Introduction to Corporate Distributions | US Business Tax Law Firm

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 […]

The Tinkov Case: Concealment of Foreign Assets During Expatriation

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 […]

§318 Entity-Member Attribution Summary | International Tax Lawyer

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 […]

July 15 Deferral: More Deadlines Affected | US International Tax News

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 […]

Employee Retention Credit | US Tax Lawyers & Attorneys

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) […]

§318 Sidewise Attribution Limitation | US International Tax Attorney

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) […]

Critical Business Exemption | Minnesota Shelter-In-Place Order

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 […]

Coronavirus Offshore Voluntary Disclosure: Problems & Opportunities

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 […]

New July 15 Deadline for 2019 Tax Compliance | International Tax News

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 […]

Coronavirus & Chinese Offshore Voluntary Disclosures | SDOP Tax Law Firm

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. […]

Family Re-Attribution Limitation Under §318 | International Tax Lawyers

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). […]

Hindu Undivided Family (HUF) US Tax Classification | Foreign Trust Lawyer

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 […]

§318 Double-Inclusion Prohibition | International Tax Lawyers Tampa FL

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 […]

2020 2Q IRS Interest Rates | US International Tax Law Firm

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) […]

§318 Re-attribution: General Rule | International Tax Lawyers Miami

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 […]

Liechtenstein Stiftung: US Tax Classification | Foreign Trust Tax Lawyer

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 […]

Liechtenstein Anstalt: US Tax Treatment | Foreign Trust Lawyer & Attorney

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 […]

New Form 1040-SR for Seniors | US Tax Lawyers & Attorneys

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 […]

Form 114 Trust Filers | FBAR Tax Lawyer & Attorney Nevada Las Vegas

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 […]

§318 Option Attribution | International Tax Lawyers United States

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 […]

§318 Option Definition | US International Tax Lawyer & Attorney

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” […]

§318 Upstream Corporate Attribution | International Tax Lawyers Florida

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 […]

§318 Downstream Corporate Attribution | Corporate Tax Lawyer & Attorney

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. […]

2020 IRS Standard Mileage Rates | IRS Tax Lawyer & Attorney

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 […]

Indian US Dollar Remittances | International Tax Lawyer & Attorney

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 […]

§318 Employee Trust Attribution | Foreign Trust US Tax Law Firm

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, […]

§318 Grantor Trust Attribution | Foreign Trust Tax Lawyer & Attorney

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 […]

§318 Upstream Trust Attribution | US Foreign Trust Tax Lawyer & Attorney

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 […]

US Information Returns: Introduction | International Tax Lawyer Minnesota

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 […]

FinCEN Form 114 Estate Filers | FBAR Tax Lawyer & Attorney

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 […]

§318 Downstream Trust Attribution | Foreign Trust Tax Lawyer & Attorney

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. […]

§318 Upstream Estate Attribution | International Tax Lawyer & Attorney

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 […]

§318 Estate Beneficiary Definition | US International Tax Law Firm

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 […]

§318 Downstream Estate Attribution | International Tax Lawyer & Attorney

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 […]

2020 SDOP Eligibility Requirements | SDOP Tax Lawyer & Attorney

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 […]

§318 Partnership Attribution | International Corporate Tax Lawyers

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 […]

Ukrainian FATCA IGA Enters Into Force | FATCA Tax Lawyer & Attorney

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 […]

2019 FBAR Conversion Rates | FBAR Tax Lawyer & Attorney

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 […]

2020 Streamlined Domestic Offshore Procedures: Pros and Cons

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 […]

IRC §318 Family Attribution | International Tax Law Firm Minnesota

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 […]

2020 Offshore Voluntary Disclosure Options | US International Tax Lawyers

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 […]

2019 Tax Filing Season for Individual Filers Opens on January 27 2020

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 […]

Partnership Related Party Loss Disallowance | Tax Lawyer & Attorney

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 […]

§318 Relationship Categories | International Business Tax Lawyer & Attorney

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 […]

IRC §318 Importance | International Tax Lawyer & Attorney

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 Hiring Spree in 2019 and 2020 | Tax Lawyer & Attorney

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 […]

§267 Family Attribution | International Tax Lawyer & Attorney

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 […]

§267 Entity-to-Member Attribution | International Tax Lawyer & Attorney

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 […]

§267 Constructive Ownership Rules | International Tax Lawyer & Attorney

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 […]

Related Person Definition – IRC §267 | International Tax Lawyer & Attorney

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 […]

Happy New Year 2020 from Sherayzen Law Office!

