TaxConnections


 
 

Tag Archive for FATCA

The Dual Citizen Exception To The Exit Tax

According to Treasury Department numbers, 2016 broke the record for annual U.S. citizenship renunciations with a grand total of 5,411 renunciations. As we’ve noted previously, possible reasons for the increase in renunciations include the global strengthening and influence of the Foreign Account Tax Compliance Act (“FATCA”) and President Trump’s election victory (the “Trump bump”). Read more

Tax Burdens Prompt More Americans To Ditch Citizenship

Americans abroad have just about had it with Uncle Sam’s tax filing requirements.

Those were the findings from a recent survey of more than 2,100 U.S. expatriates, according to Greenback Expat Tax Services, which specializes in working with American taxpayers residing overseas.

Just over 4 in 10 respondents said that while they aren’t planning to renounce their U.S. citizenship, they wouldn’t rule it out, and 19% said they’re seriously considering it. Read more

Will The IRS Streamlined Procedure For Expats Be Revoked?

Hugo Lesser

For decades, U.S. expats lived in peace, beyond the reach of the American tax system, despite being theoretically obligated to file U.S. taxes on their worldwide income from abroad by American’s citizenship based taxation regime.

Then came FATCA, the 2010 Foreign Account Tax Compliance Act. Designed to address tax evasion in the wake of the 2008 financial crisis, FATCA requires all foreign banks and investment firms to provide details of their American account holders to the IRS. Read more

IRS Crackdown And The Future Of Tax Amnesty Programs

Ephraim Moss

With the recent heavy focus on Congress and the Trump’s administration’s tax reform proposals, it can be easy to forget that the IRS continues to proactively crackdown on offshore tax evasion. Read more

U.S. Expatriates Guide To Living In Greece

Living in Greece is an incredible experience for a number of reasons, including the friendly locals, the culture, history, architecture, climate, beaches and islands, not to mention easy access to the rest of Europe. As an American expatriate living in Greece though, what exactly do you need to know regarding filing U.S. expat (and Greek) taxes? Read more

U.S. Expat Mistakes: Part I

Manasa Nadig

United States is one of the few countries in the world in its Citizen-Based-Taxation format. This means that no matter where you live, you need to be current on your U.S. tax filing if you are a U.S. Citizen or Green Card Holder. You are known as an Expatriate or Expat (for short) if you are a U.S. citizen or green card holder living outside the United States.   Read more

FBAR In The Homeland: The Willful FBAR Penalty Requires Proof

John Richardson

This is one more in a series of posts discussing the FBAR rules. The FBAR rules were born in 1970, laid virtually dormant until the 2000s and then were then unleashed in their full “ferocity” on U.S. persons. 

Mr. FBAR has not visited Canada, but he has visited Canadian citizens Read more

Accounts U.S. Expats Have to Report In An FBAR

The U.S. tax system is different to every other developed country’s, in that America taxes based on citizenship rather than on residence. That means that whereas most countries only tax residents (and non-residents who have income arising in the country), the U.S. taxes all U.S. citizens wherever in the world they live. Read more

The Tax Questions U.S. Expats Most Often Ask

Do I still have to file and pay U.S. taxes if I live abroad?

This is the most common tax question that U.S. expats ask. Unfortunately, the U.S. tax system is based on citizenship rather than residence, so it doesn’t discriminate where in the world you live.

As a result, expats have to file and pay U.S. taxes on their worldwide income if they earn over $10,000 (or just $400 of self-employment income).

Read more

Keep Up With Tax Policy— Two Important Hearings Today!

If you have been reading our blogs, we have been chronicling the tax legislative process through the House Ways and Means Committee. (If not, you can click here to read the previous blogs in the process.) We have also been looking at the impact of FATCA.

These are of note because today, there will be live hearings looking at the tax filing season and the unintended consequences of FATCA.

Read more

How The U.S. Can Leverage FATCA Bilateral Process

TaxConnections Member Professor William Byrnes examines whether it is prudent for taxpayers to trust the governments of the 117 countries that scored a fifty or below on Transparency International’s corruption index. The complete information system invoked by the Foreign Account Tax Compliance Act (FATCA) encourages, even prolongs, the bad behavior of black hat governments by providing fuel (financial information) to feed the fire of corruption and suppression of rivals. Professor Byrnes recommends that the United States leverage a “carrot-stick” policy tool to incentivize bad actors to adopt best tax administration practices.

Article download at https://ssrn.com/abstract=2916444

New FATCA Agreements Released, 2014 Agreements Expire

William Byrnes

The IRS released Revenue Procedure 2017-21, which contains the updated withholding foreign partnership (WP) agreement and withholding foreign trust (WT) agreement.

The revenue procedure provides information on submitting an application or request for renewal of a WP or WT agreement.

Read more

Meet Tax Experts At TaxConnections...