While it’s not against the law to own a foreign bank account, the tax code requires that you disclose it and pay tax on income. Since 2009, the IRS has devoted significant resources to offshore account compliance. A couple years ago, we wrote an article with an update on the […]
Category: Offshore Accounts/International Tax Disputes
The IRS is very diligent when it comes to enforcing tax laws. It is particularly concerned that all earnings are reported, and that federal income taxes be paid on all earnings – even money earned outside of the United States. Failing to report international income can result in fines and […]
There has been a great deal of commotion surrounding the use of offshore bank accounts to shield assets from authorities in the United States. Some of these accounts are used for the purpose of evading income taxes, but there are also many situations where an individual has foreign accounts for […]
To add onto our prior post this week, we want to discuss the IRS streamlined disclosure program. If you were one of 30,000 to use this program, your legal troubles might not be over. The streamlined program does not come with any guarantee – it only offers a limit amnesty. […]
Reports on foreign bank accounts are due today, June 30. But if this is your first time filing you might have questions and concern that you should address first. FinCen Form 114 (FBAR) is electronically filed with the Department of Treasury. While technically there is no extension to the deadline, […]
Texas, Florida, Nevada and Wyoming are a few of the states that have no state income tax. U.S. territories also have different tax policies. A long-standing agreement between the Virgin Islands and the U.S. allows territory residents to pay their taxes to the Islands. As retirees know when they split […]
A strange story involving a Canadian baby who also has U.S. citizenship, her bank, the Canadian Revenue Agency and the IRS raises legal issues that will be important to other U.S. citizens living in Canada (and in other countries) with (and without) dual citizenship. iPolitics reported in April that a […]
Most people only remember April 15 when thinking about taxes. For those with an aggregate interest of at least $10,000 in foreign accounts, June 30 is another date to remember for one more year. It is the filing deadline for Form 114, Report of Foreign Bank and Financial Accounts […]
For over seven years, U.S. authorities have been cracking down aggressively on unreported offshore accounts. The crackdown has proceeded on multiple levels, across continents, with surprisingly effective results. A key moment came in 2009, when the Swiss banking giant UBS agreed to pay $780 million to resolve allegations by the […]
Two years ago, former billionaire Sam Wyly lost a fraud trial in New York that exposed a web of offshore entities that were used to shelter millions of dollars. After the 2014 verdict, the IRS entered the fray seeking $1.4 billion in back taxes. Penalties and interest accounted for 80 […]