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IRS Provides Updated Gift Tax Exclusions for 2023
It may come as a surprise to some that, under the Internal Revenue Code and related authority, gifts are ordinarily taxable. However, the IRS provides an annual exclusion, regularly indexed for inflation, under which gifts of a lesser value need not be reported. In...
Are you FATCA Compliance?
The Foreign Account Tax Compliance Act was enacted by the Congress in 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act to combat tax evasion by US persons holding investments in offshore accounts. The United States Treasury Department and the IRS...
Report of Foreign Bank and Financial Accounts (FBAR). What is it?
The FBAR. What is it? Per the Bank Secrecy Act, every year you must report certain foreign financial accounts, such as bank accounts, brokerage accounts and mutual funds, to the Treasury Department and keep certain records of those accounts. You report the accounts by...
Digital Nomads in Spain and Portugal
SPAIN: Do you want to move to Spain as Digital Nomad? VISA and Tax implications? The Spanish Government has already approved the draft Law on Startups to attract investment, talent, and innovative entrepreneurship. The bill has two different components: the residence...
IRS increases 401(k), IRA contribution limits for inflation
It may be time to up your 401(k) contributions. The IRS is increasing the limit by $2,000 for 2023, the agency announced Friday. Cost of living adjustments will bring the 2023 limit to $22,500 (up from $20,500) for individual contributions to retirement accounts...
The IRS adjusted its income tax brackets for 2023
If your income doesn’t rise in 2023, some tax relief is on the way You might owe less in taxes next year. As part of its annual adjustments based on inflation, the IRS increased the income thresholds for its tax brackets by thousands of dollars. These changes are...
How Do IRAs and Roth IRAs Work for Expats?
By Creative Planning & adapted by US Tax Consultants. July 30, 2022 U.S. Retirement Accounts IRAs, 401(k)s, Roth IRAs, Individual 401(k)s, 403(b)s, deferred compensation plans and defined benefit employer pension plans are some of the many possible investment...
Estimated Tax Payments IRS
All you need to know about the Quarterly Estimated Tax Payments When you have a traditional hourly or salaried job, your employer usually withholds income taxes from your paychecks. But if you're one of the millions of small-business owners, freelancers or other...
IRS reduces tax return backlog as AICPA urges penalty relief extension
The Internal Revenue Service is making progress on its backlog of unprocessed tax returns, as it's asked by the American Institute of CPAs to extend its recently announced penalty relief through the end of the year. The IRS reported Monday it has reduced the number of...
The U.S. Supreme Court Decides How to Punish US Expats with the FBAR.
By Andreas Kluth at Bloomberg. August 26, 2022 Andreas Kluth is a Bloomberg Opinion columnist covering European politics. A former editor in chief of Handelsblatt Global and a writer for the Economist, he is author of “Hannibal and Me” The US Supreme Court has lately...
IRS Operations up to now due to COVID-19: Mission-critical functions continue.
Mission-critical functions continue. According to the IRS, they state that they are open and processing mail, tax returns, payments, refunds and correspondence. However, COVID-19 continues to cause delays in some of their services. The service delays include: Live...
The IRNR, the tax paid by non-fiscal residents, regardless of their nationality.
All those who live abroad may also be required to pay taxes in Spain: in addition to foreigners who may be owners of a property, we also have almost three million Spaniards who reside abroad. As a general rule individuals pay taxes in the country they have their...
Need-To-Know tax issues for U.S. expats to keep in mind before preparing U.S. Tax Returns
We have selected six need-to-know tax issues for U.S. expats to keep in mind before preparing U.S. Tax returns: Mutual Funds, U.S. Bank Account, CTC, Tax Preparation, Streamline Procedure and how to pay the IRS Mutual Funds outside the U.S. (PFICs) All US Citizens...
IRS still has a backlog of 10.2 million unprocessed tax returns. What can you do?
Despite making progress in cutting its backlog, the Internal Revenue Service still facing more than 10 million unprocessed returns, and its correspondent refunds. As of July 29, the agency had 10.2 million unprocessed individual tax year 2021 returns. Of these, 1.8...
Some things to know about crowdfunding and taxes
Crowdfunding is an increasingly popular method of raising money online. Funds are typically raised by soliciting small individual contributions from many people through an electronic fund-raising platform to fundraise for a business, for charity, or for gifts. It’s...
What is FATCA (Foreign Account Tax Compliance Act)? And How does it affect Americans Abroad?
FATCA stand for Foreign Account Tax Compliance Act. The legislation was passed into law in 2010 as part of the unrelated jobs legislation known as the HIRE law. FATCA is a broad, complex set of rules designed to increase tax compliance by Americans with financial...
Difficulties and challenges of having tax obligations in Spain and the U.S.A.
We understand the difficulties and challenges of having tax obligations in both countries, because US Tax Consultants is a company with offices in Madrid, Asturias (Spain) and Algarve (Portugal), and partners in Portugal and Italy, with national and international...
Financial Crimes Enforcement Network (FinCEN) Statement on Enforcement of the Bank Secrecy Act
This statement describes FinCEN’s approach to enforcing the Bank Secrecy Act (BSA). FinCEN uses the factors described in this statement to determine the appropriate enforcement response when it identifies actual or possible violations of the BSA. FinCEN is issuing...
Gold: An ideal investment for US Expats
“Gold is money. Everything else is credit. J.P. Morgan An American or IRS defined ¨US Person¨ living, working, or investing outside the United States is subject to a multitude of IRS reporting demands. The US Internal Revenue Service wants to know exactly what assets...
2021 US Tax return Form 1040 and FinCEN 114
All U.S. Citizen are required to file a U.S. Individual Tax Return every year, wherever in the world you live, reporting your worldwide income, even if you pay taxes in Spain. You must file the Form 1040 (Federal Income Tax), if your gross income is at least $5...
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