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 […]

IRC §267 Purpose | International Tax Lawyer & Attorney Austin TX

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 […]

Attribution Rules: Introduction | International Tax Lawyer & Attorney

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 […]

2020 First Quarter IRS Interest Rates | International Tax Lawyers

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 […]

Post-OVDP Audits | Offshore Voluntary Disclosure Lawyer & Attorney

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 […]

The Norman Case: Willful FBAR Penalty Upheld | FBAR Lawyers Miami

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 […]

New FBAR Filing Verification Submission Process | FBAR Lawyer & Attorney

On 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

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 […]

Greek Flat Tax Residency: Draft Bill | International Tax Lawyer News

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 […]

Foreign Income Reporting Without Forms W-2 or 1099 | Tax Lawyer

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, […]

The Pursley Case: Offshore Tax Evasion Leads to Criminal Conviction

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 […]

The Booker Case: ex-CPA Indicted for FBAR violations | FBAR Lawyer News

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 […]

July 2019 IRS Compliance Campaigns | International Tax Lawyer & Attorney

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 […]

Child’s FBAR Requirements | FBAR Tax Lawyer & Attorney

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: […]

2019 Fourth Quarter IRS Interest Rates | PFIC Tax Lawyers

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 […]

Sherayzen Law Office Successfully Completes its 2019 Fall Tax Season

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 […]

Fundamental Form 5471 Concepts | Form 5471 Tax Lawyer & Attorney

Form 5471 tax attorney discusses fundamental Form 5471 concepts of US Person, US Shareholder & CFC (Controlled Foreign Corporation)

FATCA Criminal Penalties | International Tax Lawyer & Attorney

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 […]

2019 Minsk Seminar: US International Corporate Tax Reform | GILTI & FDII

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 […]

Partnership International Tax Issues | International Tax Lawyer & Attorney

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 […]

IRS Acquires Phone-Hacking Software | IRS Lawyer News

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 […]

Minnesota Sales Tax Responsible Person Legal Standard | Audit Tax Lawyer

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. […]

2019 Zurich Trip Completed | Zurich US International Tax Lawyer & Attorney

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 […]

2019 Karlovy Vary Trip Completed | US International Tax Lawyer & Attorney

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. […]

Legal Entity Identifiers: Introduction to LEI | International Tax Lawyer & Attorney

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 […]

IRS Appeals Video Conference | IRS Tax Lawyer & Attorney

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 […]

Finnish US Bank Accounts Face IRS John Doe Summonses | FATCA News

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 […]

PLR TAM Comparison | IRS International Tax Lawyer & Attorney

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 […]

IRS Issues FBAR Fact Sheet | FBAR FATCA Tax Lawyer & Attorney

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 […]

FY 2018 DOJ Criminal Case Statistics | Tax Lawyer & Attorney Minneapolis

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 […]

CRS Success: 47 Million Financial Accounts Reported | FATCA Lawyer News

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 […]

Hungarian Bank Accounts | US International Tax Lawyer & Attorney

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 […]

2019 Third Quarter IRS Interest Rates | MN International Tax Law Firm

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 […]

Minneapolis MN International Tax Lawyer & Attorney | PLR 201922010

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 […]

IRC 965 Tax: Introduction | US International Tax Lawyer & Attorney

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 […]

International Tax Lawyer & Attorney | April 2019 IRS Compliance Campaigns

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 […]

Taylor Lohmeyer Law Firm Clients Face Potential IRS Audit | FBAR News

On May 15, 2019, a Texas federal court ruled that the IRS can enforce 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 […]

Panamanian Bank Accounts | US International Tax Lawyer & Attorney

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 […]

October 2018 IRS Compliance Campaigns | International Tax Lawyer & Attorney News

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 | International Tax Lawyer & Attorney

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 […]

September 2018 IRS Compliance Campaigns | International Tax Lawyer & Attorney News

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 […]

July 2018 IRS Compliance Campaigns | International Tax Lawyer & Attorney

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”). […]

IRS Large Corporate Compliance Program | IRS Lawyer & Attorney

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 […]

May 2018 IRS Compliance Campaigns | International Tax Lawyer & Attorney

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 […]

FDII Export Incentive | Foreign Business Income Tax Lawyer & Attorney

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 […]

2019 IRS Hiring Spree Targets US International Tax Compliance

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 […]

Offshore Bank Accounts Remain on the IRS 2019 Dirty Dozen List

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 […]

March 2018 IRS Compliance Campaigns | International Tax Lawyer & Attorney

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 […]

Noncompetition Agreement Income Sourcing | International Tax Lawyer

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? […]

Amato Case: 5-Years in Prison for Secret Russian Bank Accounts | FBAR News

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 […]

Czech Digital Tax Proposal | Digital Currency Tax Lawyer & Attorney

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% […]

Polish Bank Accounts | International Tax Lawyer & Attorney Chicago IL

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 […]

Business Service Income Sourcing | Business Tax Lawyer & Attorney Delaware

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 […]

FFI FATCA Requirements: Introduction | FATCA Tax Lawyer & Attorney

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.

