The IRS has clearly identified legitimate reasons why "US Persons" would establish or maintain ownership in a foreign trust. However, there are significant and complex tax reporting requirements associated with US taxpayers who are beneficiaries with an investment in a foreign trust. There are specific transactional reporting requirements for those...
What Happens if a San Diego Business Doesn’t Comply with the IRS
What happens if a San Diego business doesn’t comply with the IRS and all filing and reporting requirements? Can you face criminal prosecution or be held personally liable if your company makes a mistake with the IRS? Generally speaking, an officer of a corporation may risk personal liability for their...
How Was I Identified for an IRS Audit in San Diego
We are often asked “How was I identified for an IRS Audit in the first place?” There are a number of issues which could trigger an IRS audit. Generally speaking, the IRS develops targets for enforcement each year based upon consistent areas of under-reported income, underpaid tax or areas where...
Digital Currency as a Tax Dodge – The Reality of Crypto and the IRS
Many US citizens and expatriates are considering digital currency as a tax dodge and a way to hide income and assets from the IRS. The reality of cryptocurrency or “Crypto” and the IRS may shock you. Crypto myths and schemes abound, but what are the genuine facts? If you are...
What is an IRS Office Audit in San Diego
What is an IRS office audit in San Diego and should you be concerned? The standard IRS audit most of us have heard about is known as a “correspondence” audit. This means the audit takes place at a distance (phone, mail, e-mail, etc.) between the taxpayer, their legal representative and...
Dealing with the IRS on Back Taxes
How should you handle communications when you’re dealing with the IRS on back taxes? Let's say that you owe the IRS $10,00 for back taxes. This is the first time that you have been at odds with the IRS, so you have no idea what to do -- as is...
What are Some of the Top IRS Audit Triggers for 2021?
What are some of the top IRS audit triggers for 2021? The past few years many sources have reported a reduction in IRS audits. Recently, the IRS has implemented new procedures to step up audits in an effort to increase collections for the US Treasury. Lost revenues associated with past...
New IRS Guidance to Ease Transition to the Revenue Recognition Rule
It is important to consider new IRS guidance to ease transition to the Revenue Recognition Rule. In 2014 the IRS revenue recognition standard took effect for publicly traded corporations. Almost all other businesses were required comply to the new standard in late 2018. The Financial Accounting Standards Board (FASB) released...
IRS has Released Finalized PFIC Regulations
The IRS has released finalized PFIC regulations as well as proposed new regulations which relate to the modification of PFIC rules. A few years ago the IRS issued temporary rules regarding ownership of Passive Foreign Investment Companies (PFIC) and how shareholders in these companies would be taxed. The IRS has finalized...