Contributing to an Australian Super?

The Australian superannuation, commonly known as the Australian Super is a type of mandatory savings for retirement. The Australian government sets a minimum percentage that should be paid by employees into their super out of their income, and also requires that employers contribute to the super accounts of their employees. Australians can invest the funds …

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FIRPTA withholding on sale of U.S. real estate

The Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) allowed the United States to require income tax withholding when a non-US person sells U.S. real estate. Property sold on or after February 17, 2016 is required to withhold 15%. Real estate sold before this date was subject to a required withholding rate of …

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IRS case win for overseas military contractors

A recent IRS court case ruled mostly in favor of foreign based military contractors. The case centered on a taxpayer who was working as a military contractor on an United States base in Afghanistan. The IRS initially denied the contractor’s foreign earned income exclusion and charged late filing penalties and interest on her delinquent tax …

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IRC 987 regulations are delayed again

The IRS announced another delay in the applicable date of the final Section 987 regulations. The regulations will be effective for the tax years beginning on or after December 7, 2022.  For calendar year taxpayers, this would apply to the tax year beginning January 1, 2023. Don’t miss: How you can sail through the 2021 …

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New IRS tools for catching mistakes on 1042-S forms

The IRS has announced a new online tool for those preparing Forms 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding. The free tool is voluntary and will allow those who are preparing a 1042-S form to input a draft 1042-S into the online tool prior to filing the form in an effort to preemptively …

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Foreign sales into the U.S. face increasing compliance issues

Foreign sales into the U. S. may find increasing tax compliance issues. In the past, if your foreign company was located in a treaty country and had no physical presence, office, warehouse, etc. within the U.S. and simply had sales to U.S. customers without stepping foot on U.S. soil, you may not have given much …

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New guidance for foreign tax credit allocation and apportionment of deductions

In May of 2021, the IRS released a practice unit for foreign tax credit allocation and apportionment of deductions. Practice units are training materials for IRS employees that provide specific guidance on certain tax issues. These practice units are not to be relied on as official regulations but are used more to assist IRS employees …

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2020 tax season comes to an end

During the 2020 tax season, the singular phrase that was overheard reminded me that I had not started a blog yet on the funny things heard towards the end of any filing season – whether it is the spring filing season (the main one) or this mini one here that deals with returns on extensions, …

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EB-5 Immigrant Investor program expires

The EB-5 program was created in 1990 to stimulate the economy by utilizing foreign investors. The program administers employment-based fifth preference visas to qualified participants. Investors, along with their spouses and unmarried children under 21, are eligible to apply if they 1) make the necessary investment in a commercial enterprise in the U.S., and 2) …

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