IRS Update on FBAR for US Citizens, Dual Citizens or Residents Living Outside the US
14/12/11 11:04 Filed in: FBAR
The IRS has issued new guidance on how penalties are determined when a US citizen, dual citizen or permanent resident lives outside the US and has not filed tax returns or reported foreign bank accounts (FBAR). In many cases penalties would be waived altogether.
In many cases, the US citizen has complied with the tax requirements in their country of residence. But US filings have not been made for years.
Often in these cases no US tax is owed because of the Foreign Earned Income Exclusion or the Foreign Tax Credit. In addition, there's usually no tax penalty either as the penalty is based on the amount of the tax which is "zero".
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In many cases, the US citizen has complied with the tax requirements in their country of residence. But US filings have not been made for years.
Often in these cases no US tax is owed because of the Foreign Earned Income Exclusion or the Foreign Tax Credit. In addition, there's usually no tax penalty either as the penalty is based on the amount of the tax which is "zero".
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California Use Tax Registration for Businesses
18/11/11 14:04
California businesses may be required to file a use tax return every year even if they don't owe tax. The purpose is to pay use tax (ie, "sales" tax) on products purchased and used in the business if tax wasn't paid at the time of purchase...e.g., products purchase by catalog or online with no sales tax charged.
Under R&TC §6225, any business with gross receipts of $100,000 or more must file a use tax return every year. There's an exception if the business is already registered with the Board of Equalization to pay sales and use tax, for example, retailers who already file a sales tax return for products they sell.
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Under R&TC §6225, any business with gross receipts of $100,000 or more must file a use tax return every year. There's an exception if the business is already registered with the Board of Equalization to pay sales and use tax, for example, retailers who already file a sales tax return for products they sell.
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Does your business have to send out Form 1099MISC?
Does your business have to send out Form 1099MISC?
Most businesses do. It doesn't matter whether your business is a sole-proprietorship, partnership, corporation or LLC, you may have a 1099 filing requirement with the IRS.
This requirement in addition to filing your income tax return every year.
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Most businesses do. It doesn't matter whether your business is a sole-proprietorship, partnership, corporation or LLC, you may have a 1099 filing requirement with the IRS.
This requirement in addition to filing your income tax return every year.
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IRS Announces 2011 Foreign Earned Income Exclusion Amount
08/11/11 13:28 Filed in: FEIE
The IRS has announced that the maximum amount that can be claimed for the foreign earned income exclusion for 2011 is $92,900. This is up from $91,500 in 2010.
This would apply if you have foreign earnings such as wages, salary or business profits and meet the other requirements. It is claimed on Form 2555. It does not apply to unearned sources of income such as pension, interest and dividends.
In addition, you may be able to deduct or exclude foreign housing costs (such as rent or utilities) within certain limits.
Please contact me if you have questions or want more information.
This would apply if you have foreign earnings such as wages, salary or business profits and meet the other requirements. It is claimed on Form 2555. It does not apply to unearned sources of income such as pension, interest and dividends.
In addition, you may be able to deduct or exclude foreign housing costs (such as rent or utilities) within certain limits.
Please contact me if you have questions or want more information.
IRS Publishes Registered Domestic Partner/CA Same Sex Couples Q & A
08/11/11 13:27 Filed in: RDP
In Sept 2011 the IRS published a Q&A (see link below) to answer some of the questions about Registered Domestic Partner and California Same Sex Married returns are to be filed.
The Q & A clarifies some of the issues not addressed in Publication 555.
I prepare many tax returns for RDPs so if you have any questions, please feel free to contact me.
I offer free initial consultations.
Questions and Answers for Registered Domestic Partners in Community Property States and Same-Sex Spouses in California
The Q & A clarifies some of the issues not addressed in Publication 555.
I prepare many tax returns for RDPs so if you have any questions, please feel free to contact me.
I offer free initial consultations.
Questions and Answers for Registered Domestic Partners in Community Property States and Same-Sex Spouses in California
IRS Announces 90 day Extension with OVDI Program
08/06/11 09:52 Filed in: OVDI
The IRS has announced a 90 day extension for compliance with the OVDI program (Offshore Voluntary Disclosure Initiative). Under this program, delinquent FBAR filings can be made at reduced penalties---or in some cases no penalty at all.
The deadline for full compliance is Aug 31, 2011. But a lot of information is required --- such as bank and brokerage statements going back to 2003. Read More...
The deadline for full compliance is Aug 31, 2011. But a lot of information is required --- such as bank and brokerage statements going back to 2003. Read More...
