Virginia La Torre Jeker, J.D. — US tax matters affecting international clients
In a holding by the US Tax Court on April 8, 2024, the case of Raju J. Mukhi v. Commissioner of Internal Revenue brought into sharp focus the principle of stare decisis and its implications for tax law. The Tax Court rejected the IRS’ assessment of penalties under Section 6038(b), for failure to file Form … Continue reading Taxpayer Wins Again on 5471 Penalty – IRS Cannot Assess
As some of my readers know, I am now a contributor writing on Forbes. My coverage area is US international tax law for overseas Americans and foreigners. My article is copied below. It first appeared on Forbes April 9, here. Don't miss out on my informative and easy-to-understand US tax content - Follow me on … Continue reading Accidental Americans Learning They Are Citizens Face A Tax Dilemma
As most of my readers know the Corporate Transparency Act (CTA) requires US entities (including for example, US LLCs, corporations, partnerships), and many foreign entities including those that register to do business in a state, to disclose to FinCEN of the Treasury Department, the identity of their beneficial owners. Information to be provided: name, date … Continue reading Corporate Transparency Act: BEWARE! The Scammers have Already Arrived!
Discovered an error in a prior year’s tax return? Everyone is busy preparing US tax returns for 2023. Taxpayers should note that thorough preparation of the current year’s tax return should include a review at least, of the return filed for the prior tax year. (Taxpayers using new return preparers should be wary if … Continue reading To Amend or Not to Amend – That is the Question
How difficult is it for a taxpayer to establish “reasonable cause” such that penalties for various tax mishaps can be forgiven or abated? It’s very difficult. The recent case of Wayne Lee v. United States, No. 22-10793 (11th Cir. 10/24/23) underscores the point and reminds taxpayers to get reliable tax advisors and return preparers. Going … Continue reading Taxpayer Denied “Reasonable Cause” When Preparer Fails to e-file Returns
As will be recalled from the previous blog posting discussing the basics of so-called "Controlled Foreign Corporations" (CFC), a United States shareholder of a CFC can possibly be treated as having received “dividend” income at various times. These are when the US shareholder has (i) current income inclusions from the CFC under the anti-deferral regime (Subpart F … Continue reading “Qualified Dividend Income”: How do the Rules Apply to “Controlled Foreign Corporations?” (Part II)
Today’s post continues to explore the interplay between foreign corporations and the US shareholder’s ability for lower tax rates available only for "qualified dividends". It's a complicated topic. Not all dividends are treated the same and the nuances can make a big difference to the taxpayer’s ultimate investment return. As detailed in my earlier blog … Continue reading “Qualified Dividend Income”: How do the Rules Apply to “Controlled Foreign Corporations?” (Part I)
Holidays are soon upon us, and many people will be making gifts to family and friends. It is very common to make gifts of cash – typically sending funds from a bank account to the recipient’s account. When gifts are made by foreign persons to US persons, there are many US tax traps for both … Continue reading Tis the Season! Giving / Getting Gifts from a Foreign Entity?
If you or your clients are really (really) wealthy (more than $100 million in annual income or more than $1 billion in assets) and thinking about expatriation (relinquishing US citizenship or a green card as a long-term resident), the time is now. Even if not super wealthy, the newly proposed Billionaires Income Tax should serve … Continue reading Billionaires Income Tax On the Way & Covered Expats are Hit Hardest of All
Revenue Procedure 2023-34 was released by the IRS on November 9, 2023. It provides full details about the annual inflation adjustments that are important in the world of US tax and impact over 60 tax provisions in the Internal Revenue Code ("Code"), including tax rate schedules and many other tax changes. Tax pro’s have been … Continue reading Tax Planning – “Foreign/International” Annual Inflation Adjustments Coming in 2024
Virginia - US TAX TALK 