IRS Interest Rates for the Second Quarter of 2019 | PFIC Tax Lawyer & Attorney

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 […]

Sherayzen Law Office Successfully Completes 2019 April 15 Tax Season

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.

South African Bank Accounts | International Tax Lawyer & Attorney Los Angeles California

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 […]

FBAR Financial Interest Definition | FBAR International Tax Lawyer & Attorney | FinCEN Form 114

FBAR tax lawyer and attorney explains the FBAR financial interest definition. FBAR tax lawyer discusses six different categories of FBAR financial interest.

Disregarded Entity FBAR Obligations | FBAR Tax Lawyer & Attorney Houston

FBAR 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

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 […]

2018 FinCEN Form 114 Deadline | FBAR International Tax Lawyer & Attorney

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 […]

2018 FBAR Deadline in 2019 | FinCEN Form 114 International Tax Lawyer & Attorney

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 […]

Italian Bank Accounts | International Tax Lawyer & Attorney New York New Jersey

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 […]

2019 IRS Standard Mileage Rates | IRS Tax Lawyer & Attorney

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 […]

Premier Minneapolis Minnesota Voluntary Disclosure Lawyer | International Tax Attorney

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 […]

Costa Rican Bank Accounts | International Tax Lawyer & Attorney Miami

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 | FBAR Lawyer & Attorney Delaware

FinCEN 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

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, […]

FinCEN Form 114 Filers | FBAR Tax Lawyer & Attorney Minnesota Minneapolis

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 […]

2019 Offshore Voluntary Disclosure Options | International Tax Lawyers

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 […]

FBAR United States Definition | FBAR Lawyer & Attorney Minneapolis MN

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 […]

Colombian Bank Accounts | International Tax Lawyer & Attorney Miami

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 […]

Main Worldwide Income Reporting Myths | International Tax Attorney St Paul

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 […]

Worldwide Income Reporting Requirement | IRS International Tax Lawyer

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 […]

Mexican Bank Accounts & US Tax Obligations | International Tax Lawyers

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, […]

Foreign Inheritance Definition | International Tax Lawyer & Attorney

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 […]

IRS Waives 2018 Estimated Tax Penalty for Certain Taxpayers | Tax News

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 Currency Conversion Rates | FBAR Tax Lawyer & Attorney

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  […]

2019 Tax Filing Season Will Begin on January 28, 2019 | Tax Lawyer News

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 […]

Sherayzen Law Office, Ltd. Conducts Foreign Inheritance Seminar | News

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 […]

2017 Tax Reform Seminar | U.S. International Tax Lawyer & Attorney

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 […]

EU Market Entry Seminar | US International Tax Lawyer & Attorney

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. […]

FACC Seminar (French-American Chamber of Commerce Seminar) | News

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 […]

Specified Domestic Entity Seminar | International Tax Lawyer & Attorney

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 […]

Minsk Seminar Conducted by US International Tax Lawyer & Attorney

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 […]

SLO’s 2017 Seminar on Business Lawyers’ International Tax Mistakes

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 […]

Overseas Green Card Holder & US Tax Residency | Tax Lawyer & Attorney

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 | International Tax Lawyer & Attorney

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 […]

FinCEN Form 114 and FBAR Are the Same Form | FBAR Tax Lawyers

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, […]

Japanese Bank Accounts : Main US Tax Obligations | FATCA Tax Lawyer

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, […]

International Personal Services Sourcing Rules | International Tax Lawyer

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 […]

Happy New Year 2019 from Sherayzen Law Office!

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 […]

Indian Bank Accounts : Key US Tax Obligations | International Tax Lawyer

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 […]

Personal Services Income Sourcing | International Tax Lawyer & Attorney

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 […]

Bitcoin Payments Are Subject to UK Income Tax | International Tax News

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 […]

Italian & French Digital Services Tax | Cryptocurrency Tax Lawyer

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 […]

2018 Individual Tax Rates | International Tax Lawyer & Attorney

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 […]

Interest Income Sourcing | International Tax Lawyer & Attorney

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 […]

H.R. 7358 & Modified Residency-Based Taxation | International Tax News

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 […]

Source of Income: Sale of Real Property | International Tax Law Firm

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 […]

Dividend Income Sourcing | International Tax Lawyer & Attorney

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 […]

2019 First Quarter IRS Interest Rates Increase | Tax Lawyers MN

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 […]

OVDP Closure Sets the Stage for a Dramatic Increase in IRS FBAR Audits

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 […]

SDOP Real Estate Penalty | Offshore Voluntary Disclosure Law Firm

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: […]

4th Quarter 2018 Underpayment and Overpayment Interest Rates

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 Successfully Completes October 2018 Tax Season

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 […]

October 15 2018 Deadline for FBARs and Tax Returns | US Tax Law Firm

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 […]

