comments/in Legal Notes, Offshore Voluntary Disclosure /by ManagerRecently, there have been signs that the IRS is pondering the future of its flagship Offshore Voluntary Disclosure Program (2014 IRS OVDP): does this means that there is a potential for the 2014 IRS OVDP to end soon? TIGTA Report and 2014 IRS OVDP The latest warning signal came on June 2, 2016. On that […]
Foreign Gift Requirements | Foreign Gift Tax Attorney
/0 Comments/in foreign gift, Legal Notes /by ManagerForeign Gift Requirements is one of the most important topics for U.S. taxpayers with foreign relatives. In this article, I would like to quickly overview foreign gift requirements for U.S. tax purposes. Foreign Gift Requirements: What is a Foreign Gift? Legally, the term “gift” means a definite, voluntary and gratuitous transfer of property from one individual to […]
Undeclared Accounts in Singapore Are Under IRS Investigation | FBAR Attorney
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerFor several years now, Sherayzen Law Office has been warning U.S. taxpayers about the ever-increasing IRS interest in undeclared accounts in Singapore. On June 22, 2016, the IRS announced that UBS AG has complied with the IRS summons for bank records held in its Singapore office. This news come after repeated initiatives by the IRS […]
Bergantino Case: Another Swiss Banker Pleads Guilty
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn June 22, 2016, the IRS and the US DOJ successfully brought to conclusion the Bergantino Case with a guilty plea by Mr. Michele Bergantino (a citizen of Italy and a resident of Switzerland) to charges related to aiding and assisting U.S. taxpayers in evading their income taxes. Mr. Bergantino, a former Credit Suisse AG […]
Foreign Inheritance Form 8938 Reporting | Form 8938 Lawyers
/0 Comments/in Form 8938 lawyers, Legal Notes /by ManagerForeign Inheritance Form 8938 reporting has quickly turned into one of the most important tax reporting requirements despite being one of the newest tax forms that debuted barely four years ago in 2012 (for the tax year 2011). In this article, I will discuss when Form 8938 needs to be filed with respect to inherited […]
Denver FATCA Lawyers
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerThere are two types of international tax lawyers who can qualify as Denver FATCA lawyers. First, Denver FATCA lawyers are lawyers who live and work in Denver and who specialize in helping U.S. taxpayers and/or foreign financial institutions with FATCA compliance. The second type of international tax lawyers who can qualify as Denver FATCA lawyers […]
Houston OVDP Tax Attorney
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerWho is considered to be Houston OVDP tax attorney? Initially, most taxpayers would say that this is a strange question to ask, because the answer is very simple: Houston OVDP tax attorney is an attorney who resides in Houston and specializes in helping U.S. taxpayers disclose their undeclared foreign accounts. This answer, however, is anachronistic […]
FATCA Form 8938 Foreign Life Insurance Reporting | FATCA Lawyers
/0 Comments/in IRS Form 8938 tax attorney, Legal Notes /by ManagerFATCA Form 8938 Foreign Life Insurance Policy reporting is one of the most obscure US tax requirements with which many US taxpayers fail to comply. In this article, I would like to explore FATCA Form 8938 foreign life insurance policy reporting. FATCA Form 8938 Foreign Life Insurance Reporting: Types of Foreign Life Insurance Policies In […]
Remember to File Your 2015 FBARs | FBAR Tax Attorney
/0 Comments/in FBAR, Legal Notes /by ManagerOn June 17, 2016, the IRS again reminded U.S. taxpayers with foreign accounts to file their 2015 FBARs by Thursday, June 30, 2016. U.S. taxpayers have to file 2015 FBARs if they had financial interest in or signatory authority (or other authority) over foreign accounts with values which, in the aggregate (i.e. all accounts added […]
Foreign Inheritance FBAR Reporting | FBAR Lawyer
/0 Comments/in FBAR Lawyers, Legal Notes /by ManagerForeign Inheritance FBAR Reporting is one of the most common issues among U.S. taxpayers with foreign parents, uncles, aunts, siblings and other relatives. The issue discussed in this article is not reporting foreign inheritance itself (although this is an important concern which I already addressed in other articles), but whether FBAR needs to be filed […]
Foreign Life Insurance Policies – FBAR Reporting
/0 Comments/in FBAR Lawyers, Legal Notes /by ManagerForeign Life Insurance Policies are very popular around the world, especially in India, Germany and France (Assurance Vie accounts). Yet, very few U.S. taxpayers (especially H-1B holders and U.S. permanent residents) are aware of the fact that these policies may be subject to numerous and complex IRS tax reporting requirements in the United States. In […]
First Conviction of Non-Swiss Financial Institutions For Tax Evasion Conspiracy
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerOn March 9, 2016, the IRS announced the first conviction of Non-Swiss Financial Institutions for tax evasion conspiracy. At Sherayzen Law Office, we have been predicting now for years that the IRS would expand its prosecution of financial institutions far beyond the Swiss borders, specifically pointing to tax shelters such as Cayman Islands. Now that […]
Julius Baer Deferred Prosecution Agreement
/0 Comments/in International Tax Law, Legal Notes /by ManagerOn February 4, 2016, the US DOJ announced that it filed criminal charges against Bank Julius Baer & Co. Ltd. (“Julius Baer” or “the company”). At the same time, the DOJ announced a Julius Baer Deferred Prosecution Agreement. Let’s explore this event in more detail. Julius Baer Deferred Prosecution Agreement Background Unlike many other Swiss […]
No FBAR Penalty Option
/0 Comments/in FBAR, Legal Notes /by ManagerNo FBAR Penalty is the result that every taxpayer wishes to achieve. Indeed, having no FBAR penalty is a realistic objective, but only in certain situations. One of such situations is currently offered by the IRS through Delinquent FBAR Submission Procedures. History of the IRS Procedures Regarding No FBAR Penalty Option There is a relatively […]
Third Quarter of 2016 IRS Interest Rates
/0 Comments/in International Tax Law, Legal Notes /by ManagerThe Internal Revenue Service recently announced that Third Quarter of 2016 IRS Interest Rates will remain the same for the. Third quarter begins on July 1, 2016 and ends on September 30, 2016) The Third Quarter of 2016 IRS Interest Rates: four (4) percent for overpayments [three (3) percent in the case of a corporation]; […]
Experienced International Tax Law Firm of Sherayzen Law Office
/0 Comments/in international tax lawyer, Legal Notes /by ManagerMost U.S. taxpayers who need international tax services look for an experienced international tax law firm to help them. Sherayzen Law Office, Ltd. is a highly experienced international tax law firm. In this essay, I will conduct the analysis explaining why Sherayzen Law Office is considered such an experienced international tax law firm. Areas of […]
Cambata Case: IRS Wins Against Former U.S. Citizen on Offshore Income
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerIn the Cambata case, the IRS successfully demonstrated once again that renunciation of U.S. citizenship will not protect a taxpayer from being pursued for unreported income from foreign accounts. On February 3, 2016, Mr. Albert Cambata pleaded guilty to filing a false income tax return with respect to his unreported Swiss account income. Facts Related […]
2015 FBAR (FinCEN Form 114) Due on June 30, 2016
/0 Comments/in FBAR, Legal Notes /by Manager2015 FBAR is one of the most important tax information returns required by the IRS this year. While the 2015 FBAR is not the most complicated form, it is definitely the one that is associated with the most severe penalties. 2015 FBAR History The FBAR is an abbreviation for the Report of Foreign Bank and […]
What is a FATCA Letter?
/0 Comments/in FATCA Letter, Legal Notes /by ManagerOver eight million U.S. taxpayers are expected to receive FATCA letters from their foreign banks. The first reaction of most taxpayers is to ask: “What is a FATCA letter?” The next question is: “What should I do if I receive(d) a FATCA Letter?” This article intends to answer both questions. The FATCA Letter A FATCA […]
Taxation of Liquidating Trusts
/0 Comments/in foreign trust, Legal Notes /by ManagerLiquidating trusts are common in today’s business environment and it is highly important to understand how they are taxed in the United States. This article is a continuation of a series of articles on the general overview of U.S. taxation of different types of foreign and domestic trusts with the focus on liquidating trusts. Liquidating […]
IRS Letter 3708: IRS Demand to Pay FBAR Penalty
/0 Comments/in irs lawyer minneapolis, Legal Notes /by ManagerAfter the IRS imposes an FBAR penalty on the taxpayer, the IRS will send the taxpayer IRS Letter 3708 to demand the payment of the part of the FBAR Penalty that remains unpaid. In this article, I would like to discuss IRS Letter 3708 in more detail, particularly focusing on the various FBAR Penalty Collection […]
IRS Uses Panama Papers to Identify Noncompliant Taxpayers
/0 Comments/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerIn April of 2016, the IRS acknowledged its participation in meetings with Joint International Tax Shelter Information and Collaboration network (“JITSIC”), International Monetary Fund (IMF) and World Bank to take advantage of the data about more than 200,000 offshore companies identified in the Panama Papers. At the same time, the IRS urged noncompliant U.S. taxpayers […]
Taxation of Investment Trusts
/0 Comments/in foreign trust, Legal Notes /by ManagerThis article on investment trusts continues a series of articles on classification of foreign trusts. In earlier essays, I explored the definition of foreign trusts and some of the exceptions to this definition. In the present writing, I would like to discuss the general circumstances when investment trusts would be treated as corporations or partnerships […]
Exceptions to Foreign Trusts: Business Trusts
/0 Comments/in foreign trust, Legal Notes /by ManagerAs I mentioned in an earlier article, U.S. tax law includes a number of important exceptions to legal definition of a foreign trust – i.e. an entity can be classified as a foreign trust for legal purposes and not as a trust (but as a corporation or a partnership) for U.S. tax purposes. This is […]
Foreign Trust Classification
/0 Comments/in foreign trust, Legal Notes /by ManagerThis article begins to explore one of the most obscure, yet highly important questions in U.S. international tax law – foreign trust classification and what law is relevant in the determination of such a classification. This area of law is very complex and I cannot hope for more than providing just some general contours of […]
UK FATCA Letters
/0 Comments/in FATCA Letter, Legal Notes /by ManagerWhile the United Kingdom signed its FATCA implementation treaty in 2014, UK FATCA letters (i.e. FATCA letters from UK financial institutions) continue to pour into the mailboxes of U.S. taxpayers. In this article, I would like to discuss the purpose and impact of UK FATCA Letters. UK FATCA Letters UK FATCA Letters play an integral […]
Indian FATCA Letters
/0 Comments/in FATCA Letter, Legal Notes /by ManagerAs the FATCA deadline to report Indian preexisting accounts approaches for Indian foreign financial institutions, more and more Indian-Americans and Indians who live and work in the United States receive Indian FATCA Letters (i.e. FATCA letters from Indian foreign financial institutions). Many U.S. taxpayers of Indian origin are completely unprepared for Indian FATCA Letters and […]
FBAR and Form 8938 Filings Continue to Grow
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerOn March 15, 2016, the IRS announced that there was continuous growth in the FBAR and Form 8938 filings. While the IRS attributes this growth in FBAR and Form 8938 filings to the greater awareness of taxpayers, one cannot underestimate the impact of the FATCA letter and the increasing knowledge of foreign financial institutions with […]
Tata Mutual Fund FATCA Letters and Indians in the United States
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerTata Mutual Fund FATCA Letters were some of the first FATCA letters received by U.S. investors in India. A lot of these U.S. investors were Indians born in India, but living and working in the United States. However, the process of sending FATCA letters is not over at this point. Therefore, more and more Indian-Americans […]
Jordanian Bank FATCA Letters
/0 Comments/in FATCA Tax Attorney, Legal Notes /by ManagerAs FATCA continues its triumphant march across the globe, banks from more and more countries continue to send out FATCA letters to their US customers. Recently, the banks in the Kingdom of Jordan sent out additional FATCA letters (hereinafter, “Jordanian Bank FATCA Letters”). Jordanian Bank FATCA letters caught many U.S. taxpayers by surprise; some even refuse […]
SDOP Voluntary Disclosure Period and Tax Return Filing Deadline
/0 Comments/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerA lot of tax professionals and taxpayers fail to recognize the vital connection between a tax return filing deadline (like April 18, 2016) and the determination of the SDOP Voluntary Disclosure Period. In this article, I will explain what the SDOP Voluntary Disclosure Period and how it is related to tax return filing deadlines. SDOP […]
IRS Increases Interest Rates for the Second Quarter of 2016
/0 Comments/in irs lawyer minneapolis, Legal Notes /by ManagerOn March 16, 2016, the Internal Revenue Service announced that interest rates have increased for the second quarter of 2016, which began on April 1, 2016 and ends on June 30, 2016. The second quarter of 2016 IRS interest rates will be: four (4) percent for overpayments [three (3) percent in the case of a […]
Outbound Foreign Trust: An Introduction
/0 Comments/in foreign trust tax lawyer, Legal Notes /by ManagerOne of the most fundamental distinctions in US foreign trust law is the difference between an inbound foreign trust and an outbound foreign trust. This distinction was emphasized by the landmark piece of legislation “The Small Business Job Protection Act of 1996″ and should be clearly understood by US tax lawyers as well as US […]
Streamlined Five Percent Offshore Penalty Calculation
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerDespite its appearances, the calculation of the Streamlined Domestic Offshore Procedures Title 26 Miscellaneous Offshore Penalty (“Streamlined Five Percent Offshore Penalty) may actually be a complex process. Moreover, the correct calculation of the Streamlined Five Percent Offshore Penalty may lead to some paradoxical conclusions, including a preference for the OVDP Penalty (now closed). Due to […]
Austin FBAR Tax Lawyer
/0 Comments/in FBAR Lawyers, Legal Notes /by ManagerA question that I would like to explore in this article is: Who is considered to be an Austin FBAR tax lawyer? It seems to be an odd question, because a lot of people would say that an Austin FBAR tax lawyer is an attorney who resides in Austin and does FBAR law. This, however, […]
New York FBAR Lawyer | Foreign Accounts Tax Attorney
/0 Comments/in FBAR lawyers New York, Legal Notes /by ManagerIf you are looking for a New York FBAR Lawyer, you should consider retaining the services of Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. While Mr. Sherayzen is not physically located in New York, he has a considerable number of clients in the City of New York and the State of New York. It […]
Foreign Trust Tax Treatment in the United States: Historical Overview
/0 Comments/in foreign trust tax lawyer, Legal Notes /by ManagerOver the years, the US tax treatment of foreign trusts has undergone dramatic changes. It is important to study and understand this history in order to properly understand and interpret current US tax laws concerning foreign trust. In this essay, I will provide a broad overview of the history of foreign trust tax treatment in […]
Importance of Pre-Immigration Tax Planning
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerPre-immigration tax planning is done by very few of the millions of immigrants who come to the United States. This is highly unfortunate because US tax laws are highly complex and it is very easy to get into trouble. The legal and emotional costs of bringing your tax affairs back into US tax compliance (after […]
Hiding Assets and Income in Offshore Accounts Again Made the IRS “Dirty Dozen” List
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn February 5, 2016, the IRS again stated that avoiding U.S. taxes by hiding money or assets in unreported offshore accounts remains on its annual list of tax scams known as the “Dirty Dozen” for the 2015 filing season. The problem with offshore accounts is two-fold. On the one hand, there are numerous con-artists who […]
Mr. Sherayzen Completes Immigration and International Tax Law Seminar
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerOn February 18, 2016, Mr. Sherayzen, in cooperation with two lawyers (an immigration lawyer and a business lawyer) completed another immigration and international tax law seminar “Foreign Investment in the United States: Key Immigration, Business and Tax Considerations”. During this immigration and international tax law seminar, the immigration lawyer, Mr. Streff, covered a wide range […]
Last Swiss Bank Program Category 2 Resolution
/0 Comments/in International Tax Lawyers Austin Texas, Legal Notes /by ManagerOn January 27, 2016, the US Department of Justice (DOJ) declared the last Swiss Bank Program Category 2 Resolution. The Swiss Bank Program was proclaimed on August 29, 2013, and constituted an unprecedented triumph of US economic might over the most formidable bank secrecy bulwark (though, already a greatly weakened one since the 2008 UBS […]
2015 Form 8938 and FBAR Currency Conversion Rates
/0 Comments/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerCurrency conversion is a critical part of preparing 2015 FBAR and Form 8938. This is why 2015 Form 8938 and FBAR Currency Conversion Rates are so important. The 2015 Form 8938 and FBAR Currency Conversion Rates are the December 31, 2015 rates officially published by the U.S. Department of Treasury (they are called “Treasury’s Financial […]
Minneapolis FBAR Attorney | FATCA OVDP Tax Lawyer
/0 Comments/in FBAR lawyers Minnesota, Legal Notes /by ManagerIf you are looking for a Minneapolis FBAR Attorney, a recommended suggestion would be to retain the services of Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Mr. Sherayzen is a Minneapolis FBAR Attorney and founder of Sherayzen Law Office. Minneapolis FBAR Attorney: Sherayzen Law Office FBAR Specialization Sherayzen Law Office specializes […]
What Needs to Be Included in the OVDP Preclearance Request
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerThe OVDP Preclearance Request is a very important document that is required to be filed in order to commence a US taxpayer’s voluntary disclosure under the 2014 IRS Offshore Voluntary Disclosure Program (2014 OVDP) which is still in existence at the time of this writing. This is why it is important to understand what actually […]
Form 8938 Definition of Foreign Financial Institution
/0 Comments/in Form 8938 tax attorney Minneapolis, Legal Notes /by ManagerFinancial accounts maintained by a Foreign Financial Institution constitute one of the main categories of Specified Foreign Financial Assets that need to be reported on IRS Form 8938. While it seems trivial, it is important to understand what is meant by “Foreign Financial Institution” within the context of Form 8938 – i.e. what is the Form […]
Higher OVDP Penalty Risk for US Taxpayers With Foreign Accounts
/0 Comments/in Legal Notes, offshore voluntary disclosure tax attorney Los Angeles /by ManagerDecember of 2015 was one of the most successful months for the DOJ’s Swiss Bank Program as nearly a record number of banks signed non-prosecution agreements. This success for the DOJ means that more and more of non-compliant US taxpayers with foreign accounts are likely to deal with Higher OVDP Penalty with respect to their […]
50% Offshore Penalty of the 2014 OVDP
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerThe 50% Offshore Penalty is a unique feature of the 2014 OVDP. What is so unusual about this penalty is that its impact widens with each passing month and year to include and affect more and more US taxpayers. In this article, I would like to explore the emergence of the 50% Offshore Penalty and […]
Swiss Bank Program Penalties Bring More than $1 Billion
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn December 23, 2015, as US Department of Justice (DOJ) announced that it reached resolutions with Bank J. Safra Sarasin AG, Coutts & Co Ltd, Gonet & Cie and Banque Cantonal du Valais, it also announced that Swiss Bank Program Penalties reached a landmark – more than $1 Billion. At that time, in addition to […]
Tax Deadlines Extended for Certain Mississippi Storm Victims
/0 Comments/in Legal Notes, minneapolis tax lawyer /by ManagerAs a result of the FEMA’s state of disaster declaration, certain Mississippi Storm victims will now benefit from the extension of the 2015 tax return filing and tax payment deadlines. In particular, the residents of Benton, Coahoma, Marshall, Quitman and Tippah counties (as well as other counties that may be added at a later time) […]
US Income Tax Obligations of Green Card Holders: General Overview
/0 Comments/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerThere is a common misconception among Green Card Holders (a common name for US permanent residents) that their US income tax obligations are limited in nature in comparison to US citizens. In this article, I seek to dispel this erroneous myth and provide some general outlines of the US income tax obligations of Green Card […]
Tax Year 2016 Business Income Tax Deadlines
/0 Comments/in Legal Notes, minneapolis tax lawyer /by ManagerWith the commencement of the new year, it is very important for business owners and corporate executives to focus on the main 2016 business income tax deadlines. In this short review of 2016 business income tax deadlines, I will focus only on the most common income tax deadlines of a corporation that operates on a […]
New FBAR Deadline
/0 Comments/in FBAR lawyers Minnesota, Legal Notes /by ManagerThere has been a lot of confusion surrounding the new FBAR deadline. Since the FBAR is one of the most important US international tax deadlines, it is important to clarify the change in the FBAR filing deadline. What is “FBAR”? FinCEN Form 114, commonly known as FBAR, is the Report of Foreign Bank and Financial […]
Individual IRS Tax Deadlines in the Calendar Year 2016
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerAs the New Year festivities are drawing to an end, the attention of hundreds of millions of US taxpayers focuses more and more on its annual US tax compliance in the calendar year 2016. In this brief article, I would like to summarize some of the most important deadlines of the calendar year 2016. Obviously, […]
Interest Rates for the Fourth Quarter of 2015 and First Quarter of 2016
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerThe IRS underpayment and overpayment interest rates are highly important in US tax law in general, and offshore voluntary disclosures in particular. Not only do these rates determine the interest on additional tax liability on the amended tax returns, but the same rates are sued to determine the PFIC interest rate on “excess distributions”. During the […]
IRS 2016 Standard Mileage Rates for Business, Medical and Moving
/0 Comments/in international tax lawyer minnesota, Legal Notes /by ManagerOn December 17, 2015, the IRS issued its 2016 standard mileage rates to calculate deductible automobile operation costs for business, charitable, medical or moving purposes. The 2016 standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 54 cents per mile for business miles driven, down from 57.5 […]
FATCA letters are everywhere, and foreign banks want you to certify that you’re complaint with the IRS. Here’s what you should know. read »
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US Tax Return Statute of Limitations and IRC Section 6501(c)(8)
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerMost tax practitioners are familiar with the general rules of assessment statute of limitation for US tax returns. However, very few of them are aware of the danger of potentially indefinite extension of the statute of limitations contained in IRC Section 6501(c)(8). In this article, I would like to do offer a succinct observation of […]
US Tax Consequences of the New Indian Gold Monetisation Scheme
/0 Comments/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerA recent article from Reuters discusses the appearance of the new Indian Gold Monetisation Scheme. The idea is to allow Indians to deposit gold into the banks in return for interest payments; in return, the Indian government is hoping to utilize the gold hoarded by its citizens to reduce gold imports. While the idea is […]
Forget bank secrecy, as the IRS and other nations begin swapping tax data under FATCA, the Foreign Account Tax Compliance Act. read »
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Higher OVDP Penalties May Affect More US Taxpayers
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerAs of August 25, 2015, and as a result of increasing number of DOJ Swiss Bank Program Non-Prosecution agreements, 2015, higher OVDP penalties (50 %) apply to US account holders of 43 banks. Between August 1 and August 20, 2015, six more banks were added to the 50% penalty list. In this article, I would […]
Swiss Bank Program Update: Bank Zweiplus and Banca Stato del Cantone Ticino
/0 Comments/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerOn August 20, 2015, the US Department of Justice announced another Swiss Bank Program update – Bank Zweiplus AG (Bank Zweiplus) and Banca dello Stato del Cantone Ticino (Banca Stato) have reached resolutions under the department’s Swiss Bank Program. The Swiss Bank Program, which was announced on August 29, 2013, provides a path for Swiss […]
India has joined the U.S. in a broad FATCA tax disclosure agreement that will force many American citizens and green card holders to declare Indian accounts. In the long run, it will have even bigger implications. read »
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FATCA Lawyer Update: India Signed FATCA Agreement
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerOn July 9, 2015, India finally signed the Intergovernmental Agreement (IGA) to implement FATCA. The fact is that the Indian signed FATCA Agreement has significant implications for millions of Indian-Americans who reside in the United States as well as outside of the United States. India Signed FATCA: Background Information on FATCA The Foreign Account Tax […]
Privatbank Von Graffenried AG Signs Non-Prosecution Agreement
/0 Comments/in FATCA Tax Attorney, Legal Notes /by ManagerOn July 2, 2015, the US Department of Justice announced that Privatbank Von Graffenried AG became the fifteenth bank to sign a Non-Prosecution Agreement under the DOJ’s Swiss Bank Program. It also became the 27th bank on the 50% penalty list for US taxpayers who wish to enter the OVDP. Background Information Von Graffenried is […]
Ersparniskasse Schaffhausen AG Signs Non-Prosecution Agreement with DOJ
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerOn June 26, 2015, the US Department of Justice announced that Ersparniskasse Schaffhausen AG (Ersparniskasse Schaffhausen) signed a Non-Prosecution Agreement under the department’s Swiss Bank Program. Ersparniskasse Schaffhausen Background Ersparniskasse Schaffhausen was founded in 1817 and is wholly owned by a Swiss charitable foundation. It is headquartered in the city and canton of Schaffhausen, Switzerland. […]
Bank Sparhafen Zurich AG Reaches Resolution with DOJ
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerOn June 19, 2015, the Department of Justice announced that Bank Sparhafen Zurich AG (Bank Sparhafen) has reached resolution under the department’s Swiss Bank Program. Bank Sparhafen Background Information Bank Sparhafen was founded in 1850 and has its sole office in Zurich. Bank Sparhafen knew that U.S. persons had a duty under U.S. law to […]
DOJ Non-Prosecution Agreement with Bank Linth LLB AG
/0 Comments/in FATCA Tax Attorney, Legal Notes /by ManagerOn June 19, 2015, the Department of Justice announced that Bank Linth LLB AG (Bank Linth) signed a Non-Prosecution agreement pursuant to the DOJ’s Swiss Bank Program. Bank Linth Background Bank Linth, one of the largest regional banks in Eastern Switzerland, was founded in 1848. It is headquartered in Uznach, Switzerland, which is approximately 35 […]
Berner Kantonalbank Non-Prosecution Agreement
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerOn June 9, 2015, the Department of Justice announced that Berner Kantonalbank AG (Berner Kantonalbank), signed a Non-Prosecution Agreement with the DOJ pursuant to the department’s Swiss Bank Program. Swiss Bank Program Background The Swiss Bank Program, which was announced on August 29, 2013, provided a path for Swiss banks to resolve potential criminal liabilities […]
Société Générale Private Banking Non-Prosecution Agreement
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerOn June 9, 2015, the Department of Justice announced that Société Générale Private Banking (Suisse) SA has reached a resolution under the DOJ’s Swiss Bank Program. According to the terms of the non-prosecution agreement, Société Générale Private Banking agreed to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop […]
With FATCA, offshore account compliance is even more important. And picking between the several IRS amnesty programs can be nuanced. Be realistic about your facts, and choose carefully. read »
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Credinvest Bank Signs Non-Prosecution Agreement
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerOn June 3, 2015, the US Department of Justice (“DOJ”) announced that Banca Credinvest SA (Credinvest Bank), together with Rothschild Bank, signed a Non-Prosecution Agreement that finalized Credinvest Bank’s participation in the DOJ Program for Swiss Banks. Credinvest Bank History Located in Lugano, Switzerland, Credinvest Bank started operations as a fully licensed bank in 2005. […]
Rothschild Bank AG Signs Non-Prosecution Agreement
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerOn June 3, 2015, the US Department of Justice (“DOJ”) announced that Rothschild Bank AG (Rothschild bank) have reached resolution under the department’s Swiss Bank Program. Rothschild Bank Facts Rothschild Bank was founded in 1968 and is headquartered in Zurich, Switzerland. Rothschild Bank offered services that it knew could and did assist U.S. taxpayers in […]
Four Swiss Banks Sign Non-Prosecution Agreements
/0 Comments/in FATCA Tax Attorney, Legal Notes /by ManagerOn May 28, 2015, four Swiss Banks – Société Générale Private Banking (Lugano-Svizzera), MediBank AG, LBBW (Schweiz) AG and Scobag Privatbank AG – signed Non-Prosecution Agreements under the Department of Justice Swiss Bank Program. These four Swiss banks now increased the list of the Swiss Banks that reached the resolution under the Program to the total […]
Finter Bank Zurich AG Reaches Resolution with US DOJ
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn May 15, 2015, Finter Bank Zurich AG (Finter Bank) became the third Swiss bank to sign a Non-Prosecution Agreement with US DOJ according to the terms of the DOJ Program for Swiss Banks. DOJ Program for Swiss Banks On August 29, 2013, the DOJ announced the creation of the “The Program for Non-Prosecution Agreements […]
Vadian Bank AG Signs Non-Prosecution Agreement with DOJ
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerOn May 8, 2015, Vadian Bank AG (Vadian) became the second bank to sign a Non-Prosecution Agreement with the US Department of Justice (DOJ) pursuant to the DOJ Program for Swiss Banks. Program for Swiss Banks: Background Information On August 29, 2013, the DOJ announced the creation of the “The Program for Non-Prosecution Agreements or […]
BSI SA is the First Bank to Reach Resolution Under Swiss Bank Program
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerOn March 30, 2015, the US Department of Justice announced that BSI SA, one of the 10 largest private banks in Switzerland, was the first bank to reach a resolution under the DOJ Swiss Bank Program. Background Information The Swiss Bank Program, which was announced on August 29, 2013, provides a path for Swiss banks […]
Minneapolis MN FATCA Tax Lawyer Update: FATCA-Related Forms
/0 Comments/in FATCA Tax Attorney, Legal Notes /by ManagerAs a Minneapolis MN FATCA Tax Lawyer, I often receive questions about what US tax forms precisely are affected by the implementation of the Foreign Account Tax Compliance Act (FATCA). Here is a list of the tax forms most affected by FATCA: 1. Minneapolis MN FATCA Tax Lawyer: IRS Form 1042 and 1042-S Form 1042 […]
Cayman Islands FATCA Registration Portal
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerOn March 20, 2015, the Cayman Islands FATCA Registration Portal was launched by the Department for International Tax Cooperation (which is a department within Cayman Islands Tax Information Authority). Cayman Islands FATCA Background The Cayman Islands FATCA Registration Portal is part of the long process of Cayman Islands FATCA compliance. Cayman Islands FATCA IGA (Model […]
2015 Second Quarter IRS Underpayment and Overpayment Interest Rates
/0 Comments/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn March 13, 2015, the IRS announced that the underpayment and overpayment interest rates for the calendar quarter beginning April 1, 2015, will remain unchanged. The rates will be: three (3) percent for overpayments [two (2) percent in the case of a corporation];three (3) percent for underpayments;five (5) percent for large corporate underpayments; andone-half (0.5) […]
Americans abroad usually assume their first $100K of earnings are tax-free. It’s not that simple, and several years of earnings may be at stake when you find out, making FATCA and FBAR problems even worse. read »
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FATCA is America’s global tax reporting law that calls for nations everywhere to report U.S. account holders. Better get compliant, and soon. read »
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For years, the Vatican Bank has sidestepped EU regulations intended to bring about greater transparency in the financial sector. That was before Pope Francis, who has pledged to restore public confidence in the administration of the Roman Catholic Church. This week we learned the United States and the Holy See have brokered a FATCA agreement for […] read »
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Gibraltar doesn’t like being called a tax haven, but are there any left? America’s FATCA has changed the map forever. read »
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FATCA now counts over 100 nations, with even the Pope’s Holy See jumping on the IRS offshore tax compliance bandwagon. read »
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Thanks to FATCA (the Foreign Account Tax Compliance Act), the IRS is now receiving important data on formerly hidden bank accounts, but tax administrators in other countries aren’t so fortunate. Their enforcement efforts are stymied by a lack of information on offshore income. As the current spat between Colombia and Panama illustrates, revenue […] read »
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Banks Worldwide are Handing Over Americans to the IRS Under FATCA, American’s Global Disclosure Law. If Your Bank Writes You, Don’t Ignore It. read »
