Kauffman Nelson LLP

Don D. Nelson is an Attorney at Law and retired Certified Public Accountant with 37 years experience in U.S. expatriate, international and nonresident taxation. He can offer you "attorney client privilege" to protect your sensitive and confidential information. Accountants, CPAs and enrolled agents cannot provide you with that important legal protection. He is a partner in Kauffman Nelson LLP, Certified Public Accountants which practices exclusively in International and Expatriate Taxation. He has assisted over 1,000 clients with their US expatriate and International tax matters and prepared many thousands of expatriate and international tax returns.

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The IRS has begun sending letters to taxpayers with virtual currency transactions that potentially failed to report income and pay the resulting tax from virtual currency transactions or did not report their transactions properly. “Taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest and penalties,” said IRS Commissioner Chuck Rettig. “The IRS is expanding our efforts involving virtual currency, including increased…
The IRS has begun sending letters to taxpayers with virtual currency transactions that potentially failed to report income and pay the resulting tax from virtual currency transactions or did not report their transactions properly. “Taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest and penalties,” said IRS Commissioner Chuck Rettig. “The IRS is expanding our efforts involving virtual currency, including increased…
Many clients and potential clients have asked us what other services do we provide other than tax US tax return preparation.  A list of some of those services are included below:  Phone and internet  mini -consultations with individual taxpayers  in connection with expatriate, nonresident and international tax planning and questions. Phone and internet consultations with CPAs and Enrolled Agents that require advice or consultation on International, Nonresident and Expatriate US tax forms, rules and regulations.…
Many clients and potential clients have asked us what other services do we provide other than tax US tax return preparation.  A list of some of those services are included below:  Phone and internet  mini -consultations with individual taxpayers  in connection with expatriate, nonresident and international tax planning and questions. Phone and internet consultations with CPAs and Enrolled Agents that require advice or consultation on International, Nonresident and Expatriate US tax forms, rules and regulations.…
The IRS does not consider virtual currencies such as BItcoin to be the same as cash or money. They consider it to be an asset to be treated for tax purposes much like stock, when purchased, sold or held as an investment. There are certain situations however when virtual currency is reportable the same as a foreign bank account on the FBAR form 114 which is used to report foreign bank and financial accounts.  Failure…
The IRS does not consider virtual currencies such as BItcoin to be the same as cash or money. They consider it to be an asset to be treated for tax purposes much like stock, when purchased, sold or held as an investment. There are certain situations however when virtual currency is reportable the same as a foreign bank account on the FBAR form 114 which is used to report foreign bank and financial accounts.  Failure…
Tax scams with calls, letters, emails, etc. allegedly from the IRS are out of control.  We even get the phone calls and emails here in our offices at Kauffman Nelson LLC.  Many sound authentic but all have the sole intent of cheating you out of your money.  Often the message includes immediate threats of prosecution, etc.  These scam attempts occur not only in the US but wherever Americans live abroad. Do not give anyone on…
Many clients want to reduce or eliminate the new tax for 2018 and beyond on the undistributed earnings of their controlled foreign corporations (over 50% ownership in the hands of US taxpayers). This replaces the old regime where profits left in foreign corporations (except in certain specific types of situations) are not taxed until distributed as dividends or wages. The new  IRS Section 951a is complex and often hits  US owners of small foreign corporations.…
When you are self employed and have your own business abroad most of the same rules apply that apply when  in the USA.  Many overlook deductions and expenses which may reduce your taxable income and social security payments to US (if required).  Some of the expense rules applicable to your US income tax return may be different than those in the country in which you operate your business.   See below for guidance. Business expenses. Business expenses…
If you owe taxes as an expat mailing a check to the IRS often is not the answer. The following video from the IRS shows how to pay the IRS by direct deposit, credit card or debit card.  Listen to the IRS video explaining payment methods here:  https://youtu.be/drh1UUCMMLk Another method which can be used to pay from foreign bank accounts is the IRS wire transfer. Read more about this method and how to do it…