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Archive for FBAR

FBAR Due Dates Align With Tax Returns

The SURFACE TRANSPORTATION ACT OF 2015 became law in late July, 2015. The tax provisions changed a number of due dates effective for tax years beginning after December 31, 2015 for partnerships, C corporations and S corporations. Surprisingly, was a change for FBARS or FINCEN114 that will now align commencing for the 2016 taxation year the FBAR (Report of Foreign Bank and Financial Accounts) due date with the due date for individual returns, moving it from June 30 to April 15. The bill instructs the IRS to modify existing regulations to reflect the changes to tax return filing deadlines.

This will mean that for 2016 tax return filers the FBAR will be due April 15, 2017 which is the normal due date for U.S. persons residing in the U.S. on April 15th. It appears that alignment will also mean that the automatic extension to June 15 for those residing outside of the U.S. will be accepted as not late, but more importantly, it Read more

New Rules On Gifts & Inheritances From Expats Proposed By The IRS

We know that increasing globalization keeps us, Enrolled Agents, on our toes especially when we have to consider advising families, businesses and real property owners who have ties with the US and other countries as well. Thanks to my many clients who have business interests in other countries or still have ties/ families back in the countries they migrated from, I deal with cross-border issues quite often.

Interestingly, this summer we did a work-up for a client who had surrendered their green-card & left the country but due to their length of stay in the country, they could be considered “covered-expatriates”, the clients wanted to set up inheritances for their grand-children who are US citizens. Read more

Part 1 – “Facts Are Stubborn Things” – The Possible Effect of The US “Exit Tax” On Canadian Residents

Although this series originally began on “April Fools Day”, I assure that this is NOT a joke.

This post will demonstrate how the U.S. “Exit Tax” affects “middle class Canadians who  have U.S. citizenship and wish to relinquish it. You will see how the “Exit Tax” imposes punitive taxes on Canadian assets and on income earned in Canada. You will also see how some U.S. assets are (in effect) exempted from the “Exit Tax”. We will learn from the example of a “Middle Class Canadian” with an average house in Toronto, a pension plan from the University of Toronto and a low value RRSP who decides that he no longer wishes to be a U.S. citizen.

This person has lived in Canada most (or perhaps all) of his adult life. You will see that he has NO U.S. assets and Read more

OVDP Penalty Increased To 50% For 48 Foreign Banks!

The new revisions to the US offshore voluntary disclosure initiative, which we posted on 6/18/14 “IRS Makes Changes to Offshore Programs; Revisions Ease Burden and Help More Taxpayers Come into Compliance“, now provides for and increased 50% FBAR Penalties for ‘Willful’ Non-Disclosers. 

This group includes those individuals who have offshore bank accounts with a foreign financial institution which has been publicly identified as being under investigation, or is cooperating with a government investigation. IRS has published a list of those foreign financial institutions or facilitators.

The complete list is as follows, as of 9/16/15: Read more

How To Live Outside The United States In An FBAR And FATCA World

When in Rome, live as a Homelander” does, when elsewhere, live as they live elsewhere.
Introduction:

Americans abroad are constantly told that they should “come clean”. They should file their U.S. taxes. This assumes that they are somehow “unclean” or perhaps “dirty”. The life of an “American abroad” is about three things:

1. “Thinking Clean” – The importance of “thinking clean” while living abroad. Read more

Impossible And Expensive To Be A US Tax Compliant Citizen Abroad

Exit Tax Operates To Confiscate Assets Of Those Who Moved From The U.S. Years Ago; And On Assets Acquired After Leaving The U.S. (Including Non-U.S. Pensions)

 

Introducing Tax Expert and TaxConnections Internet Tax Summit Presenter: John Richardson, Citizenship Solutions, Toronto, Canada

Are you a “Covered Expatriate”?  Learn about this term and so much more regarding FATCA, FBAR and Exit Taxes from John Richardson on September 21st.  See his short introductory video below and get your free VIP Ticket to the Internet Tax Summit. Read more

I’m Sorry…

In 1811, President James Madison started the Federal Conscience Fund, which allows guilt-ridden Americans to surreptitiously atone for their financial sins. Over the years, generous benefactors have achieved various levels of catharsis. Typical donors range from guilty individuals, such as a Massachusetts woman who mailed in nine cents, because she re-used three postage stamps, to a government contractor haunted by the ghosts of Christmas past who sent in some $400,000.

Predictably, many people send in offerings to clear their consciences “with the IRS and with God.” One anonymous woman generously offered a few hand-made quilts to settle her tax debt. But perhaps the best of all is a man who emptied his conscience by writing, “I cheated on my income taxes and haven’t been able to sleep. So, I enclose a cashier’s Read more

Part 1 – Life In The “Penalty Box” – U.S. Citizens And Green Card Holders Living Outside The US

On October 18, 2011 the U.S. Ambassador to Canada – Ambassador Jacobson – made a speech on “U.S. Canada Relations” to the Canadian club. The speech took place after the frightening summer of 2011 during which thousands of Canadians:

1 Learned that they might be considered to be U.S. citizens;

2. Learned that they might be required to file U.S. taxes;

3. Made attempts to file those taxes (often through the 2011 “OVDI” program).

Americans abroad throughout the world were living in a “state of fear and confusion” sheer terror. Read more

New FBAR Deadline: Why This Is Great News?

This is what happened on the last day of July this year (2015): President Obama signed into law H.R. 3236, the Surface Transportation and Veterans Health Care Choice Improvement Act (The Act). An unlikely vehicle for deadline changes, but it did make some really important changes to Tax Law & Revenue Provisions, including:

1. FinCEN Form 114 (FBAR) filing and extension deadlines;
2. Tax Filing Deadlines;
3. Changes to consistent basis reporting between the estate and the person acquiring the property from the decedent.

Point #3 above modifies due dates for Trust returns: Foreign trusts with US Owners and Read more

From Gumshoe To Gavel

Although it didn’t have the panache of Dark Justice, (Film Clip Below) a vastly underrated drama, in my humble opinion, the Law & Order (Film Clip Below) franchise was once almost as ubiquitous as stars in the sky or grains of sand on the seashore. These shows featured solid writing and good acting, along with a half cop show/half lawyer show format that resonated with audiences, at least until the CSI-esque programs took control of prime time.

As the FBAR crackdown enters its final phase, it’s almost like we’re halfway through a Law & Order episode. The setting is migrating from hard-boiled detectives tracking down leads generated by cooperative foreign governments, or tips from “concerned citizens,” to a courtroom showdown between the heroic district attorney and sleazy lawyers who rely Read more

Changes Are Coming To The FBAR FATCA Reporting For Expats

The new “Highway Fund Extension Act” has some interesting additions having nothing to do with highways including Veterans Health Care Choice Improvement. AND new tax due dates for corporate and other forms.

The main change that will be of interest to all EXPATS is the due date for the FBAR form here is the text direct from the act:

“The due date of FinCEN Report 114 (relating to Report of Foreign Bank and Financial Accounts) shall be April 15 with a maximum extension for a 6-month period ending on October 15 and with provision for an extension under rules similar to the rules in Treas. Reg. section 1.6081–5. For any taxpayer required to file such Form for the first time, any Read more

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