Social Security Benefits Paid to US and Non-US Individuals, Including Those Who Expatriated – How Are They Taxed?

A portion of an individual’s US Social Security retirement, survivors, or disability benefits may be subject to Federal Income tax, regardless if the individual is a US or non-US person. Today’s post looks at the US taxation details on US social security benefits for US and non-US persons. My earlier blog post here discussed the … Continue reading Social Security Benefits Paid to US and Non-US Individuals, Including Those Who Expatriated – How Are They Taxed? →

US Tax – Safeguarding Finances of the Elderly, Stateside and Abroad

My latest article is copied below in full, as published by Bloomberg Tax, December 9, 2022 in Tax Insights, reproduced with permission, link here.The Bureau of National Affairs, Inc. (800-372-1033) http://www.bloombergindustry.com The growing trend of email and phone scammers, combined with the potential for diminished cognitive abilities due to aging, can imperil elderly people’s financial … Continue reading US Tax – Safeguarding Finances of the Elderly, Stateside and Abroad →

Breathing American Air – Hazardous to your Wealth? (Part II)

Part 1 of this blog post introduced readers to some of the issues surrounding US taxation of foreign persons and discussed the pitfalls of tax ignorance. This 2-part series identifies areas of potential US tax exposure for foreign nationals and examines the questions the foreign person and his advisors should be asking before taking a … Continue reading Breathing American Air – Hazardous to your Wealth? (Part II) →

Foreign Assets — How Can the IRS Enforce Tax Collection Overseas? (Part II)

Last week's blog post, here, examined some of the weapons the Internal Revenue Service (IRS) can use to collect taxes when the uncooperative taxpayer and assets are located abroad. Today we look at some other possible remedies. Is There Any US Connection to Foreign Banks? The IRS can issue a levy notice to any bank … Continue reading Foreign Assets — How Can the IRS Enforce Tax Collection Overseas? (Part II) →

Foreign Assets — How Can the IRS Enforce Tax Collection Overseas? (Part I)

Generally speaking, it is not an easy process for the US government to seize assets overseas in order to satisfy a taxpayer's tax debts. The Internal Revenue Service (IRS) has to follow certain procedures to collect taxes. If they are assessed against a US or non-US taxpayer, assuming the person is overseas and has no … Continue reading Foreign Assets — How Can the IRS Enforce Tax Collection Overseas? (Part I) →

What is a Closing Agreement and When Will One Be Entered Into by the IRS?

Last week's blog post, here, discussed the details of the Internal Revenue Service "Voluntary Disclosure Practice" (VDP). VDP is the one and only method for voluntary disclosures that apply to criminal tax activity, regardless if the activity involves offshore issues or strictly domestic ones. The final conclusion of a taxpayer’s entry into the Voluntary Disclosure … Continue reading What is a Closing Agreement and When Will One Be Entered Into by the IRS? →

IRS Voluntary Disclosure Practice and Closing Agreement: Understanding the Basics

The Internal Revenue Service (IRS) Voluntary Disclosure Practice (VDP) is alive and well. Its parameters are set out in Internal Revenue Manual (IRM) provisions dedicated strictly to the VDP. IRM 9.5.11.9.1 Voluntary Disclosure Practice, is available here. Under the VDP, the nature and extent of penalties to be assessed against a taxpayer will, to a … Continue reading IRS Voluntary Disclosure Practice and Closing Agreement: Understanding the Basics →

US Passport Denied for Delinquent Tax Debt, Actual Notice to the Taxpayer Not Required

A taxpayer's US passport can be denied issuance, renewal and can even be revoked, if the taxpayer has so-called “seriously delinquent tax debt” per IRC Section 7345. I have blogged about this before - here and here. Generally, a "seriously delinquent tax debt" is an individual's unpaid, legally enforceable federal tax debt (including interest and … Continue reading US Passport Denied for Delinquent Tax Debt, Actual Notice to the Taxpayer Not Required →

US Tax Inflation Adjustments for 2023 – Impact on the International Family

Certain provisions in the United States Internal Revenue Code (Code) are tied to inflation to prevent rising prices from resulting in higher taxes. Annual inflation adjustments have been part of the tax rules for well over 2 decades. These formulas set by Congress help prevent inflation from nudging taxpayers into higher tax brackets and increasing … Continue reading US Tax Inflation Adjustments for 2023 – Impact on the International Family →

IRS is Ruthless in Seeking “Willful” FBAR Penalties – But the Court Won’t Have it….

We have another important FBAR case, US v Katholos No17cv531 WDNY Aug 10 2022. Ms Katholos was first introduced to my readers in 2018 (blog post here). An update on Katholos was posted just last week detailing a court’s clarification, perhaps an expansion, of the definition of “financial interest” in an account requiring FBAR reporting. … Continue reading IRS is Ruthless in Seeking “Willful” FBAR Penalties – But the Court Won’t Have it…. →