We are often asked "Are there strategies to reduce California tax on large taxable events such as selling shares of stock or settling a lawsuit?" The central answer to this question may come down to residency at the time of the transaction. The nominal tax rate in California is one...
Does Your Domestic Entity Have Foreign Assets
Does your domestic entity have foreign assets which must be reported on the IRS Form 8938? The Foreign Account Tax Compliance Act or FATCA requires many US corporations, LLCs, trusts and partnerships which hold foreign investments or financial assets to disclose them on the form 8938. If a US trust...
US Court of Appeals Upheld Requirement for IRS FBAR Reporting
The Sixth District of the US Court of Appeals upheld requirement for IRS FBAR reporting recently. The decision affirmed the actions of a US District Court which dismissed a complaint which challenged FATCA and the requirement to come into compliance with IRS FBAR disclosures. The lawsuit sought to prohibit...
Poor Contracts Lead to Business Litigation in San Diego
It may seem attractive to download business contracts from an online legal site. However, poor contracts lead to business litigation in San Diego and Southern California. Allen Barron carefully crafts business contracts to protect the interests of our clients. We also represent those who become involved in business-to-business (B2B) or...
How Can Allen Barron Better Protect You and Your FBAR Compliance
How can Allen Barron better protect you and your FBAR compliance issues with the IRS? How can Allen Barron help you come into compliance with IRS FBAR reporting requirements while keeping associated penalties and risk at a minimum? Allen Barron is uniquely positioned to provide sound counsel and comprehensive services...
Taxation in a Divorce Settlement Must Be Considered
If you are working through the financial issues at the end of your marriage taxation in a divorce settlement must be considered before you sign the final agreement. Child support is neither deductible to the payor nor taxable to the recipient. Many Californians are unaware that spousal support is taxable...
Tax Extension Due Dates for Corporate and Personal Returns Approaching
The tax extension due dates for corporate and personal returns is approaching quickly. Important deadlines for many corporate tax returns in September (originally due in March) and October (for personal filers originally due in April) will come to pass in the next 45 days. September 15 is not only the...
IRS is Closing In on US Taxpayers with Offshore Accounts
The IRS is closing in on US taxpayers with offshore accounts thanks to the global exchange of information which has been a by-product of FATCA and the Justice Department's pursuit of Swiss banking and financial interests. The deal between the IRS and Swiss institutions ultimately led to an agreement to...
Is the IRS Use of Social Media to Establish Audit Targets Legal
A Washington State University (WSU) professor has asked an interesting question in the Vanderbilt Journal of Entertainment and Technology Law: Is the IRS use of social media to establish IRS audit targets legal or does it violate established law? Revelations that the IRS researches social media and other large data...