FBAR Penalty & the US Supreme Court: If the Penalty is “Per Form”, are “Per Account” Penalty Refunds Possible?

My earlier blog posts discussed the split in the circuit courts whether the FBAR $10,000 civil nonwillful penalty is to be applied on a “per account” rather than “per form” basis. The Fifth and Ninth circuit courts disagree on the statutory interpretation of the Bank Secrecy Act (BSA) (31 U.S.C. § 5321(a)(5)(B)(i)), particularly what constitutes … Continue reading FBAR Penalty & the US Supreme Court: If the Penalty is “Per Form”, are “Per Account” Penalty Refunds Possible? →

Foreign Accounts and Assets: How I Approach a “Streamlined” Tax Filing Nowadays

The Internal Revenue Service (IRS) Streamlined Procedures of 2014 are still available for taxpayers with tax noncompliance issues that involve unreported income from a foreign financial asset. The Procedures can help taxpayers who have not filed certain information returns associated with the foreign asset (e.g., Form 8938; Form 5471 pertaining to ownership in a foreign … Continue reading Foreign Accounts and Assets: How I Approach a “Streamlined” Tax Filing Nowadays →

US Supreme Court to Decide: FBAR Penalty, $10K per Form or per Account?

The US Supreme Court just agreed to resolve the split in the circuit courts whether the FBAR $10,000 civil nonwillful penalty is to be applied on a “per account” rather than “per form” basis. By granting certiorari to Mr. Bittner, a taxpayer who petitioned the Court to review his case, we will finally have a … Continue reading US Supreme Court to Decide: FBAR Penalty, $10K per Form or per Account? →

Escaping the USA, Exit Tax and Transfer Tax Regimes: Using the “Dual National” Exception

The economy is not looking good with the stock market dropping sharply, with tech companies being hit most dramatically, dropping by about 40%. Crypto markets are also in a freefall and liquidity has dried up. As a result, it may be the perfect time for individuals wishing to relinquish green cards held for a long … Continue reading Escaping the USA, Exit Tax and Transfer Tax Regimes: Using the “Dual National” Exception →

Everything You Need to Know: “Expatriation”- Giving up a Green Card (LTR) or US Citizenship

Curious about what it means from a US tax perspective if you give up your green card or US citizenship? You really should know BEFORE you take the plunge and apply for that green card or obtain US citizenship. Tax pro's -- Want to expand your client reach by advising and planning with confidence about “expatriation”? … Continue reading Everything You Need to Know: “Expatriation”- Giving up a Green Card (LTR) or US Citizenship →

Solicitor General Wants US Supreme Court to Decide Whether the FBAR “Nonwillful” Penalty is “Per Form” or “Per Account”

My earlier blog posts discussed the split in the circuit courts whether the FBAR $10,000 civil nonwillful penalty is to be applied on a “per account” basis rather than “per form”. The crux of the matter involves conflicting statutory interpretations by the 5th and 9th circuit courts of the Bank Secrecy Act (BSA) (31 U.S.C. … Continue reading Solicitor General Wants US Supreme Court to Decide Whether the FBAR “Nonwillful” Penalty is “Per Form” or “Per Account” →

Recent FBAR Case: IRS Seeks “Willful” Penalty $8.8M Without Much Regard for the Facts

A very recent FBAR case teaches us a few things. My colleague, attorney John Richardson, noted this after reading the case: "When charities need to raise money they will often have a bake sale or an auction. When the US government wants to raise money it uses an 'FBAR Fundraiser'". Readers, draw your own opinion! … Continue reading Recent FBAR Case: IRS Seeks “Willful” Penalty $8.8M Without Much Regard for the Facts →

Part II: Biden Proposal Changes the Taxation Game for Gifts and Inheritances – Americans Abroad Hit Hard

Today's post, Part II, was written with my colleague John Richardson, J.D. Part I of this blog post discussed President Biden's Green Book proposal that would change the tax rules for unrealized capital gains when assets are gifted or passed at death. To recap, the major thrust of the Green Book proposal is to treat gifts … Continue reading Part II: Biden Proposal Changes the Taxation Game for Gifts and Inheritances – Americans Abroad Hit Hard →

Determinative Factors: “Debt” v. “Equity” and Your Loan to a Foreign Corporation (Part II)

My recent blog post, here examined some of the tax consequences that could occur when a taxpayer mistakenly classifies an advance to a foreign corporation as a “loan” but that the Internal Revenue Service (IRS) treats as a stockholding interest (“equity”) in the corporation. Last week’s blog post began examining factors used by the courts … Continue reading Determinative Factors: “Debt” v. “Equity” and Your Loan to a Foreign Corporation (Part II) →

Foreign Corporate Tax – How Will it Impact the US Taxpayer of a CFC or PFIC?

While the focus of today's post is how the United Arab Emirates (UAE) forthcoming Corporate Tax (CT) may impact US persons who are shareholders in a so-called Controlled Foreign Corporation (CFC) or Passive Foreign Investment Company (PFIC), the analysis applies equally to other jurisdictions which impose tax on the corporate entity. We examine today the … Continue reading Foreign Corporate Tax – How Will it Impact the US Taxpayer of a CFC or PFIC? →