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FATCA is Revolutionizing tax compliance Worldwide. Now, the OECD has assembled 51 Nations that are All on the Hunt for tax and Offshore Account Data. read »
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The OECD unwrapped a new global version of FATCA to facilitate the exchange of detailed account information between governments read »
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FATCA Means IRS scrutiny, so better come clean on offshore accounts. But it can be surprisingly confusing who must report on joint accounts. read »
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There’s a direct correlation between the severity of a tax code and the level of effort individuals are willing to put into avoiding or evading taxes. Attempting to address the latter while ignoring the former is a fool’s errand. read »
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Global financial firms breathed a brief sigh of relief this week on news that the U.S. Treasury will temporarily relax enforcement on the Foreign Account Tax Compliance Act (FATCA). read »
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Incorrect or Delinquent Form 5471 Penalties
/2 Comments/in form 5471, Legal Notes /by ManagerVarious Form 5471 penalties are associated with failure to file Form 5471 or the filing of an incorrect Form 5471. In this article, I will describe the most important of these penalties. IRS Form 5471 The IRS Form 5471 is an extremely complex form that is used to satisfy the reporting requirements of two esoteric […]
FATCA Tax Lawyers Update: FATCA Financial Institution Definition
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerOne of the key concepts in FATCA compliance is a “financial institution”. The definition of a financial institution (“FATCA Financial Institution”) is contained in the FATCA Model IGAs. In this article, I will explore some of the general concepts central to defining a FATCA Financial Institution. Four Types of FATCA Financial Institutions The concept of […]
Costa Rica Corporations and U.S. Tax Reporting
/in form 5471, Legal Notes /by ManagerIt has become common for U.S. citizens to engage in business abroad through a foreign corporation. Costa Rica is definitely one of the most favored countries in Central America, partially due to its reputation for stability. It is important to understand, however, that U.S. citizens who engage in business abroad through a foreign corporation must […]
The Location of Your International Tax Lawyers Austin Texas
/0 Comments/in International Tax Lawyers Austin Texas, Legal Notes /by ManagerChoosing your lawyer among International Tax Lawyers Austin Texas is not a simple task, especially for a US taxpayer thinking about doing an offshore voluntary disclosure. One of the critical questions often arises is whether it is better to retain an international tax lawyer in Austin or in Minneapolis if you live in Austin? It […]
FBAR Lawyers Warn That 2014 FBAR is Due on June 30, 2015
/0 Comments/in FBAR Lawyers, Legal Notes /by Manager2014 FBAR may be the most important (in terms of potential penalties) of all 2014 information tax returns. The FBAR is an abbreviation for the Report of Foreign Bank and Financial Accounts (the “FBAR”). The current official name of the FBAR is FinCEN Form 114 (prior to mandatory e-filing, Form TD F 90-22.1 was the […]
Introduction to US International Tax Anti-Deferral Regimes
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerDespite their enormous importance to tax compliance, there is a shocking level of ignorance of the US international tax anti-deferral regimes that is being displayed by US taxpayers, foreign bankers, foreign accountants, foreign attorneys, US accountants and even many US tax attorneys. In this article, for educational purposes only, I would like to provide a […]
US International Tax Attorney On The Necessity of Anti-Deferral Regimes
/0 Comments/in International Tax Attorney, Legal Notes /by ManagerAs a US international tax attorney, I am fully aware of the crucially important role that the US international tax anti-deferral regimes (the Subpart F rules and PFIC rules) play in the Internal Revenue Code. Yet, the enormous complexity of the US international anti-deferral regimes often makes some people wonder about why we even have […]
FATCA Compliance Presents Challenges for Hedge Funds
/0 Comments/in FATCA Lawyers, Legal Notes /by ManagerThe Foreign Account Tax Compliance Act (FATCA) created a worldwide international tax compliance regime that has influenced more industries than simply foreign financial institutions. FATCA compliance presents a formidable challenge even to hedge funds. FATCA Compliance Challenges for Hedge Funds The challenges that FATCA compliance poses to hedge funds is best understood by analyzing what […]
Main Differences between Model FATCA IGAs
/0 Comments/in FATCA Tax Attorney, Legal Notes /by ManagerAs FATCA is being adopted by more and more countries, it is important to understand that there are two types of model FATCA IGAs (i.e. intergovernmental agreements to implement FATCA) that are signed between various countries and the United States. Both model FATCA IGAs were issued by the US Treasury Department and both model FATCA […]
Prison Sentence for Quiet Disclosure: the Kaminsky Case
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn March 4, 2015, Gregg A. Kaminsky, a former UBS client, was sentenced for willfully failing to file a Foreign Bank Account Report (the “FBAR”) with the U.S. Department of Treasury in connection with his concealment of income and assets in accounts in Switzerland, Hong Kong, and Thailand over several years, as well as his […]
The Long Reach of the FATCA Letter Notice
/0 Comments/in FATCA Tax Attorney, Legal Notes /by ManagerThe FATCA Letter Notice is a critical component of a FATCA Letter that is causing significant problems for millions of US owners of foreign financial accounts. Yet, a lot of the FATCA letter recipients are completely unaware of the full impact of the FATCA Letter Notice. In this article, I will provide a general explanation […]
The IRS Onslaught Against Bank Leumi Clients Continues: The Fogel Case
/0 Comments/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerOn February 2, 2015, one of Bank Leumi clients, Dr. Baruch Fogel of Laguna Beach, California, pleaded guilty today in the U.S. District Court for the Central District of California to willfully failing to file a Report of Foreign Bank and Financial Accounts (FBAR) for tax year 2009. In this article, I would like to […]
Who is Required to File IRS Form 1041
/0 Comments/in estate planning lawyers Minneapolis, Legal Notes /by ManagerIRS Form 1041 (“U.S. Income Tax Return for Estates and Trusts”) is used by a fiduciary of a domestic decedent’s estate, trust, or bankruptcy estate for a number of important reporting reasons. It is utilized to report income, deductions, gains, losses, and related items of an estate or trust; income that is either accumulated or […]
2015 UBS Probe Poses Threat to US Owners of Undisclosed UBS Accounts
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerThis week, UBS Group AG confirmed that it was under a new investigation over whether the Switzerland bank sold unregistered securities to US taxpayers in violation of US law. This article will discuss the new UBS probe and the threat it poses to US owners of undisclosed UBS accounts who never went through an offshore […]
IRS Form 14654 for Streamlined Domestic Offshore Procedures
/0 Comments/in Legal Notes, Streamlined Domestic Offshore Procedures /by ManagerIRS Form 14654 is probably the most important part of the taxpayer’s voluntary disclosure under the Streamlined Domestic Offshore Procedures (“SDOP”). In this article, I would like to explore the various parts of IRS Form 14654 and explain why this form is so important. Please, note that IRS Form 14654 was just revised in January […]
Treasury 2014 FBAR Currency Conversion Rates of December 31, 2014
/0 Comments/in FBAR lawyers New York, Legal Notes /by ManagerAccording to the June 2014 FBAR currency conversion rates instructions published by FinCEN, in order to determine the maximum value of a foreign bank account, the Treasury’s Financial Management Service (still called so even though Financial Management Service was consolidated into the Bureau of the Fiscal Service within the Treasury Department) rates must be used. […]
Abusive Tax Shelters on the IRS “Dirty Dozen” List of 2015
/0 Comments/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerOn February 3, 2015, the IRS said using abusive tax shelters and structures to avoid paying taxes continues to be a problem and remains on its annual list of tax scams known as the “Dirty Dozen” for the 2015 filing season. “The IRS is committed to stopping complex tax avoidance schemes and the people who […]
New Convictions for Helping Hide Millions in Israeli Offshore Accounts
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerOn December 19, 2014, a federal jury sitting in Los Angeles convicted two California tax return preparers of one count of conspiracy to defraud the Internal Revenue Service (IRS) and two counts of willfully failing to file a Report of Foreign Bank and Financial Accounts (FBAR) with respect to secret Israeli Offshore Accounts. Israeli Offshore […]
IRS Criminal Investigation Co-Hosts First International Criminal Tax Symposium
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerThe Internal Revenue Service Criminal Investigation Division (IRS-CI) and Her Majesty’s Revenue & Customs (HMRC) co-hosted a three-day International Criminal Tax Symposium in Washington, D.C. on January 27 – 29, 2015. The symposium focused on combating offshore tax evasion and international financial crimes. It is worth mentioning that delegates from criminal tax and enforcement programs […]
Streamlined Domestic Offshore Compliance Process
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerIn a previous article, I discussed the eligibility requirement with respect to the Streamlined Domestic Offshore Procedures. In this article, I would like to explore the specific filing requirements under the Streamlined Domestic Offshore Procedures. As a side note, it is important to emphasize that this is just an educational article on the general overview […]
Title 26 Miscellaneous Offshore Penalty under SDOP
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerThe Title 26 Miscellaneous Offshore Penalty (“Miscellaneous Offshore Penalty”) is one of the most critical aspects of the Streamlined Domestic Offshore Procedures (“SDOP”). In this article, I want to conduct a general overview of how the Miscellaneous Offshore Penalty is calculated. As a side note, it is important to keep in mind that this is an […]
Determining the Residency of a Trust in Cross-Border Situations
/0 Comments/in estate planning lawyers Minneapolis, Legal Notes /by ManagerOne of the most important tax aspects involving trusts in cross-border tax situations is the determination of the residency of a trust- i.e. whether it is a domestic or foreign trust for US tax purposes. This determination of the residency of a trust will have important tax consequences for US taxpayers. In this article we […]
FATCA Attorneys Update: IRS Launches International Data Exchange Service
/0 Comments/in FATCA Tax Attorney, Legal Notes /by ManagerOn January 12, 2015, the IRS announced the opening of the International Data Exchange Service (IDES) for enrollment. The appearance of IDES is not a surprise to FATCA Attorneys, because most FATCA attorneys knew IDES was the next logical step since its purpose is going to be for foreign financial institutions (FFIs) and host country […]
Who Must File Form 1120-F ?
/0 Comments/in Legal Notes, Tax Lawyers Minneapolis /by ManagerForm 1120-F (“U.S. Income Tax Return of a Foreign Corporation”) is used to report the income, gains, losses, deductions, credits, and to figure the U.S. income tax liability of a foreign corporation. The form is also used to claim any refund due, to transmit Form 8833 (“Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b)”), […]
BCGE FATCA Letter
/0 Comments/in FATCA Tax Attorney, Legal Notes /by ManagerIn a previous article, I started the discussion of various FATCA letters issued by banks around the world by concentrating on the HSBC FATCA letter. In this article, I would like to shift focus to a different part of the world and discuss the Swiss format with BCGE FATCA Letter. BCGE FATCA Letter: General Format […]
IRS Loses Two Offshore Tax Cases: Weil & Baravarian
/0 Comments/in FBAR lawyers New York, Legal Notes /by ManagerLast month, a federal jury in Fort Lauderdale, Florida acquitted Raoul Weil, a former top UBS Swiss banking executive, of tax evasion charges. Weil was indicted in 2008 under 18 U.S.C. § 371 (“Conspiracy to commit offense or to defraud United States”) and it was alleged that he helped nearly 17,000 wealthy US persons hide […]
2015 Inflation Adjustments to Tax Benefits
/0 Comments/in Legal Notes, Tax Lawyers Minneapolis /by ManagerThe IRS recently announced annual inflation adjustments for more than 40 tax provisions, including the tax rate schedules, and other tax changes. Revenue Procedure 2014-61 provides details about these 2015 inflation adjustments. In this writing, I would like to highlight main 2015 inflation adjustments. 1. 2015 inflation adjustments for income tax brackets. The tax rate […]
IRS Form 1041 Penalties and Interest
/0 Comments/in estate planning lawyers Minneapolis, Legal Notes /by ManagerForm 1041 (“U.S. Income Tax Return for Estates and Trusts”) is used by a fiduciary of a domestic decedent’s estate, trust, or bankruptcy estate for a number of important reporting reasons. Interest may be charged and various penalties may be assessed for failure to meet reporting requirements and to pay necessary taxes. In this article, […]
Who Must File IRS Form 1042
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerForm 1042 (“Annual Withholding Tax Return for U.S. Source Income of Foreign Persons”) serves a number of important reporting purposes. In general, it is used to report the tax withheld under chapter 3 of the Internal Revenue Code (“IRC”) on certain income of foreign persons (such as nonresident aliens, foreign partnerships, foreign corporations, foreign estates, […]
Kentucky Resident Charged for Maintaining Secret Swiss Bank Accounts
/0 Comments/in FATCA Tax Attorney, Legal Notes /by ManagerU.S. Attorney Preet Bharara for the Southern District of New York and Acting Special Agent in Charge Shantelle P. Kitchen of the Internal Revenue Service-Criminal Investigation (IRS-CI) New York Field Office announced on November 18, 2014, the unsealing of an indictment against Peter Canale, a U.S. citizen and resident of Kentucky, for conspiring to defraud […]
HSBC FATCA Letter
/0 Comments/in FATCA, Legal Notes /by ManagerIn a previous article, I explained why FATCA Letters mark a critical event for the voluntary disclosure process of a US taxpayer with undisclosed foreign accounts. While I mentioned that the content of a FATCA letter is usually more or less the same, I emphasized that the actual format of a FATCA letter may differ […]
IRS 2014 Final and Proposed Regulations Regarding Form 5472
/0 Comments/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerIn 2014, the IRS issued both final (T.D. 9667), and proposed (REG-114942-14) regulations amending the rules for filing Form 5472, (“Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business”). Form 5472 is used to provide the information required under Internal Revenue Code (“IRC”) Sections 6038A […]
FATCA Letters
/0 Comments/in FATCA, Legal Notes /by ManagerFollowing the implementation of Foreign Account Tax Compliance Act (“FATCA”) on July 1, 2014, foreign banks around the world started sending out FATCA Letters to their US (or suspected US) customers who had accounts on record prior to as well as on June 30, 2014. In a previous article, I discussed the reason for FATCA […]
Brazil FATCA IGA Signed
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerThe long-awaited Brazil FATCA IGA (Intergovernmental Agreement) was finally signed on September 23, 2014. This is an event of high importance and, in this article, I would like to explore Brazil FATCA IGA in more detail. FATCA & Model Treaties FATCA (“Foreign Account Tax Compliance Act”) was signed into law in 2010. This is a […]
Ireland to End Double Irish Tax Loophole used by many US Companies
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerLess than a month ago, Irish Finance Minister Michael Noonan announced in an address introducing the 2015 budget to the Irish parliament that the country will be changing its tax code to require all companies registered in Ireland to be tax residents, thereby ending the so-called Double Irish loophole utilized by many US companies and […]
Are the new IRS Inversion Regulations in Notice 2014-52 Working?
/0 Comments/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerOn September 22, 2014, the Department of the Treasury (“Treasury”) and the Internal Revenue Service (“IRS”) issued Notice 2014-52, “Rules Regarding Inversions and Related Transactions” in the wake of recent inversions. In previous articles on Hopscotch loans and de-control of CFCs, we covered certain aspects of the new regulations to be issued. This article will […]
Guilty Plea for Failure to Report Income from Undeclared UBS Account
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerOn October 20, 2014, the Justice Department and the IRS announced that Menashe Cohen pleaded guilty in the U.S. District Court for the District of New Hampshire to filing a false federal income tax return for tax year 2009. In addition, Mr. Cohen has agreed to resolve his civil liability for failure to report his […]
New IRS Regulations to Address Transactions to De-Control CFCs
/0 Comments/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerOn September 22, 2014, the Department of the Treasury (“Treasury”) and the Internal Revenue Service (“IRS”) issued Notice 2014-52, “Rules Regarding Inversions and Related Transactions” (“Notice”) in the wake of the recent wave of inversions. In a previous article, we covered the new regulations to be issued regarding Internal Revenue Code (“IRC”) Section 956 so-called […]
Receiving FATCA Letter from Your Foreign Bank
/0 Comments/in FATCA Letter, Lead Article /by ManagerSince July 1, 2014, the most feared US legislation regarding international tax enforcement – Foreign Account Tax Compliance Act (“FATCA”) – is being implemented by most banks around the world. As part of this compliance, foreign banks are sending out so-called FATCA letters to their customers seeking to verify certain types of information. In this […]
IRS Announces Retirement Plan Contribution Limits for 2015
/0 Comments/in irs lawyer minneapolis, Legal Notes /by ManagerOn October 23, 2014, the Internal Revenue Service (IRS) announced the tax-year 2015 cost of living adjustments (COLAs) affecting the dollar limitations for pension plan contributions and plan contributions for other retirement-related plans. While many pension plan limitations will change for 2015 because the COLAs met the statutory thresholds triggering their adjustment, not all limitations […]
IRS Notice 2014-52 Regarding Inversions and “Hopscotch Loans”
/0 Comments/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerOn September 22, 2014, the Department of the Treasury (“Treasury”) and the Internal Revenue Service (“IRS”) issued Notice 2014-52, “Rules Regarding Inversions and Related Transactions” (“Notice”) in the wake of recent inversions conducted by many US companies such as by Medtronic, Chiquita Brands, Pfizer and others. Treasury and the IRS highlighted in the Notice that […]
Same Interest Rates for the Fourth Quarter of 2014
/0 Comments/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn September 3, 2014, the IRS announced that the underpayment and overpayment interest rates for the fourth quarter of 2014 will remain the same The rates will be: three (3) percent for overpayments (two (2) percent in the case of a corporation); three (3) percent for underpayments; five (5) percent for large corporate underpayments; and […]
Treatment of Business Profits under the Canada-US Tax Treaty
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerIn this article we will briefly examine the treatment of the business profits of a resident of a contracting State under the Canada-US Income Tax Convention, and the important definition of a “permanent establishment” for purposes of determining the potential taxability of income of such profits. This article is intended to provide informative material for […]
FBAR Reporting of Foreign Gold and Silver Storage Accounts
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerThere is a great deal of confusion about the reporting of foreign gold and silver storage accounts on the Report of Foreign Bank and Financial Accounts (FBAR). In this article, I would like to set forth the general legal framework for the analysis of the reporting requirements for the foreign gold and silver storage accounts. […]
OVDP lawyers: Recent News Regarding the DOJ Program for Swiss Banks
/0 Comments/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerFor OVDP lawyers, one of the most significant recent developments in the US international tax law enforcement was the Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (“Program”) announced by the US Department of Justice (“DOJ”) on August 29, 2013. Since the Program began functioning, more than a hundred Swiss banks (out of […]
Illegal Use of Offshore Accounts in the Caribbeans: Advisor Sentenced
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerIn an earlier article, we referred to a case where a investment advisors used offshore accounts in the Caribbeans to launder and conceal funds. On September 5, 2014, the IRS ad the DOJ announced one of these advisors, Mr. Joshua Vandyk, was sentenced to serve 30 months in prison. Mr. Vandyk, a U.S. citizen, and […]
History and Success of the Main Voluntary Disclosure Programs
/0 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerIn order to bring back into the system the non-compliant taxpayers with undisclosed foreign assets, the IRS created various offshore voluntary disclosure programs. The voluntary disclosure programs have been part of a wider effort to stop offshore tax evasion, which includes enhanced enforcement, criminal prosecutions and implementation of third-party reporting via the Foreign Account Tax […]
Underpayment and Overpayment Interest Rates for the Third Quarter of 2014
/0 Comments/in Legal Notes, Tax Lawyers Minneapolis /by ManagerUnderpayment and Overpayment Interest Rates are important to all taxpayers who are either due a refund or owe taxes to the IRS, because the interest on the refund or the amount due will be calculated based on these Interest Rates. This essay reminds U.S. taxpayers that the IRS announced that the interest rates will remain […]
New Guilty Pleas For Using Cayman Islands Bank Accounts to Conceal Funds
/0 Comments/in Legal Notes /by ManagerOn July 11, 2014, the DOJ and the IRS announced that Joshua Vandyk, a U.S. citizen, and Eric St-Cyr and Patrick Poulin, Canadian citizens, have each pleaded guilty to conspiring to launder monetary instruments and conceal funds using Cayman Islands bank accounts (mostly through foreign corporations). Patrick Poulin, 41, pleaded guilty on July 11, 2014, […]
Filings Required Under the Streamlined Foreign Offshore Procedures
/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerIn a previous article, I discussed the eligibility requirements and the general process of the Streamlined Foreign Offshore Procedures. In this article, I would like to explore further the specific filing requirements that should be met under the Streamlined Foreign Offshore Procedures. As a side note, while this article contains an overview of filing instructions, […]
Streamlined Domestic Offshore Procedures: Eligibility Requirements
/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerOne of the most significant changes introduced by the 2014 update to the voluntary disclosure structure is the unprecedented introduction of the streamlined voluntary disclosure option to the U.S. taxpayers who reside in the United States – the so called, Streamlined Domestic Offshore Procedures. The introduction of the Streamlined Domestic Offshore Procedures means that the […]
Non-Residency Requirement of the Streamlined Foreign Offshore Procedures
/in international tax lawyer, Legal Notes /by ManagerOne of the key issues facing U.S. taxpayers who wish to use the Streamlined Foreign Offshore Procedures is meeting the non-residency requirement. If the non-residency requirement is not met (and assuming the regular delinquent FBAR submission procedure is not applicable), the U.S. taxpayer faces the less pleasant choice of either following the Streamlined Domestic Offshore […]
Streamlined Foreign Offshore Procedure
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOne of the most dramatic changes to the voluntary disclosure process made by the IRS on June 18, 2014, was the complete revamping of the Streamlined Foreign Offshore Procedure. As long as the taxpayer can honestly certify that his prior violations of U.S. tax laws were non-willful, the Streamlined Foreign Offshore Procedure offers a unique opportunity […]
Offshore Accounts Tax Lawyer: Delinquent FBAR Submission
/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerIf there is anything familiar left of the old offshore voluntary disclosure landscape for an Offshore Accounts Tax Lawyer after the 2014 update to the IRS Offshore Voluntary Disclosure Program (“OVDP”), it will be the submission of delinquent FBARs under the old FAQ 17. Of course, under the new 2014 OVDP, there is no FAQ 17. […]
2014 OVDP Lawyers: August 4 2014 Deadline and New 50% OVDP Penalty
/in international tax lawyer Minnesota Minneapolis, Legal Notes /by Manager2014 OVDP Lawyers identified August 4, 2014, as an important filing deadline to any U.S. taxpayers who intend to enter into the IRS Offshore Voluntary Disclosure Program (“OVDP”). This new deadline stems directly from the recent 2014 update to the OVDP. In this article, I want to briefly describe the deadline and its background, and […]
DOJ Program for Swiss Banks: Important June 2014 Developments
/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerIn a series of articles, we covered the U.S. Department of Justice’s new voluntary disclosure program for Swiss banks and the four filing categories involved. In June of 2014, a number of important developments regarding the DOJ Program for Swiss Banks occurred. In this article, we will explain some of these new developments. This article […]
2013 FBAR is Due on June 30, 2014
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerThe most dangerous information report – the Report of Foreign Bank and Financial Accounts (the “FBAR”) – is due at the end of this month. The 2013 FBAR (i.e. the FBAR for the calendar year 2013) is due on June 30, 2014. Pursuant to the Bank Secrecy Act, 31 U.S.C. §5311 et seq., the Department […]
New 2014 OVDP Update: Introduction
/in Lead Article, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn June 18, 2014, the IRS made a major upgrade to its existing Offshore Voluntary Disclosure Program (“OVDP”). The new OVDP will now be called 2014 OVDP. While the changes to the OVDP rules are significant, the new rules regarding the Streamlined Procedure are maybe even more important. Here is a summary of the 2014 […]
Credit Suisse Pleaded Guilty; Disclosure of US-Held Bank Accounts
/in FATCA Tax Attorney, Legal Notes /by ManagerOn May 19, 2014, Credit Suisse AG pleaded guilty to conspiracy to aid and assist U.S. taxpayers in filing false income tax returns and other documents with the IRS. Credit Suisse agreed to pay huge fines and disclose certain information to the IRS and the US DOJ. Let’s look closer at certain parts of this […]
Surgeon Indicted for Secret Bank Accounts in Panama and Costa Rica
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerPreviously, I already discussed the high exposure of the US-owned undisclosed bank accounts in Panama and Costa Rica. Last week, the IRS gave a perfect example (thought with an unusual set of facts) of such exposure of bank accounts in Panama and Costa Rica. On May 23, 2014, the Justice Department and Internal Revenue Service […]
Businessman Jailed for Using Nevis Bank Account to Conceal Income
/in FATCA Tax Attorney, Legal Notes /by ManagerOn May 7, 2014, the IRS and the DOJ announced the Robert C. Sathre was sentenced to serve thirty-six months in federal prison for tax evasion; Mr. Sathre was also ordered to pay $3,113,882 in restitution to the IRS and to serve three years of supervised release. Sathre pleaded guilty on February 26, 2014, to […]
Attorney Jailed for Helping Hide Money for Clients at Their Swiss Bank Accounts
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerOn March 18, 2014, the IRS and U.S. Department of Justice announced the California attorney Christopher M. Rusch was sentenced to serve 10 months in prison for helping his clients Mr. Stephen M. Kerr and Mr. Michael Quiel, both businessmen from Phoenix, hide millions of dollars in secret Swiss bank accounts at UBS AG and […]
Liechtenstein Offshore Accounts After the Non-Prosecution Agreement
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerLiechtenstein offshore accounts no longer offer to U.S. taxpayers the bank secrecy protection for which they were famous for a very long time prior to 2008. In fact, after the Non-Prosecution Agreement between the U.S. Department of Justice (“DOJ”) and Liechtensteinische Landesbank AG, after the passage of the 2012 tax law in Liechtenstein, and after […]
IRS Pursuit of Mizrahi Bank Clients Gains Steam
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerIt is well-known that the IRS is in hot pursuit of U.S. taxpayers with undisclosed bank accounts in Mizrahi Bank. There have been a number of victories that the IRS has scored against Mizrahi Bank clients. The latest example of this is the case of Monajem Hakimijoo who plead guilty on February 13, 2014. According […]
IRS Increases Use of John Doe Summons for Unreported Offshore Bank Accounts
/in FBAR lawyers Minnesota, Legal Notes /by ManagerSome time ago, in a joint statement before the Permanent Subcommittee on Investigations Committee on Homeland Security and Government Affairs of the United States Senate for a hearing on “Offshore Tax Evasion: The Effort to Collect Unpaid Taxes on Billions in Offshore Accounts”, Deputy US Attorney General James M. Cole and Assistant Attorney General, Tax […]
Filing an Extension for US Taxpayers Residing Outside of the United States
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerAs is commonly known, US taxpayers who file on a calendar year basis have a filing due date of April 15th. In general, if a tax is owed, it should be paid by the due date of your tax return, without regard to any extension of time for filing the return. Most US taxpayers who […]
Liquidating a Corporation and IRS Form 966
/in business tax attorney Minneapolis, Legal Notes /by ManagerIf you have a corporation that you have liquidated, or plan to liquidate, you need to be aware of the requirements of the IRS Form 966. Form 966 (“Corporate Dissolution or Liquidation”) must be filed by corporations (including for corporations filing Form 1120, 1120-L, 1120-IC-DISC, 1120S, and farmer’s cooperatives) if they have adopted a resolution […]
Form 8889 for Health Savings Accounts (HSAs)
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerHealth Savings Accounts (HSAs) were created in 2003 as a means of addressing increasing health care costs. HSAs give individuals enrolled in high-deductible health plans (HDHPs) tax-preferred treatment for money saved for medical expenses. In general, HSAs allow for individuals to defer taxes when money is contributed (even if a taxpayer does not itemize on […]
Form 8960 and the Net Investment Income Tax
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerThe new Net Investment Income Tax imposed by Internal Revenue Code Section 1411 went into effect on January 1, 2013 for income tax returns of individuals, estates and trusts, beginning with their first taxable year starting on (or after) January 1, 2013. The Net Investment Income Tax applies at a rate of 3.8% on certain […]
FBAR Tax Attorney St Louis: Another Swiss Banker Pleads Guilty to Tax Evasion
/in international tax lawyer minnesota, Legal Notes /by ManagerOn March 12, 2014, the IRS and the DOJ announced that Andreas Bachmann, 56, of Switzerland, pleaded guilty to conspiring to defraud the Internal Revenue Service (IRS) in connection with his work as a banking and investment adviser for U.S. customers. It appears (at least from the perspective of an FBAR Tax Attorney St Louis) […]
Student Loan Interest Deduction and 2014 Phase-outs
/in irs lawyer minneapolis, Legal Notes /by ManagerWith the costs of higher education increasing each year, the deductibility of interest paid on student loans is an important tax topic for many younger individuals. However, taxpayers are sometimes surprised to learn that there is a phase-out for various applicable income levels for this deduction, and above certain income levels, the deduction is completely […]
Form 5472 Basics
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerForm 5472 (“Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business”) occupies a place of special importance for an international tax attorney. The chief reason is because, unlike most other international tax forms familiar to an international corporate tax attorney, Form 5472 deals with corporate […]
International Tax Planning Lawyers: Importance of Business Purpose Doctrine
/in business tax attorney Minneapolis, international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerIt is surprising how often international tax planning lawyers ignore the importance of business purpose doctrine to international tax planning. It seems that a lot of U.S. accountants and, to a smaller degree, attorneys have been limited to the parochial view of the application of the doctrine within the borders of the United States, whereas […]
Swiss Accounts IRS Tax Lawyer News: US v. Victor Lipukhin
/in irs lawyer minneapolis, Legal Notes /by ManagerOn March 20, 2014, the politics and FBAR criminal enforcement met again in a new case, U.S. v. Victor Lipukhin – a case of continuous interest for a Swiss Accounts IRS Tax Lawyer. While the timing is most likely driven by politics, this case also resulted from the fallout of the UBS 2009 settlement; under […]
Swiss Bank Letters Cause Legal Complications for U.S. Taxpayers
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerThe Swiss Bank letters continue to pour into the mailboxes of U.S. taxpayers with bank and financial accounts in Switzerland as the April 30th deadline approaches for many Swiss banks that participate in the ongoing U.S. Department of Justice (“DOJ”) The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the “Program”). In an […]
Quiet Disclosure: The Russian Roulette of FBAR Disclosures
/in FBAR lawyers Minnesota, Legal Notes /by ManagerThere used to be a time when quiet disclosures with respect to offshore income and accounts were routinely recommended by accountants and even attorneys. Even as the tide turned against non-compliant U.S. taxpayers with offshore accounts in 2008-2009 with the spectacular IRS success in the UBS case and the announcement of the 2009 Offshore Voluntary […]
Choosing Your Offshore Voluntary Disclosure Lawyer
/in Legal Notes, offshore voluntary disclosure tax attorney Los Angeles /by ManagerChoosing the right Offshore Voluntary Disclosure Lawyer is a very important decision that may determine the fate of your entire offshore voluntary disclosure case. While making this choice, I recommend that you consider the following five main factors while choosing your Offshore Voluntary Disclosure Lawyer. 1. Areas of Practice of Your Offshore Voluntary Disclosure Lawyer […]
Lebanon FATCA Note: Is the “Switzerland of Middle East” in the Crosshair of FATCA?
