OVDP Ending for US Expats Living in the UK

For Americans living in the UK, time is running out to take advantage of an IRS program that offers some relief for those who haven’t been declaring their foreign assets.  Last month, the IRS announced that it will begin to wind down the 2014 Offshore Voluntary Disclosure Program, which allows for US taxpayers with assets out of the country to avoid criminal prosecution for not reporting foreign accounts. With the program concluding on September 28, … Read More

Planning for the Financial Future of a Troubled Adult Child

Are you concerned about any of your adult children? Estate planning can pose extra challenges for families with adult children struggling with addiction, marital issues, or irresponsibility with money. The last thing you want is for your wealth to end up having a negative impact on your child, or to see them squander their inheritance. Many parents are concerned about what they can do to shield an adult child who struggles with problems like these … Read More

Allowable Meal & Entertainment Deductions in 2018

The Tax Cuts and Jobs Act (TCJA; P.L. 115-97, 12/22/2017) made major changes to one of the more common business expenses—outlays for meal and entertainment. As explained below, many, but not all, entertainment expenses are no longer deductible after 2017. A number of meal expenses also escape the crackdown, although questions remain about the deductibility of the most common type of meal expense—for “business meals” where a substantial and bona fide business discussion takes place … Read More

Unreported Crypto Costing IRS Billions

According to current research, cryptocurrency tax noncompliance is likely costing the IRS billions in revenue.  For 2017 alone, U.S. cryptocurrency holders likely owe $25 billion in capital gains taxes as a result of $92 billion of taxable gains, Tom Lee, the head of research at Fundstrat Global Advisors in New York, wrote in an April note. Based on Lee’s figures, that would mean unreported cryptocurrency tax liabilities potentially account for $12.5 billion of the estimated … Read More

Million Dollar FBAR Penalty Let Stand by IRS

The Supreme Court has declined to review a Ninth Circuit decision, affirming a district court, which found that a taxpayer willfully failed to file a Report of Foreign Bank and Foreign Accounts (FBAR) with regard to her foreign account. The Ninth Circuit rejected a variety of the taxpayer’s arguments, including that the imposition of the penalty violated the U.S. Constitution’s excessive fines clause and that it was barred by the relevant treaty provisions. Each U.S. … Read More

Form 8938 – What You Need to Know

Form 8938 is an Internal Revenue Service form used to report your specified foreign financial assets if the total value of all the specified foreign financial assets in which you have an interest is more than the appropriate reporting threshold. If you are required to file Form 8938, you must report the specified foreign financial assets in which you have an interest even if none of the assets affects your tax liability for the year. … Read More

Superannuation Funds Taxation for US Taxpayers

Australian Superannuation funds are similar to US retirement plans.  The funds in accounts accumulate tax-free in Australia, however, from a US perspective they are taxable to a US person. In general, superannuation income is not exempt income on your US return, nor is the foreign tax credits paid by the superannuation fund available to provide relief from double taxation.  US persons who are living in Australia or have contributed to Superannuation funds in the past face some … Read More