Closing the International Tax Gap: IRS Doing Virtually Nothing With FATCA

Today’s blog post discusses the overall and international tax gaps, takes a look at the offshore world and how enforcement of the tax laws is faring (hint - not so good). It summarizes some important testimony given on May 11, 2021 by the Honorable J. Russell George, Treasury Inspector General for Tax Administration before the … Continue reading Closing the International Tax Gap: IRS Doing Virtually Nothing With FATCA

US Tax Training – Moving Abroad: Tax Impact on Digital Nomads, Remote Workers and Their (Often Overlooked) Employers

Tax pro’s - are you prepared to advise clients who wish to explore foreign work possibilities? So many changes have been wrought as a result of COVID-19, one of the biggest being remote working. As a direct result of the pandemic people are moving or considering it.  COVID-19 has convinced us that having internet access and … Continue reading US Tax Training – Moving Abroad: Tax Impact on Digital Nomads, Remote Workers and Their (Often Overlooked) Employers

Renouncing One’s US Citizenship: More Audits, Virtual Currency, CLN & Travel

COVID-19 restrictions have severely limited services at US embassies and consulates around the world. As a result, renouncing one’s US citizenship has become very difficult, and in many cases, just about impossible at the current time. This gives individuals more time to make sure they have properly planned for expatriation. It's a big step. I … Continue reading Renouncing One’s US Citizenship: More Audits, Virtual Currency, CLN & Travel

Thinking of Moving Abroad? Here’s the Scoop with the Tax Girl and the Tax Lady

Looking to live under the Tuscan sun? Dreaming about Dubai?  The pandemic has had many people considering a move. Many are looking at a move abroad.  Kelly Phillips Erb, the @TaxGirl and I (@VLJeker , the @TaxLady_w_Style) had a great conversation about what it means from a tax and practical perspective for a US person … Continue reading Thinking of Moving Abroad? Here’s the Scoop with the Tax Girl and the Tax Lady

Estate Taxes Going Up – Is There Still a Golden Gifting Opportunity?

Janet Yellen, the former Federal Reserve chairperson is now the new US Secretary of  the Treasury.  She has staunchly defended President Biden's plan to reduce the estate-tax exemption amount from the current US$11.5 million to US$3.5 million, as well as to increase the top estate tax rate from 40% to 45%.  In responding to criticism … Continue reading Estate Taxes Going Up – Is There Still a Golden Gifting Opportunity?

What a Mess: Debt Forgiveness and the American Abroad  

Imagine you are an American taxpayer living overseas. Like so many other Americans you are facing financial hardships wrought by COVID-19.  You have a car loan you cannot pay and mounting credit card debt. Like an angel from above, your creditors agree to forever forgive some of the amounts you otherwise owe them.  You cannot … Continue reading What a Mess: Debt Forgiveness and the American Abroad  

Americans Abroad: IRS Issues 2020 Form 2555 and Instructions Detailing COVID-19 Relief

Americans working abroad are usually eligible to exclude certain foreign earned income (wages, compensation for services) from US taxable income under the rules governing the Foreign Earned Income Exclusion (FEIE).  In addition they may be able to exclude certain amounts paid for foreign housing using the Foreign Housing Exclusion (FHE).  Both are governed by Internal … Continue reading Americans Abroad: IRS Issues 2020 Form 2555 and Instructions Detailing COVID-19 Relief

Expatriation: More than just a Fashionable Trend — Numbers Climb

The number of individuals ending their US status, or “expatriating” continues to rise unabated.  “Expatriates” as used in this context refers to citizens renouncing US citizenship or “long term residents” giving up a green card.  On October 28 the Treasury Department released the names of 732 individuals who “expatriated” during the third quarter of 2020. When … Continue reading Expatriation: More than just a Fashionable Trend — Numbers Climb

Woeful American Abroad! Foreign Residence Mortgage? Foreclosure? Debt Forgiveness? Nasty US Tax Surprises Await You

This is a repost with some changes and more research resources to clarify the earlier article. It may be hard to believe, but losing your foreign home to foreclosure can result in US tax consequences.  The tax problems are worsened for the American abroad. Today’s post explains why.  The topic is becoming more relevant to … Continue reading Woeful American Abroad! Foreign Residence Mortgage? Foreclosure? Debt Forgiveness? Nasty US Tax Surprises Await You

2020 Tax Returns & Latest Crypto Developments – In the Crosshairs

The Internal Revenue Service (IRS) just recently released the 2020 draft Form 1040.  In your face right on page one, on a separately colored block: “At any time during 2020, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?”  This question first appeared for the 2019 tax return, but … Continue reading 2020 Tax Returns & Latest Crypto Developments – In the Crosshairs