TaxConnections


 

Tag Archive for FBAR

What You Need To Know About Voluntary Disclosure

There are around 9 million Americans living oversees, and the IRS has its sights set on those expats who aren’t up to date with their U.S. tax filing.

All American citizens and green card holders are required to file a U.S. tax return, however because the U.S. is the only developed nation to tax its non-resident citizens, many haven’t realized that they have to file. Read more

Reasons Not To Worry If You’re Behind With Your Expat Filing

There are lots of scare stories going around about the possible consequences for not filing U.S. taxes as an expat. You may have heard for example about U.S. passports being revoked, sizable FBAR penalties, and banks closing expats’ accounts because of FATCA. So if you’re an expat who’s behind with their U.S. tax filing, you may well be at least a little bit concerned. Read more

FBAR Instructions For U.S. Expats Filing FinCEN Form 114

Hugo Lesser

Americans living abroad are still required to file a U.S. tax return, and furthermore they may have to report their foreign bank and investment accounts by filing a Foreign Bank Account Report, or FBAR.

Due to the 2010 Foreign Account Tax Compliance Act (FATCA), most foreign banks and other financial firms are now reporting their American account holders account balance and contact details to the IRS. Read more

PFIC And Canadian Mutual Funds

Why are PFIC rules important for holders of Canadian mutual fund?

Many American citizens living or working in Canada have invested in Canadian mutual funds – likewise, many Canadians who subsequently moved to the United States retained their Canadian mutual funds holdings. They likely are unaware of the PFIC rules. Consequently many American taxpayers holding Canadian PFIC have not met their reporting obligations. Not only that  but PFIC investments are to be avoided since its taxation (with the exception of the QEF regime) is designed to be punitive. 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. 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

Expat Taxes For Americans Living In Denmark

Living in Denmark is an incredible experience for a number of reasons, including the friendly locals, the free, high-quality public services, the hygge, the charming culture, not to mention easy access to the rest of Europe. As an American expatriate living in Denmark though, what exactly do you need to know regarding filing U.S. expat (and Danish) taxes?

Read more

U.S. Expat Taxes For Americans Living In Sweden

It has been estimated that there are several thousand Americans living in Sweden.

Living in Sweden is an incredible experience for a number of reasons, including the friendly locals, the free, high-quality public services, the charming culture, not to mention easy access to the rest of Europe. As an American expatriate living in Sweden though, what exactly do you need to know regarding filing U.S. expat (and Swedish) taxes?

Read more

U.S. Expat Taxes For Americans Living In Ireland

Hugo Lesser

It has been estimated that there are several thousand Americans living in Ireland.

Living in Ireland is an incredible experience for a number of reasons, including the friendly locals, the incredible landscapes, the charming culture, not to mention easy access to the rest of Europe. As an American expatriate living in Ireland though, what exactly do you need to know regarding filing U.S. expat (and Irish) taxes?

Read more

Form 8621 And 5471 Are Required Even If The Tax Return Isn’t!

John Richardson

The Internal Revenue Code of the United States requires two things:

1. The calculation of taxes; and

2. The reporting of information.

The Internal Revenue Code of the United States is based on three basic principles:

1. A dislike of all things “foreign”. (If you see the word “foreign” a penalty is sure to follow.)

2. A hatred of all forms of non-U.S. “tax deferral”

3. An attempt to stop the “leakage” of “U.S. taxable assets” from the U.S. tax base. (Examples include the U.S. tax treatment of the “alien spouse” and the U.S. S. 877A “Exit Tax” that may be payable when one makes the decision to renounce U.S. citizenship).

Read more

TaxConnections