/in FATCA Tax Attorney, Legal Notes /by ManagerThis Lebanon FATCA update is intended to provide a broad analysis of the impact of the U.S. Foreign Account Tax Compliance Act (“FATCA”) on the numerous U.S. accountholders in Lebanon. Lebanon FATCA: Background Information The Lebanese banking secrecy rules, commonly known as the “1956 Law”, have earned the country the unofficial title of the “Switzerland […]
Letters from Swiss Banks: What Should You Do?
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerSince the last quarter of 2013, an increasing number of U.S. taxpayers with accounts in Swiss banks have received letters from Swiss Banks regarding participation in the U.S. Department of Justice (“DOJ”) The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the “Program”). It is very important to react to these letters in […]
Second Quarter of 2014 IRS Underpayment and Overpayment Interest Rates
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn March 14, 2014, the IRS announced that the underpayment and overpayment interest rates will remain the same for the calendar quarter beginning April 1, 2014. The rates will be: three (3) percent for overpayments [two (2) percent in the case of a corporation]; three (3) percent for underpayments; five (5) percent for large corporate […]
OVDP International Tax Attorney: Letters from Swiss Banks & OVDP
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerThis is a natural question for an OVDP International Tax Attorney: in light of the ongoing U.S. Department of Justice (“DOJ”) The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the “Program”), should every U.S. taxpayer with undisclosed Swiss accounts enter the Program? As everything in international tax law, the answer of whether […]
OVDP Foreign Accounts Lawyers: Swiss Banks Disclosure Deadline on April 30, 2014
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerAs many OVDP Foreign Accounts Lawyers know, April 30, 2014 is a crucial deadline for the U.S. Department of Justice (“DOJ”) The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the “Program”). By this date, numerous Swiss banks will have to disclose the names of US accountholders, account balance information, and various other […]
Minnesota Tax Attorneys: Corporate Deadlines on March 17, 2014
/in Legal Notes, tax lawyers minnesota /by ManagerMinnesota tax attorneys and attorneys in other states warn their clients that there are two important IRS deadlines next Monday, March 17, 2014. First, corporate income tax returns are due for corporations with fiscal year ending on December 31, 2013. Normally, the deadline would be on March 15, but because this date falls on Saturday, […]
Canada FATCA: Canada Agrees to Implement FATCA
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn February 5, 2014, the U.S. Department of the Treasury announced that the United States signed an intergovernmental agreement (IGA) with Canada to implement the Foreign Account Tax Compliance Act (FATCA). Since Treasury last announced multiple IGA signings in mid-December 2013, agreements have also been signed with Italy and Mauritius, the latter of which also […]
OVDP International Tax Lawyer: Swiss Cantonal Banks Enter US Program for Banks
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerAs an OVDP International Tax Lawyer, I continue to point out the centrality of the current U.S. Department of Justice (“DOJ”) The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the “Program”) to the global international tax compliance efforts of the United States. As previous explained, the Program basically operates as a voluntary […]
Foreign Partnership Tax Attorneys: Filing Form 8865 Schedule O (Part I)
/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerForeign Partnership Tax Attorneys should point out to their clients that Form 8865 should be used by US taxpayers to report the information required under IRC section 6038 (reporting regarding controlled foreign partnerships), section 6038B (reporting of transfers made to foreign partnerships), and/or section 6046A (reporting of acquisitions, dispositions, and changes in foreign partnership interests). […]
New Deduction Phase-outs for 2013 Tax Returns
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerUpper-income US taxpayers should be aware that new deduction phase-out IRS rules in effect for 2013 tax returns to be filed in 2014 may increase their tax liabilities or reduce refunds. Two new important changes for high-earning individuals or couples are the new itemized deduction phase-outs and personal and dependent exemption deduction phase-outs. Because of […]
Official Treasury Currency Conversion Rates of December 31, 2008
/in FBAR lawyers Los Angeles, Legal Notes /by ManagerThis post describes the Official 2008 FBAR Conversion Rates that should be used by U.S. taxpayers engaged in a voluntary disclosure of foreign financial accounts and filing late FBARs for 2008. Every year, the U.S. Department of Treasure publishes its official currency conversion rates (they are called “Treasury’s Financial Management Service rates”); I will refer […]
Official Treasury Currency Conversion Rates of December 31, 2009
/in FBAR lawyers Minnesota, Legal Notes /by ManagerThese Official Treasury 2009 FBAR Conversion Rates are posted here due to the fact that U.S. taxpayers who are doing voluntary disclosure for prior years with respect to delinquent FBARs are required to use these rates to prepare the FBARs for 2009. Every year, the U.S. Department of Treasure publishes its official currency conversion rates […]
Official Treasury Currency Conversion Rates of December 31, 2013 – 2013 FBAR Conversion Rates
/in FBAR lawyers New York, Legal Notes /by ManagerEvery year, the U.S. Department of Treasure publishes its official currency conversion rates (they are called “Treasury’s Financial Management Service rates”); I will refer to the “FBAR Conversion Rates”. Recently, the Treasury Department published the FBAR Conversion rates for December 31, 2013. While there are other good reasons for the existence of these rates, the […]
Tax Year 2013 Changes to the Itemized Deduction for Medical and Dental Expenses
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerUS taxpayers who itemize their deductions on Schedule A of Form 1040 should be aware that new IRS rules are in effect for 2013 tax returns to be filed in 2014. Under the new rules, the threshold for unreimbursed medical and dental expenses paid by taxpayers for themselves, spouses or dependents have increased for most […]
FATCA Tax Lawyers: Six More Agreements to Implement FATCA
/in FATCA Tax Attorney, Legal Notes /by ManagerOn December 19, 2013, the U.S. Department of the Treasury announced that the United States has signed bilateral agreements with six additional jurisdictions to implement the information reporting and withholding tax provisions commonly known as the Foreign Account Tax Compliance Act (FATCA). The six jurisdictions are: Malta, the Netherlands, The Islands of Bermuda, and three […]
IRS Tax Attorney Perspective on the Top 3 International Tax Enforcement Trends in 2014
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerAs an IRS tax attorney, I foresee that 2014 is likely to be a continuation of the global tax enforcement trends that started in the earlier years. Specifically, I believe the following three moves by the IRS will form the core of the US international tax enforcement efforts in 2014. IRS Tax Attorney Top Trend […]
Assurance Vie Accounts, PFICs and FBARs
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerMost French citizens who come to the United States with Assurance Vie accounts are completely unaware of the serious implications that Assurance Vie may have with respect to their U.S. tax reporting requirements. What is even more problematic is that tax advisors in France and even United States are not even aware of how bad […]
PFIC Attorneys: UBS Swiss Accounts and PFICs
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerUS-Switzerland Bank Program: Migros Bank, Bank Coop, Linth Bank, Berner Kantonalbank and Vontobel Holding
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerSeveral weeks ago, in another article, I detailed some of the recent developments in the US-Switzerland Bank Program, officially called The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the “US-Switzerland Bank Program”) between the U.S. Department of Justice (“DOJ”) and the government of Switzerland, and noted that Valiant Holdings AG had officially […]
FBAR Penalties: Outrageous, Draconian but Real
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerIf you have undisclosed foreign financial accounts that should have been reported on the Report of Foreign Bank and Financial Accounts (“FBAR”), you may be facing FBAR penalties. By far, the FBAR contains the most severe civil penalties and significant criminal penalties among all international tax forms. It is important to understand that these penalties, despite […]
Foreign Accounts Tax Attorney: FATCA – Nowhere to Hide
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerAs a foreign accounts tax attorney, I get a lot of questions from US taxpayers with undisclosed offshore accounts with respect to what FATCA means for the purposes of global transparency. As any foreign accounts tax attorney would tell you, FATCA will and already does make a huge dent in U.S. tax non-compliance. The purpose […]
OVDP Lawyers Little Rock: Raiffeisen and Postfinance Join Program for Swiss Banks
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerOn December 13, 2013, two Swiss Banks, Raiffeisen and Postfinance, joined the growing number of Swiss Banks who announced their participation in the The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the “Program”) initiated by the U.S. Department of Justice (“DOJ”) on August 29, 2013 – an event long anticipated by many […]
2014 First Quarter Underpayment and Overpayment Interest Rates
/in Legal Notes, tax lawyer St. Paul Minnesota /by ManagerOn December 9, 2013, the IRS announced that the underpayment and overpayment interest rates will remain the same for the calendar quarter beginning January 1, 2014. The rates will be: three (3) percent for overpayments [two (2) percent in the case of a corporation]; three (3) percent for underpayments; five (5) percent for large corporate […]
Valiant Holding AG Enters DOJ Program for Banks; Others will Follow
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerWith the Swiss Financial Market Supervisory Authority (“FINMA”) deadline ending today on December 9, 2013, Valiant Holding AG made it official – it is the first bank to officially announce its intention to enter the The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the “Program”). While the first one to do it, […]
Does Location Matter? Retaining Orlando International Tax Attorney
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerRetaining an international tax attorney is a very important decision. One of the frequent issues that my clients in Florida face is whether it is better to retain an international tax attorney in Orlando or in Minneapolis if you live in Orlando, Florida? If you were to search “Orlando international tax attorney”, Sherayzen Law Office, […]
Offshore Voluntary Disclosure of Swiss Accounts and the Program for Banks
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerSince September, an increasing number of my clients come to me with respect to the offshore voluntary disclosure of Swiss accounts. No doubt that the increase in the offshore voluntary disclosure of Swiss accounts comes from The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the “Program”) initiated by the U.S. Department of […]
Retaining Savannah International Tax Attorney: Location Choice
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerOne of the important issues that US taxpayers with undisclosed foreign accounts face is whether it is better to retain an international tax attorney in Savannah or in Minneapolis if you live in Savannah, Georgia? If you were to search “Savannah international tax attorney”, Sherayzen Law Office, Ltd. (which is based in Minneapolis) is likely […]
Swiss Program for Banks and Undisclosed Bank Accounts in Israel
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerWith the DOJ Program for Swiss Banks raging in Switzerland, an obvious question arises about whether this program would be applicable in other places, most prominently, to undisclosed bank accounts in Israel. It is my opinion, as an international tax attorney, that the DOJ will attempt to apply its Swiss Program for Banks to other […]
2014 Individual Income Tax Rates
/in Legal Notes, tax lawyer St. Paul Minnesota /by ManagerThe IRS recently announced the 2014 individual income tax rates with inflation adjustments wit respect to each tax bracket. Remember, since the American Taxpayer Relief Act of 2012 was signed into law on January 2, 2013, a new tax bracket of 39.4% appeared. Also, note that the 2014 individual income tax rates listed below do […]
2013 Minnesota Income Tax Rates
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerBelow, I list the information provided by the Minnesota Department of Revenue with respect to 2013 Minnesota Income Tax Rates. Notice, the new 9.85% tax bracket that was created last year and introduced a radical new change to 2013 Minnesota Income Tax Rates. Taxpayers who file estimated taxes may use this information to plan and […]
2014 Foreign Earned Income Exclusion
/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerOn November 18, 2013, the IRS announced that the foreign earned income exclusion amount under §911(b)(2)(D)(i) is going to be $99,200 for tax year 2014. This up from $97,600 in 2013 and $95,100 in 2012. Generally, if a qualified individual meets certain requirements of I.R.C. §911, he may exclude part or all of his foreign […]
Tax Year 2014: Various Tax Benefits Increase Due to Inflation Adjustments
/in Legal Notes, tax lawyer St. Paul Minnesota /by ManagerThe Internal Revenue Service recently announced an annual inflation adjustments for the tax year 2014 for more than 40 tax provisions, including the tax rate schedules, and other tax changes. Revenue Procedure 2013-35 provides details about these annual adjustments. The tax items for tax year 2014 of greatest interest to most taxpayers include the following […]
IRS Announces 2014 Retirement Plan Limitations
/in irs lawyer minneapolis, Legal Notes /by ManagerOn October 31, 2013, the Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2014. Some pension limitations such as those governing 401(k) plans and IRAs will remain unchanged because the increase in the Consumer Price Index did not meet the statutory thresholds […]
Undisclosed Bank Accounts in Switzerland: Category 2 Swiss Banks
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerAs the voluntary disclosure program for Swiss Banks proceeds at a rapid pace, the question number one among U.S. international tax attorneys is what will happen to the undisclosed bank accounts in Switzerland. In order to understand the impact of the US Department of Justice (“DOJ”) the Program for Non-Prosecution Agreements or Non-Target Letters for […]
France FATCA Agreement Signed
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn November 14, 2013, the U.S. Department of the Treasury announced that the United States has signed an intergovernmental agreement (IGA) with France to implement the Foreign Account Tax Compliance Act (FATCA). Enacted in 2010, France FATCA IGA aims to curtail offshore tax evasion by facilitating the exchange of tax information. With France FATCA IGA, […]
FATCA Switzerland: Swiss Senate Approves FATCA
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerFATCA Switzerland: FATCA Legislation Approved On September 23, 2013, Swiss Senate voted to approve the implementation of Foreign Account Tax Compliance Act (FATCA). This event came barely a few weeks after the Swiss House of Representative approved the same legislation. At this point, Swiss Banks have a clear way to cooperate with the IRS and […]
Offshore Voluntary Disclosure Lawyers: Eligibility for Program for Swiss Banks
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerAs offshore voluntary disclosure lawyers know very well, Switzerland continues to be the center of the unprecedented IRS and US Department of Justice enforcement of U.S. international tax laws, including FATCA. In a recent article, I described a new initiative, The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the “Program”), which is […]
San Francisco International Tax Lawyer: Influence of Location
/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerWhile looking for a San Francisco international tax lawyer, one of the important issues that clients face is whether it is better to retain an international tax attorney in San Francisco or in Minneapolis if you live in San Francisco? If you were to search “San Francisco international tax lawyer”, Sherayzen Law Office, Ltd. (which […]
Philadelphia International Tax Attorney: Retainer by Location
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerRetaining the right Philadelphia international tax attorney is not easy. One of the important issues that taxpayers face is whether it is better to retain an international tax attorney in Philadelphia or in Minneapolis if you live in Philadelphia? If you were to search “Philadelphia international tax attorney”, Sherayzen Law Office, Ltd. (which is based […]
Retirement Savings Contributions Credit 2013
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerYou may be eligible for a tax credit if you make eligible contributions (other than rollover contributions) to an employer-sponsored retirement plan or to an individual retirement arrangement. Eligible Plans The eligible plans for the retirement savings contribution credit include: traditional and Roth IRAs, 401(k), 403(b), governmental 457, SEP, SIMPLE, 501(c)(18)(D) and contributions to a […]
FBARs and Polish Lokata Accounts
/in FBAR lawyers Minnesota, Legal Notes /by ManagerIn recent years, I have received a number of questions from my Polish clients about whether “Lokata” accounts are reportable on the FBARs. The short answer is “Yes”. Lokata Accounts Lokata is a fixed-term deposit account which is very common in Polish banks; a Lokata is very similar to U.S. CD-type of accounts. There are […]
Form 114(a): Authorization to Efile FBARs
/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerIn response to numerous requests made by the international tax attorneys and individual FBAR filers of the Reports of Foreign Bank and Financial Accounts (FBARs) jointly with spouses, or wish to submit them via third-party preparers, the Financial Crimes Enforcement Network (FinCEN) introduced FinCEN Form 114(a), Record of Authorization to Electronically File FBARs. A copy […]
New 2013 FBAR form: E-filing Explanation for Late FBARs
/in FBAR lawyers Los Angeles, Legal Notes /by ManagerOn October 1, 2013, in response to various requests from FBAR tax lawyers and accountants, FinCEN updated the online FBAR filing form. There are various new technical additions and a much friendlier user interface, but the inclusion of the explanation for the delay in FBAR filing is definitely the key new feature for the FBAR […]
Offshore Voluntary Disclosure Attorney: Introduction to Program for Swiss Banks
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerSince the early 2000s, the IRS has engaged in a multi-layered effort to enforce U.S. tax laws overseas, in particular (at least from the perspective of an offshore voluntary disclosure attorney) curb tax evasion in Switzerland with the emphasis on undisclosed Swiss financial accounts (mainly FBAR compliance). In 2008, the U.S. Department of Justice (DOJ) […]
FBAR Penalties vs Offshore Voluntary Disclosure Program Penalties
/in FBAR lawyers New York, Legal Notes /by ManagerThere is a great confusion among international tax attorneys and Offshore Voluntary Disclosure Program (OVDP) applicants with respect to the OVDP Offshore Penalty and how it differs from the FBAR penalties. I already described in another article the OVDP penalties. In this article, I would like to compare and contrast some of the major features […]
Foreign Tax Credit for Individuals: Who Can Take It?
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerIf you paid or accrued foreign taxes to a foreign country on foreign source income and are subject to U.S. tax on the same income, you may be able to take these qualified foreign taxes as a tax credit to offset (in part or in full) your U.S. tax liability. An important questions arises for […]
2013 4th Quarter Underpayment and Overpayment Interest Rates
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerThe underpayment and overpayment interest rates will remain the same for the calendar quarter beginning October 1, 2013. The rates will be: three (3) percent for overpayments [two (2) percent in the case of a corporation]; three (3) percent for underpayments; five (5) percent for large corporate underpayments; and one-half (0.5) percent for the portion […]
2014 Tax Season to Start Later Following Government Closure
/in Legal Notes, tax lawyer St. Paul Minnesota /by ManagerThe IRS recently announced a delay of approximately one to two weeks to the start of the 2014 filing season to allow adequate time to program and test tax processing systems following the 16-day federal government closure. The IRS is exploring options to shorten the expected delay and will announce a final decision on the […]
IRS Releases Proposed Guidance for FFIs under FATCA
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerOn October 29, 2013, many Austin FATCA tax lawyers received the news that the U.S. Department of the Treasury and the Internal Revenue Service issued a notice for foreign financial institutions (FFIs) to comply with the information reporting and withholding tax provisions of the Foreign Account Tax Compliance Act (FATCA). FATCA is rapidly becoming the […]
Tax-Filing Extension for Individuals Expires on October 15, 2013
/in international tax lawyer minnesota, Legal Notes /by ManagerIndividual taxpayers who filed Form 4868 to request a six-month extension to file their 2012 tax returns should be cognizant of the fast-approaching October 15, 2013 final deadline to timely file these extended tax returns. This is also the last day the IRS will accept an electronically filed tax return for the year 2012. The […]
IRS Recognized All Legal Same-Sex Marriages For Federal Tax Purposes
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn August 29, 2013, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) ruled that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes. The ruling applies regardless of whether the couple lives in a jurisdiction that recognizes same-sex marriage or a […]
Boston International Tax Attorney: Retainer by Location
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerRetaining a Boston international tax attorney is a very important decision. One of the basic issues that taxpayers face is whether it is better to retain an international tax attorney in Boston or in Minneapolis if you live in Boston? If you were to search “international tax attorney Boston”, Sherayzen Law Office, Ltd. (which is […]
International Tax Attorney Austin: Geography & Retainer Choice
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerIs it is better to retain an international tax attorney in Austin or in Minneapolis if you live in Austin? If you were to search “international tax attorney Austin”, Sherayzen Law Office, PLLC (which is based in Minneapolis) is likely to come out on the first page together with other international tax attorneys in Austin. […]
FATCA Online Registration System – FATCA Lawyer Minneapolis
/in FBAR audit tax attorney, Legal Notes /by ManagerOn August 22, 2013, the Internal Revenue Service announced the opening of a new online registration system for financial institutions that need to register with the IRS under the Foreign Account Tax Compliance Act (FATCA). Financial institutions that must register with the IRS to meet their FATCA obligations can now begin the process of registering […]
Minneapolis International Tax Attorney: Geography in Retainer Choice
/in international tax lawyer minnesota, Legal Notes /by ManagerIf you were to search “Minneapolis international tax attorney”, Sherayzen Law Office, PLLC (which is based in Minneapolis) is likely to come out on the first page together with other Minneapolis international tax attorneys. The question is: should the geographical proximity of an attorney play a role in the retainer decision? The answer depends on […]
International Tax Attorney Boca Raton vs Minneapolis: Retainer Choice
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerIs it is better to retain an international tax attorney in Boca Raton or in Minneapolis if you live in Boca Raton? Oftentimes, if you were to search “international tax attorney boca raton”, Sherayzen Law Office, PLLC (which is based in Minneapolis) will come out on the first page as other international tax attorneys in […]
Expatriation Tax: “Covered Expatriates” under Notice 2009-85
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerAs an international tax attorney who constantly deals with expatriates, I am often contacted by individuals who are thinking about renouncing their U.S. citizenship. If you are consideration going down this path, you should understand the very serious legal and tax implications of this strategy. On the tax side, you should be especially aware of […]
Tax Withholding and Payments to Foreign Persons: Form W-8BEN
/in international tax lawyer st paul, Legal Notes /by ManagerForm W-8BEN, (“Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding”) may be used by foreign persons who receive certain types of income to establish that they are non-U.S. persons, or to claim a reduced rate of (or exemption from) withholding as a resident of a foreign country with which the U.S. […]
Home Office Expense and Unrecaptured Section 1250 gain
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerDo you take the home office expense on Schedule C for your small business? While taking the home office expense can help reduce your tax liability, you should be aware of a potential significant downside: unrecaptured Section 1250 gain on depreciation. This article will explain the basics of unrecaptured Section 1250 gain; it is not […]
IRS Issues a Proposed Regulation Regarding Employer-Sponsored Healthcare Plans
/in Legal Notes, tax lawyer St. Paul Minnesota /by ManagerThe IRS recently issued a proposed rule entitled, “Minimum Value of Eligible Employer-Sponsored Plans and Other Rules Regarding the Health Insurance Premium Tax Credit” (see, 26 CFR Part 1) regarding the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, and related rules and laws (generally, “PPACA”). In […]
Forms 3520 and 3520-A and Increased Use of Foreign Trusts
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerThe Internal Revenue Service recently released its Statistics of Income Studies (SOI) reports concerning data for 2010 foreign trusts that have U.S. persons as grantors, transferors, or beneficiaries. The data shows that, despite the various compliance costs associated with reporting requirements, use of foreign trusts by U.S. taxpayers continues to increase. This article will briefly […]
Exceptions to Filing Form 8865 Part II
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerForm 8865 (“Return of U.S. Persons With Respect to Certain Foreign Partnerships”) is an important international tax form which is used to report the information required under section 6038 (reporting with respect to controlled foreign partnerships), section 6038B (reporting of transfers to foreign partnerships), or section 6046A (reporting of acquisitions, dispositions, and changes in foreign […]
Exceptions to Filing Form 8865: Part I
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerAs most international tax attorneys in Minneapolis would point out, Form 8865 (“Return of U.S. Persons With Respect to Certain Foreign Partnerships”) is used to report the information required under section 6038 (reporting with respect to controlled foreign partnerships), section 6038B (reporting of transfers to foreign partnerships), or section 6046A (reporting of acquisitions, dispositions, and […]
Form 1042-S and Tax Withholdings
/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerIRS Form 1042-S (“Foreign Person’s U.S. Source Income Subject to Withholding”) is used to report various items of income, amounts withheld under Chapter 3 of the Internal Revenue Code, and distributions of effectively connected income by a publicly traded partnership or nominee. The items subject to reporting on Form 1042-S involve amounts paid to foreign […]
Interest Rates for the Third Quarter of 2013
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn May 23, 2013, the Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning July 1, 2013, as in the prior quarter. The rates will be: • three (3) percent for overpayments [two (2) percent in the case of a corporation]; • three (3) percent for underpayments; […]
US Taxpayers with Foreign Assets – June 2013 Tax Deadlines
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerU.S. citizens and resident aliens, including those with dual citizenship who have lived or worked abroad during all or part of 2012, may have a U.S. tax liability and a filing requirement in June of 2013. June 17, 2013 – Tax Returns to U.S. Citizens and Resident Aliens Living Overseas; May Also Apply to Nonresident […]
IRS Serves Summons on FirstCaribbean International Bank’s US Wells Fargo Account
/in FBAR audit tax attorney, Legal Notes /by ManagerThe Department of Justice issued a release on April 30, 2013 that a federal court in San Francisco has entered an order authorizing the Internal Revenue Service (IRS) to serve a “John Doe” summons seeking information about U.S. taxpayers who may hold offshore accounts at Canadian Imperial Bank of Commerce FirstCaribbean International Bank (FCIB) through […]
IRS Will Be Closed Five Extra Days in 2013; Filing and Payment Deadlines
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn May 15, 2013, the Internal Revenue Service announced additional details about the closures planned for May 24, June 14, July 5, July 22 and August 30, 2013. Due to the current budget situation, including the sequester, all IRS operations will be closed on those days. This means that all IRS offices, including all toll-free […]
Fifth Protocol to the Canada-US Income Tax Treaty
/in International Tax Lawyers Rochester Minnesota, Legal Notes /by ManagerThe Fifth Protocol to the Canada-US Income Tax Convention (also known as the Canada-US Income Tax Treaty) was signed in 2007 and ratified by the U.S. Senate the following year, making significant changes to the then existing treaty. This article will briefly explain some of the major Fifth Protocol (“Protocol”) changes to the US-Canada Income […]
Subpart F Active Financing Income Exceptions and Look-Through Rule Extended
/in international tax lawyer st paul, Legal Notes /by ManagerSubpart F Active Financing Income Exceptions and Look-Through Rule 2012 and 2013 extensions
Should I File FBAR, presentation
/in FBAR lawyers Minnesota, international tax lawyer minnesota, international tax lawyer Minnesota Minneapolis, international tax lawyer st paul /by ManagerShould I File FBAR from sherayzenlaw
Foreign Qualified Dividends Presentation
/in International Tax Attorney Minnesota Minneapolis /by ManagerForeign qualified dividends from sherayzenlaw
Filing and Payment Extension for Suffolk County and other Victims of Boston Marathon Explosions
/in Legal Notes, tax attorneys minneapolis /by ManagerOn April 16, 2013, the Internal Revenue Service announced a three-month tax filing and payment extension to Boston area taxpayers and others affected by April 15, 2013 explosions. This relief applies to all individual taxpayers who live in Suffolk County, Mass., including the city of Boston. It also includes victims, their families, first responders, others […]
Requirements for Timely Filing Tax Returns for U.S. Persons Living Overseas
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerAre you a U.S. person for living overseas who is required to file U.S. taxes? Then you should be especially aware of U.S. filing deadlines, and the importance of timely filing your tax return under IRC Section 7502. Filing a tax return is often stressful enough for most people living in the U.S. Filing a […]
Subpart F Income- Traps for the Unwary
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerUnder the IRS “Subpart F” rules (26 USC Part III, Subpart F), certain categories of income of controlled foreign corporations (“CFCs”) must be included in the gross income of specified U.S. shareholders, even though the income may not have been distributed. In this article, we will explain the basics of Subpart F income. It is […]
IRS Audit and the Constructive Dividends Trap
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerDo you own or work for a closely-held corporation? Do you make frequent payments between your small C corporation and your shareholders? Then you should be especially careful about the constructive dividend rules. Under these rules, the IRS can deem certain payments made to or on behalf of its shareholders as dividends, even though they […]
Termination of a Partnership
/in business tax attorney Minneapolis, Legal Notes /by ManagerBecause partnerships have many different features from corporations, a question is frequently asked concerning partnerships: when do they officially end? While corporations theoretically have an indefinite life and identifying the closure of a corporation may sometimes be regarded as relatively easy, it may not always be as apparent when a partnership has terminated. This article […]
IRS Audit Reconsideration
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerHave your tax returns been subject to an IRS audit? You should be aware that IRS procedures may allow you to contest the findings through IRS Audit Reconsideration, provided that you meet certain requirements. If the amount is significant or you believe that the IRS was erroneous in its determination, you contact Sherayzen Law Office, […]
Sales or Exchanges between a Partner and a Controlled Partnership
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerIn general, when a non-controlling partner makes a transaction with his or her partnership in a non-partner capacity, any resulting gain or loss is likely be recognized, because the transaction is treated as at arm’s length and occurring with a third party. Such transactions may involve sales, loans, rental payments, services provided and other related […]
Opting-Out of OVDI or OVDP: Escaping Your Accountant’s Mistakes
/in international tax lawyer st paul, Legal Notes /by ManagerThe rise in the voluntary disclosures of offshore assets caught the accounting profession by surprise. The great majority of the accountants were not trained in international tax matters and learned about the existence of FinCEN Form 114 formerly known as TD F 90-22.1 (commonly known as “FBAR”) from their clients. However, in their ignorance of […]
FATCA, Form 8938 and TD F 90-22.1 Disclosure: Making Informed Decisions
/in international tax lawyer st paul, Legal Notes /by ManagerThe past decade brought on a wave of new international tax legislation as well as unprecedented enforcement of older tax laws. From FinCEN Form 114 (formerly Form TD F 90-22.1) (commonly known as “FBAR”) to new FATCA legislation that led to the creation of Form 8938, the current US tax regime with respect to international […]
FBAR Disclosure of Offshore Assets: the Importance of Issue Spotting
/in FBAR lawyers Minnesota, Legal Notes /by ManagerIt is terrifying that so many accountants who take on the legal issue of FBAR disclosure are not trained in issue spotting. It may be the number one of the top reasons why so many voluntary disclosures handled by accountants and even attorneys have gone so wrong. A lot of tax professionals who are familiar […]
Reducing Your FBAR Penalties
/in international tax lawyer st paul, Legal Notes /by ManagerFBAR (FinCEN Form 114 formerly Form TD F 90-22.1) penalties can be absolutely draconian. However, with a help of an experienced international tax attorney, they do not have to be so brutal. Unfortunately, the IRS, accountants and even many lawyers present an overly simplistic view of the FBAR penalty structure. They start out with the […]
Official Treasury Currency Conversion Rates of December 31, 2012
/in FBAR lawyers Minnesota, Legal Notes /by ManagerEvery year, the U.S. Department of Treasure publishes its official currency conversion rates (they are called “Treasury’s Financial Management Service rates” or the “FMS rates”). Recently, the Treasury Department published the FMS rates for December 31, 2012. While there are other good reasons for the existence of these rates, the FMS rates for December 31 […]
Making a Section 444 Election
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerThe IRS has established various rules regarding required tax years in order to prevent excess deferral of taxes by partnerships, S corporations, and personal service corporations. In certain circumstances, however, under Internal Revenue Code Section 444, partnerships, S corporations, and personal service corporations may elect to use a tax year other than their required tax […]
Do I need an Accountant or Attorney for Form 8938 Offshore Assets Disclosure?
