What is a PFIC (IRS Summary 2020)

PFIC: Revisiting Passive Foreign Investments: PFIC is an IRS acronym that refers to Passive Foreign Investment Companies.  The acronym can be misleading to U.S. taxpayers, because it gives the impression that PFIC only refers to companies. While technically this may be true, it does not put people on proper notice that their ownership or interest…


FATCA Reporting (IRS Summary 2020)

FATCA Reporting: FATCA Reporting is a key enforcement priority, and penalties for not disclosing foreign financial assets is on the rise. In 2020, the IRS will continue aggressive enforcement of FATCA reporting. FATCA (Foreign Account Tax Compliance Act) for U.S. taxpayers commenced in 2011, on the 1040 tax return — Form 8938. With more than 110…


Eggshell Audit (IRS Summary 2020)

Eggshell Audit: IRS High Risk Examination & Criminal Exposure: With an eggshell audit, the taxpayer is at a high risk for a potential IRS willful violation, tax fraud, and even a criminal investigation by the IRS. An eggshell audit is a situation in which the Taxpayer may have incriminating evidence that the agent is not…