Taxes and Attorneys: August 2017

Wednesday, August 30, 2017

Does FATCA really hurt anyone?

https://youtu.be/sBF0MjweQcU IRS Medic

Monday, August 28, 2017

US Switzerland IRS

http://ift.tt/2wiPyt9 https://youtu.be/XnWBbYuRsb8 IRS Medic

Friday, August 25, 2017

Inside IRS Offer in Compromise settlements, negotiations, and renegotiations

http://ift.tt/2vvWQbf The IRS Offer in Compromise program allows many taxpayers to settle back tax debts for a "pennies on the dollar." Why is this so? And what happens if a taxpayer can’t afford to pay the agreed upon settled amount? In this video, tax attorney Anthony E. Parent of Parent & Parent LLP describes the real constraints the IRS is under and how the IRS Offer in Compromise Program actually benefits the IRS. Learn why the IRS would want to take more than full payment for back taxes you owe. And learn what to do if your Offer in Compromise Form 656 is accepted, but is going to default because you can not longer come up with the settled amount. Note: It is our experience that taxpayers who think they can’t settle taxes with an Offer in Compromise can, and those that think they can, can’t. We recommend that you contact us for a free evaluation to go over what sort of options would work best to settle your IRS tax debt. Parent & Parent LLP 144 S. Main Street Wallingford, CT 06492 (203) 269-6699 http://ift.tt/1RfwK1f info@irsmedic.com https://youtu.be/d67LGf4ZM2c IRS Medic

Thursday, August 24, 2017

Common IRS tax issues of US-German filers

http://ift.tt/2vajwCi Some of the Germany-US double taxation treaty benefits Certain business profits sourced in Germany are not taxable by the US. Research and development expenses get special treatment Lower rates apple for certain dividends d the United States, the double taxation agreement. Holding companies of real estate get no relief on sale of property Personal services by German sole traders in the United States will be exempt from paying the income tax in the United States. US sole traders will benefit from the same treatment in Germany. US and German employees are also exempt from paying the personal income tax if they are in the other country for 183 days maximum during a calendar year and if the income is paid by a non-resident company. Along with FATCA and FBAR reporting, these are the specific German IRS tax issues our team of tax attorneys, CPAs, and tax preparers assist our clients with. - German pensions - German real estate income - German inheritances and gifts - Unreported German financial accounts Parent & Parent LLP 144 S Main Street Wallingford, CT 06492 (203) 269-6699 http://ift.tt/1RfwK1f info@irsmedic.com https://youtu.be/md2TU3Hqaa0 IRS Medic

Common IRS tax issues for US-Chinese filers

http://ift.tt/2vt3BdA Along with FATCA and FBAR reporting, these are the specific Chinese IRS tax issues our team of tax attorneys, CPAs, and tax preparers assist our clients with: Common tax issues of our Chinese-American clients Closely held foreign corporations in China, Hong Kong, Singapore, where all parties might not be US persons. This requires Investment in the US, especially real estate, where not all investors may be US persons Capital controls, and avoiding tax drag of it taking potentially years to move money out of China. EB-5 and other investment VISA holders. Often do not get the optimum tax advice before becoming a US person. Gifting money to adult children who are US persons living in the US. There is a US-China treaty on double-taxation. But like most, the savings clause can create instances of double taxation. It take planning and using the correct deductions and credits to eliminate the risk of double taxation. Offshore Voluntary Disclosure Programs If you have made a mistake in previous IRS tax filings, or haven't filed at all, we can help. We are the nation's premier offshore disclosure firm. We have helped thousands of Chinese and others from around the globe properly disclose to the IRS. We can help you too. Parent & Parent LLP 144 S Main Street Wallingford, CT 06492 (203) 269-6699 http://ift.tt/1RfwK1f info@irsmedic.com https://youtu.be/Jc4S1akLXek IRS Medic

