The IRS Automated Underreporter Matching Process matches Tax Returns against Information Returns. IRS states that there were approximately 150 million individual tax returns filed in 2017 and about 25 million of them (17%)...more
The days of avoiding taxes through hiding money or assets in unreported offshore accounts are gone. Nonetheless, there are still taxpayers with undeclared offshore accounts, as well as the banks and bankers that are...more
On January 31, 2017, the IRS Large Business and International Division (LBI) announced a compliance campaign strategy to redefine large business compliance work and build a supportive infrastructure inside the LBI. ...more
12/10/2018
/ Audits ,
Cooperative Compliance Regime ,
Corporate Taxes ,
Economic Development ,
Foreign Earned Income ,
Foreign Tax Credits ,
Internal Revenue Code (IRC) ,
IRS ,
Large Business & International Division (LB&I) ,
Offshore Funds ,
S-Corporation ,
Swiss Banks ,
Tax Planning ,
TEFRA ,
Transition Tax ,
Virtual Currency
The guidelines for determining an Individual’s tax residency are as follows:
- An Individual Taxpayer is a resident based on the laws of one treaty-partner country and is considered to be a resident of that country for...more
In the US, Taxpayers “self-assess and voluntarily” pay taxes. The IRS position is that Voluntary Compliance occurs when a Taxpayer makes a “good faith” effort to meet the Taxpayer’s tax obligations as defined in the Internal...more
Rental income is reportable on a Taxpayer’s tax return. Certain expenses such as mortgage interest, real estate taxes, casualty losses, maintenance, utilities, insurance, and depreciation may be deducted from a Taxpayer’s...more
The Tax Cut and Jobs Act (TCJA) amended Section 274 of the Internal Revenue Code (IRC) created a confusion for Taxpayers by disallowing a deduction for expenses with respect to “entertainment”, amusement, or recreation and...more
11/29/2018
/ Accounting Controls ,
Corporate Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Meal and Entertainment Expenditures ,
Reimbursements ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Liability ,
Tax Planning ,
Tax Reform
On September 19, 2018, the House Ways and Means Committee wrote a letter to the IRS urging the IRS to “issue updated guidance, providing additional clarity for Taxpayers seeking to better understand and comply with their tax...more
11/20/2018
/ Bitcoin ,
Capital Gains ,
Cryptocurrency ,
Digital Currency ,
Financial Transactions ,
Income Taxes ,
Investment ,
IRS ,
Reporting Requirements ,
Tax Liability ,
Tax Planning ,
Tax Returns ,
Virtual Currency
Although only .2% of US Taxpayers actually pay Estate Taxes (Congress's Joint Committee on Taxation), it is important to understand how Estate Tax works in conjunction with gifting....more
A Foreign Trust can be a legitimate instrument for US Taxpayers that may have family members in foreign jurisdictions, have foreign business interests or are the beneficiaries of trusts created in other countries. ...more
La Sección 6001 del Código de Rentas Internas requiere que los Contribuyentes mantengan libros y registros adecuados. Mantener libros adecuados y buenos registros de la MV ayudará al Contribuyente a...more
Internal Revenue Code Section 6001 requires Taxpayers to maintain adequate books and records. Keeping adequate VC books and good records will assist a Taxpayer to...more
El 20 de abril del 2018, los Gobiernos de Costa Rica y los Estados Unidos firmaron una nueva versión de su ACUERDO ENTRE EL GOBIERNO DE LOS ESTADOS UNIDOS DE AMÉRICA Y EL GOBIERNO DE LA REPÚBLICA DE COSTA RICA PARA EL...more
On April 20, 2018, the Governments of Costa Rica and the U.S.A. signed a new version of their AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF THE REPUBLIC OF COSTA RICA FOR THE EXCHANGE...more
Hemos leído que la Moneda Virtual (MV) es un "activo especulativo" que, en determinadas circunstancias, puede utilizarse para pagar bienes o servicios o ser retenido para inversiones; y que su intercambio o uso de intercambio...more
11/5/2018
/ Bitcoin ,
CFTC ,
Commodities ,
Cryptocurrency ,
Digital Assets ,
Digital Currency ,
FinCEN ,
Investment Opportunities ,
IRS ,
Money Services Business ,
Peer-to-Peer ,
Regulatory Oversight ,
Securities and Exchange Commission (SEC) ,
Tax Liability ,
Tax Planning ,
Virtual Currency
We have read that Virtual Currency (VC) is a “speculative asset” that under certain circumstances may be used to pay for goods or services or be held for investment; and that its sale, exchange or use has tax consequences...more
11/5/2018
/ Bitcoin ,
CFTC ,
Commodities ,
Cryptocurrency ,
Digital Assets ,
Digital Currency ,
FinCEN ,
Investment Opportunities ,
Money Services Business ,
Peer-to-Peer ,
Regulatory Oversight ,
Securities ,
Securities and Exchange Commission (SEC) ,
Tax Liability ,
Tax Planning ,
Virtual Currency
El 11 de Noviembre del 2018, el Departamento de Justicia de los EE. UU. (“DOJ”) informó que el banquero Adrian Baron, el ex Director de Negocios y ex Director Ejecutivo de Loyal Bank Ltd, un banco “off-shore” con oficinas en...more
11/2/2018
/ Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Failure to Comply ,
FATCA ,
Financial Services Industry ,
Foreign Financial Institutions (FFI) ,
IGAs ,
IRS ,
Offshore Funds ,
Reporting Requirements ,
Strict Compliance ,
Tax Evasion ,
Tax Planning
On September 11, 2018, the US Department of Justice (DOJ) reported that banker Adrian Baron, the former Chief Business Officer and former Chief Executive Officer of Loyal Bank Ltd, an off-shore bank with offices in Budapest,...more
11/2/2018
/ Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Failure to Comply ,
FATCA ,
Financial Services Industry ,
Foreign Financial Institutions (FFI) ,
IGAs ,
IRS ,
Offshore Funds ,
Reporting Requirements ,
Strict Compliance ,
Tax Evasion ,
Tax Planning
Worker classification or work status has an effect on how a Taxpayer will pay federal income taxes, social security and Medicare taxes, and how a Taxpayer files a tax return. ...more
Statistics show that most Condo owners do not attend Board of Directors (BOD) meetings and avoid involvement with HOA issues. ...more
Taxpayers have a Taxpayers Bill of Rights: ten fundamental rights available to them when dealing with the IRS. They are...more
A CPA providing “Hosting Services” to “attest” clients could potentially threaten a CPA’s independence. Hosting Services have evolved over a number of years based on the development of software solutions and cloud-based...more
An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the IRS to foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for Social Security...more
When IRS reviews a criminal tax case, consideration is given to various factors such as whether a voluntary disclosure was made, whether prosecution exists, the health, age and mental condition of the Taxpayer and whether a...more
Sigue habiendo dirección limitada del Tesoro de los EE.UU y el IRS sobre la Moneda virtual (MV) y los inversionistas de la MV deben proceder con cautela....more
10/8/2018
/ 1099s ,
Bitcoin ,
Cryptocurrency ,
Digital Currency ,
Financial Instruments ,
Financial Transactions ,
Income Taxes ,
Investment Opportunities ,
Investment Products ,
IRS ,
Reporting Requirements ,
Tax Liability ,
Tax Planning ,
Tax Reform ,
Taxable Income ,
Virtual Currency