FBAR Deadline
06/03/11 11:04 Filed in: FBAR
The FBAR filing deadline is June 30 every year for the preceding year. It is important that the FBAR forms be filed on time as there is no provision for extension. Also the forms must be received by the deadline, not just postmarked.
Anyone with foreign accounts or foreign assets should know about the Offshore Voluntary Initiative Disclosure and the new Foreign Account Tax Compliance Act requirements. Both of these are summarized below.
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Anyone with foreign accounts or foreign assets should know about the Offshore Voluntary Initiative Disclosure and the new Foreign Account Tax Compliance Act requirements. Both of these are summarized below.
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IRS Announces Important Change to Foreign Bank Account Reporting (FBAR)
12/02/11 12:12
Foreign Bank Account Reporting -- Form TDF 90-22.1
On Feb 8, 2011, the IRS announced a Second Special Voluntary Disclosure Initiative for taxpayers with unreported (and untaxed) foreign bank and other financial account assets.
The new program began this week and expires Aug 31, 2011. It is different from the previous program which ended Oct 15, 2009.
The new initiative runs from now until August 31, 2011 and differs in some material ways from the first Offshore Voluntary Disclosure Initiative which expired October 15, 2009. Read More...
On Feb 8, 2011, the IRS announced a Second Special Voluntary Disclosure Initiative for taxpayers with unreported (and untaxed) foreign bank and other financial account assets.
The new program began this week and expires Aug 31, 2011. It is different from the previous program which ended Oct 15, 2009.
The new initiative runs from now until August 31, 2011 and differs in some material ways from the first Offshore Voluntary Disclosure Initiative which expired October 15, 2009. Read More...
On Dec 17,2010, The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (H.R. 4853) was finally enacted.
20/12/10 09:47 Filed in: unemployment
Here are some of the key provisions related to individuals:
A. Extension of provisions which had expired as of Dec, 31, 2009, with references to IRC sections:
B. Extension of provisions expiring in 2010. These expire in 2011 unless otherwise noted below.
C. AMT
D. Estate Tax
E. Social Security
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A. Extension of provisions which had expired as of Dec, 31, 2009, with references to IRC sections:
B. Extension of provisions expiring in 2010. These expire in 2011 unless otherwise noted below.
C. AMT
D. Estate Tax
E. Social Security
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California Tax Penalties: You May Owe a California Tax Penalty Even if You Owe No Tax
20/12/10 09:45 Filed in: california | penalties
If you haven't filed an income tax return for any year and the Franchise Tax Board sends you a notice, you need respond immediately.
The FTB routinely sends a "demand to file" to many people who may not even owe any tax or meet the filing requirements. The problem is that if you do not respond, the FTB may impose a 25% penalty on its assessment of the tax before applying payments and credits. That is, the FTB will calculate an amount it thinks you owe and base the 25% penalty on that amount.... even though it may be (and probably will be) completely wrong. (R&TC Section 19133)
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The FTB routinely sends a "demand to file" to many people who may not even owe any tax or meet the filing requirements. The problem is that if you do not respond, the FTB may impose a 25% penalty on its assessment of the tax before applying payments and credits. That is, the FTB will calculate an amount it thinks you owe and base the 25% penalty on that amount.... even though it may be (and probably will be) completely wrong. (R&TC Section 19133)
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New Rules: Rental Property Owners Must File 1099s
29/11/10 12:20 Filed in: Real Estate
If you own rental property, you will have to start issuing 1099s to anyone providing services in 2011. The new rules are contained in the Small Business Jobs Act (PL 111-240) and are similar to the existing reporting requirements for those engaged in a trade or business.
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2010 Returns with New Home Buyer Credit May be e-filed
07/11/10 11:34 Filed in: Home Buyers Credit
2010 tax returns with the new home buyer credit are allowed to be e-filed, therefore, speeding up refunds. Read More...
New Ruling Increases Limit on Home Mortgage Interest Deduction
30/10/10 12:28 Filed in: Deduction
Under a new ruling, you may now deduct interest on up to $1.1 million of debt on a personal residence. This adds $100,000 to the previous limit which was $1 million of acquisition debt. The loan proceeds must be used to "acquire, construct of substantially improve" a qualified residence. Read More...
California Domestic Partners Face Tax Changes
21/10/10 11:30 Filed in: RDP
A new ruling from the IRS will change how Registered Domestic Partners and same sex married couples in California file their Federal income tax returns. The ruling states that income must be allocated to each partner using community property rules.
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