Our 2020 guide to Expat tax news & updates

Tax reform, unfortunately, did not make things easier for the American overseas. In our latest video, Anthony Parent interviews three experts, fellow tax attorney John Richardson, Laura Snyder of the Taxpayer Advocate’s office, and global advocate for the American Overseas, Keith Redmond. The three share their insight to the essential changes and potential paths to meaningful help.

Do you qualify for the IRS Fresh Start Program?

Believe it or not, the IRS Fresh Start Program actually offers some benefits! We’ve used this initiative to help individuals and small businesses around the country and the world settle their an IRS probem. But who qualifies and for what exactly? Read this article to learn what you need to know about the IRS Fresh Start Program.

How the IRS Treats International Taxpayers and Returns

The IRS requires all U.S. citizens, resident aliens, and other U.S taxpayers to file a tax return each year, no matter where they are located in the world. This means international taxpayers who were born, have lived, or are living in the U.S. must file with the IRS.

This article applies to you if:

You have lived in the U.S.

You have paid tax in the U.S. in any way.

• You are a U.S. citizen or resident, even if you are not living there now.

• You have ever filed a U.S. tax return.

• You have relocated to a country outside the U.S.

What is a covered exptatriate? Why is it so bad?

The IRS announced a new program “Relief Procedures for Certain Former Citizens” to help those who have expatriated incorrectly and are worried about being deemed a “covered expatriate.” So before you convince yourself you need this program, it may be a good idea to know a covered expat is and what happened is you don’t take any action, right?

What are IRS Form 5471 penalty triggers?

Obviously, not filing a Form 5471 at all when required to do so can trigger a Form 5471 penalty. But also, any Form 5471 that is filed but that the IRS considers not “substantially complete” may result in Form 5471 penalties. In this article we will discuss what types of mistakes on a Form 5471 could lead to “substantially incomplete” penalties and what you can do to protect yourself from an IRS international audit team that admits it is hyper-aggressive when it comes to assessing Form 5471 penalties.

What Tax Reform Means to Foreign Tax Credit Rules

The Tax Cuts and Jobs Act of 2017 (TCJA) made many changes to how the U.S. taxes earnings or dividends from overseas. One of the areas impacted was foreign tax credits, which changes how taxpayers in the U.S. calculate and pay taxes on certain foreign income. Like many other parts of tax law, this can be complicated, so we’ve broken things down to explain what these changes could mean to you, whether you’re a U.S. expatriate, a corporation, or you receive income from overseas.

Does your child need to file an FBAR?

The Report of Foreign Bank accounts, also known as the FBAR was a tool invented by congress in 1970 to make it difficult for criminal masterminds around the world to use the international banking system to facilitate their criminal mastermind plans. And because of that, any US person regardless of age or mental abilities must file an FBAR should their foreign bank accounts exceed $10,000 in the aggregate. Again, believe it or not this requirement extends to someone who is disabled or is a child – even a baby. Read more to find out why