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

Pre-2019 Crypto Exchanges are not like-kind

IRS says pre-2019 cryptocurrency 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 … Read More

MiFID and Overseas Americans

More Difficult for Overseas Americans to Invest in ETF’s Several brokerage firms, including Charles Schwab made a change to the detriment of overseas Americans. It has now become difficult or impossible for some overseas Americans—especially those with lower incomes and savings amounts—to buy U.S.-listed exchange traded funds (ETFs).  In September, Charles Schwab, to the surprise of many of their European-based clients, announced that residents of the EU, including the U.K., would no longer be able … Read More

IRS Focusing on Section 965 Repatriation Tax Payments

IRS Auditors are Observing Companies that Owe Offshore Profit Tax 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 … Read More

US Expats with Tax Debt and Revoked Passports

Expats in Jeopardy of Losing U.S. Passports The IRS began sending letters to indebted taxypayers in July, stating they will be asking the U.S. State Department to revoke their passports. People who live abroad and receive the letter have 90 days to call the government and set up a payment plan, the IRS said in an email. For domestic taxpayers a response is required in 30 days. A valid passport is often a requirement for … Read More

Investing Overseas – Known and Unknown Problems

U.S. citizens and residents investing overseas need to be aware of the risks and complications they face when investing overseas.  Not only are there complicated tax issues, but foreign regulations regarding investment protection are not as strong as they are in the United States.  In fact, in many countries, investment protection safeguards don’t even exist! Additionally, foreign inheritance laws are difficult to navigate which makes estate planning and wealth transfer hard to accomplish.  Foreign investments … Read More

Lawsuit States Repatriation Tax is Unconstitutional

A Washington state couple sued the government arguing a tax on repatriated assets, created in the 2017 tax  law, violates the U.S. Constitution.  The 2017 tax law imposed a one-time tax on earnings held offshore in cash and other assets offshore since 1986—15.5% on cash and 8% on non-cash or illiquid assets. Before the change, assets could be held offshore without incurring tax. The tax violates two provisions of the Constitution, Charles and Kathleen Moore … Read More

New FinCEN Division Focuses on Foreign Money Laundering

FinCEN Director Kenneth A. Blanco announced that Matthew Stiglitz, a former Principal Deputy Chief in the Department of Justice’s Criminal Division, will lead GID. Mr. Stiglitz brings considerable experience to FinCEN in complex international investigations after spending more than 24 years as a state and Federal prosecutor. “FinCEN will greatly benefit from Matthew’s experience, leadership, and management skills,” said Director Blanco. “We are excited to have him on our team as we stand up GID … Read More