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: four (4) percent for overpayments (three (3) percent […]
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 […]
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: five (5) percent for overpayments (four (4) […]
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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: five (5) percent for overpayments (four (4) percent […]
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: five (5) percent for overpayments (four (4) percent […]
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”) closes 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 […]
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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: four (4) percent for overpayments (three (3) percent […]
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 the […]
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: five (5) percent for overpayments (four (4) […]
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: five (5) percent for overpayments (four (4) percent […]
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: five (5) percent for overpayments (four (4) percent […]
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”) closes 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 […]