IRS Tax Records, Foreign Assets: When (And What) To Keep Or Toss

Many people face the dilemma of what to do with old tax returns and supporting paperwork, often wondering when it’s safe to discard them. However, determining the right time can be tricky, especially for taxpayers with foreign assets. Those with overseas financial interests must pay particular attention for several reasons, including expanded statutes of limitation … Continue reading IRS Tax Records, Foreign Assets: When (And What) To Keep Or Toss →

Need an FBAR Escape Hatch?

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? →

IRS Tax Penalty Forgiveness: Challenge Of Proving “Reasonable Cause”

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” →

Americans Abroad, Tax Scams And IRS’ New Coalition To Combat Tax Fraud

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 →

11th Circuit Holds FBAR Penalties Are Subject to the Excessive Fines Clause: A Significant Taxpayer Weapon

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 →

Filing A U.S. Tax Return – Even When Not Required – A Very Smart Move

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 →

Offshore Investments, U.S. Tax Traps: What Every American Must Know

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 →

IRS Commitment To Assist International And Overseas Taxpayers

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 →

The Scary Truth About Navigating IRS Tax Guidance

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 →

Grounded By IRS: U.S. Passport Denied Or Revoked For Delinquent Taxes

Precise statistics on the exact number of passports revoked or denied specifically because of substantial tax debt are not readily available. The IRS and the State Department do not regularly publish detailed breakdowns of passport revocations or denials by cause. What is known is that since the enactment of the FAST Act, tens of thousands … Continue reading Grounded By IRS: U.S. Passport Denied Or Revoked For Delinquent Taxes →