Many professionals and scientists working in the US on an H1-B visa need to understand IRS PFIC taxation and the implications of continuing many offshore investments. What are PFICs and why would high income professionals in the US on an H1-B visa need to understand IRS PFIC taxation rules? The challenge...
Updates on Offshore Investments and IRS FBAR Reporting Requirements
The world is still unpacking the impact of FATCA and the IRS' intent to track offshore bank accounts, investments and corporations. The result is continuing pressure on offshore investments and IRS FBAR reporting requirements including PFIC tax calculations and the continuing expansion of 50% penalties on specific institutions identified by...
IRS Audit Triggers to Avoid in 2016 Tax Returns
What Are the IRS audit triggers to avoid in 2016 tax returns and what can Allen Barron do to help those who are preparing and filing their tax returns in Rancho Bernardo, Poway and Rancho Santa Fe? There are several factors that have come out of recent statistical analysis regarding...
Tax Preparation for Rancho Bernardo and Poway
We await the annual sending of W-2's, 1099's and other wage and income related paperwork. The receipt of your W2 or 1099 is usually the start of tax season for most households throughout San Diego. Allen Barron announces tax preparation for Rancho Bernardo and Poway with the reminder that tax...
A New World of Financial Transparency and International Tax
2017 is dawning on a new world of financial transparency and international tax cooperation between global sovereign tax authorities and the world's banks and investment houses. What does this mean for international investors, US taxpayers with offshore accounts and assets and international business? In short - a reckoning. The primary...
Year End Tax Planning – Why Turbo Tax is No Solution for FBAR
Why are there so many people who have used Turbo Tax and other home tax software solutions (including the free IRS version) who are now facing tens of thousands of dollars in FBAR penalties, fines and IRS audits? Because Turbo Tax is no solution for FBAR or any other remotely...
Should US Expats Own Foreign Mutual Funds
US expats have been under some extreme hardships as a result of FATCA and the requirements to provide clear documentation of the "beneficial ownership interest" in all of their offshore bank and investment accounts. This allows the IRS to track specific accounts, transactions and balances to the unique social security...
US Treasury and IRS Update Guidance on PFICs and CFC Investments
Recently the US Treasury Department and the Internal Revenue Service (IRS) released new guidance on PFICs and CFC investments for a Regulated Investment Company (RIC). Under US tax law a corporation can qualify as a Regulated Investment Company for a given tax year only when 90% or more of...
Foreign Nationals Should Beware of PFICs
Many foreign nationals live and work in the US. For those who are permanent residents or have received their green card or other qualifying visa, it is important to understand your requirements as a US taxpayer and the impact your foreign investments may have upon the taxes you will owe...