Category: Accidental Americans

Should You File a Protective Refund Claim for the Transition Tax While Waiting for the US Supreme Court? Moore Might Mean More! 

Part I of my blog post set out the background and discussed the debate over Internal Revenue Code Section 965  “transition tax” or “mandatory repatriation tax” enacted in 2017. The Supreme Court recently decided to review the 9th Circuit case of Moore v. United States bringing this controversial tax back into the spotlight.  The Court … Continue reading Should You File a Protective Refund Claim for the Transition Tax While Waiting for the US Supreme Court? Moore Might Mean More!  →

Moore Might Mean More! US Supreme Court Review of Moore & Section 965 Transition Tax 

In recent years, one of the most hotly debated tax issues in the United States has been the imposition by Internal Revenue Code Section 965 of the “transition tax” or “mandatory repatriation tax”, a provision of the Tax Cuts and Jobs Act (TCJA) enacted in 2017. The Supreme Court's recent decision to review the 9th … Continue reading Moore Might Mean More! US Supreme Court Review of Moore & Section 965 Transition Tax  →

Post-Bittner, IRS Gets Tougher on “Nonwillful” FBAR Penalties 

As predicted, the fallout from the United States Supreme Court decision in Bittner v. United States, means a tougher stance by the Internal Revenue Service (IRS) when it comes to reducing so-called “FBAR” penalties for “nonwillful” violations.  In a nutshell, the Bittner court held that the Bank Secrecy Act (BSA) $10,000 maximum penalty for the … Continue reading Post-Bittner, IRS Gets Tougher on “Nonwillful” FBAR Penalties  →

Do I Have Worldwide US Tax Liability While Waiting for the Certificate of Loss of Nationality (CLN)?

Unsurprisingly, many taxpayers are confused about the tax results of expatriation. One of the most common questions is whether, after having expatriated, but before receiving the CLN, the individual is liable for US tax on his worldwide income.  This question likely stems from the Department of State (DOS) policy that while issuance of the CLN … Continue reading Do I Have Worldwide US Tax Liability While Waiting for the Certificate of Loss of Nationality (CLN)? →

US Recipients of Gifts or Inheritance from a Former American: The Importance of Record-Keeping to Avoid Transfer Tax Liability

Did someone you know and love give up their US citizenship or a green card held for a significant time?  If so, that former US individual may at some point in the future, give you a gift or leave you an inheritance.  If you are a US person here’s what you need to know to … Continue reading US Recipients of Gifts or Inheritance from a Former American: The Importance of Record-Keeping to Avoid Transfer Tax Liability →

IRS Updates its Audit “Campaign” Targets – Who’s on the List?

For the past 6 years, the Internal Revenue Service’s (IRS) Large Business and International (LB&I) Division shifted to a new audit strategy known as “campaigns.” This shift in focus concentrates on examining tax issues that will have the broadest impact on tax compliance while making the most efficient use of IRS’s resources. Given funding issues … Continue reading IRS Updates its Audit “Campaign” Targets – Who’s on the List? →

Big Win for Taxpayers with Foreign Assets: IRS Lacks Authority to Assess & Collect Penalties for Failure to File Foreign Information Returns

The Internal Revenue Service (IRS) was sucker-punched by the Tax Court on April 3, 2023 in the case of Farhy v. Commissioner, 160 T.C. No. 6 (2023).  In that case, the Tax Court held that the IRS does not have the authority to assess and collect penalties asserted under Internal Revenue Code Section 6038(b), in the … Continue reading Big Win for Taxpayers with Foreign Assets: IRS Lacks Authority to Assess & Collect Penalties for Failure to File Foreign Information Returns →

Expatriation, Form 8854 & Fair Market Valuation of Assets – Which Date is Used?

The title of this post could also be “What a Difference a Day Makes”. Most of my readers are quite familiar with the expatriation regime, as I have written many blog posts on this topic.   Before delving into the question of the date to use when working through Form 8854, let’s have a quick review … Continue reading Expatriation, Form 8854 & Fair Market Valuation of Assets – Which Date is Used? →

Free for You: My Cross-Border Tax Presentation for the Financial Planning Association

On March 15, I was delighted to present cross-border tax topics of interest for the Financial Planning Association (FPA).  FPA is a well-known membership organization for certified financial planner professionals and those engaged in the financial planning process.  It provides its members with practice support, learning, advocacy, and networking. As a tax professional, with 40 … Continue reading Free for You: My Cross-Border Tax Presentation for the Financial Planning Association →