Common IRS tax issues of US-Canadians filers

http://ift.tt/2vam0AU Along with FATCA, and FBAR filings, these are Canadian-specific tax issues our team of tax attorneys, CPAs, and tax preparers assist our clients with. RRSPs (Registered Retirement Savings Plans) are now exempt from trust reporting, and the contributions can be deferred income. TFSAs (Tax Free Savings Accounts) - There is little guidance to say if these should be treated as foreign trusts, foreign corporations, disregarded entities, or income that flows directly to the taxpayer. We do case by case analysis on these accounts. RESPs (Registered Education Savings Plans) and RDSPs (Registered Disability Savings Plans) are treated as foreign trusts that need to be reported on IRS Form 3520/A, and the income must be reported on a US return annually. PFICs (Passive Foreign Investment Companies) are treated as mutual funds. There are specific tax credits for Canadian tax and sourcing rules. Canadian bonds and Canadian guaranteed investment certificates (CDs) get OID treatment when they are held for more than one year. US-Canada Tax Treaty Information The US has a tax treaty with Canada. Under tax treaties, residents (not necessarily citizens) of foreign countries are taxed at a reduced rate, or are exempt from U.S. taxes on certain items of income they receive from sources within the United States. These reduced rates and exemptions vary among countries and specific items of income. Under these same treaties, residents or citizens of the United States are taxed at a reduced rate, or are exempt from foreign taxes, on certain items of income they receive from sources within foreign countries. Most income tax treaties contain what is known as a "savings clause" which prevents a citizen or resident of the United States from using the provisions of a tax treaty in order to avoid taxation of U.S. source income. Additionally, as part of the Treaty, the two countries have mutual agreements in place to collect taxes on behalf of the other country. For instance, Canada can collect taxes on a US person who is living in Canada. Parent & Parent LLP 144 S Main Street Wallingford, CT 06492 (203) 269-6699 http://ift.tt/1RfwK1f info@irsmedic.com https://youtu.be/grCrbviIRTM IRS Medic

Common IRS issues for US-Australia citizen around the world.

http://ift.tt/2vsZb6M Along with FATCA and FBAR reporting, specific Australian IRS tax issues our team of tax attorneys, CPAs, and tax preparers assist our clients with. The Australian/US tax treaty exists but offer scant benefit. Superannuation tax issues The biggest, thorniest issue we encounter is on the US taxation of Australian Superannuation funds. The IRS does not consider things like Australian superannuation funds to be tax-deferred. They also may considered them to be “Grantor” trusts, requiring additional compliance forms. When the funds within these plans are distributed, they will be taxed like an annuity under section 72. This basically means that you will use your contributions (which have already been included in your income and taxed) as a basis in determining how much of a distribution is income. This will work whether you take a lump sum payment, yearly distributions, or distributions structured in any other way. Parent & Parent LLP 144 S Main Street Wallingford, CT 06492 (203) 269-6699 http://ift.tt/1RfwK1f info@irsmedic.com https://youtu.be/YEmTAg6p5Jw IRS Medic

Common IRS tax issues of US-Hong Kong filers and expats

http://ift.tt/2v9OevA Along with FATCA and FBAR reporting, these are the specific Hong Kong IRS tax issues our team of tax attorneys, CPAs, and tax preparers assist our clients with. Common tax issues we encounter for US expats in Hong Kong Income from closely held corporations, where all parties might not be US persons require precise tax filings. Acquisitions resulting in significant capital gains, and ways to avoid them. Gifting and inheritence issues. "Foreign" mutual funds. How to properly gift to a non-US spouse. "Foreign" pensions. FATCA and FBAR reporting. Offshore Voluntary Disclosure Programs If you have made a mistake in previous IRS tax filings, or haven't filed at all, we can help. We are the nation's premier offshore disclosure firm. We have helped thousands of Chinese and others from around the globe properly disclose to the IRS. We can help you too. Click here to visit our Offshore Disclosure summary page. Parent & Parent LLP 144 S Main Street Wallingford, CT 06492 (203) 269-6699 http://ift.tt/1RfwK1f info@irsmedic.com https://youtu.be/VCEbcDREjto IRS Medic

