IRS Streamlined Procedures

Expatriation & Exit Taxes Expatriation & Exit Tax: With the way 2020 turned out, it’s no wonder so many US taxpayers have decided to give up their US person status and expatriate. Common questions include: What is expatriation? Who is subject to Exit Tax? What are the tax consequences of relinquishing Permanent Residence or renouncing US Citizenship? For many taxpayers, the main catalysts in giving up their US person status are the tax and reporting…
Form 8621 Form 8621 Form 8621: When a US Person has foreign accounts, assets, investments, or income — they may have annual IRS reporting requirements. Depending on the type of account — and the value — the reporting may be significant (and oftentimes overwhelming) to a taxpayer with no financial background who simply has some foreign investments in a country they used to reside in. One of the most difficult international reporting forms is IRS…
FBAR Exchange Rate and Maximum Account Value FBAR Exchange Rate 2020 FBAR Exchange Rate & FBAR Maximum Account Value: Two of the most common questions we receive about the FBAR, is which exchange rate do I use, and how do I calculate the FBAR Maximum Account Value. Briefly, the FBAR is actually a FinCEN Form, in which the IRS has taken over compliance enforcement. FinCEN is the Financial Crimes Enforcement Network, and the FBAR…
FBAR Exchange Rate and Maximum Account Value FBAR Exchange Rate  FBAR Exchange Rate & FBAR Maximum Account Value: Two of the most common questions we receive about the FBAR, is which exchange rate do I use, and how do I calculate the FBAR Maximum Account Value. Briefly, the FBAR is actually a FinCEN Form, in which the IRS has taken over compliance enforcement. FinCEN is the Financial Crimes Enforcement Network, and the FBAR is…
1040-NR: Important Tax Tips for Nonresident Aliens 1040-NR for Nonresident Aliens (NRA) 1040NR:  Most U.S. Persons who file a US tax return each year will file an IRS form 1040. Alternatively, the form 1040-NR is filed by nonresident aliens to report US sourced income — FDAP and ECI. The distinction between the 1040 vs. 1040-NR is that a US person such as a US citizen, Legal Permanent Resident, or Foreign National subject to US…
Penalty Relief & Exemptions for 3520 & 3520-A Penalty Relief & Exemptions for 3520 & 3520-A Penalty Relief & Exemptions for 3520 & 3520-A: When it comes to foreign trusts, Internal Revenue Service Form 3520 and Form 3520-A are two of the more complicated international information reporting forms. While form 3520 is also used to report a large gift from a foreign person, individual or entity —  the reporting requirements are not as detailed…
Attorney-Client Privilege Tax Return Preparation Attorney-Client Privilege Tax Return Preparation Attorney-Client Privilege Tax Return Preparation: Representing clients in IRS tax matters can be very complicated, due to the overlapping of tax and legal issues. The courts have not definitively ruled on what tax information is protected and is not protected under the attorney-client privilege. The application of the attorney-client privilege is especially complicated in offshore tax matters, due to the fact that many tax issues…
Frequently Asked Form 5471 Questions & Answers Frequently Asked Form 5471 Questions & Answers  Frequently Asked Form 5471 Questions & Answers: The Form 5471 is becoming an increasingly important form for any US taxpayers in the world with interest in a foreign corporation. That is why we prepared these Frequently Asked Form 5471 Questions & Answers.The form is more complicated than some of the other IRS international tax reporting forms — not only because the…
  Delinquent Form 5471 Delinquent Form 5471 Delinquent Form 5471: In recent years, the Internal Revenue Service has significantly increased the enforcement of offshore reporting and compliance. One of the main forms that US taxpayers may have to file when they have an ownership or interest in a foreign corporation is called a form 5471 (aka Information Return of U.S. Persons With Respect To Certain Foreign Corporations). The form 5471 is used to report…
2020 IRS Foreign Currency Average Annual Exchange Rates 2020 IRS Average Yearly Foreign Currency Exchange Rates 2020 IRS Foreign Currency Average Annual Exchange Rates: Each year, the IRS publishes its annual average exchange rates for taxpayers to use when converting or translating foreign income into USD.  It should be noted that the Internal Revenue Service does not require taxpayers to use any specific exchange rate. The exhcange rate should be reasonable, as to not bring…