/in FBAR audit tax attorney, Form 8938 tax attorney Minneapolis, Legal Notes /by ManagerA lot of taxpayers are still confused about whether they need an attorney or an accountant to file delinquent Forms 8938. As I explain below, Form 8938 is an essentially legal disclosure form and its voluntary disclosure should be handled by an experienced international tax attorney. Form 8938 Requires Legal Disclosure It is important to […]
Do I Need an Accountant or Attorney for FBAR Offshore Accounts Disclosure?
/in international tax lawyer st paul, Legal Notes /by ManagerFor taxpayers with undisclosed offshore accounts and who are looking to do an FBAR voluntary disclosure with the IRS, it is crucially important to understand that FBAR disclosure is a legal issue that should be handled by an international tax attorney. Confusion Over the Roles of Legal and Accounting Professions in FBAR Disclosures I receive […]
IRS Auto Depreciation Limits Released for 2013
/in Legal Notes, tax attorneys minneapolis /by ManagerThe IRS recently released Rev. Proc. 2013-21 detailing the updated price inflation adjustment limitations on depreciation deductions and lease inclusion amounts for passenger automobiles first placed in service during calendar year 2013. These adjustments are required under Internal Revenue Code Section 280F. If you need advice relating to these matters, or any other tax or […]
IRS Issue Statistics for CFC Holdings; Importance of Form 5471 Grows
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerOn March 6, 2013, the IRS issued statistics for the tax year 2008 with respect to foreign corporations controlled by U.S. corporations. These statistics emphasize the important growth in controlled foreign corporations (“CFCs”) and Form 5471. IRS Statistics Published in Statics of Income Bulletin (Winter 2013) In the tax year 2008, some 83,642 foreign corporations […]
Accountants Beware: Offshore Disclosure with Form 8938 is a Legal Issue
/in Form 8938 tax attorney Minneapolis, Legal Notes /by ManagerIn an earlier article, I already explained why the FBAR disclosure is a legal issue. In terms of their lineage, Forms 8938 are very similar to the FBARs. While the FBARs are the creation of Bank Secrecy Act, Form 8938 is a creation of a legislation of a similar nature – FATCA (Foreign Account Tax […]
Can I Deduct My Rental Real Estate Losses?
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerWith the uncertain economic environment in the past few years, many individuals who own rental estate property have faced substantial losses. A question that often arises is whether such losses can be deducted, and if so, by how much? This article strives to answer these questions in general and provide a basic understanding of the […]
S Corporation At-Risk Rules
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerDo you own interest in an S-Corporation (“S-Corp”)? If so, the IRS at-risk rules may apply to you and may limit the loss deductions you will be allowed to take. The IRS at-risk rules may also apply to partnerships, LLCs and closely-held C corporations (subject to certain exceptions), so they may be important to learn […]
Accountants Beware: FBAR Disclosure is a Legal Matter
/1 Comment/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerParadoxically, one of the obstacles currently facing U.S. taxpayers who wish to file their delinquent FBARs and conduct a voluntary disclosure of their foreign assets are their own accountants – more precisely, the inability of many accountants to understand that FBAR disclosure is a legal matter to a much greater extent than an accounting matter. […]
Deductible Expenses for a Newly-Formed Partnership
/in business tax lawyers minneapolis, Legal Notes /by ManagerAre you planning on starting a partnership for business purposes? Usually, partnerships will incur various costs while forming a partnership. Some of these costs may be deductible or amortizable, others will not. This article will examine the deductibility of the most common costs in the formation of a partnership. Partnerships often involve complex legal and […]
Underpayment and Overpayment Interest Rates for the Second Quarter of 2013
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn March 1, 2013, the IRS announced that the underpayment and overpayment interest rates will remain the same for the calendar quarter beginning April 1, 2013. The rates will be: three (3) percent for overpayments [two (2) percent in the case of a corporation]; three (3) percent for underpayments; five (5) percent for large corporate […]
Application of Offshore Penalty to Business Ownership Interests
/in IRS Form 8938 tax attorney, Legal Notes /by ManagerIn another essay, I previously discussed the possible inclusion of the business ownership interests in the calculation of the OVDP (2012 Offshore Voluntary Disclosure Program) Offshore Penalty. In this article, I would like to explore in more depth the application of the Offshore Penalty to ownership of business interests. OVDP Offshore Penalty It is a […]
OVDP Offshore Penalty and Signatory Authority Accounts
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerThe taxpayers who enter into the IRS Offshore Voluntary Disclosure Program (“OVDP”) often have failed to file an FBAR to report an account over which the taxpayer has signature authority. The question arises about whether such accounts should be included in the calculation of the OVDP Offshore Penalty? The answer to this question is – […]
12.5% OVDP Offshore Penalty Category
/1 Comment/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerIn an earlier article, I introduced the structure of the OVDP (Offshore Voluntary Disclosure Program) Offshore Penalty. In this essay, I would like to explore one aspect of that structure – the possibility of reducing the Offshore Penalty to 12.5%. Offshore Penalty The taxpayers who enter the OVDP must pay the Offshore Penalty. This penalty […]
Types of Assets Covered by OVDP Offshore Penalty
/3 Comments/in international tax lawyer st paul, Legal Notes /by ManagerBefore one enters into the 2012 Offshore Voluntary Disclosure Program (“OVDP”), it is highly important to understand what kind of assets are covered by the OVDP Offshore Penalty. In this essay, I intend to broadly outline some of the major types of assets covered by the OVDP Offshore Penalty. From the outset, it is important […]
FBAR Disclosure: Fighting the Small Accounts Myth
/in FBAR audit tax attorney, Legal Notes /by ManagerA Minneapolis attorney recently said to me that he has a client who has not filed the FBARs but that client has a number of small accounts and no large accounts; the attorney wanted my opinion on whether it is worth it for smaller clients to go through the trouble of disclosing the accounts to […]
American Taxpayer Relief Act of 2012: Individual Income Tax Rates for 2013
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerThe American Taxpayer Relief Act of 2012 (the “Act”) was signed into law on January 2, 2013. The Act contains numerous important tax provisions aimed at stabilizing the tax environment and averting the so-called “fiscal cliff.” One of the most important effects of the Act is its impact on the marginal individual income tax rates. […]
OVDP Offshore Penalty Structure: Introduction
/4 Comments/in international tax lawyer st paul, Legal Notes /by ManagerThe official IRS Offshore Voluntary Disclosure Program (OVDP) constitutes a viable voluntary disclosure option for many taxpayers. However, whether this is the best voluntary disclosure option will, in large part, depend on whether the OVDP penalties are lower than the penalties that a taxpayer would be facing under alternative voluntary disclosure options. The answer to […]
FBAR Version That Should Be Used in the OVDP
/in international tax lawyer st paul, Legal Notes /by ManagerThe Voluntary Disclosure Period for the taxpayers who entered into the now closed IRS Offshore Voluntary Disclosure Program (“OVDP”) encompasses an eight-year period during which the FBAR form may have been modified more than once. The question arises about what version of the FBAR form should be used in the OVDP. FBAR Background Pursuant to […]
Request for Extension to Submit Your Voluntary Disclosure Package
/in international tax lawyer st paul, Legal Notes /by ManagerIn an earlier article, I already described the general process of the Offshore Voluntary Disclosure Program. In that article, I mentioned that you must make a complete submission of your Voluntary Disclosure Package within 90 days of the date of the preliminary acceptance letter from the IRS Criminal Investigation. What if you cannot make a […]
Switzerland Signs FATCA Implementation Agreement
/in international tax lawyer st paul, Legal Notes /by ManagerOn February 14, 2013, the U.S. Department of the Treasury announced that it has signed a bilateral agreement with Switzerland to implement the information reporting and withholding tax provisions commonly known as the Foreign Account Tax Compliance Act (FATCA). Enacted by Congress in 2010, FATCA targets non-compliance by U.S. taxpayers using foreign accounts. The bilateral […]
IRS Offshore Voluntary Disclosure Program Process
/1 Comment/in international tax lawyer st paul, Legal Notes /by ManagerIn an earlier article, I discussed the key requirements of the Offshore Voluntary Disclosure Program (OVDP) now closed. In this essay, I would like to outline the general OVDP administrative process from initial pre-clearance through the execution of the Closing Agreement. General Description In order to participate in the OVDP, the taxpayer must first be […]
No FBAR Penalties – Q&A 17 of the OVDP
/in international tax lawyer st paul, Legal Notes /by ManagerThere are some taxpayers who should not be using the official IRS Offshore Voluntary Disclosure Program (OVDP) now closed. The IRS expressly singled out one category of such taxpayers in its Q&A 17 of the OVDP Rules. Q&A 17 only applies to the taxpayers who reported and paid tax on all their taxable income for […]
No Form 5471 and Form 3520 Penalties – Q&A 18 of the OVDP
/in international tax lawyer st paul, Legal Notes /by ManagerIn my practice I have encountered situations where a taxpayer has delinquent Form 5471 or Form 3520, but there is no additional tax liability associated with the delinquent forms. In these situations, a natural questions arises on how to best deal with this situation. One of the options is to follow Q&A 18 of the […]
FATCA at Home: Crackdown on Foreigners’ Accounts in U.S. banks
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerAs the IRS engages in negotiations with foreign governments to implement FATCA (Foreign Account Tax Compliance Act) overseas, there is a rising pressure from some countries for reciprocity – the implementation of FATCA-like disclosure of foreign clients’ U.S. accounts to those clients’ home governments. FATCA Background FATCA was enacted in 2010 and set to begin […]
2012 OVDP: The Voluntary Disclosure Period
/1 Comment/in international tax lawyer st paul, Legal Notes /by ManagerOne of the most critical aspects of the 2012 Offshore Voluntary Disclosure Program (2012 OVDP) are the rules pertaining to the voluntary disclosure period – i.e. what years are involved in calculating the Offshore Penalty and for how many years back should the tax returns be amended (with the corresponding consequences for the additional tax […]
2012 OVDP and Domestic Voluntary Disclosure
/in Legal Notes, offshore voluntary disclosure tax attorney Los Angeles /by ManagerSometimes a taxpayer who enters 2012 OVDP also has undisclosed domestic tax liability and the question arises with respect to how to handle this additional liability. As was the case with the 2009 OVDP and the 2011 OVDI, the 2012 OVDP is available to taxpayers who have both offshore and domestic issues to disclose. The […]
Gift and Estate Tax Impact of the American Taxpayer Relief Act of 2012
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOne of the most dramatic effects of the American Taxpayer Relief Act of 2012 (ATRA) was felt in the area of gift and estate taxes. Pre-ATRA Situation In 2012, the estate and gift tax exemptions, indexed for inflation, were set at $5,120,000 each (up from $5,000,000 in 2011). Moreover, in 2012, the surviving spouse could […]
Domestic and Offshore Voluntary Disclosure Ineligibility Examples
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerIn an earlier article, I discussed the general Offshore Voluntary Disclosure Program eligibility requirements now closed, particularly those spelled out in the Internal Revenue Manual (IRM). In this essay, I would like to provide certain examples of when a taxpayer’s disclosure fails to meet IRM 9.5.11.9 requirements. Note, these examples are not specific to offshore […]
Offshore Accounts Disclosure and John Doe Summons
/in international tax lawyer st paul, Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerIf a taxpayer is about to conduct a voluntary disclosure of his offshore accounts, a question arises about his eligibility to do so in a situation where the IRS already served a “John Doe” summons or made a treaty request seeking information that may identify a taxpayer as holding an undisclosed foreign account or undisclosed […]
Phaseout of Deduction of Interest on Education Loans: 2013
/in Legal Notes, tax lawyers minnesota /by ManagerIn its Revenue Procedure 2013-15, the IRS stated that, for the 2013 taxable year, the $2,500 maximum deduction for interest paid on qualified education loans under IRC § 221 begins to phase out under IRC § 221(b)(2)(B) for taxpayers with modified adjusted gross income in excess of $60,000 ($125,000 for joint returns). It is completely […]
Offshore Voluntary Disclosure Eligibility Criteria
/in international tax lawyer st paul, Legal Notes /by ManagerGenerally, unless ineligible under specific rules, U.S. taxpayers who have undisclosed offshore accounts or assets and meet certain requirements are eligible to apply for IRS Criminal Investigation’s Voluntary Disclosure Practice and the OVDP penalty regime. In this article, I will only strive to broadly outline the 2012 OVDP (Offshore Voluntary Disclosure Program) and 2014 OVDP […]
Offshore Voluntary Disclosure Program: Advantages and Disadvantages
/in international tax lawyer st paul, Legal Notes, offshore voluntary disclosure tax attorney Los Angeles /by Manager2012 Offshore Voluntary Disclosure Program (2012 OVDP) now closed may offer tremendous benefits to certain types of taxpayers, but it may not be as beneficial in other circumstances. Whether to enter the 2012 OVDP is a decision that should be made by the taxpayer only after he had an opportunity to discuss this matter in […]
Partnership Property Contribution and Taxable Exchange
/in business tax lawyers minneapolis, Legal Notes /by ManagerPartnerships offer many tax advantages for their partners. One such benefit is that when property is contributed to a partnership in return for a partnership interest, typically no gain or loss will be recognized. This general rule applies both to partnerships already in existence as well as newly-formed partnerships. However, this is not always the […]
IRS Kicks Off 2013 Filing Season for the 2012 Tax Year
/in Legal Notes, tax attorneys minneapolis /by ManagerOn January 30, 2013, the Internal Revenue Service opened the 2013 filing season by announcing a variety of enhanced products and services to help taxpayers prepare and file their tax returns by the April 15 deadline. The IRS began accepting and processing most individual tax returns on January 30, 2013, after updating forms and completing […]
Family Partnerships and Income-Splitting
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerFamily partnerships can offer an advantageous method for splitting business income between family members who may be taxed at lower income rate brackets. This can result in substantial tax savings. However, because of the potential for widespread abuse of this device by shifting income to close relatives who may perform little or no actual work […]
Offshore Voluntary Disclosure Program: Key Requirements
/7 Comments/in international tax lawyer st paul, Legal Notes /by Manager2012 OVDP (Offshore Voluntary Disclosure Program) (now closed) may present a great opportunity for certain U.S. taxpayers to deal with their current as well prior non-compliance with U.S. tax laws. However, 2012 OVDP is not for everyone; while for certain categories of taxpayers it is the best option, other taxpayers may have additional choices that […]
2012 FBAR is Due on June 30, 2013
/in FBAR lawyers Minnesota, Legal Notes /by ManagerOne of the most important tax compliance forms for businesses and individuals is the Report of Foreign Bank and Financial Accounts (the “FBAR”), FinCEN Form 114 Formerly TD F 90-22.1. Pursuant to the Bank Secrecy Act, 31 U.S.C. §5311 et seq., the Department of Treasury (the “DOT”) has established certain recordkeeping and filing requirements for […]
Failure to Conduct Voluntary Disclosure and Potential Penalties: 2013 Update
/in international tax lawyer st paul, Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerFailure to conduct voluntary disclosure may mean heavy penalties for U.S. taxpayers are not in compliance with international tax laws established by U.S. government. In this article, I summarize some of the key penalties that such non-compliant U.S. taxpayers may face once the IRS finds them. Penalties in General In general, if the IRS verifies […]
2012 OVDP: Principal Purpose of the Program
/in international tax lawyer st paul, Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerAs 2012 OVDP (Offshore Voluntary Disclosure Program) now closed enters its second tax season, it is important to review once again the reasons behind the existence of the program, what it offers to the IRS and how it may benefit currently non-compliant U.S. taxpayers. Focus on International Tax Compliance Since 2003, the IRS has conducted […]
FBAR Filing: FinCEN’s Third Extension for Certain Signatory Authority Filers
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerIn FinCEN Notice 2012-2, the Financial Crimes Enforcement Network (FinCEN) announced a third extension of time for certain Report of Foreign Bank and Financial Accounts (FBAR) filings in light of ongoing consideration of questions regarding the filing requirement and its application to individuals with signature authority over but no financial interest in certain types of […]
FBAR Attorney
/in FBAR lawyers Minnesota, Legal Notes /by ManagerIf you are looking for an attorney to help you with your FBAR issues, contact Sherayzen Law Office. Sherayzen Law Office is an international tax and business law firm that specializes in FBAR compliance among other international tax issues. Our office is located in Minneapolis, but we have clients throughout the United States and overseas. […]
FBAR Lawyers Minneapolis
/in FBAR lawyers Minnesota, Legal Notes /by ManagerSherayzen Law Office is a premier international law firm that specializes in FBAR compliance among other international tax issues. The firm is headquartered in Minneapolis, but it serves clients throughout the United States and overseas. FinCEN Form 114 formerly Form TD F 90-22.1, the Report of Foreign Bank and Financial Accounts (commonly known as the […]
IRS FY 2012 Performance Results
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerThe IRS released the statement describing its performance in the Fiscal Year 2012. The general results continued last year’s trend. In the enforcement area, audits of individuals topped 1 million for the sixth year in a row, with a 1.03% coverage rate out of all tax returns filed. Audits in the upper income ranges remained […]
IRS Provides Penalty Relief to Farmers and Fishermen
/in Legal Notes, tax lawyers minnesota /by ManagerOn January 18, 2013, the IRS announced that it will issue guidance in the near future to provide relief from the estimated tax penalty for farmers and fishermen unable to file and pay their 2012 taxes by the March 1 deadline due to the delayed start for filing tax returns. The delay stems from this […]
FBAR Criminal Enforcement: Liechtenstein and Israel
/in international tax lawyer st paul, Legal Notes /by ManagerThe voluntary disclosure programs provided the IRS with an enormous amount of information regarding countries, banks and individuals involved in US taxpayers’ non-compliance with U.S. tax laws. With so much information, it was reasonable to expect that the IRS would not be satisfied with solely prosecuting Swiss banks. Year 2012 confirmed these expectations; building up […]
Tax-Free Transfers to Charity Renewed For Certain IRA Owners
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn January 16, 2013, the IRS confirmed that certain owners of individual retirement arrangements (IRAs) have a limited time to make tax-free transfers to eligible charities and have them count for tax-year 2012. Pursuant to the American Taxpayer Relief Act of 2012, Congress extended for 2012 and 2013 the tax provision authorizing qualified charitable distributions […]
Optional Safe Harbor Method for Claiming Home Office Deduction for 2013
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn January 15, 2013, the IRS today announced a simplified option for claiming home office deduction (i.e. deduction for the business use of a home). The new optional deduction, capped at $1,500 per year based on $5 a square foot for up to 300 square feet, will reduce the paperwork and recordkeeping burden on small […]
Itemized Deductions Limitation in 2013
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerThe American Taxpayer Relief Act of 2012 added a limitation for itemized deductions claimed on 2013 returns of individuals with incomes of $250,000 or more ($300,000 for married couples filing jointly). In reality this is not a new law; this is basically a re-birth of the famous “Pease limitation” that was the part of the […]
FBAR Criminal Prosecution and Smaller Banks: The Case of Wegelin
/1 Comment/in international tax lawyer st paul, Legal Notes /by ManagerOn January 3, 2013, Wegelin & Co., the oldest Swiss private bank announced that it will close down following its guilty plea to criminal charges of conspiracy to help wealthy U.S. taxpayers evade taxes through secret financial accounts. The guilty plea and the closure of one of the most prestigious European banks that served its […]
Annual Inflation Adjustments for 2013: Overview
/in Legal Notes, tax attorneys minneapolis /by ManagerOn January 11, 2013, the IRS announced annual inflation adjustments for the tax year 2013, including the tax rate schedules, and other tax changes from the recently passed American Taxpayer Relief Act of 2012. Changes in Tax Brackets; Adjustment to Standard Deduction and Personal Exemption Starting tax year 2013, a new tax rate of 39.6 […]
Overview of the New Investment Tax
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerThe enactment of the Health Care and Education Reconciliation Act of 2010 (the “Act”) has profound implications for U.S. investors. The Act imposes a new tax on investment income of certain individuals, estates and trusts. The focus of this article is on the new tax on individuals and how it operates. IRC Section 1411: Imposition […]
Tax Withholding Update: Social Security and Medicare Tax for 2013
/in business tax lawyers minneapolis, Legal Notes /by ManagerFollowing the passage of the American Taxpayer Relief Act of 2012, the IRS issued Notice 1036 with respect to withholding tables for the year 2013, which includes the 2013 Percentage Method Tables for Income Tax Withholding. Under the notice, the IRS requires the employers to implement the 2013 withholding tables as soon as possible, but […]
IRS Plans January 30, 2013 as Tax Season Opening Date For 1040 Filers
/in Legal Notes, tax attorneys minneapolis /by ManagerFollowing the January tax law changes made by Congress under the American Taxpayer Relief Act (ATRA), the IRS announced on January 9, 2013, that it plans to open the 2013 filing season and begin processing individual income tax returns on January 30, 2013. The IRS will begin accepting tax returns on that date after updating […]
Indirect Ownership of Foreign Entities for Form 5471 Purposes
/in international tax lawyer st paul, Legal Notes /by ManagerEvery now and then, I encounter foreign business structures built on the incorrect belief that only direct ownership matters for U.S. tax reporting purposes in general and Form 5471 purposes in particular. In this essay, I broadly address the question of Form 5471 reporting with respect to indirect ownership of a foreign company (I am […]
2013 IRS Changes to Lockbox Addresses
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerThe Treasury Department’s Financial Management Service (FMS) and the IRS are in the process of streamlining the lockbox network. Effective December 31, 2012, the IRS will close lockbox operations located in the Atlanta (State of Georgia) and St. Louis (State of Missouri) areas. Moreover, other P.O. box address closings affect addressed in Hartford, Connecticut and […]
Automatic 5471 Penalties Submitted With Form 1120
/in international tax lawyer st paul, Legal Notes /by ManagerIn an earlier article, I discussed various penalties generally associated with late or inaccurate filing of Form 5471 (this form is required under IRC Section 6038(a) to provide information with respect to certain US shareholders of foreign corporations). These penalties are generally subject to “reasonable cause” exception and are not imposed in every case. Since […]
Additional Medicare Tax: Introduction
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerStarting January 1, 2013, Additional Hospital Insurance Tax (Additional Medicare Tax) will come to life as a result of section 9015 of the Patient Protection and Affordable Care Act (PPACA) (as amended). In essence, PPACA increased the existing Medicare tax for high-income earners. Currently, the Medicare tax rate is a flat 2.9% tax on all […]
Tax Year 2012 Income Tax Brackets for Individuals
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerThe 2012 tax season is nearing. As calendar year 2012 is drawing to its end, the time for any tax planning is getting shorter and shorter. In order to do the tax planning properly, it is essential to know what tax bracket you are likely to be in and whether you can lower this bracket. […]
Retiring in Panama – Tax Traps for U.S. taxpayers
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerIn recent years, a new retirement trend emerged among U.S. citizens – retirement abroad in relatively peaceful countries of Latin America. Panama appears to be one of the preferred destinations. Retirement is a process, though, and it takes time to set up properly. Therefore, U.S. citizens typically start their preparation for retirement abroad in their […]
Dormant Foreign Corporation
/in international tax lawyer st paul, Legal Notes /by ManagerCertain categories of US shareholders of a foreign corporation are required to file Form 5471 with the IRS. Form 5471, however, is one of the most complex forms in the Internal Revenue Code and the compliance costs for such a corporation can be very high. Such costs can be especially disproportionate for an inactive corporation […]
IRS Revenue Procedure 92-70 (1992-2 C.B. 435)
/1 Comment/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerSECTION I. PURPOSE This revenue procedure provides a summary filing procedure for filing Form 5471 with respect to dormant foreign corporations described in section 3 below. Persons complying with this revenue procedure satisfy their Form 5471 filing obligations under sections 6038(a)(1), 6038(a)( 4), and 6046(a)(3) with respect to dormant foreign corporations and will not be […]
First Quarter of 2013 Underpayment and Overpayment Interest Rates
/in Legal Notes, minneapolis tax lawyer /by ManagerOn November 30, 2012, the IRS announced that the underpayment and overpayment interest rates will remain the same for the calendar quarter beginning January 1, 2013. The rates will be: three (3) percent for overpayments [two (2) percent in the case of a corporation]; three (3) percent for underpayments; five (5) percent for large corporate […]
Committee on Foreign Investment in the United States: General Overview
/in international business lawyer, Legal Notes /by ManagerIn 1988, the United States Congress enacted the Exon–Florio Amendment to authorize the executive branch’s review foreign investment within the United States. The amendment was passed into law under the Omnibus Trade and Competitiveness Act of 1988 and amended Section 721 of Defense Production Act of 1950. Generally, pursuant to this provision the President of […]
U.S. Engaging with More than 50 Jurisdictions to Curtail Offshore Tax Evasion
/2 Comments/in Legal Notes, offshore voluntary disclosure tax attorney Los Angeles /by ManagerThe U.S. Department of the Treasury recently announced that it is engaged with more than 50 countries and jurisdictions around the world to improve international tax compliance and implement the information reporting and withholding tax provisions commonly known as the Foreign Account Tax Compliance Act (FATCA). Enacted by Congress in 2010, these provisions target noncompliance […]
2013 Standard Mileage Rates
/in Legal Notes, st paul tax lawyers /by ManagerOn November 21, 2012, the Internal Revenue Service issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on January 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: […]
