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Five Reasons to Start Reporting Your Foreign Bank Accounts
Five Reasons to Start Reporting Your Foreign Bank Accounts U.S. citizens who have neglected to report foreign accounts they own or have signing authority over may be facing stiff penalties. Many of my clients want to comply with this policy but have concerns about the...
FATCA presses on making criminals out of ordinary citizens…
FATCA Forces Criminal Patterns Of Behavior Since the FATCA regulations took effect July 1 of this year, it’s been getting harder and harder to carry out financial transactions around the world, and I’d say we’re only at the bottom of this hill. As these onerous...
Expatriate Americans are renouncing U.S. citizenship in record volumes
Expatriate Americans are renouncing U.S. citizenship in record volumes because of increasingly onerous tax-filing requirements—and the number doing so is likely to continue rising. Around 6.32 million Americans (excluding military) live abroad—about as many as who...
I.R.S. Eases Some Rules for Taxpayers Overseas
Facing criticism that its crackdown on overseas tax cheats had disproportionately hurt small taxpayers guilty of innocent oversights, the Internal Revenue Service said it would revise its rules, lowering or eliminating some fines while tightening other requirements....
Important notice Form 114, Report of Foreign Bank and Financial Accounts deadline is June 30th
As a reminder, taxpayers that are required to report foreign bank and financial accounts must file Form 114 electronically by June 30th, and the returns must be either Accepted or Accepted with Errors by midnight, June 30th. We strongly recommend that 114 returns be...
IRS Announces Easing Of FATCA Enforcement For 2014 And 2015
On May 2, 2014, the IRS issued an advance copy of Notice 2014-33 (the "Notice"). The Notice relates to the Foreign Account Tax Compliance Act ("FATCA"), which targets U.S. taxpayers' offshore financial interests through increased reporting requirements imposed on...
Does the 3.8% Net Investment Income Tax apply to you since Janaury, 2013?
Effective Jan. 1, 2013, individual taxpayers are liable for a 3.8 percent Net Investment Income Tax on the lesser of their net investment income, or the amount by which their modified adjusted gross income exceeds the statutory threshold amount based on their filing...
Information for U.S. Citizens or Dual Citizens Residing Outside the U.S. – Feb.2014
Update February 2014 — For more detailed information about FBARs, please refer to Report of Foreign Bank and Financial Accounts (FBAR). The IRS is aware that some taxpayers who are dual citizens of the United States and a foreign country may have failed to...
¿El fin de los módulos?
No exactamente el fin, pero casi. Así, la Reforma Fiscal que está preparando el Gobierno para este 2014 prevé que el sistema de estimación objetiva o módulos se limite a aquellos autónomos que vendan al consumidor final, lo que deja fuera a más de 300.000...
Totalization Agreements
Totalization Agreements The United States has entered into agreements, called Totalization Agreements, with several nations for the purpose of avoiding double taxation of income with respect to social security taxes. These agreements must be taken into account when...
Summary of potential IRS Reporting requirements and civil penalties.
Summary of potential IRS Reporting requirements and civil penalties. The following summary of potential reporting requirements and civil penalties is not necessarily all encompassing, and it is unlikely that any one taxpayer would be subject to all of the reporting...
Rules for Claiming the Child Tax Credit
Rules for Claiming the Child Tax Credit Here’s some good news for parents of children under age of 17: they’ll save you money at tax time. The Child Tax Credit, which can be worth as much as $1,000 per qualifying child depending upon a parent’s income, was made...
Do I need to file Form 8938?
Do I need to file Form 8938, “Statement of Specified Foreign Financial Assets”? Certain U.S. taxpayers holding specified foreign financial assets with an aggregate value exceeding $50,000 will report information about those assets on new Form 8938, which must be...
Eight Smart Year-End Tax Moves
Eight Smart Year-End Tax Moves While the April 15 income tax filing deadline is dubbed “Tax Day,” there is another very important deadline taxpayers need to keep in mind. Each year, the U.S. tax code changes, and many financial moves necessary to minimize your tax...
What can I do with my investments now?
My funds in the US or in Spain? Were you with Merrill Lynch until last year? If you are finding difficulties with your investments as an American resident in Spain, because of the new FATCA regulations, or if you simply want to access a very efficient and low-cost US...
Message for U.S. Citizens: U.S. Embassy Madrid Taxpayer and U.S. Citizen Assistance Day
Asunto: Message for U.S. Citizens:U.S. Embassy Madrid Taxpayer and U.S. Citizen Assistance Day Embassy of the United States of America Madrid, Spain Madrid Taxpayer and U.S. Citizen Assistance Day Wednesday, March 5, 2014 The U.S. Embassy will host a Taxpayer and...
Expats In Spain: Modelo 720 And New Dislosure Requirements
Anyone moving to Spain or currently tax resident in the country needs to know that at the end of 2012 the Spanish Government launched a new initiative to ensure that it was no longer possible to hold assets offshore without disclosing their existence to the tax...
Are you a nonfiler? What can you do?
Are you a nonfiler? What can you do? We receive one or two phone calls per week from ordinary Americans living in Spain, telling us that they have not filed US taxes with the IRS (Internal Revenue Service) since they arrived here. They are normal families, with work...
Summary of the American Taxpayer Relief Act of 2012
On January 2, 2013 President Barack Obama signed into law the American Taxpayer Relief Act of 2012. Passage of this Act averted the so-called “fiscal cliff” and made “permanent” changes to the tax code. As with all Congressional legislation, however, no change is...
Filing my 1040 every year.
Here are some of the things U.S. Citizens need to keep in mind when filing out the 1040 every year. Do any of these apply to you? Form 1040 This must include your worldwide income. We can use the foreign earned income exclusion Form 2555. However, it must be...
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