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Tag Archive for Manasa Nadig

Reporting Changes For 2014 Individual Tax Returns – IRS Fact Sheet

So Valentine’s Day was here and left- that could only mean one thing – we are into the 3rd serious week of tax season! The Internal Revenue Service got out it’s fact sheet about the changes in reporting requirements for individuals. I thought for all those self-preparers, this would be a good tool to look at and see if this is the year you want to make the leap & have your taxes examined by a tax professional, especially an Enrolled Agent!

THE AFFORDABLE CARE ACT (ACA):

The ACA says that a taxpayer and each member of his family when filing his federal income tax return, must either

• Have qualifying health coverage for each month of the year; Read more

So What’s The New Buzz On Foreign Bank Accounts?

When looking for a picture for this post, I came across this one and remembered my college English Professor. She really loved the term, “Freudian Slip” for some reason! All I knew then was that Sigmund Freud was the father of psychoanalysis but I never quite understood how that related to a Business English class, unless that was the Professor’s way of telling us we were driving her nuts! Now I know that the term, “Freudian Slip” is a “mistake in speech that shows what the speaker is truly thinking” or “to do what one is truly thinking about”.

No, this post is not about defining psychoanalytic terms, dare I say more interesting than tax stuff? Not quite, but this post is about the latest buzz from the Internal Revenue Service, about some situations US taxpayers having foreign accounts might be in and their Read more

Tax Consequences For Foreign Students…Think F, J Visas

My husband and I chartered a course ourselves long ago in the stormy waters of visas, tax treaties and tax consequences. Considering taxes have just got even more complicated, so its no surprise that I field quite a lot of questions from various visa holders especially foreign students on F-1 visas. Suffice to say that the range of information for foreign students is too much to cover in one blog post, so I will focus on the main points. If you need any more information, you know where to reach me!

If you are a foreign student, you already know from your university that you are one of those who are subject to special rules with respect to the taxation of your income. Usually a foreign student is on an F, J, M, or Q visa. Read more

You Have Foreign Bank Accounts? Questions Your Tax Preparer Should Be Asking!

My expression was a jaw dropping experience when a client of ours revealed their foreign bank account balances a month after we had filed their tax returns. A long lecture about foreign account balances, and an Amended Tax Return followed with required attachments. We quickly realized the need for the right questions in the December Tax Organizer. This was a few years ago and there have been many updates to those questions now.

Unfortunately there are many taxpayers out there who are still unaware of their filing/ reporting requirements. More details on the requirements in my post here. And many a time this is because they have not been educated of their requirements by their tax preparers. Read more

“Kiss of Death” Says IRS – Protect Your Identity From Theft

Was it Oscar Wilde who said, “Most people are other people. Their thoughts are someone else’s opinions, their lives a mimicry, their passions a quotation”? Poor Oscar lived during those simple times, when identities actually represented a person’s personality & all of it’s unique traits.

The world has come a long, long way since, your identity is now associated with everything you touch, from something as simple as your email account or other social media to your Social Security Number, bank accounts, credit cards etc. As we enter the maze of the digital world, we have to beware of the dragon that is the identity thief!

I had a close encounter with identity theft when a client’s e-file was rejected with a unique Read more

How “Moving On In Life” Can Be Tax Deductible

It was Walt Disney who said, “We keep moving forward, opening new doors, and doing new things, because we are curious and curiosity keeps leading us down new paths.” The world is shrinking and this quote has never been truer for us. Our professional lives no longer have the same boundaries as before. And we move for work and yes, the Internal Revenue Service (IRS) recognizes that and lo and behold lets us deduct moving expenses on our tax returns.

Read on… this truly gets more exciting (in a very tax nerdy way, if you know me!)

Requirements to Deduct Moving Expenses?:

Let me not get you too excited! Not everyone can deduct moving expenses. There are Read more

TaxConnections Worldwide Tax Blogs Awards 2014 – Top Twenty Tax Bloggers

Brian Mahany is the top of the list as the most prolific blogger on Worldwide Tax Blogs. Brian blogs on FATCA – The Single Worst Tax Law On the Books, Beanie Baby Founder Headed To Prison, How To Respond When Your Foreign Bank Asks About Your IRS Compliance, Restaurant Owners Beware-IRS Audits Can Lead To Immigration Charges. Brian is an expert on FATCA (Foreign Account Tax Compliance Act) and you can discover for yourselves how informative his blogs are for US citizens with offshore bank accounts. A new world is emerging for citizens with offshore bank accounts this year so stay tuned as Brian continues to share his knowledge with us. Having said that, a group of distinguished tax bloggers leads TaxConnections Worldwide Tax Blogs Top Twenty Tax Bloggers list this year and they all provide a different perspective on a wide variety of tax matters. Read more

Small Business Payroll: Mistakes And How To Avoid Them

Payroll Compliance is a challenge that many small businesses struggle with. Payroll done by business owners themselves mean that they need to have the know-how to comply with the Internal Revenue Service’s strict rules regarding accurate reporting & deposits. Moreover, federal, state & local tax regulations change & many times without notice. Small business owners need to follow such changes keenly as well.

Having a professional as a trusted guide & advisor helps small business owners (SBO) navigate these dangerous waters. It also saves them time and costly errors. Errors which are due to late filing or deposit of taxes increase the risk of steep penalties & scrutiny from the Internal Revenue Service. Read more

Offshore Voluntary Disclosure Program: The Basics (2013)

Let us start with the fact that the 2009 Offshore Voluntary Disclosure Program and the 2011 Offshore Voluntary Disclosure Initiative had deadlines but the new Offshore Voluntary Disclosure Program (OVDP) does not. This new program will be available until further notice to taxpayers who wish to come forward and disclose their foreign bank assets.

What Does the OVDP do? This program seeks to bring taxpayers who had undisclosed foreign bank accounts or undisclosed foreign entities for the purpose of evading or avoiding tax into compliance with the laws of the United States.

This program is a counter-part of the Criminal Investigation’s Voluntary Disclosure Practice. It Read more

Don’t Look A Gift Horse In The Mouth: All About Gifts And Taxes

It’s the proverbial time of the year when there are a lot of gifts exchanged. Some are store bought, some gift cards & there are those who just get plain ol’ cash.

What constitutes a “gift” in the eyes of the IRS?

• You make a gift if you give property, including money, or the use of or income from property, without expecting anything of equal value in return.
• You also make a gift if you sell something at less than its full value
• There’s a gift made if you give an interest-free loan or reduced interest loan Read more
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