IRS Increases Criminal Prosecutions for Willful Failure to File FBARs: U.S. v. Jacques Wajsfelner
/in international tax lawyer st paul, Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerIn U.S. v. Jacques Wajsfelner, the IRS’s criminal prosecution of the defendant for willful failure to file FBARs was completed when the defendant, Mr. Jacques Wajsfelner, decided to plead guilty. Mr. Wajsfelner pled guilty to willful failure to file the FBAR in Manhattan federal court and he now faces civil penalties of $2.84 million and […]
Underpayment and Overpayment Interest Rates for the Fourth Quarter of 2012
/in Legal Notes, tax lawyers edina /by ManagerThe underpayment and overpayment interest rates will remain the same for the calendar quarter beginning October 1, 2012. The rates will be: three (3) percent for overpayments [two (2) percent in the case of a corporation]; three (3) percent for underpayments; five (5) percent for large corporate underpayments; and one-half (0.5) percent for the portion […]
Foreign Earned Income Exclusion: 2013
/in international tax lawyer st paul, Legal Notes /by ManagerIf a qualified individual meets certain requirements of I.R.C. §911, he may exclude part or all of his foreign earned income from taxable gross income for the U.S. income tax purposes. This income may still be subject to U.S. Social Security taxes. The IRS recently announced that the maximum foreign income exclusion amount for 2013 […]
United Kingdom Signs Bilateral Agreement to Combat Offshore Tax Evasion and Implement FATCA
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn September 14, 2012, the U.S. Department of the Treasury announced that it has signed a bilateral agreement with the United Kingdom to implement the information reporting and withholding tax provisions commonly known as the Foreign Account Tax Compliance Act (FATCA). Enacted by Congress in 2010, these provisions target non-compliance by U.S. taxpayers using foreign […]
September 17, 2012 Deadline for Estimated Tax Payments and Certain Business Entity Filings
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerThis year, the usual September deadline for estimated tax payments for the the third-quarter (June 1-August 31) of 2012 moves to September 17 due to the fact that the usual date for the estimated tax payments (September 15) falls on Saturday. This requirements applies individuals who are either not paying their income tax through withholding […]
2012 OVDP Offers Alternative PFIC Calculation Method
/in international tax lawyer st paul, Legal Notes /by ManagerIf your client’s offshore voluntary disclosure involves PFIC (Passive Foreign Investment Company) income, you should be aware that the 2012 OVDP now closed (Offshore Voluntary Disclosure Program) offers an alternative PFIC calculation method. In this article, I intend to outline broad contours of the alternative method and put it in a broader context of voluntary […]
FBAR Criminal Penalties
/in FBAR lawyers Los Angeles, Legal Notes /by ManagerPotentially, a person who willfully fails to file an FBAR or files a false FBAR may be subject to: A prison term of up to 10 years Criminal penalties of up to $500,000 or both When it comes to penalties, FinCEN Form 114 formerly Form TD F 90-22.1, Report on Foreign Bank and Financial Accounts […]
IRS Audit of Offshore Accounts and Other Foreign Assets: Potential Penalties
/in FBAR audit tax attorney, Legal Notes, Tax Lawyers Minneapolis /by ManagerFailure to do timely voluntary disclosure may expose non-compliant U.S. taxpayers with foreign bank and financial accounts to tremendous amount of audit penalties. In this article, I will describe these penalties which may apply to non-compliant U.S. taxpayers during an IRS audit (remember, the application of these penalties in your particular case will depend on […]
2012 OVDP vs. 2011 OVDI: Five Key Differences
/in international tax lawyer st paul, Legal Notes /by ManagerOn June 26, 2012, the IRS published the instructions for the 2012 Offshore Voluntary Disclosure Program (“OVDP”). The program was originally announced on January 9, 2012, but there were no instructions with respect to the program aside from modifications in the 2011 penalty structure and general references to the 2011 OVDI. The new 2012 OVDP […]
IRS Says Offshore Voluntary Disclosures Bring in More Than $5 Billion
/1 Comment/in international tax lawyer st paul, Legal Notes /by ManagerThe IRS announced on June 26, 2012, that its offshore voluntary disclosure programs have exceeded the $5 billion mark. “We continue to make strong progress in our international compliance efforts that help ensure honest taxpayers are not footing the bill for those hiding assets offshore,” said IRS Commissioner Doug Shulman. “People are finding it tougher […]
Taxability of Grants and Fellowship Amounts
/in Legal Notes, minneapolis tax lawyer /by ManagerWith the cost of higher education sky-rocketing, it may make financial sense for students and families to consider grants and fellowships. But what about the tax consequences of receiving a grant or fellowship payment? Are grants and fellowship taxable? The question depends upon whether the individual is a degree candidate. A degree candidate can exclude […]
2011 Form TD F 90-22.1 (FBAR) is Due on June 30, 2012
/1 Comment/in FBAR lawyers Minnesota, Legal Notes /by ManagerPursuant to the Bank Secrecy Act, 31 U.S.C. §5311 et seq., the Department of Treasury (the “DOT”) has established certain recordkeeping and filing requirements for United States persons with financial interests in or signature authority (and other comparable authority) over financial accounts maintained with financial institutions in foreign countries. If the aggregate balances of such […]
Estimated Tax Payments are due on June 15, 2012
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerEstimated tax payments for the second quarter (April 1 – May 31) of 2012 are due on June 15, 2012. The estimated tax payments should be made using Form 1040-ES. Note, if the due date for an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be considered on time […]
IRS 2013 Budget Proposal Emphasizes International Tax Enforcement
/in international tax lawyer minnesota, Legal Notes /by ManagerEvery year, the President has to submit a budget request to U.S. Congress for federal agencies, including the Internal Revenue Service. In February of 2012, the IRS posted the following information regarding its budget. Administration’s fiscal year (FY) 2013 budget request for the Internal Revenue Service is approximately $12.8 billion, a $944.5 million increase (8%) […]
IRS Announces More Flexible Offer-in-Compromise Terms
/in Legal Notes, tax lawyers st paul /by ManagerThe IRS announced today that it is expanding its “Fresh Start” initiative to provide for more flexible terms to its Offer in Compromise (OIC) program. In general, an OIC is an agreement between a taxpayer and the IRS, settling the taxpayer’s tax liabilities for less than the full amount due (subject to compliance with the […]
Underpayment and Overpayment Interest Rates for the Third Quarter of 2012
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn May 22, 2012, the IRS announced that the interest rates will remain the same for the calendar quarter beginning July 1, 2012. The rates will be: three (3) percent for overpayments [two (2) percent in the case of a corporation]; three (3) percent for underpayments; five (5) percent for large corporate underpayments; and one-half […]
Search Warrants and IRS Summons Powers in Tax Crimes Cases
/in irs lawyer minneapolis, Legal Notes /by ManagerIn a previous article, we explained the basics of criminal tax investigations. In this article, we will examine further two investigatory methods available to the IRS. Search Warrants IRS Special Agents may request for a search warrant in certain cases. In order for a search warrant to be granted, IRS Counsel generally must first approve […]
Form 8938 Threshold Requirements
/in international tax lawyer st paul, Legal Notes /by ManagerStarting tax year 2011, the IRS imposed a new tax reporting requirement on individual taxpayers who hold specified foreign financial assets with an aggregate value exceeding a relevant threshold. In its instructions to Form 8938, the IRS lists five main categories of taxpayers and assigns distinct reportable threshold to each category. Let’s explore each category.1. […]
Final Regulations and Guidance Issued on Reporting Interest Paid to Nonresident Aliens under FATCA
/in international tax lawyer minnesota, Legal Notes /by ManagerThe Foreign Account Tax Compliance Act (FATCA), was enacted in 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act, and mandates new reporting requirements, and amends existing IRC Sections. Recently, the IRS issued final regulations and guidance regarding the reporting interest paid to nonresident aliens by certain financial institutions, as well as […]
Taxation of Prizes and Awards
/in Legal Notes, minneapolis tax lawyer /by ManagerA lot of taxpayers are still unaware that awards and prizes may be potentially subject to U.S. federal income taxation. In general, prizes and awards (other than certain types of fellowship grants and scholarships) should be included in gross income and subject to federal taxation. Awards for religious, charitable, scientific, educational, artistic, literary or civic […]
Taxation of Restricted Stock Units
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerRestricted Stock Units (RSUs) have become prominent in the news recently as a result of the Facebook IPO. Many of Facebook’s employees received RSUs in addition to their wages, and will soon be paying a heavy tax bill. Facebook has estimated that its employees’ total tax liability will be approximately $4 Billion dollars. In fact, […]
IRS Investigation of Tax Crimes
/1 Comment/in Legal Notes, tax lawyer St. Paul Minnesota /by ManagerThis article will explain the basics of criminal tax investigations. It is extremely important if you find yourself under such an investigation, or believe that the potential for a criminal investigation exists in your case, that you obtain an experienced attorney to represent you. Internal Revenue Code (IRC) Section 7608(b) grants the right to the […]
Deductibility of Meals on Schedule C: General Overview
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerVirtually every business incurs some type of meal-related expenses. A question arises as to whether such meals are deductible and to what extent. This article provides a general overview of this topic; remember, though, that the deductibility of meals is highly fact-dependent and this article only provides an educational background to this issue, NOT a […]
Non-Deductible Taxes: General Summary
/1 Comment/in Legal Notes, tax attorneys minneapolis /by ManagerThe Internal Revenue Code (IRC) permits individual and business taxpayers to deduct various types of taxes imposed by some tax authorities. However, some types of taxes are not deductible under the IRC. Here is a brief summary of most common non-deductible taxes: 1. Generally, federal income taxes, including social security and railroad retirement taxes paid […]
Controlled Foreign Corporations: Subpart F History through 1962
/in International Tax Law, Legal Notes /by ManagerThe purpose of the article is to provide a brief historical overview of the circumstances leading up to the enactment of the famous “Subpart F” rules through the year 1962. Subpart F of Subtitle A, Chapter 1, Subchapter N, Part III of the Internal Revenue Code (IRC Sections 951-965) was first enacted by the U.S. […]
Foreign Qualified Dividend Income
/in international tax lawyer st paul, Legal Notes /by ManagerIn U.S. tax law, classification of income plays a very important role in determining your tax liability. One of the most important classifications is whether you have qualified dividend income eligible reduced tax rates applicable to certain capital gains – in most case, this means 15% tax rate. As with almost every issue in U.S. […]
AMT Exemption Amounts for the Tax Year 2011
/in Legal Notes, st paul tax lawyers /by ManagerThe Alternative Minimum Tax (the “AMT”) attempts to ensure that anyone who benefits from certain tax advantages pays at least a minimum amount of tax. Congress created the AMT in 1969, targeting higher-income taxpayers who could claim so many deductions they owed little or no income tax. The AMT provides an alternative set of rules […]
IRS Announces Procedures Adjusted for APA and Certain Competent Authority Requests
/in irs lawyer minneapolis, Legal Notes /by ManagerThe Internal Revenue Service, Deputy Commissioner (International), Large Business and International Division (“LB&I”), announced certain organizational and administrative changes and transitional procedures in connection with the creation of the Advance Pricing and Mutual Agreement (“APMA”) program. Prior to February 26, 2012, the Advance Pricing Agreement (“APA”) program was part of the Office of the Associate […]
Official Treasury Currency Conversion Rates of December 31, 2011
/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerThe U.S. Department of Treasure recently published its official currency conversion rates for December 31, 2011 (they are called “Treasury’s Financial Management Service rates”). These rates are important for many reasons, but one reason especially stands out for persons who are required to file the FBARs. The latest (January 2012) FBAR instructions require the use […]
IRS Form W-9, FATCA and FBAR Compliance
/in international tax lawyer st paul, Legal Notes /by ManagerThe Foreign Account Tax Compliance Act (“FATCA”) produced a major catalyst for the usage of Form W-9 by the banks in order to identify whether their clients are U.S. taxpayers. This article explores the connection between the IRS Form W-9, FATCA and FBAR compliance. IRS Form W-9 The essence of the IRS Form W-9 is […]
IRS Form 944 Basics
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerGeneral Obligations To Deposit Payroll and Income Tax Withholdings Under federal law, employers must withhold Social Security, Medicare and Federal income taxes from their employees’ paychecks and deposit them with the federal government (together with the employer’s own payroll tax contributions). In addition to the deposit requirements, the employers are also obligated to file Form […]
New FBAR Form: January 2012
/in FBAR lawyers Minnesota, Legal Notes /by ManagerIn January of 2012, the IRS issued a new version of the Treasury FinCEN Form 114 formerly Form TD F 90-22.1, popularly known as the “FBAR” (the Report on Foreign Bank and Financial Accounts). This is a third revision of the FBAR in less than one year. In March of 2011, the IRS made substantial […]
Mortgage Debt Forgiveness: Key Points
/in Legal Notes, tax lawyer St. Paul Minnesota /by ManagerUnder the current U.S. tax law, canceled debt is normally taxable to you, but there are exceptions. One of those exceptions came into existence under the Mortgage Forgiveness Debt Relief Act of 2007. Under this law, married homeowners whose mortgage debt is partly or entirely forgiven during tax years 2007 through 2012 may exclude up […]
Second Quarter of 2012 Underpayment and Overpayment Interest Rates
/in Legal Notes, tax lawyer St. Paul Minnesota /by ManagerOn February 23, 2012, the IRS announced that the underpayment and overpayment interest rates will remain the same for the calendar quarter beginning April 1, 2012. The rates will be: three (3) percent for overpayments (two (2) percent in the case of a corporation) three (3) percent for underpayments five (5) percent for large corporate […]
Payroll Tax Cut Extended to the End of 2012 and Revised Form 941
/in business tax attorney Minneapolis, Legal Notes /by ManagerOn February 23, 2012, the Internal Revenue Service released revised Form 941 enabling employers to properly report the newly-extended payroll tax cut benefiting nearly 160 million workers. The IRS needed to revise Form 941 due to the Middle Class Tax Relief and Job Creation Act of 2012 (enacted on February 22, 2012). Under the new law, […]
Form W-2 Penalties
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerA W-2 is required to be filed by every employer who is engaged in a trade or business paying remuneration (including noncash payments) of $600 or more for a year in which services are performed by an employee. A W-2 must be filed for each employee for whom income, Social Security, or Medicare tax was […]
IRS Classification of Foreign Entities: “Per Se” Foreign Corporations
/in international tax lawyer minnesota, Legal Notes /by ManagerFor the U.S. tax compliance purposes, it is very important to properly classify foreign business entities, because there are special IRS requirements associated with ownership of foreign business entities. For instance, a list of various tax forms is tied to particular classification (for example, certain U.S. taxpayers are required to file Form 5471 with respect […]
Will You be Subject to the AMT in the Tax Year 2012?
/in Legal Notes, tax lawyers minnesota /by ManagerThe Alternative Minimum Tax (AMT) is an additional tax that certain individuals must pay on top of their regular tax liability. When the original “minimum tax” was enacted in 1969, its purpose was to limit the ability of high-income earners from paying little or no tax by using certain tax breaks. Tax breaks that may […]
Form 941 Penalties
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerIn a previous article, we covered some of the basics of Form 941. In this article, we will explore some of the major penalties that may apply for failure to comply with the requirements of Form 941. These penalties may be severe and, in certain circumstances, may even lead to criminal charges. Failure to File […]
Treasury and the IRS Issue Proposed Regulations for FATCA Implementation
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn February 8, 2012, the U.S. Treasury Department and the Internal Revenue Service issued proposed regulations for the next major phase of implementing the Foreign Account Tax Compliance Act (FATCA). FATCA and FFI Reporting under Proposed Regulations FATCA was enacted by the U.S. Congress in 2010 as part the Hiring Incentives to Restore Employment (HIRE) […]
CPT (Carriage Paid To)
/in international contract lawyer minneapolis, Legal Notes /by ManagerThe purpose of this article is provide a general background to one of the most important terms in international contract drafting, Incoterms 2010 CPT. General Provisions of CPT CPT (Carriage Paid To) means that the seller delivers the goods to the carrier of another person nominated by the seller at an agreed place and that […]
Taxation of Oil & Gas Royalty Interests
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerThe recent oil boom in regions such as the Bakken Oil Field has created millionaires overnight based upon royalty interests in oil and gas leases of investors. While fortunes can be made from such payments, it is important to understand that there may be various potential risks involved, as well as numerous taxes. This article […]
Criminal Tax Evasion
/in Legal Notes, tax litigation lawyers Minneapolis /by ManagerThis article provides some general background to IRC Section 7201 criminal tax evasion charges and describes Section 7201 principal criminal penalties. As you will see, the penalties are severe, and you should immediately seek the advice of a tax attorney if you have any doubts as to whether you are complying with the law […]
Form 941 Filing Requirements
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerWith the Federal government searching for much-needed revenues, it is very likely that the IRS will be watching much more closely for unpaid payroll taxes, as it has been in recent years. This article will explain the purpose of Form 941 and when it needs to be filed. In a future article, we will cover […]
IRS Power to Reallocate Income, Deductions, and Other Items under IRC Section 482
/in business tax attorney Minneapolis, Legal Notes /by ManagerSome taxpayers may be tempted, especially in situations involving related parties, to arbitrarily shift the source of income or allocation of deductions, in order to avoid or lessen taxes. Congress, however, enacted IRC Section 482 to give the IRS wide power to prevent such actions. This article will give a brief overview of some aspects […]
Voluntary Disclosure of Foreign Accounts and Foreign Assets in 2012
/in international tax lawyer st paul, Legal Notes /by ManagerThis article offers an important strategic perspective on the foreign financial accounts disclosure in the year 2012. In particular, it appears that, this year, U.S. taxpayers who have not fully disclosed their foreign financial accounts and foreign assets should make the urgent decision to bring their tax affairs into full compliance. Three Trends Greatly Enhanced […]
Form 5472 Penalties
/in international tax lawyer minnesota, Legal Notes /by ManagerIn a previous article, we covered the basics of the IRS Form 5472. In this article we will explain the penalties that may apply for failure to comply with the form’s requirements. Main Failure to File and Failure to Maintain Records Penalties If a corporation fails to timely file the required Form 5472, a $10,000 […]
Classification Conversion of A Tax-Exempt Organization: 501(c)(6) and 501(c)(3) Organizations
/in business tax lawyers minneapolis, Legal Notes /by ManagerIn a previous article, I already discussed some of the major differences between 501(c)(3) and 501(c)(6) organizations. However, this discussion was limited to characteristics of these organizations as opposed to dynamic developments that these organizations may experience during their existence. While most of these organizations tend to be stable once a particular type of tax-exempt […]
Offshore Voluntary Disclosure Program 2012: Impact of Form 8938
/in international tax lawyer st paul, Legal Notes /by ManagerThe announcement by the IRS of the opening of the new Offshore Voluntary Disclosure Program (OVDP) on January 9, 2012 (now closed) came as a surprise to most tax practitioners, especially since the 2011 OVDI just ended on September 9, 2011. Yet, if one analyzes the number of new developments in international tax compliance over […]
Choosing The Right Offshore Voluntary Disclosure Attorney
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerImpact of Form 8938 on the International Tax Compliance Structure
/1 Comment/in international tax lawyer st paul, Legal Notes /by ManagerThe new IRS Form 8938 is not just another tax form that a taxpayer needs to file. Its reach and impact on taxpayer compliance and IRS ability to verify it are far more profound. Yet, while the addition of Form 8938 to the long list of international tax compliance forms has created a burst of […]
Form 5472: Basic Information
/in international tax lawyer st paul, Legal Notes /by ManagerThe focus of this article is to provide some basic information on the IRS Form 5472, an Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. The purpose of Form 5472 is to provide information required by the IRS when “reportable transactions” occur during the […]
Enterprise Value Tax Proposal
/in Legal Notes, tax lawyers minnesota /by ManagerAs the United States government has increasingly searched for needed revenues, and some members of Congress have called for higher taxes on hedge fund managers and various other new tax proposals have been suggested. One such proposal is the “Enterprise Value Tax”, which passed in the House of Representatives in 2010 (as part of “H.R. […]
Differences between 501(c)(3) and 501(c)(6) Organizations
/1 Comment/in business tax lawyers minneapolis, Legal Notes /by ManagerAre you thinking of creating a tax-exempt organization under federal income tax law? Tax-exempt organizations can provide extraordinary benefits to their members and society, but forming such organizations may entail significant knowledge of the law, as well as the ability to pay expensive application fees. In this article I will briefly explain the basic differences […]
IRS Tax Gaps Estimates Show Taxpayers owe $385 Billion in 2006 Taxes
/in Legal Notes, tax lawyers minnesota /by ManagerThe Internal Revenue Service recently released new “tax gap” estimates for tax year 2006, showing that taxpayers owe $385 Billion (an increase of about 1/3 over the tax gap from tax year 2001). The tax gap is defined as the amount of tax liability owed by taxpayers that is not timely paid. The tax gap […]
IRS Declares New 2012 Offshore Voluntary Disclosure Program
/3 Comments/in international tax lawyer st paul, Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn January 9, 2012, the Internal Revenue Service announced that it opens another offshore voluntary disclosure program – 2012 Offshore Voluntary Disclosure Program or 2012 OVDP – to help people hiding offshore accounts get current with their taxes and announced the collection of more than $4.4 billion so far from the two previous international programs. […]
Social Security Wage Base Increase in Tax Year 2012
/in Legal Notes, minneapolis tax lawyer /by ManagerIn November of 2011, the Social Security Administration announced that the wage base (also known as “contribution and benefit base”) used for computing the social security tax is increased to $110,100 in the tax year 2012. The wage base is used to compute the maximum amount of income subject to the Social Security taxes. This […]
IRS Extends the 2011 Tax Return Filing Deadline to April 17, 2012
/in irs lawyer minneapolis, Legal Notes /by ManagerOn January 4, 2012, the Internal Revenue Service announced that the taxpayers will have until April 17, 2012 (Tuesday) to file their 2011 tax returns and pay any tax due. This is because April 15, 2012, falls on a Sunday, and Emancipation Day, a holiday observed in the District of Columbia, falls this year on […]
Limitations to the Non-Recognition Rules for Asset Transfers to Foreign Corporations
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerAre you thinking of transferring appreciated property to a foreign corporation in order to utilize the corporate “non-recognition” rules, and to possibly avoid further US taxes? You should be aware that while in certain circumstances it is feasible to transfer such property in order to properly run a business, there are many limitations placed upon […]
Current Basic Estate and Gift Tax Rules
/in estate planning lawyers Minneapolis, Legal Notes /by ManagerWith the new year upon us, it’s a good time to review the federal estate and gift tax rules in order to utilize them to their maximum effect. Taxpayers should also be aware that certain beneficial gift and estate tax laws may expire at the end of this year and revert back to the pre-Economic […]
Last Estimated Tax Payments for the Tax Year 2011 are Due on January 17, 2012
/in Legal Notes, tax lawyer St. Paul Minnesota /by ManagerEstimated tax payments for the fourth-quarter of 2011 are due on January 17, 2012. The estimated tax payments should be made using Form 1040-ES. Note, if the due date for an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be considered on time if it is made on the […]
Baindurashvili v. Helpful Hands Transportation, Inc., No. A11-60, Unpub. (Minn. Ct. App. 11/21/2011) (A case recently won by Sherayzen Law Office)
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerThis is a copy of the Minnesota Court of Appeals unpublished opinion in the case recently won by Mr. Eugene Sherayzen, the owner of Sherayzen Law Office, on November 21, 2011. This opinion will be unpublished and may not be cited except as provided by Minn. Stat. § 480A.08, subd. 3 (2010). STATE OF […]
Eugene Sherayzen, Esq. Wins a Minnesota Court of Appeals Case
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerOn November 21, 2011, the Minnesota Court of Appeals ruled in favor of Helpful Hands Transportation, Inc. (HHT) – the client of Sherayzen Law Office – and reversed the unemployment law judge’s (ULJ) determination that HHT’s workers should be classified as employees. Judge Kalitowski wrote the opinion. Two respondents were listed as “pro se”, but […]
Form 8938 Penalties
/1 Comment/in Form 8938 tax attorney Minneapolis, Legal Notes /by ManagerAs discussed in an earlier article, Form 8938 is used by specified individuals to report the ownership of specified foreign financial assets if the total value of those assets exceeds an applicable threshold amount. Similarly to most international tax forms issued by the IRS, Form 8938 has its own system of penalties. What makes Form […]
New Version of the FBAR Form
/in FBAR lawyers Minnesota, Legal Notes /by ManagerIn November of 2011, the U.S. Department of the Treasury issued a new version of Form TD F 90-22.1, now known as FinCen Form 114 commonly known as FBAR. All filers must now use this form in order to report their foreign bank and financial accounts. The main difference between the previous (March 2011) version […]
Tax Effect of a Complete Liquidation of a Corporation on Its Shareholders
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerThe tax effects to shareholders of liquidating a corporation are largely governed by IRC Sections 331, 332 (liquidations of subsidiaries) and 338 (dealing with certain stock purchases treated as asset acquisitions). This article will examine only the general tax rule found in Section 331 (keep in mind that there are numerous exceptions and variations depending […]
Form 8938: Who Must File The Frankenstein Son of FBAR ?
