Archive for the ‘Journals, Publications & More Information’ Category.
January 14, 2021, 1:17 pm
FinCEN (Financial Crimes Enforcement Network) on December 31, 2020 advised filers that although accounts holding virtual currency are not currently considered a reportable account, it to pros=pose shortly changes that will require virtual currency accounts reportable under 31 CFR 1010.350(...
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August 30, 2020, 12:32 pm
The district court in the matter of Bittner (DC TX 6/29/2020), concluded that the penalty for a non-willful FBAR violation relates to each FBAR Form 114 not timely or properly filed rather than to each foreign financial account maintained but not timely or properly reported. Only time wil...
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August 27, 2020, 11:09 am
As we have warned in the past ITIN’s not used at least once every 3 years and 5 years after issuance now expire, the following applies to the 2020 tax year for returns filed in 2021. The later requirement will affect ITINs with middle digits of 88, 90, 91, 92, 94, 95, 96, 97, 98 or 99, i...
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August 25, 2020, 12:17 pm
On September 24, 2019 the IRS released IR-2019-158 containing Revenue Procedure 2019-38 that contained a safe harbor which would allow a rental activity to be treated as Qualified Business Income for the purposes of IRC Sec 199A. This Safe Harbor contains a 250 hour requirement, however If...
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August 25, 2020, 11:17 am
Every tax year the IRS reminds us of Hobby Loss deductibility restrictions, please keep these in mind when preparing your US income taxes!!
Whether it’s something they’ve been doing for years or something they just started to make extra money, taxpayers must report income earned from ...
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August 23, 2020, 12:08 pm
The IRS does an excellent job at explaining and advising on the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC).
Whether it’s online, in-person, part-time or full-time, higher education can be expensive. The good news is there are tax credits that can help ...
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August 22, 2020, 11:59 am
Major IRS milestone helps taxpayers correct tax returns with fewer errors, speeds processing
The IRS announces in IR-2020-182 as we reported on May 27, 2020 that the ability to for Amended efiling starting with the 2019 tax year only, is now a reality and is effective and in place effecti...
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February 17, 2020, 12:00 am
The IRS wants you to know that they have combined forces with the United Kingdom (UK), United States (US), Canada, Australia and the Netherlands to catch offshore tax evasion as a result of an international financial institution located in Central America, whose products and services are b...
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February 17, 2020, 12:00 am
The IRS explains how the Gig economy- (also called sharing economy or access economy—is activity where people earn income providing on-demand work, services or goods. Often, it’s through a digital platform like an app or website..) is taxed, so timely and relevant in today's changing w...
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February 17, 2020, 12:00 am
The IRS explains how the receipt of your tax season refund can be affected by many factors, including whether you efile or paper file, theft ID and whether you claim the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) do not expect your refund before mid-February.
As...
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November 30, 2019, 12:00 am
The IRS reminds us what we can do int eh event of a natural disaster to reconstruct our records, some tips to keep in mind when we may apply for federal assistance or insurance reimbursements!
After a natural disaster, taxpayers may need records to help them prove their disaster-related l...
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November 26, 2019, 12:00 am
What the IRS wants teachers from Kindergarten to 12th grade to know about unreimbursed expenses that they incur for the classroom.
Now that fall is here and school has started, many teachers are dipping into their own pockets to buy classroom supplies. Doing this throughout the year can a...
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November 22, 2019, 12:00 am
The IRS reminds us that our filing status is determinate on December 31 of each tax year, and a description of each filing status!
When a taxpayer files their tax return, they need to know their filing status. What folks should remember is that a taxpayer’s status could change during th...
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November 20, 2019, 12:00 am
The IRS is aware that some taxpayers with virtual currency transactions may have failed to report income and pay the resulting tax or did not report their transactions properly. Therefore for the first time since 2014 the IRS has released two new pieces of guidance for taxpayers who enga...
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November 18, 2019, 12:00 am
Some excellent recourses available by the IRS when it comes to charitable giving! Is the charitable organization a legit US registered charity, how to fair value items, rules on deductibility, and non-cash donations.
Taxpayers who donate to a charity may be able to claim a deduction on ...
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November 14, 2019, 12:00 am
With the signing of the TCJA 2017 legislation on December 22, 2017 to become effective as at January 1, 2018 the Child Tax Credit (CTC) took on a whole new life. With new phase out ranges STARTING at $400,00 for married filing joint filers, it was not uncommon this past 2018 tax season t...
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November 11, 2019, 12:00 am
The Child and Dependent Care Credit may come into play when the Child Tax Credit does not, learn who qualifies, the maximum credit available, the type of care that qualifies, and the provider information required to claim the credit.
Taxpayers with dependents may qualify to claim a few di...
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November 8, 2019, 12:00 am
The IRS does an excellent job at comparing and contrasting the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC).
There are two education credits that can help taxpayers with higher education costs: the American opportunity tax credit and the lifetime learnin...
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November 5, 2019, 12:00 am
If you pay for college in 2018, you may receive tax credits for education on your federal tax return. Even if you’re studying outside of the U.S. the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC) may reduce the amount of tax you owe, but only the AOTC is...
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November 1, 2019, 12:00 am
With the passage of the 2017 TCJA legislation signed into law on December 22, 20917 we are reminded of the tax law changes related to alimony and separation payments as applicable to 2019 US tax filings. Beginning Jan. 1, 2019 alimony or separate maintenance payments are not deductible f...
