Health savings accounts as retirement savings

Three words: triple tax free. The contributions are tax deductible, the earnings are not taxed and distributions are tax free if they are used for qualified expenses. This is the main advantage and beauty of Health Savings Accounts (HSAs). While Roth and traditional retirement savings accounts will almost always result in taxable income (now, or …

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New EU general data protection regulation

You may be thinking that there is no point in reading further as your business in located in the United States, not the EU – not true. United States businesses with clients or customers in Europe will be required to comply with these new data regulations, seek guidance on how to implement them and will …

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Deemed repatriation from foreign corporations

When it comes to tax reform, most individuals aren’t worried because they have most of the year to plan (at least get an idea of what they may owe in 2019), but that is not true. The Tax Cuts and Jobs Act (“TCJA”) mostly affects tax years starting after 12-31-2017; HOWEVER, there is a small …

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What’s new with 2017 Form 1042-S

Another year means more updates to Form 1042-S as the IRS attempts to have these forms work more efficiently and adapt to the ever changing tax laws. Here is what’s new for 2017: Unique form identifier: Each 1042-S form will now need to have a unique form identifier. This is different than a U.S. or …

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Foreign earned income exclusion & retirement savings

Do you think your accountant asks you too many questions? Do you feel interrogated? I’d just like to remind you that we are on your side and we aren’t the ones issuing penalties. We are here to help prevent those penalties, but we can only use the information that is given to us (shocking, I …

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Out of state pension income – who gets your taxes?

The best part of being retired is no doubt the freedom of movement. This freedom allows retirees to live wherever they want and to move whenever they want. (Oh, the joy!) They may decide to move to someplace warmer, someplace cheaper, or even someplace closer to their kids or grandkids. The fact is that many …

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Passive activity loss? Clarity in a fuzzy world

Regardless of what is being said in the news these days, the last major tax reform in the United States took place back in 1986. One of the key components of that reform was the addition of so-called Passive Activity Loss rules (PAL, though they are oftentimes not your pal). These rules are simple in …

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New Form 5472 requirements for foreign-owned disregarded entities

Under the proposed Internal Revenue Code Section 6038A regulations issued on May 6, 2016, U.S. disregarded entities owned by foreign persons would be treated as domestic corporations for purposes of filing Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. The new regulations …

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Delayed refunds on Form 1120-F

Some taxpayers filing Form 1120-F, U.S. Income Tax Return of a Foreign Corporation, have experienced a delay in receiving their refund. The delay is due to the issuing of Internal Revenue Manual code 21.8.2.12.2.3, which became effective for all 1120-F returns filed after January 1, 2015. The IRM states that all refunds based on withholding …

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ITIN mandatory renewal starts in 2017

The IRS has put into place mandatory renewal of Individual Taxpayer Identification Numbers (ITINs) for certain taxpayers beginning in 2017. An exception to this rule – taxpayers who only use an ITIN on an information return such as Form 1099 will not be required to renew their ITIN. Moreover, the filer of an informational return …

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