Common IRS tax issues of US-French filers and Expats

Common IRS tax issues of US-French filers Along with FATCA and FBAR reporting, these are the specific French IRS tax issues our team of tax attorneys, CPAs, and tax preparers assist our clients with: The US-French Treaty on Double Taxation The US-French tax treaty provides some relief from double taxation. However, it does not help elimiate a very common issue we encounte with Assurage Vie. Literally "Assurage Vie" translates as life insurance. However, the US tax code does not teat it as life insurance, so it is taxes on income it earns each year. And worse, it is treated as a passive foreign investment company, which involves oneous accoutning work and a less favorable tax treatment. Other issues we see French pensions may involve additional reporting and may be taxable, even if deferred in France. Inheritence of bank accounts; some of the bank accounts established my people who may or may not have been engaging in tax evasion is France, the US, or both. Taxation of rental propery in France. It is very common to not see this reporting correctly and many taxpayers ae missing an opportunity to accelerate depreciation Self-employment: Even small corporations may require extensive reporting. Offshore Voluntary Disclosure Programs If you have made a mistake in previous IRS tax filings, or haven't filed at all, we can help. We are the nation's premier offshore disclosure firm. We have helped thousands of Chinese and others from around the globe properly disclose to the IRS. We can help you too. Parent & Parent LLP 144 S Main Street Wallingford, CT 06492 (203) 269-6699 http://ift.tt/1RfwK1f info@irsmedic.com https://youtu.be/PNCmMEh3A0o IRS Medic

Common IRS tax issues of US-Taiwanese filers and Expats

http://ift.tt/2vt6dIz Along with FATCA and FBAR reporting, these are the specific Taiwanese IRS tax issues our team of tax attorneys, CPAs, and tax preparers assist our clients with. Common Tax issues for US-Taiwanese individuals Closely held foreign corporations in the US, Hong Kong, Singapore, where all parties might not be US persons. This requires Investment in the US, especially real estate, where not all investors may be US persons EB-5 and other investment VISA holders. Often do not get the optimum tax advice before becoming a US person. Gifting money to adult children who are US persons living in the US. Offshore Voluntary Disclosure Programs If you have made a mistake in previous IRS tax filings, or haven't filed at all, we can help. We are the nation's premier offshore disclosure firm. We have helped thousands of Chinese and others from around the globe properly disclose to the IRS. We can help you too. Parent & Parent LLP 144 S Main Street Wallingford, CT 06492 (203) 269-6699 http://ift.tt/1RfwK1f info@irsmedic.com https://youtu.be/JjHNY4tnOMg IRS Medic

US tax advisors for dual US-Israeli citizens

http://ift.tt/2vajvye Common IRS tax issues of US-Israeli filers Along with FATCA and FBAR reporting, these are the specific Israeli IRS tax issues our team of tax attorneys, CPAs, and tax preparers assist our clients with: Common tax issues of US-Israeli dual citizens Bank Leumi is often involved is a "blacklisted" bank of note Foreign facilitators list. Accounts can be frozen, and sometimes taxpayes can be freightened into doing something they shouldn't do. Our clients tend to have a lot of US-based income, along with Israel, and European investments. Inheritence of bank accounts throughout Europe from Holocaust survivors that have not been reporting to the US. Rental income in the US and Europe that might be missing important depreciation deductions. Offshore Voluntary Disclosure Programs If you have made a mistake in previous IRS tax filings, or haven't filed at all, we can help. We are the nation's premier offshore disclosure firm. We have helped thousands of Chinese and others from around the globe properly disclose to the IRS. We can help you too. Parent & Parent LLP 144 S Main Street Wallingford, CT 06492 (203) 269-6699 http://ift.tt/1RfwK1f info@irsmedic.com https://youtu.be/suIuEUwxsY0 IRS Medic