2018 Egyptian Tax Amnesty | International Tax Lawyer & Attorney

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 […]

August 24 OVDP Deadline | OVDP Tax Lawyer & Attorney

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 […]

Mizrahi-Tefahot Bank Rejects DOJ Settlement Offer | FATCA Tax Lawyer

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 […]

NPB Neue Privat Bank Signs Non-Prosecution Agreement | OVDP Lawyer

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 […]

US Taxpayers with Lombard Odier Bank Accounts At Risk | OVDP News

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 […]

FBAR Noncompliance & Taxpayer’s Options | FBAR Lawyer & Attorney

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, […]

Understand How IRS Amnesty Works Before Entering 2014 OVDP

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 […]

Schedule C IRS Audit | Business Tax Lawyer & Attorney

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 […]

Streamlined Domestic Offshore Procedures Audits | SDOP Tax Lawyer

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 […]

Amending Tax Returns during An IRS Audit | IRS Audit Lawyer & Attorney

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 […]

2018 FBAR Civil Penalties | FBAR Tax Lawyer & Attorney

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 […]

Passport Revocation and Denial for Tax Debt | IRS Tax Lawyer & Attorney

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 […]

2018 FSI Ranks United States as Second Largest Secrecy Haven | FATCA

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 […]

IRS Prioritizes Combating Offshore Tax Cheating | Offshore Tax Lawyer

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 […]

Uruguay-US Social Security Agreement Sent to Congress | Tax Lawyer

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 […]

FATCA Criminal Case Filed Against Foreigners | FATCA Lawyer & Attorney

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 […]

OECD Harmful Tax Practices & FDII | International Tax Law Firm

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 […]

3 Main Streamlined Domestic Compliance Disadvantages | SDOP Lawyer

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 […]

2017 FBAR Currency Conversion Rates | FBAR Lawyer and Attorney

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 […]

Streamlined Domestic Disclosure: Main Advantages | SDOP Attorney

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 […]

2018 Post-OVDP Options | Foreign Accounts IRS Lawyer & Attorney

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 […]

IRS OVDP to End on September 28, 2018 | US OVDP Tax Law Firm

On March 13, 2018, the IRS announced that it will be closing its flagship 2014 Offshore Voluntary Disclosure (“OVDP”) program on September 28, 2018. The closure of the IRS OVDP was already predicted by Sherayzen Law Office last year. Let’s analyze further this important development. Historical Overview of the IRS OVDP I already provided a […]

IRS Increases Interest Rates for the Second Quarter of 2018

On March 7, 2018, the Internal Revenue Service announced that the IRS underpayment and overpayment interest rates have increased for the second quarter of 2018. The second quarter of 2018 begins on April 1, 2018 and ends on June 30, 2018. The second quarter of 2018 IRS interest rates will increase by one percent and […]

Bitcoin is Property Under Israeli Tax Law | Cryptocurrency Tax Lawyer

On February 19, 2018, the Israel Tax Authority (“ITA”) stated in a circular to tax professionals that cryptocurrencies, such as Bitcoin, are property under Israeli tax law. This view brings the Israeli tax law very much in line with the IRS position in the United States. Cryptocurrency is Property under Israeli Tax Law and Subject […]

IRS Requests Comments on OVDP Information Collection | OVDP Lawyer

On February 28, 2018, the IRS issued a request for comments from the general public with respect to the its OVDP Information Collection practices. Let’s explore this new development in more detail. OVDP Information Collection: Background Information on the OVDP The IRS Offshore Voluntary Disclosure Program (“OVDP”) remains today the primary voluntary disclosure route for […]

South Korean Cryptocurrency Taxation of Exchanges | IRS Tax Lawyer

In January of 2018, South Korea announced that it will start taxing cryptocurrency exchanges. This is a highly important development in international tax law concerning cryptocurrencies, because South Korea is a major hub for cryptocurrency trading. Let’s delve a bit deeper into South Korean cryptocurrency taxation. South Korean Cryptocurrency Taxation of Exchanges The first important […]

IRS Fails to Recover a Large Erroneous Refund | Litigation Tax Attorney

In a recent case, the IRS failed to recover a large erroneous refund of $21 million that it gave to a company called Starr International Co. Inc. (“Starr”). The opinion was released on January 31, 2018 by the District Judge Christopher R. Cooper (U.S. District Court for the District of Columbia) who granted Starr’s summary […]

2017 FBAR Deadline | FinCEN Form 114 FBAR Lawyer & Attorney

FinCEN recently confirmed the 2017 FBAR deadline and the automatic extension option. 2017 FBAR Deadline: FBAR Background FinCEN Form 114, the Report of Foreign Bank and Financial Accounts, is commonly known as FBAR.  US taxpayers should use this form to report their financial interest in or signatory authority over foreign financial accounts. Failure to timely […]

