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Tag Archive for United States

Global Tax Chiefs Undertake Unprecedented Multi-Country Day Of Action To Tackle International Tax Evasion

International Tax Evasion

A globally coordinated day of action to put a stop to the suspected facilitation of offshore tax evasion has been undertaken this week across the United Kingdom (UK), United States (US), Canada, Australia and the Netherlands.

The action occurred as part of a series of investigations in multiple countries into an international financial institution located in Central America, whose products and services are believed to be facilitating money laundering and tax evasion for customers across the globe.

It is believed that through this institution a number of clients may be using a sophisticated system to conceal and transfer wealth anonymously to evade their tax obligations and launder the proceeds of crime.

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U.S. And Switzerland Tax Deal Ratified After Congress Finally Approves It

US And Switzerland Tax Treaty

The U.S. Treasury Department on Friday announced that a long-in-the-works tax treaty with Switzerland has at last been signed and has entered into force, alongside a tax deal with Luxembourg.

The tax treaty had originally been approved by the Swiss Parliament in June, 2010, but had been held up on the U.S. side over concerns that it potentially violated the privacy of individuals whose information, under the agreement, will now be freely exchanged.

The deal means that Washington will now be in a position to request information from the Swiss authorities on American accounts going back ten years.

In a statement on Friday, the Treasury Department said the two protocols would bring the existing tax treaties that the U.S. already has with Luxembourg and Switzerland “into closer conformity with current U.S. tax treaty policy, to allow for greater tax information exchange that will enhance efforts to bolster tax compliance and combat tax evasion.”

The protocols with Luxembourg and Switzerland – in addition to protocols with Japan and Spain that were also signed recently – are the first updates to to the U.S.’s income tax treaty regime in nearly 10 years.

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How To File Taxes With A 1099 Tax Form

If you’re a 1099 worker, your tax life is very different than that of employees. It’s vitally important to understand how to file your taxes when you’re a 1099 worker, or you can end up in big trouble with the IRS.

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Sales Tax Exemption For Prescription-Required Single-Use Medical Devices in Louisiana

One Louisiana sales tax exemption for medical purchases made by hospitals and health care facilities provides an opportunity for both Louisiana sales and use tax savings at the state tax rate of 5%. This Louisiana sales tax exemption applies to medical devices that are required to be issued under a physician’s prescription and are used personally and exclusively by a single patient.

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Trump Tax Reform Bill Analysis – What Does It Mean For US Expats?

On November 2nd, the House of Representatives unveiled the first draft of the Trump Tax Reform Bill. Here we look at how it will affect expats.

Citizen Based Taxation and FATCA 

There is no mention in the draft Tax Reform Bill of any change to citizen based taxation for individuals, or of repealing FATCA.

It is proposed that corporations are only taxed on their US profits (rather than globally), as taxing corporations globally has (conversely to expectations) reduced government revenue, as globally operating firms have simply relocated to other countries with more favorable tax regimes.

Despite ACA (American Citizens Abroad) lobbying to make a similar change away from global taxation for expat individuals, there is no mention of this in the draft bill. Read more

US Tax Reform Bill Appears To Confiscate 12% of Retained Earnings of Certain Canadian Controlled Private Corporations

Kudos to Max Reed for his quick analysis on how the proposed U.S. Tax Reform bill may affect Canadian citizens/residents who also hold U.S. citizenship.

Reed’s analysis, which has been widely discussed at the Isaac Brock Society includes provisions that are very damaging to those who are the owners of Canadian Controlled Private Corporations (noting they are also under assault from Messrs. Trudeau and Morneau). The damaging provisions are both prospective and retrospective.

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Open Letter On Tax Reform To Administration And Congress

Kat Jennings

Open Letter to President Trump, Treasury Secretary Mnuchin, House Speaker Paul Ryan, House Ways and Means Committee Chairman Kevin Brady, and Senate Finance Committee Chairman Orrin Hatch

The United States taxes individuals on the basis of citizenship. In other words, it taxes American citizens on their worldwide income regardless where they reside, the source of their income, whether they are or ever have been present in the US – in short, regardless of anything.

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Determining Tax Residency In The United States

John Richardson

The advent of the OECD Common Reporting Standard (CRS) has illuminated the issue of tax residency and the desire of people to become tax residents of more tax favorable jurisdictions. It has become critically important for people to understand what is meant by tax residency. It is important that people understand how tax residency is determined and the questions that must be asked in determining tax residence. Tax residency is NOT necessarily determined by physical presence.

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Webinars—International Tax/Captive Insurance—Register Now

Hale Stewart

Hale Stewart is teaching 2 upcoming webinars next week that offer CPE credits: An Introduction to U.S. International Tax and Introduction to Captive Insurance. If you are serious about continuing your tax education, you should register with haste. Scroll down to read descriptions about the classes offered.

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Upcoming Webinars—International Tax/Captive Insurance

Hale Stewart

Hale Stewart is teaching 2 upcoming webinars next week that offer CPE credits: An Introduction to U.S. International Tax and Introduction to Captive Insurance. If you are serious about continuing your tax education, you should register with haste. Scroll down to read descriptions about the classes offered.

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A Quick Refresher On The Foreign Tax Credit

Ephraim Moss, foreign tax credits, expat, tax professional

One of the fundamentally important tax concepts for U.S. expats to know is that the U.S. tax system has built-in mechanisms for preventing the “double taxation” of your income (i.e., tax in both your new host country and in the United States). These mechanisms provide a measure of relief for U.S. expats who remain subject to U.S. taxation, despite living and working abroad.

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How To Get A U.S. Social Security Number In Canada – Tax Compliance

John Richardson

Why do some Canadians wish to have a U.S. Social Security number?

Many Canadians are in the process of coming into U.S. tax compliance. One might ask: Why would a Canadian citizen residing in Canada wish to come into U.S tax compliance?

There are two reasons why Canadian citizen/residents file U.S. tax returns:

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