Canada Gives Million Bank Records to IRS

The Canadian Revenue Agency recently sent approximately 900,000 financial records of Canadian residents to the Internal Revenue Service. Since 2014, bank records of over 2.6 million customers have been sent to the USA from Canada under FATCA.  The purpose is to find out who could be subject to US taxes. Such records may include names, addresses, account numbers, balances, interest and other income; however, the CRA and financial institutions do not automatically notify people when … Read More

2019 Tax Planning for Businesses

As 2019 draws to a close, there is still time to reduce your 2019 tax bill and plan ahead for 2020. This letter highlights several potential tax saving opportunities for you to consider. I will arrange to meet with you to discuss specific planning opportunities and issues that you might have in mind. Although C corporations enjoy a flat 21% statutory tax rate and pass-through entities are taxed at lower rates following the 2017 tax … Read More

2019 Tax Planning for Individuals

What аrе Tаx-Frее Bоndѕ? Tax-free bonds аrе tуреѕ оf gооdѕ оr financial рrоduсtѕ, which thе government еntеrрrіѕеѕ іѕѕuе. Onе еxаmрlе оf these bonds іѕ the municipal bonds. Thеу оffеr a fіxеd іntеrеѕt rаtе аnd hеnсе is a low-risk investment аvеnuе. Aѕ thе nаmе ѕuggеѕtѕ, іtѕ mоѕt аttrасtіvе fеаturе іѕ іtѕ absolute tаx еxеmрtіоn аѕ реr Sесtіоn 10 оf thе Inсоmе Tаx Aсt of Indіа, 1961, tax free bonds generally have a long-term mаturіtу of tеn … Read More

IRS Focusing on Bitcoin ATMs

Criminal investigators at the Internal Revenue Service are extremely focused on the potential tax issues concerning cryptocurrency kiosks and Bitcoin ATMs, a top agency official said recently.  Although no public cases involving bitcoin or other crypto kiosks have been filed to date, IRS Criminal Investigation Chief John Fort said his team is working with its law enforcement partners to police the illicit activity enabled by the technology. “We’re looking at those, and the ones that … Read More

Pre-2019 Crypto Exchanges are not like-kind

Taxpayers aren’t able to defer taxes on exchanges of cryptocurrency, even for transactions that occurred before 2018, an IRS official said. Up until now it has been clear that taxpayers can’t use like-kind exchanges for cryptocurrency trades beginning in 2018 due to changes made in the 2017 tax overhaul. Like-kind exchanges allow taxpayers to postpone paying tax on the gain of a sale if the proceeds are reinvested in similar property. But tax practitioners have … Read More

MiFID and Overseas Americans

For a variety of compliance and legal reasons, many U.S. banks and brokerage firms have been asking their long-standing overseas American clients to close their accounts. At the same time, due to Foreign Account Tax Compliance Act (FATCA) compliance issues, many non-U.S. financial institutions have made it difficult or impossible for overseas Americans to work with them The limited exceptions are either that the individual is a client of an investment advisor and/or they are … Read More

IRS Focusing on Section 965 Repatriation Tax Payments

The IRS are focusing on companies that are liable for tax code Section 965 repatriation tax payments—the levies companies owe on their accumulated offshore earnings, in accordance with the 2017 tax law. This is according to a list on their website updated Nov. 4. Agency officials previously said the area is ripe for abuse because companies could try to minimize their foreign profits in an attempt to reduce their tax bills. President Donald Trump’s tax … Read More

IRS Cryptocurrency Guidance to Focus on Information Reporting

The IRS’s next round of crypotcurrency guidance will likely focus on information reporting, the agency’s toplawyer said. “It’s no mystery that when you have any kind of information reporting your level of compliance increases dramatically,” IRS chief counsel Michael Desmond said Oct. 17 during a Washington event hosted by the Tax Policy Center. The first priority will be guidance under tax code Section 6045, which lays out information reporting requirements for brokers. The tax code … Read More