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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Credit for Taxes Paid to Another State or Country

Keep your accountant on their toes and check your returns. You should always check your income tax returns before signing and ask your accountant about any questions you may have. Accountants are people too and mistakes do happen, so make sure to at least take a glance at your returns before signing. I wanted to …

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What’s at Stake in Battle of Intel vs. IRS?

You may or may not have read the news lately, but there has been a battle between Intel and the IRS which could lead other companies to have big tax “windfalls”. The discrepancy comes from recording and reporting stock-based compensation of U.S. employees. The IRS argues that foreign subsidiaries of U.S. firms are required to …

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Going Nowhere FAST if You Owe Taxes

Tax season has come to an end and the season for travel is approaching. So as I wait for clients that are on extension to provide me some missing information, I found myself browsing tax news and articles (Exciting, I know!). Anyways, I was trying to find a blog topic to jump out at me …

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Intergovernmental Agreements

The Foreign Account Tax Compliance Act (FATCA) was created to prevent offshore tax evasion of U.S. taxpayers. As part of the IRS initiative for international data exchange, certain foreign entities have additional reporting requirements. If these entities fail to comply, they could potentially be subject to 30% tax withholding. Please refer to our previous blog …

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New FATCA FAQs Released

As many taxpayers attempt to comply with the Foreign Account Tax Compliance Act (FATCA), they are facing challenges understanding and conforming to the requirements. In an attempt to clarify these complex rules, the IRS has issued Frequently Asked Questions (FAQs) on the topic. On December 7, 2015, the IRS released some updated FAQs on FATCA. …

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UK Double Taxation Relief for the U.S. LLC

A recent UK high court decision provides insight and HMRC may grant flow through treatment status for certain qualified United States LLCs. Prior to this decision, HMRC has denied UK investors relief from double taxation in the UK. On July 1, 2015 the Supreme Court reached a decision in the case, known as Anson v …

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BEA Survey Requirements

Unless you received a letter from the Bureau of Economic Analysis (BEA) requesting you complete a survey, you may not have been aware of the existence of these surveys. Although BEA surveys have been around for a number of years, it wasn’t until 2015 that it seems word of the possible need to complete a …

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Health Coverage Exemption if You Live Outside the U.S.

U.S. persons living outside the U.S. may qualify for the health coverage exemption, meaning you may not have to pay the penalty (The Individual Shared Responsibility Payment) for the months you did not have minimum essential health coverage, as long as you fall into one of the following categories: 1. You are a US Citizen …

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Are PayPal Accounts Reported on the FBAR?

When filing your Report of Foreign Bank and Financial Accounts (FBAR), you may not be inclined to report your offshore PayPal account. After all, PayPal accounts aren’t real bank accounts, right? Well, you may need to think twice about this question. According to John C. McDougal, a senior special trial attorney with the Internal Revenue …

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