Section 1041 Definition of Divorce | Divorce Tax Attorney & Lawyer

26 U.S.C. §1041(a)(2) states that transfers of property between former spouses are not taxable as long as they are “incident to divorce”. The question is what is the definition of divorce for Section 1041 purposes? Section 1041 Definition of Divorce: 26 U.S.C. §71(b)(2) The Treasury regulations specifically refer to 26 U.S.C. §71(b)(2) for the definition […]

Sherayzen Law Office Ltd | US International Tax Law Firm

Sherayzen Law Office PLLC hereby gives notice that, as of January 1, 2018, its official owner is Sherayzen Law Office, Ltd (“Sherayzen Law Office Ltd”). Sherayzen Law Office Ltd will continue to utilize “Sherayzen Law Office” as its trade name. Furthermore, Sherayzen Law Office Ltd will continue to maintain the disregarded entity (for tax purposes) […]

Overcoming Late IRC Section 1041 Transfer Presumption | IRS Lawyer & Attorney

In a previous article, I discussed that a late IRC Section 1041 transfer between former spouses is presumed to be unrelated to the cessation of the marriage. This means that such a transfer may not be considered tax-free for US tax purposes. In this article, I would like to explain what a late IRC Section […]

Ex-Spouse Property Transfers Incident to Divorce | Tax Lawyer & Attorney

This article introduces a series of articles on 26 U.S.C. §1041 and specifically the issue of tax treatment of ex-spouse property transfers incident to divorce. As a result of a divorce, it is very common for ex-spouses to transfer properties to each other as part of their settlement agreement. A question arises: are these ex-spouse […]

South Korean Inheritance Leads to Criminal Sentence for FBAR Violations

On January 25, 2018, a South Korean citizen and a US Permanent Resident, Mr. Hyong Kwon Kim, was sentenced to prison for filing false tax returns and willful FBAR violations; additionally, he had to pay over $14 million in FBAR willful civil penalties. I already discussed Mr. Kim’s guilty plea and the main facts of […]

Broadcom Re-domiciliation Approved | International Tax Lawyer & Attorney

On January 29, 2018, Broadcom Board of Directors approved the plan for Broadcom re-domiciliation in the United States. This move was expected after Broadcom’s November of 2017 pledge to president Trump that the company would return to the United States. Broadcom Re-domiciliation: A Story of Tax Inversion and Tax Remorse The story of the Broadcom […]

2018 FBAR Criminal Penalties | FBAR Lawyer & Attorney

2018 FBAR criminal penalties should be on the mind of any US taxpayer who willfully failed to file his FBARs or knowingly filed a false FBAR. In this essay, I would like to do an overview of the 2018 FBAR criminal penalties that these noncompliant US taxpayers may have to face. 2018 FBAR Criminal Penalties: […]

US Taxpayers’ Nightmare Continues: FBAR Penalty Inflation Adjustment

As if the FBAR penalties were not frightening enough, the Congress has mandated the IRS to adjust the FBAR penalties to account for inflation. As a result, the already complicated and severe system of FBAR penalties became even more complex and ruthless. In this article, I would like provide a general overview of the FBAR […]

Cyprus Tax Amnesty Extended | FATCA Lawyer & Attorney

For the second time now, the Cyprus Tax Amnesty has been extended. Let’s discuss in more detail the new deadline and the terms of the Cyprus Tax Amnesty. Cyprus Tax Amnesty: Deadline Extensions The original deadline for the Scheme for the Settlement of Overdue Taxes (the official name of the Cyprus Tax Amnesty) was October […]

Specified Domestic Entity: Passive Test | FATCA Form 8938 Lawyer & Attorney

This article is published as part of a long series of articles on the Specified Domestic Entity (“SDE”) Definition. In a previous article, I stated that the term “formed or availed of” consists of two legal tests: the Closely-Held Test and the Passive Test. Since I already explained the general requirements of the Closely-Held Test […]

Shakira Tax Evasion is Reportedly Investigated by Spain | Tax Law News

On January 23, 2018, the Spanish Newspaper based in Madrid “El País” broke the news that the Colombian Singer Shakira (full name Shakira Isabel Mebarak) is being reportedly investigated by the Spanish tax authorities for tax evasion. Let’s explore the alleged Shakira tax evasion investigation in more detail. Alleged Shakira Tax Evasion Investigation is Centered […]

Swiss Voluntary Disclosures Rise as Swiss AEOI Compliance Nears

The voluntary disclosures by Swiss taxpayers jumped dramatically in 2017. The most likely reason for the increase is the fact that the Swiss government started to collect information under its numerous Automatic Exchange of Information (“AEOI”) agreements. Let’s analyze in more detail this connection between the Swiss voluntary disclosures and the Swiss AEOI Compliance. Swiss […]

