In January 2017, the IRS announced a new audit strategy for its Large Business and International (LB&I) Division known as “campaigns.” With the campaigns, LB&I essentially shifts its examinations based on compliance issues that the Division determines present greater levels of compliance risk. By targeting certain issues, the IRS...
If you have an interest in (or authority over) a foreign financial account, you may have to electronically file a form called the “Report of Foreign Bank and Financial Accounts” (FBAR). Failing to file a required FBAR can result in penalties. In the recent case of U.S. v. Park,...
Business owners often look for tax planning opportunities to reduce their overall tax burden. One highly discussed planning strategy is choice of entity – more specifically a Corporation that elects to be taxed under subchapter S of the Internal Reve Code, an S-Corporation. To understand the general landscape of...
Recently, rules changed regarding interest deductions for taxpayers. Since new regulations are coming into play under the Tax Cuts and Jobs Act, you may find yourself thinking twice about whether a business loan is the best option. When you pay on a business credit line, mortgage on your business...
In June, the IRS finalized certain proposed regs pertaining to the foreign tax credit (FTC). The final regs include changes to the rules that address the interaction between the FTC and Internal Revenue Code (IRC) Section 965(n) rules on not applying the net operating loss deduction when calculating the...
Before you decide to invest in annuities, you need to know a few things about them so you can make sure it is the right kind of investment for you. While considering an annuity might seem like a wise choice on the surface, they are often misused and misunderstood....
2018 foreign income/housing exclusions: Residency/presence tests waived for several countries In a recent Revenue Procedure, the IRS waived the residency and presence tests that apply for purposes of the foreign earned income and foreign housing cost exclusions under the tax code. Specifically, the waivers apply to certain U.S. individuals...
Making sure you get credit for all your deductions is essential when you are running a business. The IRS issued new guidance regarding the deductibility of meals and entertainment expenses in October 2018. The new guidance indicates that taxpayers are still allowed to deduct half of their food and...
Court defines “financial interest” and makes other FBAR rulings In U.S. v. Horowitz, a district court ruled on various issues regarding the Report of Foreign Bank and Financial Accounts (FBAR). Its decision, handed down in January, addressed the statute of limitations for assessing FBAR penalties and the definitions...
If you are a United States citizen who is working abroad, you might be confused about how you will be taxed. In this instance, the rules for filing taxes and paying estimated taxes are the same regardless of whether you are abroad or in the United States. Regardless of...
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