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Tag Archive for Internal Revenue Service

Expenses For Business Meals Under §274 Of The Internal Revenue Code

Business Meal Expenses Under Tax Cuts And Jobs Act

This IRS notice provides transitional guidance on the deductibility of expenses for certain business meals under § 274 of the Internal Revenue Code. Section 274 was amended by the Tax Cuts and Jobs Act, Pub. L. No. 115-97, § 13304, 131 Stat. 2054, 2123 (2017) (the Act). As amended by the Act, § 274 generally disallows a deduction for expenses with respect to entertainment, amusement, or recreation. However, the Act does not specifically address the deductibility of expenses for business meals. Read more

IRS: Offshore Voluntary Compliance Program To End September 28, 2018

IRS - Offshore Voluntary Disclosure Program Ends September 28, 2018

The Internal Revenue Service today reminded taxpayers they have until Sept. 28 to apply for the Offshore Voluntary Disclosure Program (OVDP).

Since the OVDP’s initial launch in 2009, more than 56,000 taxpayers have used the various terms of the program to comply voluntarily with U.S. tax laws. These taxpayers with undisclosed offshore accounts have paid a total of $11.1 billion in back taxes, interest and penalties. The planned end of the current OVDP also reflects advances in third-party reporting and increased awareness of U.S. taxpayers of their offshore tax and reporting obligations.

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Report Of Cash Payments Over $10,000 Received In A Trade Or Business – Financial Crimes And Automobile Dealership Transactions

IRS - Reporting On Cash Payments Over $10,000

Generally, any person in a trade or business who receives more than $10,000 in cash in a single transaction or related transactions must complete a Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business (PDF). Form 8300 is a joint form issued by the IRS and the Financial Crimes Enforcement Network (FinCEN) and is used by the government to track individuals that evade taxes and those who profit from criminal activities. Although the cash reporting requirements apply to many types of businesses, auto dealerships frequently receive cash in excess of $10,000 and are required to comply with the filing requirements.

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IRS FATCA Foreign Financial Institutions (FFI) Lists 314,027 Financial Institutions Worldwide

IRS, IRS List of FATCA Foreign Financial Institutions

The Foreign Financial Institutions (FFI) List is issued by the IRS and includes all financial institutions, branches, direct reporting non-financial foreign entities, sponsored entities, and sponsored subsidiary branches that have submitted a registration and have been assigned a Global Intermediary Identification Number (GINN) at the time the list was compiled. The list is compiled on a monthly basis and published the first day of each month.

The Foreign Financial Institutions (FFI) list in its entirety along with the Global Intermediary Identification Number (GINN) can be accessed or downloaded in its entirety on the following page:

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Private Pass-Through Foundation Rules And The 50 Percent Contribution Deduction

IRS, TaxConnections

Contributions to a private nonoperating founda­tion may qualify for the benefit of the 50 percent contri­bution deduction limit, and donors may deduct the full value of appreciated property, if the pri­vate nonoperating foundation:

  1. Distributes an amount equal in value to 100 percent of all contributions received in the tax year by the 15th day of the 3rd month after the close of its tax year,
  2. Has no remaining undistributed income for the year, and
  3. Distributes only qualifying distributions that are treated as distributions out of corpus.

Qualifying distributions cannot be made to:

  1. An organization controlled directly or indi­rectly by the foundation or by one or more disqualified persons, or
  2. A private foundation that is not an operat­ing foundation.

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IRS Reminds Retirees Of April 1, 2018 Deadline To Take Required Retirement Plan Distributions

WASHINGTON — The Internal Revenue Service today reminded taxpayers who turned age 70½ during 2017 that, in most cases, they must start receiving required minimum distributions (RMDs) from Individual Retirement Accounts (IRAs) and workplace retirement plans by Sunday, April 1, 2018.

The April 1 deadline applies to all employer-sponsored retirement plans, including profit-sharing plans, 401(k) plans, 403(b) plans and 457(b) plans. The RMD rules also apply to traditional IRAs and IRA-based plans such as SEPs, SARSEPs, and SIMPLE IRAs, however, they do not apply to ROTH IRAs. Read more

IRS Updates AFRs; Interest Rates Remain Unchanged

The Internal Revenue Service (IRS) has updated its applicable federal rates (AFRs) used for a variety of IRS calculations, such as the minimum interest rate for intra-family loans. For calendar year 2017, AFRs for short-term loans have increased from 0.96 percent to 1.52 percent, AFRs for mid-term loans have fluctuated around 2 percent, and AFRs for long-term loans have fluctuated between 2.6 percent and 2.82 percent. For a detailed list of AFRs by month and year, click here.

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Taxpayer Assistance Center Service Continues to Decline, Impairing Taxpayers’ Ability to Receive In-Person Assistance

The other day, I came across an interesting item in the news, describing that for the first time in its history, Macy’s was only letting people with appointments visit its famous Santa. I was interested in this because, for all intents and purposes, the Internal Revenue Service (IRS) had been “appointment only” in its Taxpayer Assistance Centers (TACs) since November 2016. So on the face of it, the IRS was in the vanguard of customer service.

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What US Expats Who Receive Form W-9 from a Foreign Bank Should Do

Over the last few years, millions of US expats have been asked by their foreign banks and investment firms to fill out IRS form W-9. Receiving form W-9 often causes surprise or alarm. While there’s no need to panic, there are a number of things that expats should know if they receive form W-9, to ensure that they don’t create any problems in the future. Read more

What You Need to Know About Deductions for Your Holiday Giving

November kicks off the season of giving, and the donations you make to your favorite charities may also provide you some tax benefits. However, there are some guidelines you should keep in mind as you write those checks.

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Filing IRS Back Taxes for US Expat Americans

American expats are still required to file a US federal tax return to the IRS. As expats also have to comply with the tax rules in the country where they live, it’s counterintuitive but nonetheless important that they file US taxes too.
Taxing US citizens abroad, or Citizenship (rather than Residence) Based Taxation, dates back to the Civil War, but until recently the IRS was powerless to enforce expat taxes, so few expats filed.

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