Virginia La Torre Jeker, J.D. — US tax matters affecting international clients
The Report of Foreign Bank and Financial Accounts (FinCEN Form 114) commonly called the FBAR is a crucial reporting requirement for US persons (citizens, green card holders and those meeting the substantial presence test) with foreign financial accounts. With the deadline for the 2023 FBAR set for October 15, my Forbes article provides information to … Continue reading Need an FBAR Escape Hatch?
Tax penalties can be a harsh reality for many taxpayers, especially those dealing with complex international tax obligations. The IRS imposes penalties to encourage compliance and deter negligence. This article provides a general overview of commonly encountered tax penalties, and then delves into the often-misunderstood penalty relief, "reasonable cause.” Overview Of Tax Penalties Tax penalties … Continue reading IRS Tax Penalty Forgiveness: Challenge Of Proving “Reasonable Cause”
The world of work has changed dramatically. No longer confined to an office in a fixed location, people are working from many different locales and exploring varied work lifestyles. The possibilities are vast - working in foreign countries, living as a digital nomad, owning one’s own company abroad, are but a few. If you are an … Continue reading American Taxpayer Abroad: U.S. Social Security, What You Need To Know
Cybercrime and fraudulent activities continue to evolve and expand. Protecting taxpayers has become an increasingly complex challenge for both governmental authorities and those in the tax profession. Recognizing this, in mid-August the IRS spearheaded the formation of the Coalition Against Scam and Scheme Threats. CASST is an outgrowth of the Security Summit, a public-private initiative … Continue reading Americans Abroad, Tax Scams And IRS’ New Coalition To Combat Tax Fraud
A recent decision from the 11th Circuit in United States v. Isac Schwarzbaum brings a major development in FBAR (Foreign Bank Account Reporting) penalties and their relationship with the Eighth Amendment's Excessive Fines Clause. The court's holding that FBAR penalties are subject to this constitutional protection under the Excessive Fines Clause is significant, offering taxpayers … Continue reading 11th Circuit Holds FBAR Penalties Are Subject to the Excessive Fines Clause: A Significant Taxpayer Weapon
Many taxpayers, especially retirees living abroad, may find themselves in a situation in which their income is too low to meet the threshold for filing a U.S. tax return. Retirees who only receive Social Security income (or small amounts of other additional income), for example, often fall below the tax filing requirement. Understandably, many people … Continue reading Filing A U.S. Tax Return – Even When Not Required – A Very Smart Move
Navigating the labyrinth of overseas investments can be particularly challenging for American investors. The landscape is often littered with enticing sales pitches from expat investment advisors who, more often than not, lack a deep understanding of U.S. tax laws. While it’s true that investments in certain offshore jurisdictions might not incur local taxes, significant and … Continue reading Offshore Investments, U.S. Tax Traps: What Every American Must Know
As indicated in its responses this summer to several key recommendations from the Taxpayer Advocate Service, the IRS is making strides towards enhancing the taxpayer experience. Among these, significant attention is being given to improving services for international and overseas taxpayers, a group that has faced unique challenges and severe penalties. This article highlights IRS responses … Continue reading IRS Commitment To Assist International And Overseas Taxpayers
Navigating the intricacies of U.S. tax laws can be challenging, especially for green card holders living abroad. Green card holders have concerns that remaining outside the United States for too long may result in loss of the green card. One area that often causes confusion for green card holders is the “foreign earned income exclusion,” … Continue reading Green Card Holder Works Abroad: Tricky U.S. Tax And Immigration Issues
My article is copied in full below. It first appeared on Forbes July 24, 2024 – link here. You can follow me on Forbes for free. Imagine this: You have a pressing tax question and, like many, you turn to Google. Among the plethora of results, you spot information from the IRS, including its … Continue reading The Scary Truth About Navigating IRS Tax Guidance
Virginia - US TAX TALK 