/2 Comments/in Form 8938 tax attorney Minneapolis, Lead Article /by ManagerIn an earlier article, I discussed in general that the IRS imposed a new tax reporting requirement on individual taxpayers who hold specified foreign financial assets with an aggregate value exceeding a relevant threshold. Such taxpayers will need to report those assets on the new IRS Form 8938, which must be attached to the taxpayer’s […]
Basic Individual Tax Reporting Requirements for U.S. Citizens Residing Outside of the United States
/in international tax lawyer st paul, Legal Notes /by ManagerIf you are a U.S. citizen or a dual citizen of the United States and another country (or countries) the IRS expects you to comply with certain individual tax reporting requirements even you reside outside of the United States. The purpose of this article is to outline some of the most important of these reporting […]
Payroll Tax Cut Temporarily Extended into 2012
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerThe Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extended the two percentage point payroll tax cut for employees, continuing the reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through February 29, 2012. This reduced Social Security withholding will have no effect on employees’ future […]
Beneficial Owners, Treaty Shopping and the OECD Model Tax Convention
/in international tax lawyer minnesota, Legal Notes /by ManagerRecently, the Organization for Economic Co-operation and Development (OECD) Committee on Fiscal Affairs asked for public comments concerning the interpretation of the term “beneficial owner” in the OECD Model Tax Convention. Since the OECD Model Tax Convention functions as a template for many nations negotiating bilateral tax treaties, any changes or clarifications to the model […]
Expanded Tax Credit for Hiring Unemployed Veterans
/in Legal Notes, st paul tax lawyer /by ManagerOn November 21, 2011, the VOW to Hire Heroes Act of 2011 was signed into law. The new law provides an expanded work opportunity tax credit to businesses that hire eligible unemployed veterans and for the first time also makes part of the credit available to tax-exempt organizations. Businesses can claim the credit as part […]
Filing Deadline Extended to March 30, 2012, for Some Tax-Exempt Organizations
/in Legal Notes, tax lawyers st louis park /by ManagerOn December 16, 2011, the IRS announced that certain tax-exempt organizations with January and February filing due dates will have until March 30, 2012, to file their annual returns. The IRS is granting this extension of time to file because the part of the e-file system that processes electronically filed returns of tax-exempt organizations will […]
Making the Section 338(g) Election when Purchasing a Target Corporation’s Stock
/in business tax attorney Minneapolis, Legal Notes /by ManagerThis article will explain Internal Revenue Code Section 338(g), which allows corporations, that buy a certain percentage of a target corporation’s stock and meet certain requirements, to make an election to treat the acquisition as an asset purchase instead of a stock purchase. In the right circumstances, a Section 338(g) election can be a very […]
Voluntary Disclosure News: IRS Offers a Deal to 11 Swiss Banks
/1 Comment/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerAccording to Reuters and Sonntags Zeitung, U.S. officials are offering eleven Swiss banks (including Credit Suisse, Julius Baer, Basler Kantonalbank and HSBC Switzerland) a deal that allows them to avoid criminal prosecution in exchange for revealing details of their U.S. offshore business to the U.S. government. Allegedly, in exchange to dropping the criminal prosecution, the […]
IRS Releases Guidance on Foreign Financial Asset Reporting (Form 8938)
/in international tax lawyer st paul, Legal Notes /by ManagerOn December 15, 2011, the Internal Revenue Service stated that it will soon release the final version of a new information reporting form that taxpayers will use starting this coming tax filing season to report specified foreign financial assets for tax year 2011. Form 8938 (Statement of Specified Foreign Financial Assets) will be filed by […]
Form 1065 Penalties
/in business tax lawyers st paul, Legal Notes /by ManagerIRS Form 1065 (U.S. Return of Partnership Income) is an information return used to report the income, gains, losses, deductions, credits, and related items from the operation of partnerships. Partnerships generally do not pay taxes because they are pass-through entities. Instead, profits or losses, and related items, are reported by partners (typically based upon their […]
FBAR: Reporting Foreign PayPal Accounts
/in FBAR lawyers New York, Legal Notes /by ManagerWhether an account is reportable for FBAR purposes can sometimes be a relatively complicated question. It is true that it is easy to see that foreign bank and investment accounts should be reported on the FBAR as long as all other requirements are met. It is also well-established that a gold bullion account is reportable […]
Estate Planning: Crummey Trusts
/in estate planning lawyers Minneapolis, Legal Notes /by ManagerAre you interested in reducing the amount of possible estate taxes you may have to pay? Do you desire to avoid paying gift taxes, but have concerns about gifting your children or grandchild large sums of money when they are perhaps too young to handle it responsibly? Then a Crummey Trust may be the answer […]
Form 1120S Penalties and Interest
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerForm 1120S (US Income Tax Return for an S Corporation) is used to report the income, gains, losses, deductions, credits, and related items, for any tax year covered, of a domestic corporation or other entity that elects to be treated as an S corporation by filing Form 2553. If the IRS accepts the election, Form […]
Tax Consequences of Converting a Rental Property into a Primary Residence
/in Legal Notes, tax attorneys minneapolis /by ManagerDo you own a residential rental property that you plan to convert into your primary residence? Are you wondering if by doing so, you could still qualify for the capital gains exclusion on sales of a primary residence, when you do eventually sell? This article will examine these questions, and will explain some of the […]
Obtaining Private Letter Rulings
/in Legal Notes, tax litigation lawyers Minneapolis /by ManagerAt certain times, tax planning may involve taking a position on a tax return that is uncertain, or even controversial. If the position involves a potentially large liability, taxpayers may be left with the undesirable choices of either taking a risk in reporting the position or deciding not to and paying a much larger tax. […]
IRS Announces 2012 Standard Mileage Rates
/in Legal Notes, st paul tax lawyers /by ManagerOn December 9, 2011, the Internal Revenue Service issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on January 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: […]
Alternative Minimum Tax Foreign Tax Credit
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerUS persons are taxed on their worldwide income, but are allowed a foreign tax credit (FTC) for foreign taxes paid. In most cases, the FTC gives taxpayers a dollar-for-dollar credit against their US tax liability. However, the FTC may be limited for Alternative Minimum Tax (AMT) purposes in order to ensure that a taxpayer’s US […]
FBAR Electronic Filing
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerOn July 18, 2011, the Financial Crimes Enforcement Network (FinCEN) announced that it has developed an electronic filing system that will accept Form 114 formerly Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (commonly known as “FBAR”). Once the FBAR is filed electronically, the filers will receive an acknowledgment of each report […]
Post-OVDI Voluntary Disclosure of Foreign Bank and Financial Accounts
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerSince the enrollment into the 2011 Offshore Voluntary Disclosure Initiative (“OVDI”) closed on September 9, 2011, I have been asked repeatedly by new and prospective clients about their post-OVDI options – i.e. is there a voluntary disclosure option for clients who were not able to enroll into the program by the September 9 deadline? The […]
Foreign Rental Property Tax Depreciation
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerDo you own, or are you thinking of owning, foreign rental property? While investing in foreign rental property may have many advantages and can be a potentially lucrative enterprise, you should be aware that, among other aspects, the IRS treats rental properties located outside of the United States differently than rental properties in the United […]
Form 8865 Penalties
/in international tax lawyer minnesota, Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerIRS Form 8865 (“Return of U.S. Persons with Respect to Certain Foreign partnerships”) is used to report information required under IRC section 6038 (reporting with respect to controlled foreign partnerships), IRC section 6038B (reporting of transfers to foreign partnerships), and IRC section 6046A (reporting of acquisitions, dispositions, and changes in foreign partnership interests) for those […]
Form 8865: Categories of Required Filers
/in international tax lawyer st paul, Legal Notes /by ManagerFor taxpayers who are required to file IRS Form 8865 (“Return of U.S. Persons with Respect to Certain Foreign partnerships”) is used to report required information under IRC section 6038 (reporting with respect to controlled foreign partnerships), IRC section 6038B (reporting of transfers to foreign partnerships), and IRC section 6046A (reporting of acquisitions, dispositions, and […]
Limited Liability Limited Partnerships
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerA Limited Liability Limited Partnership (LLLP) is a relatively recent modification of a traditional limited partnership, and about half of the states in the U.S. have adopted statutes for their formation. In this article, I will highlight some of the most prominent features of the LLLPs. As I already mentioned above, LLLPs are a modification […]
Underpayment and Overpayment Interest Rates for the First Quarter of 2012
/in Legal Notes, tax lawyers st paul /by ManagerOn November 29, 2011, the Internal Revenue Service announced that underpayment and overpayment interest rates will remain the same for the calendar quarter beginning January 1, 2012. The rates will be: three (3) percent for overpayments (two (2) percent in the case of a corporation) three (3) percent for underpayments five (5) percent for large […]
Form 8938 New Foreign Asset Reporting Requirements: Introduction
/in international tax lawyer st paul, Legal Notes /by ManagerIn its continuous efforts to combat tax evasion, the IRS imposed a brand-new foreign asset reporting requirements on U.S. persons. For the very first time, starting tax year 2011 (with certain exceptions), certain individuals must file the new Form 8938 to report the ownership of specified foreign financial assets if the total value of those […]
Limited Liability Partnerships (LLPs)
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerThe term limited liability partnership (“LLP”) is often used in public discourse- often erroneously. What exactly is an LLP, and what are its features compared to a traditional, general partnership? This article will attempt to answer that question and provide you with some basic understanding of LLPs. Please note that this article is intended to […]
Cash and Property Contributions to Partnerships and Their Affect on a Partnership Interest
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerA partnership is defined to mean the relationship between two or more persons to carry on a trade or business, with each person contributing money, property, labor, or skill, and each expecting to share in profits and losses. This article will provide a broad overview of some of the tax consequences of cash and property […]
Case Note: Weller v. Commissioner of Internal Revenue
/in Legal Notes, tax litigation lawyers Minneapolis /by ManagerThis brief case note describes one of the recent cases of the U.S. tax court. This description is not a legal advice and may not be relied upon as such. On September 20, 2011, the tax court ruled in favor of the taxpayer and found that he engaged in his business activities for profit (see […]
U.S. Taxation of Foreign Persons: General Overview
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerUnlike U.S. citizens, U.S. resident aliens and domestic corporation which are taxed under the Internal Revenue Code on their worldwide income, the IRS applies a special tax regime to foreign persons. The general rule (subject to numerous exceptions) is that foreign persons are only taxed on their U.S.-source income of specified types and income effectively […]
Non-recognition Transactions Involving Foreign Corporations: Top Three Reporting Requirements
/in international tax lawyer st paul, Legal Notes /by ManagerWhen we are talking about nonrecognition transactions, we generally mean mergers, spinoffs, and contributions of capital. When such transactions involve foreign corporations, U.S. tax laws impose a number of reporting requirements. In this brief essay, I will generally discuss the top three reporting requirements for U.S. persons who are involved in nonrecognition transactions involving foreign […]
Who Must File Form 8858
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerIf a U.S. person owns or is considered to be the owner of a Foreign Disregarded Entity (“FDE”), then he must file Form 8858. In general, there are three different groups of persons who may be required to file the Form. 1. Direct “Tax Owners” of FDE The instructions to Form 8858 define a “tax […]
Foreign Disregarded Entities: Form 8858 Introduction
/in international tax lawyer st paul, Legal Notes /by ManagerIn my international tax practice, I have encountered frequent examples where business owners fail to comply with the U.S. tax reporting requirements with respect to a “foreign disregarded entity” (“FDE”). Therefore, in this essay, I will try to make some very broad observations with respect to the entity and Form 8858. FDE is a business […]
Child Tax Credit and Foreign Earned Income Exclusion
/in international tax lawyer minnesota, Legal Notes /by ManagerThe U.S. government allows eligible parents to take a tax credit for up to $1,000 per qualifying child. In addition to various issues with respect to what constitutes a “qualifying child”, there are various complications with respect to the eligibility of the parents. In this short essay, I will concentrate solely on the interaction of […]
IRS Form 1120 Schedule UTP Filing Requirements
/in Legal Notes, tax lawyers minnesota /by ManagerThe IRS recently announced that Schedule UTP must be filed with Forms 1120, 1120-F, 1120-L or 1120-PC, if an entity meets certain requirements. UTP stands for “Uncertain Tax Positions”, and the purpose of the schedule is for corporate taxpayers to provide concise disclosure of uncertain tax issues relating to the reporting of reserves in their […]
IRS Form 8938 and Revised Form 8621 Filing Requirements Under Notice 2011-55
/in international tax lawyer st paul, IRS Form 8938 tax attorney, Legal Notes /by ManagerThe IRS recently released Notice 2011-55, partially suspending certain Foreign Account Tax Compliance Act (“FATCA”) information reporting requirements until Form 8938, (Statement of Specified Foreign Financial Assets), and a revised Form 8621, (Return by a Shareholder of a Passive Foreign Investment Company or a Qualified Electing Fund) are released. It is important to note that […]
What is SEP IRA?
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerA Simplified Employee Pension (“SEP”) is a written plan that allows you to make contributions toward your own retirement as well as your employees’ retirement while avoiding the complexity of various qualified plans. Under a SEP, you make contributions to a traditional IRA set up by or for each eligible employee. It is important to […]
Pension Plan Limitations for 2012
/in Legal Notes, tax lawyers edina, tax lawyers st louis park /by ManagerDue to the cost of living adjustments, many of the pension plan limitations will change for 2012, but others will remain the same. Section 415 of the Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. Section 415(d) requires that the Commissioner annually adjust these limits for cost of […]
Incoterms 2010 FCA
/in international contract lawyer minneapolis, Legal Notes /by ManagerIn a previous essay, I already explained the importance of Incoterms to drafting of international contracts and discussed one of the Incoterms 2010 (EXW). In this article, I will provide a brief overview of another and more common Incoterms 2010 – FCA. FCA (Free Carrier) means that the seller delivers (the Incoterms 2010 rules specify […]
Incoterms 2010: EXW
/in international contract lawyer minneapolis, Legal Notes /by ManagerIncoterms (the ICC rules on the use of domestic and international trade terms) constitute a critical part of an international sales contract. Their most important contribution to the contract consist of a clear delineation of the parties’ respective obligations, thereby reducing the risk of misunderstanding and litigation. Moreover, Incoterms are regularly updated and, therefore, incorporate […]
Foreign Earned Income Exclusion: 2011
/in international tax lawyer st paul, Legal Notes /by ManagerUnder I.R.C. §911, if certain conditions are met, a qualified individual can exclude his foreign earned income from taxable gross income for the U.S. income tax purposes. This income may still be subject to U.S. Social Security taxes. The income exclusion amount for 2011 has increased to $92,900 (in 2010, it was $91,500). Remember, if […]
IRS Increases Deductions and Exclusions for the Tax Year 2012
/in Legal Notes, tax lawyers minnesota /by ManagerThe Internal Revenue Service recently announced that for tax year 2012, personal exemptions and standard deductions will increase, and tax bracket thresholds will rise because of inflationary effects. This article will explain some of these changes. Personal Exemptions, Standard Deductions and Tax Bracket Changes The increased amount of each personal and dependent exemption will be […]
Form 5471: General Overview of the Required Information
/in International Tax Attorney Minnesota Minneapolis, international tax lawyer st paul, Legal Notes /by ManagerThe individuals who fall within the four categories of U.S. persons who are required to file Form 5471 find out very fast just how incredibly complex this Form is. In addition to various problems associated with GAAP compliance, tax year adjustments, understanding very complex corporate tax and accounting rules (as well as the difference between […]
Incoterms 2010: Most Prominent New Features
/in international contract lawyer minneapolis, Legal Notes /by ManagerThe new Incoterms 2010 replace and update a number of various features of Incoterms 2000. The new rules took effect on January 1, 2011. The following is a very brief description of some of the most prominent changes. 1. Reduced Number of Incoterms The number of Incoterms rules has been reduced from 13 to 11. […]
Minnesota Department of Revenue Launches New e-Services System
/in business tax attorney Minneapolis, Legal Notes /by ManagerOn October 3, 2011, the Minnesota Department of Revenue announced the launch of its new e-Services online system. This new system is replacing e-File Minnesota and will offer a wider variety of services to 400,000 business taxpayers. The new system was the product of at least four years of diligent work by the Department. The […]
IRS Proposed Regulations Require Tax Preparers to File Form 8867 with 2012 EITC Claims
/in Legal Notes, st paul tax lawyer /by ManagerOn October 6, 2011, The Internal Revenue Service announced that it is issuing proposed regulations that would require paid tax return preparers, beginning in 2012, to file a due diligence checklist, Form 8867, with any federal return claiming the Earned Income Tax Credit (EITC). It is the same form that is currently required to be […]
Tax Return Extension Deadline for Most Filers: October 17, 2011 and Some Exceptions
/in Legal Notes, tax attorneys minneapolis /by ManagerOctober 17, 2011 is the deadline for most of those individual taxpayers who filed Form 4868 to request a six-month extension on filing of their tax returns. Traditionally, October 15 would have been the deadline, but it falls on Saturday this year. Therefore, the IRS extended the deadline until October 17, 2011. Note that this […]
IRS Form 5471 and US Persons Who Own Shares in Foreign Corporations
/2 Comments/in international tax lawyer st paul, Legal Notes /by ManagerDo you own 10% or more of the shares in a foreign corporation? Then you may be required to file IRS Form 5471 (“Information Return of U.S. Persons With Respect to Certain Foreign Corporations”). IRS Form 5471 Form 5471 is a required informational return for certain categories of filers (there are four different categories of […]
Benefits of Participating in VCSP
/in Legal Notes, tax lawyers edina, Tax Lawyers Minneapolis /by ManagerOn September 21, 2011, the Internal Revenue Service launched a new program, the Voluntary Classification Settlement Program (“VCSP”) that will enable many employers to resolve past worker classification issues and achieve certainty under the tax law at a low cost by voluntarily reclassifying their workers. The main benefit of the new program is that it […]
IRS Issues Guidance on Tax Treatment of Cell Phones
/in business tax attorney Minneapolis, Legal Notes, Tax Lawyers Minneapolis /by ManagerOn September 14, 2011, the Internal Revenue Service issued guidance designed to clarify the tax treatment of employer-provided cell phones. The guidance relates to Section 2043 of the Small Business Jobs Act of 2010, Pub.L.No. 111-240 (enacted last fall) that removed cell phones from the definition of listed property, a category under tax law that […]
Investing in Gold and Other Precious Metals: Tax Pitfalls
/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerWith the price of commodities sky-rocketing in the past decade, many individuals have made substantial gains by directly investing in physical gold and other precious metals, especially in popular investment vehicles such as gold Exchange Traded Funds (ETF’s). However, there may be a downside for unsuspecting investors when it comes to paying taxes on those […]
Foreign Tax Credit: General Overview
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerUS tax residents and citizens are taxed based upon their worldwide income. This can often result in individuals being subject to double taxation. To provide relief from this problem, the Foreign Tax Credit (FTC) provisions were enacted. There are two types of FTC’s, the direct credit and the indirect credit. Direct Foreign Tax Credit In […]
US-Canada Tax Treaty: Beware of Income Exemption Traps
/in International Tax Attorney Minnesota Minneapolis, international tax lawyer st paul, Legal Notes /by ManagerAre you a US taxpayer earning income in Canada? Do you rely upon the US-Canada tax treaty (officially known as, The Convention with Respect to Taxes on Income and on Capital, U.S.-Can., Sept. 26, 1980, T.I.A.S. No. 11,087) exemptions to claim deductions or limit reporting of income for US tax purposes? If so, then you […]
Eligibility for Voluntary Classification Settlement Program
/in Legal Notes, Tax Lawyers Minneapolis, tax lawyers minnesota /by ManagerAs discussed in an earlier article, I already explained the essence of a new Voluntary Classification Settlement Program (“VCSP”) announced by the IRS earlier this week. I then explored the application process. In this essay, I would like to explore the general eligibility requirements for the VCSP. Generally, the VCSP is available for to many […]
Application Process for Voluntary Classification Settlement Program
/in Legal Notes, tax attorneys minneapolis, tax lawyers edina /by ManagerAs was discussed in an earlier article, the IRS announced a new Voluntary Classification Settlement Program that offers concrete benefits to participating employers. Among the chief benefits are substantially lower payment by employers of the potentially overdue taxes (without any interests and penalties) and a relatively simple way of resolving this potentially grave problem. Additional […]
Voluntary Classification Settlement Program
/1 Comment/in business tax attorney Minneapolis, Legal Notes, Tax Lawyers Minneapolis /by ManagerOn September 21, 2011, the IRS announced and explained its new Voluntary Classification Settlement Program (VCSP) that provides partial relief from federal employment taxes for eligible taxpayers that agree to prospectively treat their workers as employees (see Announcement 2011-64). In essence, eligible employers may voluntary elect to participate in the VCSP in order to limit […]
OVDI: IRS Shows Continued Progress on International Tax Non-Compliance
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis, offshore voluntary disclosure tax attorney Los Angeles /by ManagerThe Internal Revenue Service has achieved significant success in combating international tax non-compliance. The total number of voluntary disclosures up to 30,000 since 2009. In all, 12,000 new applications came in from the 2011 offshore program that closed last week. The IRS also announced today it has collected $2.2 billion so far from people who […]
Estimated Tax Payments are due on September 15, 2011
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerEstimated tax payments for the third-quarter (June 1-August 31) of 2011 are due on September 15, 2010. The estimated tax payments should be made using Form 1040-ES. Note, if the due date for an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be considered on time if it is […]
Non-Resident Indians Face High Exposure to the FBAR Reporting Requirements
/in International Tax Attorney Minnesota Minneapolis, Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerNon-Resident Indian (NRI) is an Indian citizen who has migrated to another country, a person of Indian origin who is born outside India, or a person of Indian origin who resides permanently outside India. A large number of the NRIs left India as a result of a job offer, for example as a software engineer […]
One-Week Filing Extension to Taxpayers Whose Preparers Were Affected by Hurricane Irene
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn September 1, 2011, the Internal Revenue Service announced that it is granting taxpayers whose preparers were affected by Hurricane Irene until September 22, 2011 to file returns normally due September 15. The taxpayer’s preparer must be located in an area that was under an evacuation order or a severe weather warning because of Hurricane […]
OVDI Deadline Extended until September 9, 2011
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis, offshore voluntary disclosure tax attorney Los Angeles /by ManagerDue to the potential impact of Hurricane Irene, the IRS has extended the due date for offshore voluntary disclosure initiative requests until September 9, 2011. For those taxpayers who have not yet submitted their request and any documents, the following actions are necessary by September 9, 2011: Identifying information must be submitted to the Criminal […]
Underpayment and Overpayment Interest Rates for the Fourth Quarter of 2011
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn August 18, 2011, the Internal Revenue Service announced that interest rates will decrease for the calendar quarter beginning October 1, 2011. The rates will be: three (3) percent for overpayments (two (2) percent in the case of a corporation); three (3) percent for underpayments; five (5) percent for large corporate underpayments; and zero and […]
Post-OVDI Options: What to Do If You Cannot Make the OVDI Deadline
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis, offshore voluntary disclosure tax attorney Los Angeles /by ManagerIntroduction: OVDI Deadline is August 31, 2011 On February 8, 2011, the Internal Revenue Service initiated 2011 Offshore Voluntary Disclosure Initiative (OVDI), a special voluntary disclosure initiative, designed to bring offshore money back into the U.S. tax system and help people with undisclosed income from hidden offshore accounts get current with their taxes. While this […]
OVDI Deadline: August 31, 2011
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis, offshore voluntary disclosure tax attorney Los Angeles /by ManagerThis is a reminder that the 2011 Offshore Voluntary Disclosure Initiative (OVDI) will expire on August 31, 2011. The 2011 OVDI was announced on February 8, 2011, and follows the 2009 Offshore Disclosure Program (OVDP). The 2011 initiative offers clear benefits to certain taxpayers who currently face far higher penalties along with potential criminal charges […]
Recent Developments in Transfer Pricing
/in business tax attorney Minneapolis, Legal Notes /by ManagerThe IRS is currently examining new procedures and policies regarding transfer pricing audits. Recently, the IRS developed a “Transfer Pricing Practice” within its Large and Mid-Size Business (LMSB) operating division, and last August, the IRS realigned its Large Business & International (LB&I) operating division to handle international tax matters more effectively. The Service intends to […]
2010 Form 8939 is Due on November 15, 2011
/in estate planning lawyers Minneapolis, Legal Notes /by ManagerOn August 5, 2011, the Internal Revenue Service issued guidance on the treatment of basis for certain estates of decedents who died in 2010. The guidance assists executors who are making the choice to opt out of the estate tax and have the carryover basis rules apply. Form 8939, the basis allocation form required to […]
IRS Reorganizes Transfer Pricing Compliance Programs and International Coordination
/in international tax lawyer minnesota, Legal Notes /by ManagerOn July 27, 2011, the IRS announced that it is taking additional steps in its continuing efforts to improve the agency’s international operations. First, the IRS Advance Pricing Agreement (APA) Program, concerned exclusively with reaching pre-filing agreements with taxpayers on transfer pricing, will shift from the office of IRS Chief Counsel to an office under […]
Form 2290: Highway Use Tax Return is Now Due on November 30, 2011
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn July 15, 2011, the IRS advised truckers and other owners of heavy highway vehicles that their next federal highway use tax return (which is usually due on August 31) will instead be due on November 30, 2011. IRS Notice 2011-77 explains that the main reason for the extension of the deadline is to alleviate […]
IRS Increases Mileage Rate to 55.5 Cents per Mile
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn June 23, 2011, the IRS announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes. In recognition of recent rise in the price of gasoline, the IRS […]
Eugene Sherayzen re-appointed to the Publications Committee of the MSBA for the year 2011-12
/in business tax lawyers minneapolis, Legal Notes /by ManagerOn July 7, 2011, Eugene Sherayzen, Esq., was re-appointed for the third time to the Minnesota State Bar Association Publications Committee. The Committee is responsible for overseeing the budget and publication of the most important Minnesota legal journal, “Bench & Bar”.
Reporting Canadian RRSPs and RRIFs in the United States: Form 8891
/in International Tax Attorney Minnesota Minneapolis, Legal Notes, Tax Lawyers Minneapolis /by ManagerIt comes as a surprise to most taxpayers the Canadian Registered Retirements Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs) must be reported in the United States. Yet, any U.S. citizen or resident who is a beneficiary of an RRSP or RRIF must complete Form 8891 and attach it to Form 1040. A U.S. […]
Reporting Foreign Gifts and Inheritance to the IRS: Form 3520
/in international tax lawyer minnesota, Legal Notes /by ManagerWhile gifts and bequests from nonresident aliens are usually not taxable, they must be reported to the IRS if they are above a certain threshold. Generally, U.S. persons who receive the aggregate amount of $100,000 or more in gifts and/or bequests from nonresident aliens or a foreign estate (including foreign persons related to that nonresident […]
FBAR Deadline Extension for Signature Authority Only – IRS Notice 2011-54
/in FBAR lawyers New York, international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerOn June 16, 2011, the Internal Revenue Service issued IRS Notice 2011-54, granting additional relief to persons with signature or other authority over, but no financial interest in, a foreign financial account held during calendar year 2009 or earlier calendar years. Previous, IRS Notices 2009-62 and 2010-23 already extended this deadline until June 30, 2010: […]
FBAR Extension for Certain Individuals: FinCEN Notices 2011-1 and 2011-2
/1 Comment/in FBAR lawyers Los Angeles, International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerOn May 31, 2011, and June 17, 2011, in FinCEN Notices 2011-1 and 2011-2, the Internal Revenue Service and the Financial Crimes Enforcement Network (FinCEN) announced that a small subset of individuals, who are required to file the Report of Foreign Bank and Financial Accounts (FBAR), will receive a one-year extension beyond the recent filing […]
Gold Bullion Foreign Accounts and FBAR
/in FBAR lawyers New York, international tax lawyer minnesota, Legal Notes /by ManagerA frequent question in my practice is whether a foreign account holding gold bullion is required to be reported on FinCEN Form 114 formerly Form TD F 90-22.1, usually referred to as “FBAR” (Report on Foreign Bank and Financial Accounts). FBAR is required to be filed by any U.S. person who has a financial interest […]
Mr. Sherayzen is a new Vice-Chair of the International Business Law Section of the MSBA
/in Legal Notes /by ManagerOn June 28, 2011, Mr. Eugene Sherayzen, Esq. was elected to be the new vice-chairman of the International Business Law Section of the Minnesota State Bar Association.
Foreign Investment in Real Property Tax Act
/in business tax lawyers minneapolis, international tax lawyer minnesota, Legal Notes /by ManagerThe IRS generally taxes U.S. taxpayers on all income, from any source derived. Foreign taxpayers, on the other hand, will usually only pay U.S. taxes on income sourced in the U.S. However, under The Foreign Investment in Real Property Tax Act (“FIRPTA”), the IRS treats gain on the disposition of certain U.S. property and interests […]
Will Capital Gains Move Me Into a Higher Tax Bracket?
