U.S. Income Tax for Expatriates, Nonresidents & U.S. International Tax Matters

Latest from U.S. Income Tax for Expatriates, Nonresidents & U.S. International Tax Matters

Read about the latest news on your Covid stimulous checks, the problems, how to resolve problems, how to enter your bank account number so you can have it deposited directly in your US bank account, etc. HERE FROM YAHOO NEWS  Yes as an expat living abroad you can get this stimulous payment if you qualify.  Good luck. It may take many months to resolve all problems and for your payments to arrive. Most who…
Note that all US tax filings normally due on April 15 or June 15 have been automatically extended to July 15 by the government.  No extension form was or is required.  FBAR filings are automatically extended to October 15. You may be asking about your stimulus payment.  If so, you can check the status at https://www.irs.gov/coronavirus/get-my-payment and click on “Get My Payment”. We are finding that some clients who are indeed eligible for a stimulus…
Farmers and Merchants bank has put together a great summary of the three types of Covid disaster READ THE DETAILS HERE.   If you need help applying for these loans Kauffman Nelson CPAs  may be able to help you.  These loans are generally restricted to businesses conducted in the US.  Many of our expat clients do live abroad but operate all or part of their business through US corporations, etc.relief loans available for small businesses…
The IRS will send out covid benefit stimulous payments to all taxpayers who filed a 2018 or 2019 tax return.  If you income decreased in 2019 you may want to file that tax return with the IRS as soon as possible since that decrease may me you eligible when previously your adjusted gross income was too high or if you want IRS to direct deposit in your US bank account (and that information was no…
Current government and IRS pronouncements are not clear whether the automatic extension of time to file your tax returns and pay taxes without penalties apply to US expatriates living and working abroad (normal tax return due date for expatriates is 6/15/20). This may be clarified in the future, but in the interim if you are an expatriate you may want to pay all taxes by 4/15/20 to avoid interest. The automatic extension until July 15,2020…
Dear Expat, Clients and Friends Right now, your highest priority is the health of those you love and yourself. But if you have time to read about some non-medical but important matters related to the health crisis, here is a summary of IRS action already taken and federal tax legislation already enacted to ease tax compliance burdens and economic pain caused by COVID-19 (commonly referred to as Coronavirus). I’ll be sending you summaries of additional…
Many countries are now banding together to locate and prosecute global tax evaders through J5 and the OCED to work together to mutual catch the evaders and report to countries who may be owed taxes by the evaders.  Therefore if you are paying taxes in the country you live in but not paying taxes in another country (such as the USA) where you should, you now run the risk of being turned in to the…
For this year the FinCEN has stated: “Currently the FBAR (Form 114) regulations do not define virtual currency held in an offshore account as a type of reportable account. For this reason, at this time, virtual currency held in an offshore account is not reportable on the FBAR.”  However for the future you need to follow this issue since the FINCEN position on virtual currency accounts is very likely to change at some point. We…
If you do not file your Form 114 (FBAR) reporting your foreign bank and financial accounts, you can be penalized severely and so can your heirs after your death. Read case law below about the penalty for failure to file FBARS passing on to the taxpayer heirs: In United States v. Schoenfeld (M.D. Fla. 3:16-cv-1248-J-34PDB), by order dated 9/25/18, here, the Court held (p. 37) that the “the Court finds that the Government’s claim did not…
A taxpayer that willfully attempts to evade paying income taxes is subject to criminal and civil penalties. The type of fraud will determine the applicable penalty. The following are some examples of possible punishments for specific types of tax fraud. Remember a delinquent taxpayer expat or nonresident, can never be certain if the IRS will not view their actions as beyond negligent but intentional fraud. Therefore, file your past due returns before the IRS finds…