Form 5471 Penalties (2018) – Failure-to-File 5471 | IRS Penalty Triggers As far as International Informational Returns go, IRS Form 5471 is a relatively difficult form to prepare in the realm of international tax. Form 5471 Penalties Common issues and questions we receive regarding IRS Form 5471 penalties: When is IRS Form 5471 Due? What…
Structuring Cash Transactions (2018) – FATCA/FBAR Reporting Crimes Structuring Transactions is considered a crime. Why? Because you are intentionally evading reporting transactions to the U.S. Government by “structuring” financial transactions to be below reporting thresholds (typically $10.000). Common issues involving structuring include: What is the definition of Structuring? What is a Cash Transaction Report? Why…
Delinquent Tax Returns (2018) – IRS Tax Problems & How To Fix Them There are many reasons why a person may get behind on their taxes, and usually, what may start out as one year of non-compliance may turn into several years out of IRS tax compliance. Common issues include: Unfiled U.S. Tax Return(s) Past-Due…
Avoid IRS Tax Evasion Penalties & Prison with Voluntary Disclosure (2018) IRS Tax Evasion can lead to both Tax Evasion Penalties and other IRS Penalties as well (depending on the facts and circumstances). Common issues include: Civil Tax Fraud Criminal Tax Evasion Offshore Penalties Willful Penalties Special Agent Investigations IRS Amnesty (Voluntary Disclosure) Whether the…
IRS Reporting of Foreign Bank Accounts (2018) – Foreign Account Amnesty International tax compliance, and specifically the reporting (or actually the ‘non-reporting’) of foreign bank accounts, income, investments, and assets has become a big business for the IRS. The IRS penalties associated with the non-reporting of foreign bank accounts, investments, assets and income has become…
IRS Fraud Penalty & Examples (2018) – Badges of Fraud | IRS Tax Fraud IRS penalties can be tough, this is especially true if the IRS determines that you acted fraudulently. Unlike other types of monetary penalties, in order for the IRS to show you acted fraudulently, the IRS must meet a higher standard of proof,…
Streamlined Disclosure Audit (2018 Update) – Common Audit Triggers Since the modified IRS Streamlined Disclosure Program’s inception back in July 2014, our firm has handled several hundred streamlined disclosure submissions successfully. While to date, we have never had a streamlined disclosure rejected by the Internal Revenue Service, we do receive inquiries from other clients, CPAs,…
Form 8938 Penalty (2018) – Limitations on Form 8938 Reasonable Cause Form 8938 is the FATCA form, which you may have to file along with your U.S. Tax Return. FATCA is the Foreign Account Tax Compliance Act. The act came into effect in 2010, and Form 8938 was introduced for the first time in tax year…
Tax Evasion of Offshore Accounts (2018) – IRS Offshore Banking Rules IRS Tax Evasion of Offshore Accounts is scary business. We have written numerous articles, and spoken with many clients since our firm’s inception on issues involving offshore tax evasion, including unreported foreign accounts, assets, investments, and income. We understand how confusing and nerve-racking it can be…
Foreign Income Is Taxable in the U.S. (2018) – IRS International Tax Rules One of the most common questions we receive at Golding & Golding, is how foreign income is taxable in the United States, when the money was earned outside of the United States? Unfortunately, U.S. Tax law is counterintuitive. When it comes to…
Example of How the Foreign Earned Income Exclusion Reduces U.S. Tax (2018) When a person qualifies for the Foreign Earned Income Exclusion (FEIE) using IRS Form 2555 then may be able to legally reduce their taxable income by over $100,000 annually. In addition, if the person is Married Filing Jointly (MFJ), then each person is entitled to use…
IRS Undisclosed Foreign Asset Reporting Rules (2018 Update) The IRS has ramped up enforcement of undisclosed foreign assets. And, now that the the IRS has many tools in place that were not available to them five or 10 years ago (FATCA, International Tax Enforcement Groups), the IRS is much more able to easily locate your…
