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)

IRS Determined to Collect FBAR Penalties  – “We Have Ways of Making You Pay” … Even if Your Money is Outside the US

The case of US v Schwarzbaum (decided October 26, 2021), discussed in today’s blog post, serves as a harsh reminder of how far the US government will go to collect FBAR penalties. The importance of posting about this latest development is to underscore how aggressive FBAR penalty collection efforts are now becoming.  Of course, this case … Continue reading IRS Determined to Collect FBAR Penalties  – “We Have Ways of Making You Pay” … Even if Your Money is Outside the US

Personal Liability for Tax – Estate Executor for a Non-US Decedent …. “Accidental” Executors Included!

My recent blog post covering the Federal Transfer Certificate generated various questions about the US estate tax for foreign individuals who die owning US properties. US Estate Tax - Overview Briefly, the US estate tax is a “transfer tax” and not an “income” tax. This transfer tax is asserted against the estate of the individual … Continue reading Personal Liability for Tax – Estate Executor for a Non-US Decedent …. “Accidental” Executors Included!

Pres. Biden’s Tax Plan: Capital Gains Rate Increase Will be Retroactive & “Forced” Transfers at Gifting or Death Will be Taxed

My earlier blog post addressed the issue whether retroactive tax legislation can constitutionally be enacted, in effect “setting back the clock” and making a law effective as if it had been enacted at an earlier point in time. In that post, I explained that the topic held special importance since it is no secret that the … Continue reading Pres. Biden’s Tax Plan: Capital Gains Rate Increase Will be Retroactive & “Forced” Transfers at Gifting or Death Will be Taxed

State Income Taxes When Residing Overseas… They Hate to Let You Go!

When a taxpayer is a “resident” of a State which imposes income tax, he has to pay State tax on worldwide income, not just the income earned from sources within that State. If a taxpayer is working and residing overseas for an indefinite period of time and may or may not return to the State … Continue reading State Income Taxes When Residing Overseas… They Hate to Let You Go!

New Tax Laws on the Way…. Can They be Retroactive?

The question has often been asked whether Congress can enact retroactive tax legislation, in effect “setting back the clock” and making a law effective as if it had been enacted at an earlier point in time. The topic takes on special importance today as the Biden Administration is considering a vast magnitude of tax increases.  Taxpayers … Continue reading New Tax Laws on the Way…. Can They be Retroactive?

Senator Sanders – Gift and Estate Tax Reform Proposals Pack a Punch

Anyone out there thinking about estate tax planning, asset protection, making gifts? And, what about those considering expatriation?  I am fielding many more inquiries about expatriation these days.  Well, if you are considering any of these things, my sage advice would be to hurry up.  Major transfer tax law changes look  to be on the … Continue reading Senator Sanders – Gift and Estate Tax Reform Proposals Pack a Punch

What does Senator Warren’s Proposed Wealth Tax Mean for You?

The ‘‘Ultra-Millionaire Tax Act of 2021’’ (the “Act”) was proposed by Democratic Senators Elizabeth Warren and Bernie Sanders on March 1, 2021.  Like all other tax proposals I have seen in my over 35+ years of tax practice, once the bee is in the bonnet, legislation will inevitably, inexorably, eventually blossom and flourish.  The Act … Continue reading What does Senator Warren’s Proposed Wealth Tax Mean for You?

Senator Warren’s Proposed Wealth Tax and the 40% Tax Hit on Expatriation

The ‘‘Ultra-Millionaire Tax Act of 2021’’ (the “Act”) was proposed by Democratic Senators Elizabeth Warren and Bernie Sanders on March 1 2021.  Like all other tax proposals I have seen in my over 35+ years of tax practice, once the bee is in the bonnet, legislation will inevitably, inexorably, eventually blossom and flourish.  The Act … Continue reading Senator Warren’s Proposed Wealth Tax and the 40% Tax Hit on Expatriation