Tax traps for new US persons and those thinking of expatriation

Tax traps for new US persons and those thinking of expatriation

We are joined today by guest Keith Redmond, an American overseas global advocate to talk about updates on the Repeal FATCA movement, Territorial Taxation for Individuals, and some tax traps for people who are, or are thinking about becoming a US person. Of concern in the current tax reform package - a one time 14% excise tax on deferred income for Controlled Foreign Corporations. The purpose of this excise tax is to end deferral that some large companies can take advantage of...but...people that live and work overseas that have their own corporation could get hit with this tax. This tax could ruin the smaller guys. While we are glad that people are paying to tax reform and disputing what they think are "unfair" suggestions, there is a glaring terrible tax law already in place that we think people should be outraged about. If someone comes to US with substantial assets and becomes a US person, they are taxed from date of acquisition of their assets, not the date they become a US person. And if they expatriate after that, even if the assets declined in value, they will pay the exit tax even if their assets lost money while they were a US person. Potentially, someone could inherit a property overseas while they were not a US person, do nothing with it, but have to pay an exit tax based on the entire increase in its value even though they were only a US person for a short time. We think the basis should be when you become a US person. So what’s the fix? Sell before you become a US person, they buy right back after. Get tax advice before becoming a US person…get tax advice before expatriating. Parent & Parent LLP 60 EAST 42ND STREET, SUITE 4600 New York, NY 10165 (212) 256-1335 info@irsmedic.com https://youtu.be/dAwMrGG9EbE IRS Medic

What are IRS Form 5471 penalty triggers? How can you avoid them?

What are IRS Form 5471 penalty triggers? How can you avoid them?

Additional "substantially incomplete" triggers found here: http://ift.tt/2BWo2mU In this video international tax expert and managing partner of Parent & Parent LLP Attorney Anthony E. Parent discusses common Form 5471 penalty triggers and why if you own a 10% or more interest in a controlled-foreign corporate you need to be extremely careful when filing a Form 5471. The IRS does not hide the fact that it intends to assess harsh penalty for 5471s that are technically wrong. Do not make the mistake and thick you have a run-of-the-mill tax problem . Form 5471 can require the utmost skill and care when filing or you can face up to a $60,000 penalty for any Form 5471 IRS deems is not in substantial compliance. International Tax Law Firm of Parent & Parent LLP 60 EAST 42ND STREET SUITE 4600 New York, NY 10165 (212) 256-1335 info@irsmedic.com https://youtu.be/raD2_7v8IU8 IRS Medic

IRS international tax audit updates

IRS international tax audit updates

http://ift.tt/2yQ1Xcw The IRS has announced four new audit campaigns on international filers: 1. Those who file the Foreign Tax Credit 2. Those who file the foreign income exclusion 3. Those who used a proxy to hide ownership of Swiss bank Accounts. 4. Controlled foreign corporations who make loans back to the US-based parent code (sec 956). Tax Attorney Anthony Parent and host Claudine Gindel discuss how these audits will works the true target of the audits and what to do if you are concerned about your FBAR audits or international reporting forms (5471, 8821, 8865, 8938, 3520-A, 3520, etc) or criminal exposure. Parent & Parent LLP 144 S. Main Street Wallingford, CT 06942 (203) 269-6699 info@irsmedic.com https://youtu.be/N4ZnI0tnOOM IRS Medic

The pros and cons of the 2017 Tax Reform package

The pros and cons of the 2017 Tax Reform package

http://ift.tt/2zkUI9r http://ift.tt/2yAw6wr H.R. 1, "the Tax Cuts and Jobs Act" which is the first draft of the 2017 Tax Reform bill fulfills some of the promises made by Republicans. However, it has got some weak points. In this video Claudine and Tax Attorney Anthony will analyze the major benefits and the drawbacks of the 2017 tax reform package. Parent & Parent LLP 60 EAST 42ND STREET SUITE 4600 New York, NY 10165 (212) 256-1335 info@irsmedic.com https://youtu.be/Op8P2QhCYMg IRS Medic

IRS tax myths of Americans Living Overseas

IRS tax myths of Americans Living Overseas

Watch this video as we dispel some of the top myths surrounding the current taxation (pre-2017 reform) of Americans Overseas. 1. Foreign Earned Income Exclusion allows USD 100,000 to be tax free. That money, along with any other monies earned is taxed in the American overseas country of residence. While there are some exceptions --- Dubai, for example has no income tax, the fact is most US persons in income tax-free jurisdictions exceed the approx. 100,000 exclusion.   2. US tax treaties eliminate double taxation. The US and the countries’ tax systems are not the same hence many income taxes in the American overseas’ country of residence is not recognized by the IRS hence double taxation. And savings clause undoes most tax treaties. Savings, investment, retirement accounts are not recognized by the IRS as well hence double taxation 3. Americans living overseas are renouncing because they do not want to pay taxes. •         Many Americans who renounce are US tax compliant though one does not have to be tax compliant to renounce. •         Americans living overseas do pay taxes: in their respective countries of residence. •         Americans living overseas are renouncing because they are unpatriotic.   4. Accidental Americans must enter the US tax compliance system. NOTE: As tax professionals we are bound to advise tax compliance. 5. The IRS will come after you in your country of residence and chase you down. As tax professionals we don’t make any guarantees - there will be exceptions to this rule.   6. If you are not US tax compliant, you will be treated as a criminal and the IRS will put you in jail. Criminal charges require intent… risk is not high for most, but there is risk.   7. If you are not US tax compliant, you cannot renew your US passport.   8. If you are not US tax compliant, you can be arrested at the border when entering the United States. 9. Citizen Based Taxation means the Marines “have to” come rescue you. Yes, but you have to sign a promissory note to reimburse them. Parent & Parent LLP 144 S Main St Wallingford, CT 06492 (203) 269-6699 info@irsmedic.com https://youtu.be/wBdS6UEOLTg IRS Medic

Manafort & Gates Indictment — understanding their FBAR Penalty mess

Manafort & Gates Indictment — understanding their FBAR Penalty mess

FBAR and International Form/OVDP CLE: http://ift.tt/2xAnu4w FBAR FAQ: http://ift.tt/2zgfQgZ Today’s news that a Grand Jury returned an indictment against Paul Manafort and Richard Gates confirms my observation that too many high profile individuals are still not filing an FBAR forms at significant risks. And while many have learned that FBAR can result in significant civil penalties, today’s indictment reminds us that there can be criminal charges for failing to file and FBAR as well. In this article, I'm going to answer what an FBAR is, the uphill road Manafort and Gates have and what you should to do if you suspect you should have filed and FBAR but did not. Parent & Parent LLP 60 EAST 42ND STREET SUITE 4600 New York, NY 10165 (212) 256-1335 info@irsmedic.com https://youtu.be/p6nI-naJxG0 IRS Medic

美国税法给华裔美国公民带来了许多令人不快的惊喜: What Chinese-US persons need to knwo about FBAR, FATCA & the IRS

美国税法给华裔美国公民带来了许多令人不快的惊喜: What Chinese-US persons need to knwo about FBAR, FATCA & the IRS

https://youtu.be/hw30mllP2Ns IRS Medic