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerA frequently asked tax question is whether capital gains may push a taxpayer into a higher tax bracket. This article will examine some of the tax possibilities with respect to this question. Background In general, capital gains are subject to the 0% or 15% capital gain rate. Generally, for 2010, if all of a taxpayer’s […]
FBAR (Report on Foreign Bank and Financial Accounts) is due on June 30, 2011
/in FBAR lawyers New York, international tax lawyer minnesota, Legal Notes /by ManagerPursuant to the Bank Secrecy Act, 31 U.S.C. §5311 et seq., the Department of Treasury (the “DOT”) has established certain recordkeeping and filing requirements for United States persons with financial interests in or signature authority (and other comparable authority) over financial accounts maintained with financial institutions in foreign countries. If the aggregate balances of such […]
Estimated Tax Payments are due on June 15, 2011
/in Legal Notes, tax lawyers minnesota /by ManagerEstimated tax payments for the second quarter (April 1 – May 31) of 2011 are due on June 15, 2011. The estimated tax payments should be made using Form 1040-ES. Note, if the due date for an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be considered on time […]
LLC Membership Interest Purchase Agreement: Basic Structure
/in international contract lawyer minneapolis, Legal Notes /by ManagerThis article deals with a situation where a person wishes to purchase a membership interest in the LLC and the agreement has been reached by all parties (i.e. the negotiations are over and there is an agreement with respect to main substantive issues, such as price, timing, assets, et cetera). In particular, I will focus […]
Underpayment and Overpayment Interest Rates for the Third Quarter of 2011
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn May 16, 2011, the Internal Revenue Service announced that interest rates for the calendar quarter beginning July 1, 2011, will remain the same as in the previous quarter. The rates will be: four (4) percent for overpayments (three (3) percent in the case of a corporation); four (4) percent for underpayments; six (6) percent […]
FBAR: Exclusion of Personal and Homeowner’s Lines of Credit
/in international tax lawyer minnesota, Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOften, I receive specific questions from my clients with respect to whether certain types of accounts should be reported on the Report of Foreign Bank and Financial Accounts (“FBAR”). Recently, one of my clients wanted to know whether he needs to report his personal and homeowner’s lines of credits on the FBAR. A little disclaimer […]
Official Treasury Currency Conversion Rates of December 31, 2010
/1 Comment/in FBAR lawyers Los Angeles, International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerEvery quarter the U.S. Department of Treasury publishes its official currency conversion rates (they are called “Treasury’s Financial Management Service rates). While there are many uses for these rates, the current (March 2011 revision) FBAR instructions require their use, if available, to determine the maximum value of a foreign bank account. In particular, the FBAR […]
Non-Resident Alien Spouse and Joint U.S. Tax Return
/in international tax lawyer st paul, Legal Notes, tax lawyer st paul /by ManagerThis article will cover the options that are available for married couples where one spouse is a non-resident alien and the other is a U.S. citizen. A nonresident alien is an alien who has not passed the green card test or the “substantial presence test” under IRS rules. For the purposes of this article, a […]
FATCA: Increased Foreign Asset Disclosure Requirements for U.S. Persons
/2 Comments/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerThe Foreign Accounts Tax Compliance Act (FATCA) was enacted as part of the Hiring Incentives to Restore Employment Act of 2010 (“HIRE Act” or “Act”). In addition to specific requirements and a withholding tax, FATCA imposed a new foreign asset disclosure requirements on U.S. persons. This article will give a general summary about FATCA disclosure […]
Tax Attorney Minneapolis | Keeping Tax Records After Filing Your Tax Return
/in Legal Notes, tax attorneys minneapolis /by ManagerOnce in a while, I get a question from my clients on how long and what type of records they need to keep after they file their tax returns. Generally, you should keep any and all documents that may have an impact on your federal tax return. For example, it is a good idea to […]
Tax Lawyers Minnesota | April 18, 2011 Filing Deadline
/in Legal Notes, tax lawyers st louis park /by ManagerThis is a reminder to the individual taxpayers that they have until the April 18, 2011, to file their 2010 tax returns. Taxpayers have an extra weekend to file this year because of a District of Columbia holiday on April 15. If you cannot meet the April 18 deadline, file an extension (Form 4868, Application […]
Dealing with Undisclosed Foreign Income and Foreign Bank and Financial Accounts
/in FBAR lawyers New York, international tax lawyer minnesota, Legal Notes, offshore voluntary disclosure tax attorney Los Angeles /by ManagerThe purpose of this article is to provide you with a simple three-step plan on how to deal with a situation where you have not disclosed foreign income and foreign assets, including bank and financial accounts, to the IRS. 1. Call Sherayzen Law Office to Schedule a Confidential and Attorney-Client Privileged Consultation The first step […]
Extension of Time to File Federal Tax Return for Individuals: Form 4868
/1 Comment/in Legal Notes, Tax Lawyers Minneapolis /by ManagerIf an individual taxpayer cannot file his tax return by the due date of the return, the IRS allows most of such taxpayers to request an automatic six-month extension of time to file the return. In order to do so, the taxpayer should file Form 4868, Application for Automatic Extension of Time to File U.S. […]
Preparing Individual Tax Returns: Top Five Errors
/in Legal Notes, tax attorneys minneapolis /by ManagerBefore filing your tax return, you should review it to make sure it is correct and complete. Here are the five most common errors on an individual tax return: 1. Incorrect or missing Social Security numbers. 2. Incorrect tax entered based on taxable income and filing status. 3. Withholding and/or estimated tax payments entered on […]
Tax Treaties
/in International Tax Attorney Minnesota Minneapolis, international tax lawyer minnesota, international tax lawyer st paul, Legal Notes /by ManagerTax treaties are bilateral agreements between two countries that generally provide relief from taxation for individuals who are covered. The U.S. has tax treaties with more than 50 different countries. The U.S. has a formulated a Model Income Tax Treaty to assist in negotiations of future tax treaties. In general, treaties will grant one country […]
Sourcing of Income
/in International Tax Attorney Minnesota Minneapolis, international tax lawyer minnesota, international tax lawyer st paul, Legal Notes /by ManagerThe sourcing of income has very important tax consequences for U.S. and foreign taxpayers. The IRS taxes U.S. taxpayers on all income, from any source derived; however, U.S. taxpayers will be relieved of double taxation and may utilize the foreign tax credit in many circumstances involving non-purely domestic taxation. Foreign taxpayers, on the other hand, […]
Mortgage Debt Forgiveness Tax Relief: Basic Facts
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerNormally, debt forgiveness results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million of debt forgiven on your principal residence during tax years 2007 through 2012. The limit is $1 million for a married person filing a separate return. You may […]
Alternative Minimum Tax: Basic Facts for Tax Year 2010
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerTax laws provide tax benefits for certain kinds of income and allow special deductions and credits for certain expenses. These benefits can drastically reduce some taxpayers’ tax obligations. Congress created the Alternative Minimum Tax AMT in 1969, targeting higher-income taxpayers who could claim so many deductions they owed little or no income tax. The AMT […]
Tax Lawyers Minneapolis | IRS Increases Interest Rates for the Second Quarter of 2011
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerThe Internal Revenue Service announced that the interest rates for the calendar quarter beginning April 1, 2011, will increase by one percentage point. Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 […]
2011 Offshore Voluntary Disclosure Initiative vs. Statute of Limitations
/in international tax lawyer minnesota, Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerAs I already described in an earlier article, the IRS instituted a new voluntary disclosure program, called 2011 Offshore Voluntary Disclosure Initiative (“OVDI”). One of the most problematic areas under OVDI is the length of the examination period. Agreeing to assessment of taxes and penalties for all voluntary disclosure years is part of the resolution […]
IRS Begins Processing Tax Forms Affected by Late Tax Changes
/in Legal Notes, st paul tax lawyers /by ManagerToday, the IRS announced that it has started processing individual tax returns affected by legislation enacted in December. On Monday, IRS systems began to accept and process both e-file and paper tax returns claiming itemized deductions on Form 1040, Schedule A, as well as deductions for state and local sales tax, higher education tuition and […]
Failure to Conduct Voluntary Disclosure: Possible Penalties
/in international tax lawyer minnesota, Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerThe IRS just instituted a new voluntary disclosure program for taxpayers who have offshore accounts or assets and who failed to properly report them to the IRS and pay appropriate U.S. taxes. It is called 2011 Offshore Voluntary Disclosure Initiative (“2011 OVDI”). While 2011 OVDI is not available for everyone and some particular circumstances of […]
2011 Offshore Voluntary Disclosure Initiative
/2 Comments/in International Tax Attorney Minnesota Minneapolis, Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn February 8, 2011, the Internal Revenue Service announced that a new special voluntary disclosure initiative, designed to bring offshore money back into the U.S. tax system and help people with undisclosed income from hidden offshore accounts get current with their taxes, will be available through August 31, 2011. The IRS decision to open a […]
Taxable vs. Non-Taxable Income
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerGenerally, most income you receive is considered taxable. However, the tax code is riddled with various exceptions where certain types of income are partially taxed or not taxed at all. For instance, here is a non-exclusive list of common examples of types of income usually excluded from taxable income: Adoption Expense Reimbursements for qualifying expenses […]
Medical and Dental Expenses Deduction
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerIt may be possible for you to be able to deduct medical and dental care expenses incurred in the tax year 2010. This deduction, however, is available only if you itemize your deductions on Schedule A (Form 1040). This deduction is allowed only for expenses primarily paid for the prevention or alleviation of a physical […]
What is Closing Agreement
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerClosing agreements constitute an important part of tax representation and tax planning. A “closing agreement” is a final agreement between the IRS and the taxpayer on a specific issue or liability. Closing agreements are entered into pursuant to IRC Section 7121. Usually, closing agreements may be entered into when it is beneficial to permanently and […]
Understanding Citations of Treasury Regulations
/in Legal Notes, tax lawyers minnesota /by ManagerUnderstanding how to cite Treasury Regulations is crucial to being able to find the regulations relevant to a tax case. This is why I devote this brief essay to explaining the location and basics of citation of Treasury Regulations. Treasury Regulations are located in Title 26 of the Code of Federal Regulations (“C.F.R.”). This corresponds […]
Business Lawyers Minneapolis: Preparing for Initial Consultation II
/1 Comment/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerIn previous article, I discussed what type of information you should bring to your Minneapolis business attorney. In this essay, I shift the focus toward the second part of the preparation which is about what type of questions you need to ask your business lawyer. Usually, the questions that you want your Minneapolis business lawyer […]
Business Lawyers Minneapolis: Preparing for Initial Consultation I
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerPreparing for the initial consultation with your Minneapolis business lawyer usually involves at least two steps. First, gathering the information you need to supply to your business attorney. Second, preparing the questions you want to ask your business lawyer. This essay deals with the first part of the preparation. It is important to understand that […]
Expatriation to Avoid U.S. Taxes
/in International Tax Attorney Minnesota Minneapolis, Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerAlthough there is a general misconception that U.S. citizens can relinquish their citizenship in order to escape high U.S. taxes, most of the time this is not true. If you are contemplating such a move, it is essential to understand the basic rules relating to expatriation for purposes of tax avoidance, as the taxes and […]
Minnesota Contract Litigation Lawyers | Truth in Repairs Act Highlights
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerMinnesota’s “Truth in Repairs Act” (Minn. Stat. §325F.56 through §325F.65) spells out the rights and obligations of repair shops and their customers for repairs costing more than $100 and less than $7,500. Here are some basic highlights of your rights as a customer: a). You have the right to receive a written estimate for repair […]
Making Work Pay Credit
/in Legal Notes, minneapolis tax lawyer, tax attorneys minneapolis /by ManagerMaking Work Pay Tax Credit is a refundable tax credit of available to many taxpayers in the tax year 2010. The credit is up to $400 for individuals and up to $800 for married taxpayers filing joint returns. Taxpayers who file Form 1040 and 1040A must use Schedule M to figure out their Making Work […]
Getting Prior Year Tax Information from the IRS
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerIf you need to obtain certain prior year tax return information, it is possible to a copy of the actual processed return from the IRS. Often, however, the information you need may be contained in a tax transcript, which can also be obtained directly from the IRS. Tax Return Transcript versus Tax Account Transcript There […]
IRS to Start Processing Delayed Returns on February 14, 2011
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn January 20, 2011, the IRS announced that it plans to start process tax returns, which were delayed as a result of the last month’s tax law changes, on February 14, 2011. It should be remembered that the taxpayers can begin preparing their tax returns immediately because many software providers are ready now to accept […]
Trademark Attorney Minneapolis | Cease and Desist Letter: Minimum Format
/in Legal Notes, trademark lawyers minneapolis /by ManagerMost trademark lawyers in Minneapolis recommend that a cease and desist letter regarding trademark violation should contain, at the very minimum, the following components: 1. Trademark Owner’s Identity The cease and desist notice should identify who is the trademark owner. If the letter is being drafted by a trademark owner’s representative, then representative should identify […]
Higher Education Tax Credits
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerThis is an education tax credit update from a Minneapolis tax lawyer. American Opportunity Tax Credit and the Lifetime Learning Tax Credit are two federal tax credits designed to help eligible taxpayers offset their higher education expenses. To qualify for either credit, a taxpayer must pay postsecondary tuition and fees for himself, spouse or dependent. […]
Trademark Attorney in Minnesota: Cease and Desist Letter and Trademark Enforcement
/in Legal Notes, trademark lawyers minneapolis /by ManagerPrior to engaging in expensive trademark litigation, it is common for Minnesota trademark lawyers to send the violating parties a notice of infringement, demanding that the violators comply with certain demands of the trademark owner and threatening lawsuit otherwise. This notice is usually called “cease and desist letter”, because it demands that the violator: ceases […]
Business Lawyer: Essential Characteristics of Closely Held Corporations
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerMost small business lawyers in St. Paul deal with closely held corporations. In order to understand this form of business entity, it is useful to explore the essential characteristics shared by the predominant majority of closely held corporations. The purpose of this article is to provide a general overview of the four most common characteristics […]
Small Business Health Care Tax Credit
/in business tax attorney Minneapolis, Legal Notes /by ManagerThis is a Small Business Health Care Tax Credit update from a tax attorney in Minneapolis. Generally, the Small Business Health Care Tax Credit is available to small employers that pay at least half of the premiums for single health insurance coverage for their employees. It is specifically targeted to help small businesses and tax-exempt […]
Reduce Your Self Employment Tax with a New Health Insurance Deduction
/in Business Lawyers Minneapolis MN, business tax lawyers minneapolis, Legal Notes /by ManagerDue to the enactment of the Small Business Jobs Act of 2010, self-employed taxpayers who pay their own health insurance costs can now reduce their net earnings from self-employment by these costs. Previously, the self-employed health insurance deduction was allowed only for income tax purposes. For tax year 2010, however, self-employed taxpayers can also reduce […]
Tax Lawyers St Paul: Tax Filing Deadline Extended to April 18, 2011
/in Legal Notes, tax lawyer st paul, tax lawyers st paul /by ManagerOn January 4, 2011, IRS extended the tax filing and tax payment deadline for individual taxpayers until April 18, 2011. The extension is made due to the Emancipation Day, a holiday observed in the District of Columbia, which falls this year on Friday, April 15, 2011. Taxpayers who request an extension will have until October […]
Tax Attorney St Paul | Who Must Wait to File 2010 Tax Return
/in Legal Notes, st paul tax lawyers, tax lawyers st paul /by ManagerWhile for most taxpayers, the 2011 tax filing season starts on schedule. Due to tax law changes enacted by Congress in December, however, some taxpayers need to wait until mid – to late February of 2011 to file their 2010 tax returns in order to give the IRS time to reprogram its processing systems. This […]
Tax Filing Deadline Extended to April 18, 2011
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn January 4, 2011, IRS extended the tax filing and tax payment deadline for individual taxpayers until April 18, 2011. The extension is made due to the Emancipation Day, a holiday observed in the District of Columbia, which falls this year on Friday, April 15, 2011. Taxpayers who request an extension will have until October […]
Tax Lawyers Minneapolis | 7 Reasons To File Tax Return Even if You Do Not Have to Do It
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerIn some case, you may want to file a tax return even though you do not have to. Here are the top seven reasons for this course of action for the tax year 2010. 1. Tax Refund. If federal income tax was withheld from your paycheck, you made estimated tax payments, or had a prior […]
Contract Lawyers: Top Legal Fee Issues
/in Contract Lawyers Minneapolis MN, Legal Notes /by ManagerLegal fees usually constitute a top concern for potential clients who wish to retain a St. Paul contract attorney. In this essay, I would like to point out the top three legal fee issues that are usually associated with retaining a contract lawyer in St. Paul, Minnesota. 1. Payment Structure There are three main models […]
Tax Lawyers Minneapolis: Preparing for Initial Consultation II (for Individuals)
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerIn previous article, I discussed the first part of preparation for an initial consultation with Minneapolis tax lawyers; the first part was mainly concerned with what type of information you should bring to your Minneapolis tax attorney. In this essay, I shift the focus toward the second part of the preparation which is about what […]
Tax Lawyers Minneapolis: Preparing for Initial Consultation I (for Individuals)
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerA little disclaimer first: this article is concerned only with individuals contacting Minneapolis tax lawyers for a consultation. I will discuss preparation of business owners for an initial tax consultation in another article. There are two sides to your preparation for the initial consultation with your Minneapolis tax lawyer. First, the information you need to […]
Estate Planning Lawyers Minneapolis | Latest Estate and Gift Tax Cuts
/in estate planning lawyers Minneapolis, Legal Notes /by ManagerPrior to the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “Act”) and after abolishment of the estate tax for decedents dying in 2010, the estate tax was scheduled to return in the tax year 2011 with a maximum tax rate of 55% and a $1 million exclusion. Under the Act, […]
Tax Lawyers Minneapolis | 2011 Reduction in Social Security Payroll Taxes
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOne of the most important provisions of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “Act”), which was signed into law on December 17, 2010, deals with Social Security tax reduction for employees. The Act reduces the employee’s share of Social Security tax from 6.2% to 4.2% for wages earned […]
Tax Lawyers Minneapolis | Wash-Sales: General Rules
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerDo you frequently trade stocks or purchase options? Then you should be aware of the wash-sales rules. In some extreme circumstances, the wash-sales rules can have drastic negative effects on your taxes, so they are well worth knowing. A wash-sale occurs when stock, securities, or options are sold for a loss, and within a 61-day […]
Partnership Tax Lawyers St Paul | Partnerships: Required Taxable Year
/in Legal Notes, tax lawyers st paul /by ManagerUnder the U.S. tax laws, partnership income and expenses flow through to each partner in a partnership, at a partnership’s tax year-end. Generally, the tax year of a partnership must conform to the tax years of its partners. In some situations, however, a partner, or multiple partners, and the partnership itself may have different tax […]
S Corporations: Excessive Passive Income Penalty and Built-in Gains Tax
/in business tax attorney Minneapolis, Legal Notes /by ManagerCorporations that make valid election to be taxed under Subchapter S (“S corporation”) are treated as pass-through entities. This means that the S corporation’s gains, losses, income and expenses are passed onto shareholders who will pay the applicable federal income taxes; the S corporation itself does not pay any taxes (as opposed to a regular […]
Alternative Minimum Tax for 2010 and 2011
/in Legal Notes, tax lawyers edina /by ManagerThe Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “Act”) was singed into law on December 17, 2010. One of the most important tax provisions in the Act deals with the alternative minimum (“AMT”) tax patch. Under the Act, the AMT exemption amounts for the tax year 2010 will be $72,450 […]
Minnesota LLC Formation V: Member Control Agreement
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerMember Control Agreement can be the most important governance document in the process of the LLC Formation because it may provide the LLC members with maximum governance flexibility, including overruling some provisions of the Minnesota Limited Liability Company Act. In fact, a Member Control Agreement may completely reorganize the governance structure of an LLC away […]
Tax Rates on Capital Gains and Qualified Dividends through 2012
/in Legal Notes, tax lawyers st paul /by ManagerPursuant to the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “Act”), which was singed into law on December 17, 2010, the tax cuts on capital gains and qualified dividends have been extended through the tax year 2012. Generally, long-term capital gains of individuals will be taxed at a maximum rate […]
Tax Lawyers Minneapolis | Tax Rates for Individual Taxpayers through 2012
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerThe Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “Act”) was singed into law on December 17, 2010. Prior to the Act, the previous tax cuts were scheduled to expire and the marginal federal income tax rates for individuals were scheduled to return to 15%, 28%, 31%, 36% and 39.6%. Under […]
Attorney Tax Minneapolis | Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn December 17, 2010, the President signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “Act”). The new law preserves the 2001 and 2003 tax cuts through the year 2012, reduces the estate tax to 35 percent and allows a $5 million individual exemption, cuts the Social Security […]
Business Lawyers Minneapolis: Legal Fee Issues
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerWhen you are about to hire a business lawyer in Minneapolis, you need to discuss the following top three legal fee issues: 1. Payment Structure There are three main models of payment that lawyers use: hourly fee, contingency fee, and flat fee. The hourly fee is the most common form of business lawyer compensation in […]
Time Limitations on Bringing a Contract Lawsuit and How Laches May Apply
/in Contract Lawyers Minneapolis MN, Legal Notes /by ManagerIn previous articles I have discussed a few broad methods for getting out of contract in Minnesota, as well as how an opposing party may be able to stop you from claiming a right under contract by invoking equitable estoppel. This article is closely related with those topics and deals with the timing of claiming […]
Contract Litigation Lawyers Minneapolis: Equitable Estoppel in Contract Lawsuits
/in Contract Lawyers Minneapolis MN, Legal Notes /by ManagerAs noted in a previous article, I occasionally have clients who are looking for a way to get out of their contractual obligations. I mentioned five broad methods for getting out of contract: 1) exit provisions in the contract; 2) validity of the contract; 3) contract construction; 4) excuse for non-performance; and 5) breach. If […]
Selecting a Trademark: Trademark Strength
/in Legal Notes, trademark lawyers minneapolis /by ManagerSelecting a trademark is a creative and legally important process. There are many issues that must be factored into the trademark selection process. One of the most important factors is the strength of the trademark; this is significant because the protection of your trademark against future infringement will depend on how strong the courts will […]
Voluntary Disclosure Program: Possible Renewal With Modifications
/in Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerOn December 9, 2010, in his prepared remarks before the “23rd Annual Institute on Current Issues in International Taxation IRS” (in Washington, D.C.), Commissioner Doug Shulman hinted that the IRS is considering whether to renew the Voluntary Disclosure Program. The new Voluntary Disclosure Program would have tougher penalties that the original Program that ended in […]
Contract Lawyer Minneapolis |Minnesota LLC Formation IV: Bylaws or Operating Agreement
/in Contract Lawyers Minneapolis MN, Legal Notes /by ManagerIn the first part of this series, I mentioned that LLC Bylaws or Operating Agreement (as Bylaws were called in the original version of the Minnesota Limited Liability Company Act) is one of the essential documents and an integral part of LLC formation in Minnesota. Bylaws may be adopted by the organizers or the first […]
Business Lawyer Minneapolis |Registering Assumed Name in Minnesota
/1 Comment/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerIf you are required to register an assumed name for your business (to learn about who is required to register an assumed name, click here), it is important to follow through with all of the registration requirements. There are three basic step to registering an assumed name in Minnesota. 1. Fill-out Certificate of Assumed Name […]
St Paul International Tax Lawyer: Hiring Questions
/in international tax lawyer st paul, Legal Notes /by ManagerWhen you are about to hire a St Paul international tax lawyer to help you with an international tax issue, there are three fundamental questions that you need to ask him. Hiring St Paul International Tax Lawyer Question #1: How Will I Be Billed? Generally, a St Paul international tax lawyer will bill you on […]
Minnesota Certificate of Assumed Name: Who Must File
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerOver the years, as a business lawyer in St. Paul, I have had questions from my clients about whether they are supposed to register their assumed name with the Minnesota Secretary of State. In this short essay, I briefly address this issue. Generally, pursuant to Minn. Stat. §333.01, Subd. 1, any individual, corporation, limited partnership […]
Minnesota LLC Formation III: Articles of Organization
/1 Comment/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerIn the first two parts of the series, I have mentioned more than once that the Articles of Organization is the key document for LLC formation. LLC is formed by filing the Articles of Organization with the Office of the Minnesota Secretary of State. The Articles become effective on filing and payment of the $160 […]
Minnesota LLC Formation II: LLC Organization Process
/1 Comment/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerIn the previous article, I already discussed some of the essential documents that are necessary for formation of a Limited Liability Company (“LLC”) in Minnesota. In this article, I would like to explore the basic mechanics of LLC formation. Who can form an LLC? One or more natural persons at least 18 years of age […]
Tax Lawyer Minneapolis | Common Tax Penalties and Interest: The Basics
/in irs lawyer minneapolis, Legal Notes, Tax Lawyers Minneapolis /by ManagerPenalties and interest may be impose d by the IRS relating to various tax underpayments. Taxpayers should understand some of the basic tax penalties detailed in this article (many of which can be quite sever) in order to avoid such penalties if possible, and to perhaps mitigate any imposed penalties. Accuracy-Related Penalties An accuracy-related penalty […]
Minnesota LLC Formation I: Essential Documents
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerIt is conventional wisdom that forming a Limited Liability Company (“LLC”) in Minnesota is not hard. Furthermore, a lot of people believe that, in order to form an LLC, the only (and the easiest) thing to do is to file the Articles of Organizations – a one-page fill-in form prepared by the Secretary of State […]
IRS Announces 2011 Standard Mileage Rates
/in Legal Notes, st paul tax lawyer, st paul tax lawyers, Tax Lawyers Minneapolis /by ManagerOn December 3, 2010, Internal Revenue Service issued the 2011 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on January 1, 2011, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: a) […]
Minneapolis Tax Lawyer | Tax Consequences of Selling a Structured Settlement
/in Legal Notes, minneapolis tax lawyer, Tax Lawyers Minneapolis /by ManagerAre your structured settlement payments taxable? For federal income tax purposes, it is not relevant whether a plaintiff receives proceeds from a judgment or settlement. No matter how the result is reached, amounts received are characterized either as income, or are specifically excluded from income. Section 104 of the Internal Revenue Code generally excludes from […]
Business Tax Lawyers | Certain End-of-Year Tax Deadlines and Reminders (2010)
/in business tax lawyers minneapolis, business tax lawyers st paul, Legal Notes /by ManagerThe following are some upcoming tax deadlines and reminders for the December of 2010. (This list may not include all applicable tax deadlines for your situation, and does not constitute tax advice; please, consult Sherayzen Law Office for more information and assistance with your tax planning needs.) Selected General Deadline Reminders for Individuals: December 31, […]
Depreciation Deductions: Passenger Cars & Light Trucks, Vans and SUVs
/in Legal Notes, minneapolis tax lawyer, st paul tax lawyer, st paul tax lawyers, tax lawyers edina /by ManagerAssuming that a taxpayer does not use the IRS standard mileage deduction, for qualifying vehicles used for business purposes and placed in service in 2009 or 2010, taxpayers may deduct various costs including depreciation, registration fees, insurance, and many others under the actual expense method. This article will examine depreciation deductions for certain categories of […]
Business Tax Planning Lawyers: When to Schedule a Review with Your Business Tax Lawyer
/in business tax lawyers minneapolis, business tax lawyers st paul, Legal Notes /by ManagerWhile the exact schedule of your business tax planning reviews may often depend on the exact nature of your business, I want to point out in this article certain events which should trigger a review of your tax strategies by a Minnesota business tax lawyer. A. Business Formation A review of your business tax strategies […]
Office of Administrative Hearings: Sources of Procedure and Procedural Rights
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerIf you appealed your business license denial and your case is pending effectively in the Office of Administrative Hearings, it is essential to understand the procedural rules of this administrative court as well as your procedural rights. This means that you and/or your attorney must have a good understanding of the sources of the administrative […]
Section 179 Deduction for SUVs and Certain Other Vehicles
/in business tax lawyers minneapolis, business tax lawyers st paul, Legal Notes /by ManagerSection 179 of the Internal Revenue Code allows taxpayers to purchase certain types of vehicles for business purposes and write off the cost. Specifically, taxpayers may expense up to $25,000 of the cost of any “heavy” SUV, pickup or van placed into service during the tax year, and used for over 50% for business purposes. […]
Sherayzen Law Office Offers Skype-Enabled Video Conferences
/in international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerUsing Technology to Improve Delivery of Legal Services At Sherayzen Law Office, we are always thinking about how to use new technology to improve the delivery of legal services to our clients. For this reason, we have been investing in the acquisition of new technologies and finding better ways to use the existing ones. Starting […]
International Tax Lawyers | Passive Foreign Investment Company
/in international tax lawyer minnesota, international tax lawyer Minnesota Minneapolis, international tax lawyer st paul, Legal Notes /by ManagerCongress enacted the Passive Foreign Investment Company provisions (PFIC) as part of the Tax Reform Act of 1986 in order to deter U.S. investors from deferring or avoiding payment of U.S. taxes by investing in offshore entities. The PFIC rules are structured to provide a disincentive for U.S. investors to defer investment income taxes by […]
Capital Gains and Losses: Tax Implications for Individuals and C-Corporations
/in Legal Notes, minneapolis tax lawyer, st paul tax lawyer, Tax Lawyers Minneapolis, tax lawyers st paul /by ManagerCapital gains and losses defined Capital gains and losses result from the taxable realized sale or exchange of capital assets. In general, capital assets include investments (such as stocks and real estate) and fixed assets, as opposed to personal-use property. Capital gains result when the sale or exchange price is greater than the adjusted basis […]
