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

Blog Authors

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

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…
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…
You may be obligated to report your foreign financial accounts on line using form 114. Failure to do so may cause the IRS to assess penalties of $10,000 or more …. and there are also criminal penalties. Learn more in the Forbes article HERE Also if you have other types of foreign assets such as foreign corporations, foreign partnerships, foreign LLCS, foreign bonds, stocks, etc. you may be required to file form 8938 with your…
You may be obligated to report your foreign financial accounts on line using form 114. Failure to do so may cause the IRS to assess penalties of $10,000 or more …. and there are also criminal penalties. Learn more in the Forbes article HERE Also if you have other types of foreign assets such as foreign corporations, foreign partnerships, foreign LLCS, foreign bonds, stocks, etc. you may be required to file form 8938 with your…
For businesses that have employees, there are changes to fringe benefits that can affect a business’s bottom line and their employee’s tax liabilities. One of these changes is to qualified moving expenses. Under previous law, payment or reimbursement of an employee’s qualified moving expenses were not subject to income or employment taxes. Under last year’s tax reform legislation, employers must include all moving expenses, in employees’ wages, subject to income and employment taxes. Exception Generally,…
Has your business ever received a large cash payment, and you were not quite sure what Report of Cash Payments Over $10,000 Received in a Trade or Business, if your business receives more than $10,000 in cash from one buyer as a result of a single transaction or two or more related transactions. your reporting obligations were regarding that large payment? The general rule is that you must file Form 8300, The Form 8300 provides…