Common IRS tax issues of US-Japanese filers and Expats

http://ift.tt/2vt4mmT Along with FATCA and FBAR reporting, these are the specific Japanese IRS tax issues our team of tax attorneys, CPAs, and tax preparers assist our clients with. Typical tax issues we see with Japanese-American tax filers and Expats Foreign reporting --- the Bank Secrecy Act requires US person to retain bank recods fo 5 years. Yet in Japan, banks don't necessarily give or create bank statements. A spouse who is not a US person --- There are gifting limitations. Also, it is possible to file a joint return with a spouse who is a non-US person to lower taxes. Inheritence issues --- oftentimes US taxpayers did not know that their parents or in-laws put a bank account or asset in their name. The correct forms may be missing with great risk of penalty. US Children -- there are instances where children's investment income may spring a "kiddie tax" on their US parents. Offshore Voluntary Disclosure Programs If you have made a mistake in previous IRS tax filings, or haven't filed at all, we can help. We are the nation's premier offshore disclosure firm. We have helped thousands of Chinese and others from around the globe properly disclose to the IRS. We can help you too. Parent & Parent LLP 144 S Main Street Wallingford, CT 06492 (203) 269-6699 http://ift.tt/1RfwK1f info@irsmedic.com https://youtu.be/OOlbiLMYVUs IRS Medic

The 6th Circuit undercuts Supreme Court order to dismiss FATCA suit

http://ift.tt/2g9Ab2i Did the 6th Circuit jump the shark when it dismissed the Mark Crawford/Rand Paul FATCA suit? Attorneys for the Plaintiffs, Jim Bopp and Richard Colson lay out, succinctly, why the 6th Circuit's decision can't be allowed to stand. Not just because of FATCA, but for any case where the US government is causing harm. Decide for yourself. But it appears the 6th Circuit increasing the requirements to have standing to sue the government so high, those actually damaged by devastating laws like the Foreign Account Tax Compliance Act (FATCA) have no recourse in the courts. Parent & Parent LLP 144 S Main Street Wallingford, CT 06492 (203) 269-6699 http://ift.tt/1RfwK1f info@irsmedic.com https://youtu.be/nXRT-dII_n8 IRS Medic

Thursday, August 17, 2017

Using the IRS streamlined OVDP for Form 5471 Amnesty

http://ift.tt/2wU9O46 The lesser known Form 5471 penalties, and how to decrease your risk of falling victim to these penalties It’s a form that US owners of certain foreign corporations need to file. 1. Failure to file can result in a $10,000 penalty -- per occurrence. 2. The statute of limitations on assessment is much longer than people realize. This is something the IRS is actively going after: In a recent case, the IRS assessed twelve(!) Form 5471 penalties against consultant who did business under a Canadian corporation. This resulted in a $120,000 tax penalty. A tax penalty that Canada actually helped the IRS collect. The Streamlined Program It was created not just for FBAR amnesty, but it was also created Form 5471 amnesty. Qualifications: 1. "Did you know that you had a Form 5471 filing requirement?" 2. Your subjective intent is the critical issue. 3. Don’t make assumptions about your situation 4. Every one of our offshore clients made some sort of mistake. 5. Yet, many mistakes are not large enough to make someone ineligible for the Streamlined program. If you don't qualify for the Streamlined Program, the Full Offshore Disclosure Program is still available. We just prefer the Streamlined program because in terms of time and cost, it is much, much less onerous for our clients. The benefits of Streamlined OVDP for missing or incorrect Form 5471s 1. Only three years of Form 5471s are required 2. No penalty for filers who live outside the US. 3. A 5% penalty on stock value for those living in the US. There are many way to legitimately claim a low valuation of your controlled foreign corporation. 4. A much quicker process than full OVDP. 5. You'll learn how to properly file Form 5471s going forward. 6. Any other missing forms can all too be included in a Streamlined Disclosure. For example: missing Forms 8938, 8865, 3520, 3520A (foreign pensions), and 8621 Parent & Parent LLP 60 East 42nd Street SUITE 4600 New York, NY 10165 (212) 256-1335 info@irsmedic.com https://youtu.be/rSuvAg33Rg8 IRS Medic

