What the heck is an offshore tax inversion and why should I care? The inversion has been all over the news and was even called “un-American” by our President today (July 25, 2014). Here is everything the small to medium sized business owner needs to know about the tax inversion. Where a large corporation is
A few days ago I wrote an article on dealing with the IRS as an expat. Apparently, a number of you are carrying tax debt and are concerned with the IRS collection statute – how long the IRS has to collect that tax debt. This article is specifically for those living abroad that owe the
For most Americans, the IRS audit statute, the amount of time the IRS has to come after you once you have filed your return, is three years. Not so for those with foreign accounts and foreign assets. In most cases, the IRS has six years to audit your international investments. First, let’s review the IRS
If you’re new to the world of offshore, then this article on offshore basics is for you. Thinking about starting a business abroad? Want to move you or your assets out of the United States? Offshore basics will tell you how… and what’s legal and what’s not for an American abroad. Many of the articles
If you’re operating a business outside of the United States, your offshore business tax reporting obligations can be daunting. Failure to comply can result in significant interest and penalties, the loss of your business, and even the loss of your freedom. Here is a brief description of the most common offshore business tax reporting obligations.
All income that is U.S. source income is taxable in the United States. Income that is not U.S. source income is not taxable. So, planning to ensure your business income is not considered U.S. source income is the only way to keep Uncle Same out of your wallet. This article will describe U.S. source income
If you are doing business offshore, you need to understand the IRS Controlled Foreign Corporation rules. It is these tax laws that allow you to retain earnings from an active business offshore. These same rules force you to pay tax on passive income. If you have a non-U.S. partner, then avoiding the Controlled Foreign Corporation
If you are planning to live, work, or invest offshore, you need to plan for your state taxes. This State Tax For Expats guide will help you eliminate your state’s taxes and keep you out of trouble with local tax authorities. If you move offshore, and plan to return to your home state, then your
If you are a U.S. citizen living abroad, you have the same rights and responsibilities when it comes to your expat tax debt as those stuck in America. The IRS has ever increasing powers to collect on that expat tax debt, so it is in your best interest to get into compliance and make arrangements
If you have unreported offshore bank accounts or foreign assets, the IRS has one last best offer called the 2014 IRS Offshore Settlement Program. Come forward and, if you are living offshore, pay no penalties. If you are living in the U.S., pay only 5% for a fresh start. This, the third installment of the
If you have unreported offshore bank accounts, the IRS is coming for you … again. U.S. expats are about to find themselves under even more IRS scrutiny because of the 2014 Offshore Voluntary Disclosure Initiative, a new attack on offshore bank accounts. The IRS is starved for cash and they are coming after expats with
Today I’m taking time out from my offshore beat to warn you about the CTR. An IRS Currency Transaction Report is a form filed by U.S. banks and casinos each time you make a deposit or withdrawal of $10,000 or more. It is filed in secret, without your knowledge, you don’t receive a copy, and
The Mini Offshore Captive Insurance Company (sometimes referred to as a pure offshore captive) is a powerful and unique way to cut both your business and estate taxes while moving your assets out of the reach of future business and personal creditors. If you are operating a business with $500,000 to $1.2m per year in
Are you considering forming a cheap offshore company? Has some scammer in Nevis promised you tax freedom and privacy? Forming a cheap offshore company that does not include U.S. tax compliance is a roadmap to disaster for the American living, working or investing abroad. How much would you be looking at in penalties for using
When you first move offshore, you will need to know how to prorate the foreign earned income exclusion. This is because, you will be using the physical presence test in your first year and, presumably, won’t move abroad on January 1, so you will need to prorate the foreign earned income exclusion. Let me take
For those of you living and working abroad, or investing outside of the United States, the fact that you file one or more of the offshore company forms and report a foreign bank account on the FBAR will have little to no effect on your chances of an audit. The IRS is focused like a
If you are living and working abroad, you still need to worry about the IRS. In this article, I will talk about how to avoid an IRS audit with a focus on Expats. Are you worried that the IRS will come knocking on your door? Want to know how to avoid an IRS audit? I
Good news for those American’s living and working abroad. The Foreign Earned Income Exclusion in 2014 has been increased to $99,200. This means that you can exclude up to $99,200 in salary for 2014 on Federal income tax return if you are a resident of another country or are abroad for 330 out of 365
Because of the IRS automatic extension for Expats, today, April 16, is the first day of the Expat tax filing season. While those of us stuck in the U.S.A. must file and pay by April 15, Expats get an automatic two month extension. This two month automatic extension for Expats is more valuable than the standard
As you, the American with investments abroad, get ready to prepare your 2014 tax return, there are important new FBAR filing requirements for 2014. Some of these FBAR filing requirements are cosmetic and others could get the misinformed in hot water. Note: If you have no idea what an FBAR is, you might check out
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