The Perfect Storm – US Tax, Community Property & the Mobile International Couple  

Last week I blogged about how the US tax system can create serious tax problems for the international couple when one is a US person and the other is not.  In order to keep things simple, it is often advised that the couple hold assets separately to avoid nasty US tax complications. However, in some … Continue reading The Perfect Storm – US Tax, Community Property & the Mobile International Couple  

Treaty Tie-Breaker is an FBAR Escape Hatch, Says the Court!

It has been the position of the Internal Revenue Service (IRS) that a “Report of Foreign Bank and Financial Accounts” (Form 114), commonly called the “FBAR”, must still be filed to report any foreign accounts, despite a green card holder’s treaty tie-breaker claim. It came as a big surprise to me that the United States … Continue reading Treaty Tie-Breaker is an FBAR Escape Hatch, Says the Court!

BREAKING! US Supreme Court — FBAR “Nonwillful” Penalty is Per Form and NOT Per Account

What we have all been waiting for!  Bittner v. United States was just decided hours ago by the United States Supreme Court! An amazing taxpayer win.  It is late here in the Middle East, so I provide only the information you need to know!  You can read the full case here. The Bank Secrecy Act … Continue reading BREAKING! US Supreme Court — FBAR “Nonwillful” Penalty is Per Form and NOT Per Account

More of the Latest:  Digital Asset Reporting for Mr. Taxman @IRS

A survey conducted by CoinLedger of US crypto crypto investors found that only 58% of the sample size reported crypto holdings on their taxes in 2022. That was an improvement of 4% year-over-year. Meanwhile, 31% did not report (11% would not answer).  Let's look at the non-reporters: 50% said the primary reason was that they … Continue reading More of the Latest:  Digital Asset Reporting for Mr. Taxman @IRS

The Latest: Broker Reporting of Digital Assets and Deducting Crypto Losses

Today’s post provides an update on some important US tax issues relevant to digital assets. While the Internal Revenue Service (IRS) continues its crackdown on digital asset tax reporting, the controversial broker tax reporting rules for digital assets have been postponed. It looks like we will be in for a wait!  Today’s post provides the … Continue reading The Latest: Broker Reporting of Digital Assets and Deducting Crypto Losses

FBAR Penalties – US v. Molyneux and the Big Fat Money Grab

The United States Supreme Court has just set the stage for sky high FBAR penalties. How did this happen? Let's take a look - The case of United States v. Toth, No. 21-1009 (1st Cir. 2022) was on appeal to the US Supreme Court.  The focus of the appeal was that the FBAR penalty was … Continue reading FBAR Penalties – US v. Molyneux and the Big Fat Money Grab

Mr. FBAR Gets Bolder in Toth – “Deemed Willfulness” for FBAR Violation

Today’s blog post looks again at the Report of Foreign Financial Accounts (Form 114), the well-known “FBAR”.  It examines a case of first impression when it comes to finding a “willful” FBAR violation. Before delving into the case, I provide readers with a quick introduction to Mr. FBAR. The FBAR has its genesis in the … Continue reading Mr. FBAR Gets Bolder in Toth – “Deemed Willfulness” for FBAR Violation

Breaking! Gird Your Loins for Greater FBAR Penalties! Supreme Court Denies Review in Toth/ Excessive Fines Issue

United States v. Toth:  Just yesterday, the United States Supreme Court denied review of Toth, a case being carefully followed by tax professionals who deal with FBAR cases, US persons abroad, and all things "foreign". Toth was an FBAR “willful” penalty case on appeal to the First Circuit, with one of the issues being whether … Continue reading Breaking! Gird Your Loins for Greater FBAR Penalties! Supreme Court Denies Review in Toth/ Excessive Fines Issue

Am I Being Cynical? Serious Problems Acknowledged -Too Little, Too Late for Taxpayers Outside the US

The Taxpayer Advocate Service (TAS) recently released its 2022 report to Congress.  In one portion of the Report (listed in “Most Serious Problems Encountered by Taxpayers” #10 OVERSEAS TAXPAYERS: Taxpayers Outside of the United States Face Significant Barriers to Meeting Their U.S. Tax Obligations) TAS provided a succinct review of the problems faced by American … Continue reading Am I Being Cynical? Serious Problems Acknowledged -Too Little, Too Late for Taxpayers Outside the US

Overseas Americans: Fast Facts About Amending a US Income Tax Return

Soon enough thoughts will turn to preparing US tax returns for 2022.  Thorough preparation should at least include a review of the tax return filed for the prior tax year. In doing this, it often happens that taxpayers discover an error occurred in filing a prior year’s return.  If an error is discovered, it may … Continue reading Overseas Americans: Fast Facts About Amending a US Income Tax Return