Income Tax: Green Card IRS US Tax
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Comments Off on Americans Living Abroad Are Acting Like Superman
Americans Living Abroad Are Acting Like Superman
A year ago, in Action Comics, Superman declared plans to renounce his U.S. citizenship.
Now, I did not know that. But a year ago, I advised few of my clients that renouncing their American citizenship might be the only way to keep IRS and USA government off their back.
According to a news report, in 2011, almost 1,800 people followed Superman’s lead, renouncing their U.S. citizenship or handing in their Green Cards. That’s a record number since the Internal Revenue Service began publishing a list of those who renounced in 1998. It’s also almost eight times more than the number of citizens who renounced in 2008, and more than the total for 2007, 2008 and 2009 combined.
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Income Tax: audit Income Tax IRS US Tax
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Comments Off on 2012 Offshore Voluntary Disclosure Initiative Announced by IRS
2012 Offshore Voluntary Disclosure Initiative Announced by IRS
IRS OVDI Tax Collector
1. A USA Citizen
2. A Dual USA Citizen Living Abroad
3. A USA Resident
4. A USA Green Card Holder Living Abroad
United States Internal Revenue Service (IRS) has been aggressively pursuing US persons (including US citizens and green-card holders living abroad) who have failed to report foreign income on their US income-tax returns and/or failed to report foreign bank and investment accounts on a Foreign Bank Account Report (FBAR). A US Person, must file income tax return with IRS, regardless of their residency.
IRS implemented amnesty programs since 2009 for US citizens to come forward with their foreign income reporting. More than 30,000 people have voluntarily complied since 2009, at least 30 have been criminally indicted and the IRS has netted a total of $4.4 billion in unpaid taxes, interest and penalties.
The State Department estimates that more than 6 million citizens live overseas, excluding those in the military, yet the IRS receives only 1.6 million tax returns each year with foreign addresses. And just over 500,000 FBARs were filed in 2009.
On January 9, 2012 the IRS announced a third amnesty, formally known as the Offshore Voluntary Disclosure Program. It is substantially the same as the 2011 amnesty (aka 2011 OVDI), with some exceptions:
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Income Tax: Canada Green Card IRS US Tax
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IRS Calling! US Citizens in Canada File Your Tax Return
Income Tax
The USA tax collector Internal Revenue Service (IRS) has stepped up their search for U.S. citizens living outside of the country and not filing their returns.
Thousands of “lost” U.S. citizens living in Canada are getting the call from the IRS.
Here are some tips on how to get caught up:
*Dual citizens: Even if you moved to Canada and became a citizen or resident, unless you go through the formal process of renouncing your U.S. citizenship, you are considered a dual citizen. The IRS still expects you to file your annual income tax return form 1040.
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Income Tax: IRS Tax Rate US Tax
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Obama Tax Cut Deal Will Cost U.S. For The Long Run
The Bush tax cut has been extended for two more years and it is now called the Obama Tax Deal.
Bush tax cut has been effective since 2002 when the U.S. economy was doing rather good. But since then, with housing market collapse and unemployment of millions of people, the economy has been spiraling downward.
It does not make any logical sense to me to claim that extending the Bush cut will create jobs for American People.
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Canada Revenue Agency Income Tax Real Estate: IRS US Tax
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Comments Off on Tax Issues To Consider By Canadians Investing In US Real Estate Market
Tax Issues To Consider By Canadians Investing In US Real Estate Market
I am often being approached by many Canadians asking about the current investment opportunity in US real estate market.
The opportunity might be very attractive, but investing in US or any other country for that matter is very complex for ordinary Canadians.
There are major tax implications to consider for investment property from both US and Canadian Tax agencies.
As a Canadian investor, you must report all your foreign investment over $100,000 to Canada Revenue Agency and also your income from your foreign investment sources to determine tax payer taxable income,
In US, Canadian investor must also file US income tax return and report all income from investment property to the US tax authority. Canadians also must obtain a US tax payer identification number (TIN) from IRS. Without a TIN, Canadian investor would not be able to realize the income from the property and transfer it to Canada. There is also the possibility of 30% source deduction of any profit from the investment property by the IRS.
If you are considering investing in US properties, it would be prudent to seek advice from a qualified tax or investment advisor, who are experts in cross border taxation.