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Archive for Expatriate

U.S. Expatriation – Tax Information When Renouncing

Larry Stolberg

Renunciation of U.S. citizenship is an expatriation event requiring the filing of IRS Form 8854 with your tax return for year of expatriation. Renunciation has a fee of US $2,350.

Renunciation is voluntary and requires an appointment for receiving a certificate of loss of nationality.

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Tax Court Upholds Penalties On Expat’s Failure To Disclose

Ephraim Moss

In a new decision, the Tax Court upheld heavy penalties imposed by the IRS on a U.S. expat taxpayer who failed to report his ownership in two foreign corporations. The decision certainly serves as a cautionary tale for expats – the IRS is serious about foreign reporting and the U.S. court system has its back.

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A Holiday Gift: What To Do About The Unfiled FBAR – Part 2

John Richardson

Yesterday, we started this blog post to hopefully encourage those with U.S. tax issues to consider whether they can deal with minor/unintentional FBAR violations as a “stand alone single problem”. There may be no need to escalate and expand one single problem into a multi-dimensional full blown tax problem that may end up with unintended and unanticipated costly professional fees as well as undue time spent! Read on and learn why. Keeping a calm head is most important, even if it is most difficult to do in the face of the scary situation of not being in compliance with the U.S. tax and regulatory regime.

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Late Filing The Foreign Earned Income Exclusion

Ephraim Moss

We’ve blogged a number of times in the past about the foreign earned income exclusion (“FEIE”), because it is one of the main tax relief measures available to expats filing U.S. tax returns. Expats qualifying for the FEIE may be able to exclude all or part of their foreign salary or wages from their income when filing their return – so its importance can’t be overstated.

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Ending FATCA: Keith Redmond On The Harm Of FATCA And Universal Tax Jurisdiction

Keith Redmond

For this blog post, we bring an interview with Keith Redmond, a Multi-Cultural Global Management Executive working with cross cultural issues for over 20 years, who is currently the International Senior Consultant at Leaders Across Borders.

Keith is an American overseas, based in France. He has strong views about the harm of FATCA unfairly punishing a large group of Americans who are living overseas. He is fighting for these views by testifying in Congress in January.

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Why You Shouldn’t Self-File Your U.S. Expat Tax Return

Ephraim Moss

As this year’s tax season heads towards its end, we continue to see more and more self-filers who have received notices from the IRS reassessing their tax liabilities due to mistakes or miscalculations on their original returns. In many cases, the filers should have no tax liability, but a missing form or incorrect information triggers a hefty IRS tax bill.

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This Year’s October 17th Extension Deadline Is Fast Approaching

Ephraim Moss

If you are an American living abroad, you may have taken advantage of the automatic 6-month tax filing extension by filing Form 4868 by the original due date of your return (April or June 15). If so, now is the time to get moving on your tax return filing. October 17th is just around the corner!

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Tax Court Decision Gives Whistleblowers Additional Reward

In what is being hailed as a landmark decision, the U.S. Tax Court recently sided with a pair of whistleblowers who provided information that assisted the U.S. government in a high-stakes tax evasion investigation. The decision allowed the whistleblowers for the first time to collect a percentage of the taxpayer’s criminal penalties and civil forfeitures, in addition to the unpaid taxes recovered by the IRS.

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Courts Not Sympathetic To FATCA Challenges!

Ron Marini

On September 30, 2015, we posted Judge Denies Injunctive Relief for FATCA Implementation!, where we discussed that an Ohio federal judge said that Senator Rand Paul, R-Ky., and others do not have standing in a challenge to the offshore financial account tax enforcement measures enacted in the Foreign Account Tax Compliance Act and they were not likely to succeed on the merits in the case. The case is Crawford v. U.S. Dep’t of Treasury, S.D. Ohio, No. 3:15-cv-00250, 9/29/15.

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U.S. Expatriates RESP Reporting Issues in Canada

Larry Stolberg

U.S. citizens (or even green cardholders) resident in Canada who are contributors (or a joint contributor) to their children’s RESP (Registered Educational Savings Plan) may have U.S. reporting issues.

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New Pressure To Put On FATCA Countries To Comply

Ephraim Moss

Over the past several, years, the U.S. government has signed intergovernmental agreements (IGAs) with dozens of partner countries (83 altogether at latest count), which are designed to promote the implementation of the FATCA law requiring financial institutions (mainly banks and investment houses) outside the U.S. to report information on financial accounts held by their U.S. customers to the IRS.

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U.S. Expats and IRS Tax Refunds

Ephraim Moss

A number of clients have asked us whether a U.S. expat can receive a tax refund from the IRS despite living overseas. While the answer to this question can be nuanced depending on the circumstances, the general rule is that living overseas does not preclude an expat from entitlement to a refund that is otherwise due to the individual.

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