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All Irish Tax Residents Working Abroad Must Factor In ‘Withholding Tax’ On Their Winnings

Frances Brennan, Tax Advisor, Tax Blog, Dublin, Ireland, TaxConnections

When following the Masters in Augusta it occurred to us that golfers & musicians both share ‘common ground’.

All Irish tax residents working abroad must factor in ‘withholding tax’ on their winnings or live performance in most countries. Withholding tax is deducted at source from any payment to a non-resident individual.

Artistes & Athletes are twinned together in the Double Taxation Treaties and Ireland has these agreements with 74 other countries. The Treaty covers Income Tax, USC, Corporation Tax & Capital Gains Tax. Read More

IRS Reminds Those With Foreign Assets About U.S. Tax Obligations

Tom Kerester, Tax Ambassador, Tax Blog, Washington D.C., USA, TaxConnections

WASHINGTON — The Internal Revenue Service today reminded U.S. citizens and resident aliens, including those with dual citizenship, to check if they have a U.S. tax liability and a filing requirement. At the same time, the agency advised anyone with a foreign bank or financial account to remember the upcoming deadline that applies to reports for these accounts, often referred to as FBARs.

Here is a rundown of key points to keep in mind:

Deadline For Reporting Foreign Accounts Read More

Last Minute Tax Tips Before Deadline

Nanda Kumar, Tax Advisor, Tax Blog, Sterling, Virginia, USA, TaxConnections

Procrastination of tax returns is not a unique phenomenon. In fact, a lot of tax payers file their tax returns in the last two weeks before the deadline. Filing tax returns earlier than the deadlines is better as you are not rushed and chances of making mistakes is also lower. However, if you are racing against the deadline clock for your returns, here are some tips to help you get through.

Organize Read More

Canada Tax: Qualifying Non-Resident Employer And Withholding Tax

Grant Gilmour, Tax Advisor, Tax Blog, Vancouver, Canada, TaxConnections

A qualifying non-resident employer can be certified and thus will have to withhold tax from the salary or other compensation paid to qualifying non-resident employees in Canada (to be covered in a future FAQ). This eliminates withholding taxes. Which can be a big cash flow savings. The certification will be valid for up to two calendar years.

To be eligible to be a qualifying non-resident employer, the employer must be a resident in a country that has a tax treaty with Canada. Read More

Another Cryptocurrency Primer Of Our Cyber Universe: Who, What, And Why They Differ

Daniel Morris, Tax Advisor, Tax Blog, San Jose, California, USA, TaxConnections
  1. Who are the major players I think you should be aware of
  2. What’s a DAO (Decentralized Autonomous Organization)?
  3. If Cyber Currency is so Great, Why are there so many challenges in the Community?
  4. My Crystal Ball

The cryptocurrency, or digital currently world is complex with a few core leaders and hundreds, if not thousands, of related active alternatives. All are predicated on the concept of the Blockchain or often referred to as the Distributed Ledger Technology (DLT). While the core history of Bitcoin and its related alternatives is fairly accessible via a simplified web search, popular media, and even “analog” books, I have determined that far too many do not understand the differences and similarities between and among these various alternative coins (Alt Coins). Read More

Rushing To File Taxes Can Result In Errors; E-File Decreases Errors, Extensions Available

Tom Kerester, Tax Ambassador, Tax Blog, Washington D.C., USA, TaxConnections

WASHINGTON — As the April 17 tax-filing deadline nears, many taxpayers may rush to finish their tax returns or find that extra time is needed to get them done. The IRS recommends that taxpayers request a filing extension if they need one.

Mistakes can happen when hurrying to file a tax return by the due date. This can mean longer processing times and possible tax refund delays. Electronic filing is the best way to avoid common mistakes; it is also the most accurate way to file a tax return. The IRS estimates that about 70 percent of taxpayers can file their tax return at no charge by using IRS Free File software. Read More

A Digital “Mailbox Rule” Is Required As The IRS Steers Taxpayers Toward Self-Help Digital Tools

As the IRS steers taxpayers toward self-help digital tools, it is necessary to bring the “statutory mailbox rule” into the 21st century. Currently, the statutory mailbox rule in IRC § 7502 does not apply to the electronic transmission of many time-sensitive documents and payments to the IRS. The rule provides that if the requirements set forth in the statute are met, a document or payment is deemed to be filed or paid on the date of the postmark stamped on the envelope.

If the postmark date is on or before the last day of the period prescribed for filing the document or making the payment, the document or payment is considered timely filed or paid even if it is received after the due date. Further, IRC § 7502(c) provides that registered or certified mail, or methods deemed substantially equivalent by the Secretary of Treasury, is prima facie evidence of delivery. Read More

What Is Cryptocurrency?

There is plenty of misunderstanding about the definition of cryptocurrency. Wikipedia’s well-researched entry on the topic defines “cryptocurrency” as follows (with their links included):

[Cryptocurrency is] a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets. Cryptocurrencies are a type of digital currencies, alternative currencies and virtual currencies. Cryptocurrencies use decentralized control as opposed to centralized electronic money and central banking systems. Read More

6 Payroll Basics Every Small Business Owner Should Know For Tax Filing

Small businesses with employees must withhold some of every employee’s paycheck to pay taxes to the government. At the top of the list are federal, state and local income taxes. Plus, the employer is also responsible for federal and state unemployment taxes, and their share of FICA taxes.

Additional taxes include the employee’s share of Social Security and Medicare taxes that make up the FICA contributions.

Now, a payroll provider could handle this withholding for you. This way, you never forget to withhold the correct amount from employee paychecks. Read More

Join The Taxpayer Advocacy Panel And Help Improve The IRS

WASHINGTON — The Internal Revenue Service seeks civic-minded volunteers to serve on the Taxpayer Advocacy Panel (TAP), a federal advisory committee that listens to taxpayers, identifies major taxpayer concerns and makes recommendations for improving IRS service and customer satisfaction. Taxpayers interested in serving on the panel may apply between now and April 27.

To the extent possible, the TAP includes members from all 50 states, the District of Columbia, and Puerto Rico and one member abroad who represents international taxpayers. Each member is appointed to represent the interests of taxpayers in his or her geographic location as well as taxpayers overall. Read More

Tax Payment Options You Need To Know

Lisa Nason, Tax Blog, Tax Advisor, Greenville, South Carolina, USA, TaxConnections

For those of you who may have to fork over some additional funds to Uncle Sam, there are several options available for making payments.

If you can’t pay your tax bill in full, a payment plan may be an option. Additional information about all payment and payment plan options can be found at www.irs.gov/payments and in Publication 5034, Need to Make a Payment? (English & Spanish).

The IRS also offers taxpayers the ability to pay using their mobile device through the IRS2Go app, available on the Apple or Google Play store. Read More

Tips For Updating Form W-4 After Doing A Paycheck Checkup

Form W-4, Paycheck Checkup, IRS, Withholding Calculator, Tax Return, Tax Withheld, Thomas Kerester, Tax Ambassador, Tax Blog, Washington D.C., USA, TaxConnections

With recent tax law changes, the IRS urges taxpayers to look into whether they need to adjust their paycheck withholding and submit a new Form W-4 to their employer. Taxpayers can use the updated Withholding Calculator on IRS.gov to do a quick “paycheck checkup” to check that they’re not having too little or too much tax withheld at work.

Taxpayers who use the calculator and determine that they need to change their withholding must fill out a new Form W-4, Employee’s Withholding Allowance Certificate. Employees will submit the completed Form W-4 to their employers. Read More

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