IMF Wants “Modern” Croatian Real Estate Tax | Tax Lawyer News

On January 16, 2018, the International Monetary Fund (“IMF”) released its 2017 Article IV consultation notes with respect to Croatia. Among its recommendations is the introduction of a modern Croatian Real Estate Tax. Croatian Real Estate Tax: IMF assessment of Croatian Economy The IMF began on the positive note stating that, in 2017, Croatia continued […]

Form 8938 Filing Thresholds | FATCA Tax Lawyer and Attorney Update

Form 8938 is one of the most important US international tax forms with its own sophisticated penalty structure. Hence, taxpayers should strive to understand when they are required to file the form. In this context, I would like to focus in this essay on the Form 8938 Filing Thresholds. General Relevant Criteria in the Determination […]

2018 Government Shutdown is the IRS Nightmare | IRS Lawyer & Attorney

A government shutdown is always bad for the normal functioning of federal agencies, but the 2018 government shutdown spells disaster for the IRS, especially if it lasts for a significant amount of time. 2018 Government Shutdown Comes at the Worst Time for the IRS What makes the current 2018 government shutdown so bad is the […]

Specified Domestic Entity Form 8938 Filing Threshold | FATCA Lawyer

The Specified Domestic Entity Form 8938 filing threshold is likely to be very easily satisfied by the majority of Specified Domestic Entities. With the major tax return filing deadlines just two or three months away (depending on whether an entity is a corporation, a partnership or a trust), every Specified Domestic Entity must assess whether […]

Home Equity Tax Deduction Eliminated in 2018 | Tax Lawyers News

The Home Equity Tax Deduction used to be one of the most common deductions used by US taxpayers. The Tax Cuts and Jobs Act of 2017 eliminated this deduction. Let’s take a brief look at the Home Equity Tax Deduction and what its elimination may mean for your US tax return. Home Equity Tax Deduction: […]

Specified Domestic Entity: Closely-Held Test | 8938 Lawyer & Attorney

In a previous article, I introduced the key term of the Specified Domestic Entity (“SDE”) Definition for corporations and partnerships that may be required to file FATCA Form 8938: “formed or availed of”. At that point, I stated that this term required that a business entity satisfies two legal tests. One of these tests is […]

Specified Domestic Entity: Formed or Availed Of | FATCA Lawyer & Attorney

We are continuing our series of articles on the Specified Domestic Entity definition. In previous articles, I already explained what entities are considered to be domestic and what kind of foreign assets are included in the Specified Foreign Financial Assets. In this article, I would like to introduce the key part of the definition of […]

Specified Individual | FATCA International Tax Lawyers and Attorneys

Specified Individual is a key tax term that must be correctly understood in order to properly identify the persons who are required to file FATCA Form 8938. In this brief article, I will describe the general definition of a Specified Individual for Form 8938 purposes. Specified Individual: FATCA Form 8938 Background In 2010, one of […]

Specified Domestic Entity: Domestic Entity | FATCA Lawyer & Attorney

This is the second article from the series of articles concerning the definition of a Specified Domestic Entity. Today, I will explore what business entities are considered to be “Domestic”. Specified Domestic Entity Background Information Specified Domestic Entity is a new category of FATCA Form 8938 filers. Under FATCA, Form 8938 has to be filed […]

Treasury List of Boycott Countries Published | Tax Lawyer & Attorney

On January 8, 2018, the US Treasury Department published a list of boycott countries. Let’s analyze what is meant here by Boycott Countries. Boycott Countries: The Meaning of Boycott Under IRC Section 999(b)(3) IRC Section 999(a)(3) requires the Department of the Treasury to publish (at least on a quarterly basis) a current list of countries […]

Disclosure of Swiss Bank Staff Details to the IRS Blocked by Swiss Court

On January 3, 2018, a decision of the Swiss Federal Court (the nation’s highest court) dated December 18, 2017, was published, prohibiting automatic disclosure of the Swiss bank staff details to the IRS and the US DOJ. Let’s analyze this decision in more detail. Disclosure of Swiss Bank Staff Details: History of the Case The […]

Toledo Tax Lawyer and Attorney | Ohio Tax Lawyers

A Toledo Tax Lawyer who specializes in international tax law does not necessarily have to be a tax lawyer who actually resides in Toledo. An international tax lawyer who offers US international tax law services to residents of Toledo, Ohio, may also be considered a Toledo Tax Lawyer. Let’s analyze a bit deeper why this […]

Tampa Foreign Accounts Lawyer and Attorney | Florida Tax Lawyers

Tampa Foreign Accounts Lawyer is an interesting specialty among international tax lawyers who offer their foreign account tax compliance services to residents of Tampa, Florida. The term Tampa Foreign Accounts Lawyer does not simply refer to a lawyer who is physically located in Tampa, but also covers lawyers who reside outside of Tampa. Let’s explore […]