Wednesday, August 16, 2017

Canada collects $120,000 in Form 5471 penalties for the IRS

Mr. Dewees, was a U.S. citizen living in Canada, where he operated a consulting business. In 2009, Dewees learned that he had failed to comply with the FBAR requirements, and, thereafter, successfully applied to participate in the OVDP. IRS assessed a penalty of over $185,000 for not filing the FBARs. Dewees refused to pay the assessed penalty and withdrew from the OVDP. Because the business was incorporated abroad, Dewees was required to file a form 5471. Not filling the form carries a $10,000 penalty. And the statute of assessment is not 6 years. In September 2011, IRS notified Dewees that it had assessed a different penalty of $120,000 against him for failing to file Form 5471 from ’97 to 2008. Dewees requested an abatement of this penalty for reasonable cause, which was denied. Mr. Dewees was in Canada. Then pursuant to the U.S.-Canada tax treaty (the Treaty), the Canadian tax authority held Dewees’ Canadian tax refund in abeyance until the IRS penalty was paid in full. How did Canada do this? IRM 5.21.7.4 (11-13-2015) Mutual Collection Assistance Requests (MCAR) The United States has five bilateral tax treaties that contain broad provisions for mutual assistance in collection, also known as "MCAR" . Canada – All taxes including both individual and business Denmark – Income taxes France – Income taxes & estate taxes The Netherlands – Income taxes Sweden – Income taxes Note: On January 24, 2013, the United States and Japan signed a new Protocol to tad japan to the list. Once the new Protocol to the income tax treaty between the United States and Japan has been ratified, this section will be updated. Note FBAR penalties aren’t tax penalties so MCAR non-issue. Offshore penalty can be collected by MCAR. Takeaways: IRS only knew to assess 5471 penalties because taxpayer came clean. Pretty nasty. Expecting justice from Federal court is like corn expecting justice from chickens. If you made a disclosure look to make sue you have all your 5471s done, and properly done. Missing Form 5471s we see: 1. 5471s dormant corps 2. holding companies for asset protection 3. self-employment Other Delinquent Information Reporting Forms 8865, 5472, 3520, 3520A, 8938, 920 also carry $10,00 per year penalty. Think about these before opting out. You can win on FBARs but lose on 5471s. http://ift.tt/2wgDlHq https://youtu.be/S8ZeyIiZLnI IRS Medic

Understanding IRS offshore disclosures with OVDP lawyer Anthony E. Parent

http://ift.tt/2vINUAU Between the scare tactics of the IRS and some tax practitioners, and the lackadaisical attitude of others lies the truth of the IRS offshore Disclosure programs, which OVDP attorney Anthony Parent says are more aptly named FBAR amnesty programs If you are thinking of making an IRS voluntary disclosure or concerned you need to, this video is a must-watch. Don’t make a disclosure if you don’t need to, and if you are going to make a disclosure, do it right, or don’t do it at all. In this video, IRS Offshore Voluntary Disclosure Program (OVDP) lawyer Anthony E. Parent discusses the complete evolution and history of the IRS offshore disclosure programs from the Pre-2009 Offshore Voluntary Disclosure Initiative (OVDI) practice, the 2009 OVDI, the 2011 OVDI, the 2012 OVDP, the 2014 Streamlined OVDPs. Learn how offshore disclosure evolved from a program designed for criminals to a program that is now designed to punish non-criminals. Despite the rough landscape, you can still make an optimum move to mitigate your risks. Or should you decide to do nothing, you can at least appreciate what the risks of doing nothing are. http://ift.tt/2w1OKLN Parent & Parent LLP 60 EAST 42ND STREET, SUITE 4600 New York, NY 10165 (212) 256-1335 info@irsmedic.com https://youtu.be/7V8es79EkWY IRS Medic

Tuesday, August 15, 2017

Common US tax issues for UK filers

http://ift.tt/2uGvdRb The U.S.-U.K. tax treaty is one of the most beneficial treaties. But…because the US taxes based on citizenship, not residence, there are many tax traps lurking for UK citizens living in the US, and US persons living in the UK. The United States and United Kingdom have different tax years This can complicate things. The calendar year must be used to calculate US taxes; not the UK tax year. Duplicative work is required The typical issues: The Foreign Earned Income Exclusion Foreign Tax Credits Treaty Information FBARs, FATCA, etc UK specific tax issues US person living in the United Kingdom UK person living in the United States Reporting requirements for private pensions, qualified life insurance policies, Individual Savings Accounts, treaty benefits and totalization benefits.. Non-UK financial accounts: Understanding other countries treaties that might be involved is critical. Our US-UK clients tend to be extremely mobile, creating additional tax complications. Parent & Parent LLP 60 East 42nd Street SUITE 4600 New York, NY 10165 (212)256-1335 http://ift.tt/1RfwK1f info@irsmedic.com https://youtu.be/xcAvXuJSCcs IRS Medic

