International Taxation

17
Feb

The Tax Court Reminds Foreign Corporations of the Disastrous Consequences of Failing to File Forms 1120-F U.S. Income Tax Returns

By: Heather L. Marello, Esq. I.R.C. § 6012(a)(2) imposes an income tax return filing requirement on “every corporation subject to taxation under subtitle A.”  The Treasury Regulations clarify that a foreign corporation is not exempt from U.S. taxation if it is engaged in a U.S. trade or business, even if it has no effectively connected U.S. income or its income

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26
Jan

Virtual Currency Coming to an FBAR Near You

By:  Michael J. Tedesco With the rapid rise of virtual currency, the IRS and Financial Crimes Enforcement Network (FinCEN) were required to make quick decisions on interpretations of how these virtual currencies should be treated. FinCEN, the agency under the U.S. Treasury Department tasked with administering the Foreign Bank Account Reporting (“FBAR”) requirements, has previously indicated that virtual currencies are

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30
Jan

Voluntary Disclosure options for taxpayers after the closing of the OVDP

By: Tiffany D. Bell When the IRS closed the 2014 OVDP last fall, which had provided an avenue for taxpayers to come into compliance with any past offshore tax and information reporting, it left many taxpayers and tax practitioners wondering, what do we do now? Since 2009, the IRS has offered taxpayers a variety of voluntary disclosure programs within which

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22
Jan

Think the IRS is quiet during the Shutdown? Think Again! Another Form 3520 Trap for the Unwary

By: Randall P. Andreozzi Things are emerging from the abyss that is the longest government shutdown in United States history.   Yes, there exist some things so resilient, so pervasive, so constant they can survive and proliferate even in a governmental vacuum.  Our friends who are U. S. citizens living abroad know this species all too well and are likely collectively

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23
May

Planning to file a Delinquent 1120F Return? Make sure you know the Risks.

By: Lou Carlow On February 1, 2018 the Commissioner of Internal Revenue, Large Business and International Division (LB&I) issued a memorandum providing guidelines for handling delinquent Forms 1120-F and requests for waivers pursuant to Treas. Reg 1.882-4(a)(3)(ii), that states “No one involved in a compliance function should accept as filed a delinquent Form 1120-F from a taxpayer or discuss in

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27
Mar

Recent Tax Court Ruling Limits Statute of Limitations for Foreign Account Reporting

By: Tiffany D. Bell, Esq. In 2010, Congress added to the anxiety of tax practitioners when it expanded the statute of limitations for the IRS to assess income taxes to six years when a taxpayer fails to include Form 8938 with his tax return.  Taxpayers use Form 8938 to report to IRS foreign bank accounts and other specified foreign financial

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19
Mar

IRS Offshore Voluntary Disclosure Program Will End on September 28, 2018

By: Randall P. Andreozzi, Esq. The IRS announced on Wednesday that it will officially end the 2014 Offshore Voluntary Disclosure Program (affectionately known to practitioners as the “OVDP”) on September 28, 2018. The Agency urged taxpayers who still have not come forward to do so before the program ends. The 2014 OVDP is the last evolution of the program IRS

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23
Jan

FBAR Penalties – The Government’s Coin-Flip Burden of Proof on Willfulness

By: Heather L. Marello, Esq. The Bank Secrecy Act of 1970, Pub. L. 91-507, 84 Stat 114 (Oct. 26, 1970), addressed the government’s desire to monitor the use of foreign bank accounts for illegal activities by authorizing the Secretary of the Treasury to require U.S. citizens, residents, and others to “keep records, file reports, or keep records and file reports,

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5
Oct

IRS Relaxes Bona Fide Residency Rules in the Wake of Hurricanes Irma and Maria

By: Heather L. Marello, Esq. In the wake of recent hurricanes that devastated Puerto Rico and the U.S. Virgin Islands, IRS released Notice 2017-56, Physical Presence of Certain Individuals in the Commonwealth of Puerto Rico or the United States Virgin Islands Under Section 937(a) Following Hurricane Irma or Hurricane Maria, to provide relief under the strict bona fide residency rules

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28
Apr

IRS Delinquent 1120F Campaign – Are You Prepared?

By: Lou Carlow The IRS has identified the failure to file Forms 1120-F as the most recent front for its enhanced campaign to enforce compliance.  This campaign sends a clear message to foreign businesses with a U.S. business nexus – comply or beware: Foreign companies doing business in the U.S. are often required to file Form 1120-F. LB&I has data

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