Ireland-Kazakhstan Tax Treaty Ratified | International Tax Lawyer News

On December 29, 2017, the President of Kazakhstan Nazarbayev signed the law for the ratification of the Ireland-Kazakhstan Tax Treaty for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income. History of the Ireland-Kazakhstan Tax Treaty The Ireland-Kazakhstan Tax Treaty was originally signed in Astana on April […]

Guam & American Samoa Are Non-Cooperative Tax Jurisdictions | News

On December 5, 2017, the European Union (the EU) Council published its list of the non-EU non-cooperative tax jurisdictions. The list included American Samoa and Guam unleashing strenuous objections from the United States. Full List of Non-Cooperative Tax Jurisdictions A total of seventeen countries made it to the list of non-cooperative tax jurisdictions: American Samoa, […]

Cyprus-Saudi Arabia Tax Treaty Signed | International Tax Lawyers

On January 3, 2018, the “Convention for the Avoidance of Double Taxation with respect to Taxes on Income and for the Prevention of Tax Evasion between the Republic of Cyprus and the Kingdom of Saudi Arabia” or the Cyprus-Saudi Arabia Tax Treaty was signed in Riyadh, Saudi Arabia. The Cyprus-Saudi Arabia Tax Treaty was signed […]

EU Tax Harmonization Initiative Stalled by Ireland and Hungary | Tax News

The EU Tax Harmonization initiative faced a joint opposition of Ireland and Hungary in early January of 2018. Both countries are vehemently opposed to any effort that would “tie their hands” in terms of their corporate tax policies. The EU Tax Harmonization Initiative Tax Harmonization is basically a policy that aims to adjust the tax […]

2018 Tax Filing Season | International Tax Lawyer News

On January 4, 2018, the IRS announced that the 2018 tax filing season for the tax year 2017 will commence on January 29, 2018. This date was chosen by the IRS to make sure its software incorporates the full impact of the Tax Cuts and Jobs Act of 2017 on the 2017 tax returns. 2018 […]

Streamlined Audit Interview | Streamlined Audit Tax Lawyers

In an earlier article, I described the main features of an IRS audit of a voluntary disclosure made pursuant to the Streamlined Domestic Submission Procedures (“Streamlined Submission Audit”). Today, I would like to discuss a very specific feature of this process – Streamlined Audit Interview. Streamlined Audit Interview: Background Information on Streamlined Domestic Offshore Procedures […]

Belarus-Spain Tax Treaty Approved | FATCA Lawyer News

On December 19, 2017, the Belarusian Council of the Republic, which is the upper chamber of the Belarusian parliament, approved a law on the ratification of the pending Belarus-Spain Tax Treaty. The Belarus-Spain Tax Treaty will cover both income and capital gain taxes and is meant to prevent the double taxation of the same income […]

Streamlined Submission Audit | SDOP Audit Tax Lawyer

An increasing number of submissions under the Streamlined Domestic Offshore Procedures are subject to an IRS audit (hereinafter “Streamlined Submission Audit”). In this article, I will explain what a Streamlined Submission Audit is and what a taxpayer should expect during the Audit. Streamlined Submission Audit: Background Information on Streamlined Domestic Offshore Procedures Streamlined Domestic Offshore […]

IRS International No Rule List Updated | International Tax Lawyer News

On January 2, 2018, the IRS issued Rev. Proc. 2018-7 (2018-1 IRB 271) to update its existing international No Rule list. I will quickly overview what the No Rule List is and provide a copy of Sections 3 and 4 of the No Rule List. What is an International No Rule List? It may be […]

Happy New Year 2018 From Sherayzen Law Office

Our team at Sherayzen Law Office wishes a very Happy New Year 2018 to our clients; colleagues at other law firms; judges of state and federal courts; our website blog readers; and our followers on Facebook, Twitter, YouTube and other social media. Year 2017 was another highly successful year at Sherayzen Law Office. Our tremendous […]

Tax Cuts & Jobs Act: 2018 Standard Deduction and Exemptions

The Tax Cuts and Jobs Act of 2017 made dramatic changes that affected pretty much every US taxpayer. This is the first article of the series of articles on the Act. I will start this series with the discussion of simple US domestic issues (such as 2018 standard deduction and personal exemptions), then gradually turn […]

Prepaid 2018 Real Property Taxes as a Tax Strategy | Tax Lawyers News

The Tax Cuts and Jobs Act of 2017 radically changed the US tax system with respect to deductible state and local income taxes, including real property taxes. Starting tax year 2018, real estate, person property, income taxes and sales taxes are deductible only up to $10,000. This means that people with high property taxes have […]

IRS 2018 Standard Mileage Rates | Tax Lawyers Twin Cities

Earlier this month, the IRS issued the option IRS 2018 standard mileage rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.Earlier this month, the IRS issued the option IRS 2018 standard mileage rates to calculate the deductible costs of operating an automobile for business, charitable, medical or […]

