New Law for January 2016 This month the U.S. Congress is putting into effect a new law that empowers the government to revoke passports of citizens who refuse (or somehow neglect) to pay their taxes. According to various sources, this law also gives the U.S. State Department the right to deny tax scofflaws new passports. If you are in arrears to the tune of $50,000 or more, (including … [Read more...]
With a stroke of his executive pen on July 31 of this year, President Obama marked the end of the filing date discrepancy that had existed with foreign bank account reporting and the filing of income tax returns. In one fell swoop he signed into the law the “Surface Transportation and Veterans Health Care Choice Improvement Act”, which changed the filing due date of several important forms for … [Read more...]
If you own real estate in Canada, renting the properties out can be an effective way to make some money while you’re living abroad. The problem is the Canadian tax code can be a little strict when you’re a non-resident earning Canadian rental income. The good news is with some simple planning and paperwork you can minimize the taxes on your rental income so more of it stays in your … [Read more...]
Many citizens of the United States have a great deal of trepidation if they fear they have made a mistake when filing their annual tax returns. However, there are several things to keep in mind if this is the case; let us look at ten facts that you will need to know in order to mitigate the chances of this occurring and the effects that an incorrect form may have. 1040X This is the correct … [Read more...]
In recent years, the IRS has been taking a closer look at Form TD F 90-22.1, otherwise known as FBAR. The filing requirements for FBAR are confusing, but it is important to meet those requirements in order to help avoid an audit. Here are some of the guidelines you should follow when you are filling out your annual report of foreign financial accounts. Who FBAR applies to All U.S. persons - … [Read more...]
There are many occasions when you need a copy of your filed tax return, for example, when applying for a loan, or taking out a mortgage on a property. If the IRS make any inquiries you will also need this information to hand. If you cannot find the return in question, you can ask the IRS to send you a copy (or transcript) of the relevant information. Here’s how it works - 1) Transcripts … [Read more...]
Eight Things You Need To Know If You Receive An IRS Tax Notice: Getting a notice from the IRS can cause panic. But don’t worry. Every single year millions of these notices are sent out to taxpayers. Here are the guidelines for what to do. 1. Keep your head on your shoulders. A large portion of IRS letters can be dealt with very easily. 2. Most IRS notices are extremely specific. They … [Read more...]
If you have a Green Card, then you are legally considered a permanent resident of the United States even if you live in a different country. Because of this you are responsible for paying US income tax, no matter where you earned the income. As a green card holder, it is a requirement that you file a United States tax return unless you meet one of the following conditions. You no longer have … [Read more...]
WHAT IS FORM 8621, WHO SHOULD FILE AND HOW IS IT FILED What is Form 8621? This form is an information return by a shareholder of a PFIC or Passive Foreign Investment Company or QEF or Qualified Electing Fund. The form is intended to be filed to calculate the tax that is due on any “excess distribution” coming from a PFIC. Excess distribution is distribution following the first year that is more … [Read more...]