Preparing for Business Contract Litigation in Minnesota: Recordkeeping Techniques
/in Contract Lawyers Minneapolis MN, Legal Notes /by ManagerSince most of the business-to-business relationships are organized on the basis of written business contracts, it is inevitable that contract disputes would arise between businesses. Frequently, these disputes are serious enough to lead to business contract litigation between the relevant parties Therefore, it is important for any business to prepare for such a possibility ahead […]
Contract Lawyers Minneapolis | Getting Out of Contract in Minnesota
/in Contract Lawyers Minneapolis MN, Legal Notes /by ManagerThis is an odd article to write for a Minnesota contract lawyer who spends most of his contract law practice making sure that the terms of a contract are enforceable. Yet, occasionally, I have clients who are looking for a way to get out of a contract for many reasons. Some of these clients suddenly […]
Contract Litigation Lawyers Minnesota | Understanding Contract Litigation
/in Contract Lawyers Minneapolis MN, Legal Notes /by ManagerContract litigation permeates the very fabric of advanced economic societies. The primary reason for this widespread presence of this type of litigation is because contracts provide the most common and basic means of conducting transactions between individuals and especially businesses. Contracts, whether written or oral, govern the everyday economic relations. Every time you buy something […]
Federal Income Tax Litigation: the Basics
/in Legal Notes, tax litigation lawyers Minneapolis /by ManagerWhen taxpayers file their income tax returns, a determination of tax is made. The IRS must then “assess” a tax liability in order to collect the amount owed. Generally, the period for assessment is three years from the due date, or from the date the return is filed, whichever is later (see this article for […]
Minnesota Business Lawyers: Applying for a Business License
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerIn many industries, obtaining a business license is one of the most significant prerequisites for doing business in Minnesota. Paradoxically, despite its importance, too many businesses resist involving Minnesota business lawyers in this process from the very beginning – at the stage of the business license application preparation. Instead, attorneys throughout Minnesota (including Minneapolis business […]
Innocent Spouse Relief
/in Legal Notes, minneapolis tax lawyer /by ManagerIn general, a husband and wife are jointly and separately liable for any tax, penalty and interest owed for a year in which they have filed a joint tax return. This means that the IRS can collect the entire amount of tax owed from either spouse alone, regardless of who reported income, or who may […]
Internet Sales and Use Taxes: A Growing Concern for Small Businesses and Consumers
/in business tax lawyers minneapolis, business tax lawyers st paul, Legal Notes /by ManagerAre you a small business owner who frequently sells goods or services over the Internet, or a consumer who purchases expensive products online? Then you may be responsible for charging sales taxes as a seller, or reporting unpaid use taxes as a consumer under new laws that have been passed by various states. As states […]
Preventing the Disaster: Understanding When to File the Report on Foreign Bank and Financial Accounts (FBAR)
/5 Comments/in FBAR lawyers Minnesota, international tax lawyer minnesota, international tax lawyer Minnesota Minneapolis, international tax lawyer st paul, Lead Article /by ManagerDespite the potentially grave consequences, many U.S. taxpayers are completely unaware of the extensive reporting requirements under the Bank Secrecy Act, particularly of the disclosure of ownership or other interest in or authority over financial accounts in a foreign country by filing the Report of Foreign Bank and Financial Accounts (the “FBAR”). While one can […]
Minnesota Unemployment Insurance Appeal Hearing: Top Five Preparation Strategies
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerMinnesota Unemployment Insurance Appeal Hearing (“UI hearing”) is a serious legal event for many small- and mid-size businesses that may have far-reaching tax and employment law consequences for these businesses, especially when the hearing is about such a delicate and important issue as classification of workers as independent contractors. Yet too many business owners are […]
Business License Denial Appeals and Office of Administrative Hearings
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerIf your business license was denied by a government agency in Minnesota, you need to act immediately to secure an administrative appeals lawyer to analyze the facts of your case from a legal perspective. In almost all cases, a license denial by a government agency can be appealed for additional review. This right to appeal, […]
October 15 Deadline for Extension Filers and Certain Non-Profit Organizations
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerIf you filed Form 4868 to request a six-month extension to file your tax return, beware that October 15, 2010 is the fast-approaching deadline to file your tax returns. The IRS expects to receive as many as ten million tax returns from such extension filers. The other important group of filers are small nonprofit organizations […]
Employee vs. Independent Contractor: Common-Law Test in Minnesota
/in business tax lawyers minneapolis, business tax lawyers st paul, Legal Notes /by ManagerOne of the most crucial distinctions in employment and tax law is one made between employees and independent contractors. The applicability of a whole host of labor and tax provisions hinges on how the worker is classified. In Minnesota, most statutory provisions that deal with these issues (including Minnesota Unemployment Insurance) incorporate in one way […]
Claiming New Health Care Tax Credit: Draft Form 8941
/in business tax lawyers minneapolis, business tax lawyers st paul, Legal Notes /by ManagerOn September 7, 2010, the Internal Revenue Service released a draft version of the form 8941 that small businesses and tax-exempt organizations will use to calculate the small business health care tax credit when they file income tax returns next year. The small business health care tax credit was created as part of the Affordable […]
Business Tax Lawyers Minneapolis | IRS Classification of Workers
/in business tax lawyers minneapolis, business tax lawyers st paul, Legal Notes /by ManagerDetermining the business relationship between your business and your workers can be one of the most important aspects of your business and tax planning. The consequences of worker mis-classification can carry a heavy penalty for your businesses, including liablity for employment taxes for misclassified workers. There are many various competing definitions of how a worker […]
International Contract Lawyers Minneapolis | New Incoterms 2010
/in international contract lawyer minneapolis, Legal Notes /by ManagerThe International Chamber of Commerce (“ICC”) has announced that Incoterms 2010 is scheduled to be launched in September and come into effect on January 1, 2011. Incoterms is the abbreviation for “International Commercial Terms” and were introduced by the ICC back in 1936 to provide people engaging in international trade a common set of trade […]
Estimated Tax Payments are due on September 15, 2010
/in minneapolis tax lawyer, tax lawyers edina /by ManagerEstimated tax payments for the third-quarter (June 1-August 31) of 2010 are due on September 15, 2010. The estimated tax payments should be made using Form 1040-ES. Note, if the due date for an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be considered on time if it is […]
Minnesota Money Transmitter License Application: Required Enclosures
/1 Comment/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerWhen a business entity applies for a Minnesota money transmitter license, the applicant must be aware that, in addition to answering the questions on the application, the Department of Commerce (“Department”) requires a large number of additional documents that must accompany the original license application. While the precise nature of the required documentation varies depending […]
Minnesota Money Transmitter License Application: Expiration of Initial License Considerations
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerApplying for a money transmitter license in Minnesota can be an expensive enterprise, and the applicant should make sure that he will be able to maximize the benefits that can be derived from the license. The definition of the licensed period, therefore, becomes one of the most important considerations. The Department of Commerce (“Department”) states […]
FBAR: Financial Interest, Signature Authority, and Other Comparable Authority
/in FBAR lawyers Minnesota, international tax lawyer minnesota, international tax lawyer Minnesota Minneapolis, international tax lawyer st paul, Legal Notes /by ManagerOne of the major requirements that gives rise to the obligation to file the FBAR is that a U.S. person has either a financial interest in, or a signature authority or other comparable authority over the relevant foreign financial accounts. In deciding whether the FBAR is required, it is useful to go through all three […]
FBAR Penalties
/5 Comments/in FBAR lawyers Minnesota, international tax lawyer Minnesota Minneapolis, Legal Notes, offshore voluntary disclosure lawyers Minneapolis /by ManagerIn this essay, I would like to discuss some of the penalties that may be imposed as a result of the failure to file the FBAR even though you were required to do so. In particular, I will focus on three general scenarios describing specific penalties commonly attributed to each of them. The first scenario […]
FBAR: Aggregate Value Requirement
/in FBAR lawyers Minnesota, International Tax Attorney Minnesota Minneapolis, international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerFBAR filing is required only if the aggregate balances of a U.S. person‘s foreign financial accounts exceed $10,000. Despite appearances, the requirement that the aggregate value of all of the foreign financial accounts exceeds $10,000 at any time during a calendar year is not without complications. In order to figure out the account value in […]
FBAR: Definition of Foreign Financial Accounts
/in FBAR lawyers Minnesota, international tax lawyer st paul, Legal Notes /by ManagerThe term “foreign financial accounts” is described expansively and includes any bank, brokerage, securities, securities derivatives and other financial instruments accounts located outside of the United States and its territories. In the instructions to the FinCEN Form 114 Foreign Bank Accounts Reporting (FBAR) formerly Form TD F 90-22.1, the IRS also includes in this definition […]
IRS Interest Rates: 4th Quarter of 2010
/in Legal Notes, minneapolis tax lawyer, Tax Lawyers Minneapolis /by ManagerOn August 19, 2010, the IRS announced that interest rates for the calendar quarter beginning October 1, 2010, will remain the same as follows: 1. Individual underpayment and overpayment: 4%; 2. Corporate overpayment: 3% 3. Large corporate underpayment: 6% 4. Portion of corporate overpayment exceeding $10,000: 1.5% The interest rate is determined on a quarterly […]
Recently Married Taxpayers: Five Basic Tips
/in Legal Notes, st paul tax lawyer, st paul tax lawyers, tax lawyer st paul, tax lawyer St. Paul Minnesota /by ManagerIf you are getting married this year, this may have a significant impact on your tax returns for the year 2010. While you are likely to deal with most of these changes when you will be filing your tax return for the tax year 2010, there are some basic administrative actions that you should be […]
Due Date to Preserve Tax-Exempt Status: October 15, 2010
/1 Comment/in irs lawyer minneapolis, irs lawyers st paul, Legal Notes, tax lawyers edina /by ManagerOn July 26, 2010, the IRS instituted a one-time relief program under which that small nonprofit organizations at risk of losing their tax exempt status because they failed to file required returns for 2007, 2008 and 2009 can preserve their status by filing returns by October 15, 2010. The IRS also posted on its website […]
Fee Agreement Arrangements with Tax Lawyers in St. Paul: 5 Most Important Issues
/in Legal Notes, st paul tax lawyer, st paul tax lawyers, tax lawyer st paul, tax lawyers st paul /by ManagerIn this article, I will discuss five most important issues that you need to know before you sign a fee agreement with tax lawyers in St. Paul. 1. How is the lawyer’s fee paid? There are three main models of payment that lawyers use: hourly fee, contingency fee, and flat fee. The hourly fee is […]
Franchise Agreements: Typical Structure
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerOver the past fifteen to twenty years, the franchise agreements have grown tremendously in complexity and size. They also tend to be more and more favorable toward the franchisor. Therefore, if you are a potential franchisee, you must read the franchise agreement very carefully to make sure that you fully understand what the agreement is […]
Business Litigation: Definition
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerWhile its definition varies, most attorneys would agree that “business litigation” is a complex area of law which includes a variety of contractual and tort claims. Examples of such claims include but not limited to: breach of contract, fraud, tortious interference with contract, breach of fiduciary duty, infringement of intellectual property rights, and unfair competition. […]
IRS Statute of Limitations: Tax Collections
/in Legal Notes, st paul tax lawyer, tax lawyer st paul, Tax Lawyers Minneapolis /by ManagerThe statute of limitations limits the time for the IRS tax collection activities. Generally, there is a ten-year statute of limitations for the IRS collection of owed taxes. Thus, for assessments of tax or levy made after November 5, 1990, the IRS cannot collect or levy any tax ten years after the date of assessment […]
Amending Tax Returns
/in Legal Notes, minneapolis tax lawyer, st paul tax lawyers /by ManagerWhether you need to amend your previously-filed tax return depends on your particular situation. In some situations, such as simple math errors, the IRS will correct the return for you. In other situations, however, you should file an amended tax return. The most common situations occur when you need to change your: filing status, dependents, […]
IRS Statute of Limitations: Taxpayer Audit
/1 Comment/in Legal Notes, st paul tax lawyers, Tax Lawyers Minneapolis /by ManagerThe tax statute of limitations limits the time during which an action can be brought by the IRS for an audit. The general rule is that IRS has three years from the filing date to audit a tax return. 26 U.S.C. §6501(a) and Treas. Reg. §301.6501(a)-1(a). Similarly, under Treas. Reg. 301.6501(a)-1(b) no proceeding in court […]
Business Tax Returns: The Advantages of a Tax Attorney Review
/in business tax lawyers minneapolis, business tax lawyers st paul, Legal Notes /by ManagerA lot of businesses simply look at the tax returns as “adding numbers.” Yet, tax returns are so much more than that. A tax return is a result of a long series of decisions made by the business, such as elections, classifications, investment strategies, structuring of business transactions, and numerous other actions and inactions. Dealing […]
IRS Statute of Limitations: Claiming a Tax Refund
/1 Comment/in Legal Notes, Tax Lawyers Minneapolis, tax lawyers minnesota, tax lawyers st paul /by ManagerGenerally, a taxpayer may file a claim for a tax refund of an overpayment of any tax within three years from the time the tax return was filed with the IRS or two years from the time the tax was paid to the IRS, whichever period is later. If no tax return was filed with […]
Effect of Legal Separation and Divorce on Your Ability to Claim “Single” Tax Status
/in Legal Notes, minneapolis tax lawyer, st paul tax lawyers, tax lawyers edina /by ManagerAccording to the IRS, in order to be able to claim “single” tax status, you must be “unmarried or legally separated from your spouse under a divorce or separate maintenance decree” on the last day of your tax year, and you do “not qualify for another filing status.” (See IRS Publication 501). Determining your marital […]
Difference between Self-Employment Tax and FICA tax
/in business tax lawyers minneapolis, Legal Notes /by ManagerThe best way to understand the difference between the Self-Employment tax (“SE tax”) and the FICA (Federal Insurance Contributions Act) tax is by contrasting self-employment versus regular salary employment. In essence, the SE tax is a Social Security and Medicare tax imposed on individuals who for themselves, while FICA tax is paid in equal portions […]
Importance of Determining Your Tax Filing Status
/in Legal Notes, st paul tax lawyer, st paul tax lawyers, tax lawyer st paul, tax lawyer St. Paul Minnesota, Tax Lawyers Minneapolis /by ManagerFiguring out your filing status is the first major step in filing your tax return. Your tax filing status not only will allow you to determine the correct tax (from the Tax Computation Worksheet or appropriate column in the Tax Table), but also it is crucial to understanding your eligibility for and the exact amount […]
Foreign Earned Income Exclusion Amount for 2010
/in international tax lawyer minnesota, international tax lawyer Minnesota Minneapolis, international tax lawyer st paul, Legal Notes /by ManagerUnder I.R.C. §911, if certain conditions are met, a qualified individual can exclude his foreign earned income from taxable gross income for the U.S. income tax purposes. This income may still be subject to U.S. Social Security taxes. The income exclusion amount for 2010 has increased to $91,500.
Eugene Sherayzen re-appointed to the Publications Committee of the MSBA
/in Legal Notes, tax attorneys minneapolis /by ManagerOn June 30, 2010, Eugene Sherayzen, Esq., was re-appointed for the second time to the Minnesota State Bar Association Publications Committee. The Committee is responsible for overseeing the budget and publication of the most important Minnesota legal journal, “Bench & Bar”.
Eugene Sherayzen elected to be the new treasurer of International Business Law Section of the MSBA
/in Legal Notes /by ManagerOn June 30, 2010, Eugene Sherayzen, Esq. was elected to be the next treasurer of the International Business Law Section of the Minnesota State Bar Association.
First-Time Homebuyer Tax Credit: Deadline Extension
/in Legal Notes, minneapolis tax lawyer, Tax Lawyers Minneapolis /by ManagerUnder the Homebuyer Assistance and Improvement Act of 2010 (enacted on July 2, 2010), eligible homebuyers who entered into a binding purchase contract on or before April 30 to purchase a principal residence can now close on a home by September 30, 2010 in order to qualify for the First-Time Homebuyer Credit. Thus, under the […]
International Tax Lawyers in Minneapolis Minnesota: Fee Agreement Arrangements
/in International Tax Attorney Minnesota Minneapolis, international tax lawyer Minnesota Minneapolis, international tax lawyer st paul, Legal Notes /by ManagerIn this article, I will discuss five most important issues that you need to know before you sign a fee agreement with international tax lawyers in Minneapolis. * How is the international tax lawyer’s fee paid? There are three main models of payment that lawyers use: hourly fee, contingency fee, and flat fee. The hourly […]
FBAR (Report on Foreign Bank and Financial Accounts) is due on June 30, 2010
/in FBAR lawyers Minnesota, International Tax Attorney Minnesota Minneapolis, international tax lawyer minnesota, international tax lawyer Minnesota Minneapolis, international tax lawyer st paul, Legal Notes /by ManagerThe FBAR must be filed by June 30 of each relevant year, including this year (2010).
Trademark Lawyers Minneapolis: Advantages of Federal Trademark Registration
/in Legal Notes, trademark lawyers minneapolis /by ManagerObtaining federal registration of a trademark can bestow on the trademark owner (“registrant”) a number of evidentiary and substantive advantages: 1. Federal trademark registration is a prima facie evidence of the validity of a registered mark, the registrant’s ownership of the mark, the continued use since the filing date of the application and the exclusive […]
Understanding Your Contract: Top Seven Questions to Ask Yourself Before Signing a Contract
/in Contract Lawyers Minneapolis MN, Legal Notes /by ManagerThe standard definition of a contract states that: a contract is a promise or set of promises, for breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty. Therefore, an enforceable contract, whatever its type or form, inevitably creates rights and obligations. This […]
Reporting Canadian Registered Retirement Savings Plan (RRSP) and Registered Retirement Income Fund (RRIF) Income to the IRS
/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerU.S. citizens and resident aliens (for U.S. tax purposes) who have financial interest in Canadian Registered Retirements Savings Plans RRSPs)and/or Registered Retirement Income Funds (RRIFs) must report their RRSP and RRIF income to the IRS by using Form 8891. The taxpayers (even if resident aliens from Canada) must comply with this reporting requirement even if […]
Definition of “U.S. person” for FBAR (Report on Foreign Bank and Financial Accounts) Purposes
/1 Comment/in International Tax Attorney Minnesota Minneapolis, international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerSince October of 2008, the definition of a “U.S. person” has been going through a turbulent phase of uncertainty with periodic expansions and retractions. The pre-2008 FBAR instructions (dating back to July of 2000 version) defined the “U.S. person” broadly as: “(1) a citizen or resident of the United States, (2) a domestic partnership, (3) […]
Net Worth Requirement for Money Transmitter License in Minnesota
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerAn applicant for a money transmitter license in Minnesota must comply with Minn. Stat. §53B.05 net worth requirements. Under Minnesota law, each licensee engaging in money transmission in three or fewer locations in the state, either directly or through authorized delegates, must have a net worth of at least $25,000. However, if a licensee engages […]
Eugene Sherayzen is a new Legal Advisor to Bright New Ideas
/1 Comment/in Legal Notes /by ManagerIt is with pleasure that Sherayzen Law Office announces that on May 5, 2010, Eugene Sherayzen became a Legal Advisor to the Bright New Ideas (“BNI”), a Minnesota non-profit corporation devoted to the alleviation of worldwide poverty through the use of solar energy. In his new capacity, Mr. Sherayzen will help overview the BNI’s U.S. […]
Tax-Exempt Organizations Must File Form 990 by May 17, 2010
/2 Comments/in irs lawyer minneapolis, Legal Notes, st paul tax lawyer, st paul tax lawyers /by ManagerUnder the Pension Protection Act of 2006, most tax-exempt organizations, with the exception of churches and church-related organizations, must file Form 990 with the IRS effective the beginning of year 2007. Any tax-exempt organization that fails to file the relevant version of the form for three consecutive years automatically loses its federal tax-exempt status. All […]
Commercial Lease Negotiation: Priority Issues for Landlords
/1 Comment/in Contract Lawyers Minneapolis MN, Legal Notes /by ManagerIt is impossible to know what issues will actually arise during the term of a lease. Hence, it is important for a landlord to hire an attorney to carefully analyze the landlord’s specific situation, spot potential problems and address them in the lease agreement. The process of addressing these issues in the lease, however, can […]
Top 3 Reasons to Hire Attorney to Represent You in a Contested Hearing Conducted by the Office of Administrative Hearings
/4 Comments/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerIn this article, I will discuss three most important reasons for retaining a lawyer to represent you in a Contested Hearing conducted by the Office of Administrative Hearings (OAH). 1. Contested Hearing conducted by the OAH is an Administrative Version of a Trial Contested Hearing is an administrative trial. In most ways, it is highly […]
Hiring Incentives to Restore Employment Act: Two New Tax Benefits for Employers
/1 Comment/in Legal Notes, Tax Lawyers Minneapolis /by ManagerOn March 18, 2010, the Hiring Incentives to Restore Employment Act (“HIRE”) was enacted into law. The Act offers timely benefits to the employers who hire unemployed workers. HIRE Benefits Under the HIRE, qualified employers who hire unemployed workers may qualify for two main tax benefits. First, under the HIRE, Employers who hire unemployed workers […]
Organizing Business in Minnesota: Top Five Reasons to Incorporate
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerGenerally, all business entities in Minnesota can be organized into two large groups: incorporated business entities and unincorporated business entities. The first group mainly consists of corporations, limited liability companies (“LLC”), limited liability limited partnerships (“LLLP”), limited liability partnerships (“LLP”) and business trusts. If the incorporated entity operates in certain professions, the business title of […]
Extension of the Homebuyer Tax Credit under the Worker, Homeownership, and Business Assistance Act of 2009
/1 Comment/in Legal Notes, minneapolis tax lawyer, st paul tax lawyers /by ManagerNew Deadlines While the maximum tax credit amount remains at $8,000 for a first-time homebuyer, the Worker, Homeownership, and Business Assistance Act of 2009 (“WHBAA”)extends the deadline for qualifying home purchases from November 30, 2009, to April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has […]
Home-Buyer Credit: New Form 5405
/2 Comments/in Legal Notes, minneapolis tax lawyer /by ManagerOn January 15, 2010, the IRS released a new Form 5405 that eligible homebuyers need to claim the first-time homebuyer credit this tax season and announced new documentation requirements to deter fraud related to the first-time homebuyer credit. The new form and instructions follow the major changes to the homebuyer credit made by the Worker, […]
Fee Agreement Arrangements with Tax Lawyers in Minneapolis: 5 Most Important Issues
/in Legal Notes, minneapolis tax lawyer, tax attorneys minneapolis, Tax Lawyers Minneapolis, tax lawyers minnesota /by ManagerIn this article, I will discuss five most important issues that you need to know before you sign a fee agreement with tax lawyers in Minneapolis. 1. How is the lawyer’s fee paid? There are three main models of payment that lawyers use: hourly fee, contingency fee, and flat fee. The hourly fee is the […]
Fee Agreement Arrangements with Business Lawyers in Minneapolis: 5 Most Important Issues
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerIn this article, I will discuss five most important issues that you need to know before you sign a fee agreement with business lawyers in Minneapolis. 1. How is the lawyer’s fee paid? There are three main models of payment that lawyers use: hourly fee, contingency fee, and flat fee. The hourly fee is the […]
Reporting Payments to Independent Contractors: Form 1099-MISC
/in business tax lawyers minneapolis, Legal Notes, minneapolis tax lawyer, tax attorneys minneapolis /by ManagerReporting Payments to Independent Contractors: Form 1099-MISC If you hire an independent contractor to do work for your business, you may have to report to the IRS your payments to him by filing Form 1099-MISC (Miscellaneous Income) if the following four conditions are met: 1. The payee is not your employee; 2. The payment was […]
Filing This Year’s Tax Return: Name Change as a Result of Divorce or Marriage
/in Legal Notes, minneapolis tax lawyer, tax attorneys minneapolis, Tax Lawyers Minneapolis /by ManagerIf you changed your last name last year as a result of getting married or divorced, you need to make sure that the name on your tax return matches the name registered with the Social Security Administration (the “SSA”). This is because the new name which you adopted as a result of marriage (or an […]
Fee Agreement Arrangements with Contract Lawyers in Minneapolis: 5 Most Important Issues
/in Contract Lawyers Minneapolis MN, Legal Notes /by ManagerIn this article, I will discuss five most important issues that you need to know before you sign a fee agreement with contract lawyers in Minneapolis. 1. How is the lawyer’s fee paid? There are three main models of payment that lawyers use: hourly fee, contingency fee, and flat fee. The hourly fee is the […]
Tax Lawyers in Minneapolis: Three Most Important Questions You Should Ask
/1 Comment/in Legal Notes, minneapolis tax lawyer, tax attorneys minneapolis, Tax Lawyers Minneapolis /by ManagerWhen you are about to hire a tax lawyer to help you with a tax issue, there are three fundamental questions that you need to ask him. 1. What percentage of the practice is devoted to the tax law? The purpose of this question is two-fold. First, you will figure out whether this tax lawyer […]
Business Lawyers in Minneapolis: Three Most Important Questions You Should Ask
/in Business Lawyers Minneapolis MN, Legal Notes /by ManagerWhen you are about to hire a business lawyer to help you with a business issue, there are three fundamental questions that you need to ask him. 1. What percentage of the practice is devoted to the business law? The purpose of this question is two-fold. First, you will figure out whether this business lawyer […]
Contract Lawyers in Minneapolis: Three Most Important Questions You Should Ask
/in Contract Lawyers Minneapolis MN, Legal Notes /by ManagerWhen you are about to hire a contract lawyer to help you with a contract issue, there are three fundamental questions that you need to ask him. 1. What percentage of the practice is devoted to the contract law? The purpose of this question is two-fold. First, you will figure out whether this contract lawyer […]
Effect of the Foreign Earned Income Exclusion on the Self-Employment Tax on Business Activities Oversees
/in International Tax Law, Legal Notes /by ManagerIn this essay, I would like to explore the relationship between the self-employment tax and the tax exclusion of income earned by the U.S. businesses abroad. The self-employment tax is a social security and Medicare tax on net earnings from self-employment. A self-employed U.S. citizen or resident must pay self-employment tax if his net earnings […]
Sales Tax Deduction for Vehicle Purchases
/in Legal Notes, minneapolis tax lawyer, Tax Lawyers Minneapolis /by ManagerIf you are considering whether to buy a new car, it is important to remember that, under the American Recovery and Reinvestment Act of 2009 (the “ARRA”), taxpayers may deduct state and local sales and excise taxes paid on the purchase of new passenger cars, light trucks, motor homes and motorcycles. The deduction is available […]
House passes the Tax Extenders Act of 2009
/in International Tax Attorney Minnesota Minneapolis, international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerOn December 9, 2009, the U.S. House of Representatives approved H.R. 4213, the “Tax Extenders Act of 2009.” The bill would extend for one more year more than forty tax provisions that are set to expire at the end of this year, including the research credit and a number of important tax breaks for individuals. […]
IRS Announces 2010 Standard Mileage Rates
/in Legal Notes, minneapolis tax lawyer, Tax Lawyers Minneapolis /by ManagerThe Internal Revenue Service today issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car will be: 50 cents per mile for business miles driven 16.5 […]
Report on Foreign Bank and Financial Accounts (FBAR): General Requirements
/in international tax lawyer Minnesota Minneapolis, Legal Notes, Tax Lawyers Minneapolis /by ManagerUnder the Bank Secrecy Act, each United States person must file a Report of Foreign Bank and Financial Accounts (the “FBAR”) with the U.S. Department of Treasury if two conditions apply.
The first condition is that the U.S. person must have either a financial interest in or signature authority (or other comparable authority)over one or more financial accounts in a foreign country. Several clarifications are necessary in order to understand the applicability of this first condition. First, for the purposes of the FBAR, the definition of a “U.S. person” includes U.S. citizens, U.S. residents, and persons in, and doing business in, the United States. “Person” is defined to include not only individuals, but also all forms of business entities, trusts, and estates.
Significance of Income Source Rules in International Tax Law
/in International Tax Law, Legal Notes /by ManagerWhen dealing with the international transactions, the United States tax law usually divides income into two broad categories: foreign source income and the U.S. source income. The determination of whether the income is foreign or U.S. in origin depends on a set of rules – the source-of-income rules – created by Congress, elaborated by the U.S. Treasury regulations, refined in courts, and further modified by the international treaties. While jurisdictional in nature, the income source rules are fundamentally and critically important to the understanding and operation of international transactions, primarily because these rules generate real operational consequences that affect a variety of substantive U.S. tax provisions. For the purposes of this essay, these consequences may be classified according to the grouping of the affected taxpayers.
Definition of Foreign Earned Income for the purposes of Foreign Income Exclusion under I.R.C. §911
/1 Comment/in International Tax Attorney Minnesota Minneapolis, Legal Notes /by ManagerUnder I.R.C. §911, if certain conditions are met, a qualified individual can exclude as much $91,400 (for tax year 2009) of foreign earned income from taxable gross income. Two questions arise: what is earned income, and when is such income considered to be foreign earned income?
Understanding Foreign Income Exclusion under I.R.C. §911: General Information
/1 Comment/in International Tax Attorney Minnesota Minneapolis, international tax lawyer Minnesota Minneapolis, Legal Notes /by ManagerUnder I.R.C. §911, a U.S. citizen or resident can elect to exclude as much as $91,400 (for tax year 2009) of foreign earned income and some or all foreign housing costs from taxable gross income if two conditions are met.
Eugene Sherayzen re-appointed to the MSBA Publications Committee
/in Business Lawyers Minneapolis MN, Contract Lawyers Minneapolis MN, international tax lawyer Minnesota Minneapolis, Legal Notes, Tax Lawyers Minneapolis /by ManagerOn June 30, 2009, Eugene Sherayzen was re-appointed to the Minnesota State Bar Association Publications Committee. The Committee is responsible for overseeing the budget and publication of the most important Minnesota legal journal, “Bench & Bar”.
Reduction of Estimated Tax Payments under the American Recovery and Reinvestment Act of 2009 (ARRA)
/in Legal Notes, Tax Lawyers Minneapolis /by ManagerThe ARRA permits small businesses to reduce their estimated payments to 90 percent of the previous year’s taxes.
Eugene Sherayzen joins the MSBA Publications Committee
/in Business Lawyers Minneapolis MN, Legal Notes, Tax Lawyers Minneapolis /by ManagerOn January 28, 2009, Eugene Sherayzen was appointed to the Minnesota State Bar Association Publications Committee. The Committee is responsible for overseeing the budget and publication of the most important Minnesota legal journal, “Bench & Bar”.
Minnesota Unemployment Insurance: Independent Contractors in the Trucking Industry ~ By: Eugene Sherayzen, Sherayzen Law Office
/in Lead Article, Tax Lawyers Minneapolis /by ManagerStanding at the crossroads of tax and employment law, the perennial problem of whether a worker is an employee or an independent contractor has been among the most important and common unemployment insurance tax issues. This problem is particularly complex in the trucking industry, due to the special conditions present in that industry’s working environment. In fact, it became so complicated that Minnesota legislators found it necessary to deal with it specifically in Minnesota Statute 268.035. In this article, I will rely on my own experience to explain the requirements of this legislation as it pertains to independent contractors in the trucking industry, and offer practical guidelines in certain common situations in that industry.