First Quarter 2018 IRS Underpayment Interest Rates | Tax Lawyer MN

On December 5, 2017, the IRS announced that the First Quarter 2018 IRS underpayment interest rates and overpayment interest rates will remain the same as they were in the last quarter of 2017. This means that, the First Quarter 2018 IRS underpayment interest rates and overpayment interest rates will be as follows: On December 5, […]

Abandoned OVDP Preclearance Requests Are Targeted by IRS

Since January 31, 2017, all of the denied and abandoned OVDP Preclearance requests have become the target of a special IRS compliance campaign. Let’s analyze in more detail this important development and attempt to predict what may be its main consequences for noncompliant or formerly noncompliant US taxpayers. Denied and Abandoned OVDP Preclearance Requests: OVDP […]

New Irish Software to Combat Offshore Tax Evasion | Tax Lawyer News

The Irish Revenue is expanding its tax enforcement capabilities through new Irish software. This new Irish software will provide the Irish Revenue with a unique type of a multilateral analysis of a taxpayer in order to combat offshore tax evasion. This is definitely a new development in international tax enforcement and it is the one […]

Reducing Form 5471 Penalties | Form 5471 Tax Lawyer & Attorney

Reducing Form 5471 penalties has become a big headache for US shareholders of foreign corporations due to a very aggressive enforcement stance by the IRS. In this essay, I would like to explore the main option for reducing Form 5471 penalties – the Reasonable Cause Exception. Reducing Form 5471 Penalties: What is Form 5471? 26 […]

IRS Written Advice Abatement Procedures | IRS Tax Lawyer

This is the concluding article in our series of articles on the topic of the IRS Written Advice Defense. In prior articles, we have outlined the general legal test of the IRS Written Advice Defense and described each of the three prongs of this test. In this article, I would like to discuss the IRS […]

IRS Written Advice Defense: Adequate & Accurate Information | Tax Lawyer

This is the fourth article on the topic of the IRS Written Advice Defense under 26 U.S.C. §6404(f). The first three articles outlined the legal test for the Defense and described the first and the second prongs of the test. In this say, I will briefly discuss the final third prong of the IRS Written […]

IRS Written Advice Defense & The Written Request | Tax Lawyers MN

This article is a continuation of the series of articles on the IRS Written Advice Defense. In the first article of this series, I outlined the legal test for the Defense. The second article of the series focused on the first prong of that test. In this essay, I would like to briefly highlight the […]

IRS Written Advice Defense: Reasonable Reliance | International Tax Lawyer

In a previous article, I outlined the three-prong legal test of the IRS Written Advice Defense. This article aims to explore the first prong of that test: the IRS written advice was reasonably relied upon by the taxpayer. In particular, I would like to explain two important concepts of this part of the test: “advice”and […]

IRS Written Advice – Legal Test | International Tax Lawyer & Attorney

IRS written advice can constitute a reasonable cause defense against an imposition of pretty much any tax penalty related to noncompliance that stemmed from that advice. This essay begins a series of articles with respect to various aspects of the IRS Written Advice Defense. Today, I will outline the statutory authority and the main legal […]

El Salvador Tax Amnesty Program | International Tax Lawyer & Attorney

On October 10, 2017, the Salvadorian Congress enacted the Legislative Decree No. 804, “La Ley Transitoria para el Cumplimiento Voluntario de Obligaciones Tributarias y Aduaneras”. After noting the experience of the past El Salvador voluntary disclosure options, the Decree announced a three-month long El Salvador Tax Amnesty Program. Let’s briefly explore the main contours of […]

OVDP & Streamlined Disclosure May Terminate Soon | Foreign Accounts Lawyer

On November 15, 2017, the IRS sent yet another signal that certain offshore voluntary disclosure options, particularly the OVDP & Streamlined Disclosure options, will be significantly modified or even terminated as the IRS proceeds with the LB&I Compliance Campaigns. This means that US taxpayers with undisclosed foreign accounts need to hurry up if they wish […]

New PFIC Foreign Trust Rules by June of 2018 | PFIC Lawyer & Attorney

On November 9, 2017, the IRS gave a clear signal that it is working on new PFIC Foreign Trust rules and hopes to have these new regulations published by June of 2018. The IRS also indicated that other areas of PFIC rules will be affected and it expects the Subpart F regulations to come out […]

Manafort FBAR Violations Indictment | International Tax Lawyer & Attorney

On October 30, 2017, Mr. Paul Manafort was charged with FBAR violations among other charges. Manafort FBAR violations charges were filed as a result of an ongoing investigation led by special counsel Robert Mueller. While the investigation should have been searching for possible ties between Mr. Manafort and the Russian government, it found something completely […]