Common problems of Indians with US tax requirements

http://ift.tt/2uL7w5Z Issues we see for US persons living in India, and Indian people living in the US. We often talk about FBARs, FATCA, Form 8938, but there are many more issues specific to each country The US-Indian Treaty provides little benefit The "Savings Clause" part of the treaty negates the double-taxation prohibition Anything earned in India is subject to US taxation. The foreign income exclusion applies if you are domiciled in India, and you may be entitled to a foreign tax credit for any taxes paid in India. The NRE/NRO trap Indians not living in India can only have NRE/NRO accounts. The benefit is that these accounts are tax-free in India. If an Indian is also a US person, a NRE/NRO is taxable. This trap has caused many Indians to fail to disclose their worldwide income Many have had to enter into some sort of offshore disclosure program. Other issues we see: Treatment of fixed deposits with a term over one year Treatment of Indian life insurance, Indian Mutual Funds, EPFs, PPFs, NRE, NRO accounts, and pension funds HSBC India is on the foreign facilitators list. DEMAT Accounts involved complicated accounting, along with FBAR reporting. Parent & Parent LLP 144 S Main Street Wallingford, CT 06492 (203) 269-6699 http://ift.tt/1RfwK1f infor@irsmedic.com https://youtu.be/MqACHY-Fvro IRS Medic

Friday, August 11, 2017

When a full IRS offshore disclosure was a mistake.

Do you now regret entering into the full/standard IRS Offshore Voluntary Disclosure Program (OVDP)? In the video, tax attorney Anthony E. Parent goes over the four possible option his team sees: 1. Remain in the OVDP and pay the 27.5% or 50% offshore penalty 2. Opt-out of the standard offshore penalty regime and keep criminal protections. 3. Do nothing. Be removed. Get audited under opt-out standards but lose criminal protections. 4. File streamlined disclosure anyway and waste time and effort. For more visit: http://ift.tt/2vWzkJ6 Parent & Parent LLP 60 East 42nd Street SUITE 4600 New York, NY 10165 (212) 256-1335 http://ift.tt/1RfwK1f info@irsmedic.com https://youtu.be/EjoKEx46Kxo IRS Medic

Thursday, August 10, 2017

What to do when you received a Certified mail slip from the IRS

If the postman leaves you a pink certified mail slip from the IRS, you always could go down to the post office, wait in line, claim your certified letter form the IRS, take it home, attempt to understand it, attempt to understand all of the issues you may have, attempt to formulate the best possible strategy, and then implement that strategy. Or you could just purchase our Total Tax Diagnosis service for $750 http://ift.tt/2utRqxv https://youtu.be/UDugms_prB0 IRS Medic

What to do when you received a Certified mail slip from the IRS

Wednesday, August 9, 2017

Why amending an FBAR may be more dangerous than you realize

http://ift.tt/2uG1inf When you file an FBAR the IRS assumes you have a heightened knowledge. They will punish you for any technical mistakes...as opposed to someone who never filed an FBAR. In order to assess the willful FBAR penalty (up to 50% of the account value), the IRS must find a reason that you were "willful" in your actions. Unfortunately, we've seen the IRS argue things like, "You knew enough to amend an FBAR, but you didn't know enough to read the instructions correctly?" Then, they go one step further and say, "Since you knew about the FBAR, you must know about the Internal Revenue Manual, the Bank Secrecy Act of 1970 (as amended) and the recent FBAR litigation on what is required in federal district court." If you are unsure if you should amend your FBAR yourself or if you need help doing it, contact us. We can help. Parent and Parent LLP 60 E 42nd St #4600 New York, NY 10165 (212) 256-1335 info@irsmedic.com https://youtu.be/vDmOajBrqKg IRS Medic