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October 30, 2019, 12:00 am
As we warned you on July 25, 2019 at the end of 2019 (to file for 2019 tax returns in 2020) ITINs expire after not being used at least once in the last 3 tax years, as well as ITINs with middle digits of 83, 84, 85, 86 or 87 expire.
Taxpayers with expiring individual taxpayer identificat...
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September 27, 2019, 12:00 am
What the IRS wants taxpayers to know about filing mistakes on their tax returns. Taxpayers can fix mistakes or omissions on their tax return by filing an amended tax return. If you need to amend, the following tips should prove helpful to you.
Although the IRS often finds and corrects e...
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September 24, 2019, 12:00 am
In 2019, the United States and the French Republic memorialized through diplomatic communications an understanding that the French Contribution Sociale Generalisee (CSG) and Contribution au Remboursement de la Dette Sociate (CRDS) taxes are not social taxes covered by the Agreement on Soci...
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September 16, 2019, 12:00 am
As previously blogged back on March 22, 2019, Protax warned that under The Fixing America’s Surface Transportation Act (FAST Act), P.L. 114-94, adding Sec. 7345, which authorizes the IRS to certify to the secretary of State that when a taxpayer is seriously delinquent with his or her tax...
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September 12, 2019, 12:00 am
The IRS explains with tax tip 2019-116 that when you start a business you have options as to the business structure, Sole proprietorship, Partnership, Corporation, S corporation and LLC. Also you can choose your year end, it does not have to be December 31.
Starting a business can be ve...
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February 25, 2019, 12:00 am
The Tax Cuts and Jobs Act (TCJA), also called the 2018 tax reform, is the most drastic change to the Internal Revenue Code in over 30 years. When it comes to expats, most of the key changes brought on by TCJA have little or no effect given that the chief expat benefits like the foreign e...
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February 23, 2019, 12:00 am
IRS explained the changes to the Child Tax Credit that will now apply to many more US filers as a result of the TCJA 2017 legislation as it pertains to individuals filers.
Many people claim the child tax credit to help offset the cost of raising children. Tax reform legislation enacted l...
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February 18, 2019, 12:00 am
An excellent synopsis of the major TCJA 2017 legislation affecting Individuals for the upcoming 2018 (performed in 2019) tax season, as well as some expired adjustments that congress never extended. Terrific read.
Return preparers must be ready for how the Tax Cuts and Jobs Act has modifi...
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February 8, 2019, 12:00 am
The IRS announced that Tesla, Inc. has sold more than 200,000 vehicles eligible for the plug-in electric drive motor vehicle credit during the third quarter of 2018. This triggers a phase out of the tax credit available for purchasers of new Tesla plug-in electric vehicles beginning Jan. 1...
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February 6, 2019, 12:00 am
As previously blogged back in February of 2018, Protax warned that under The Fixing America’s Surface Transportation Act (FAST Act), P.L. 114-94, adding Sec. 7345, which authorizes the IRS to certify to the secretary of State that a taxpayer is seriously delinquent with his or her taxes....
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February 4, 2019, 12:00 am
IRS announces that as a result of the major legislative changes as a result of the TCJA of 2017 it is modifying the safe harbor test for the estimated tax penalty calculated on Form 2210 for any taxpayer who paid at least 85 percent (versus the current rule of 90%) of their total tax liabi...
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January 16, 2019, 12:00 am
While the TCJA of 2017 eliminated the Schedule A deduction for Foreign Real Estate taxes, Foreign Real Estate taxes form part of the Qualified Foreign Housing expenses that qualify for the Housing Exclusion if employed or Housing Deduction if self-employed? But you first need to qualify ...
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January 4, 2019, 12:00 am
How the TCJA 2017 act severely limited Itemized Deductions starting on January 1, 2018, while eliminating the phaseout entirely. Gone are unreimbursed employee expenses, investment expenses and personal casualty & theft losses unless the casualty is declared a federal disaster area b...
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December 27, 2018, 12:00 am
How businesses can prevent record loss in the event of a disaster, some tips to keep in mind!
When disaster strikes, many business owners might find themselves needing to reconstruct records. This will help them prove a loss, which may be essential for tax purposes, getting federal assist...
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December 19, 2018, 12:00 am
One of the significant changes that the TCJA 2017 brought to bear on December 22, 2017 was that is changed on what property a Like Kind 1031 Exchanges qualify.
The Internal Revenue Service today reminded taxpayers that like-kind exchange tax treatment is now generally limited to exchanges...
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November 14, 2018, 12:00 am
Though time has run out for taxpayers to make a complete disclosure and avail themselves of the program benefits of the Offshore Voluntary Compliance Program (OVDP) for Willful taxpayers as of September 28,. 2018, taxpayers can still voluntarily reveal their offshore assets and in the case...
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October 18, 2018, 12:00 am
56,000 taxpayers later amounting to 11.1 billion dollars the Offshore Voluntary Compliance Program (OVDP) for Willful taxpayers who have not reported all of their income, and or FBARs Form 114 and/ or FFA on Form 8938 has come to an end on September 28, 2018. Have no worry the Streamline...
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October 13, 2018, 12:00 am
US Expats with non US corporations, hold your hats…..The TCJA of 2017 imposed not only a one time "deemed repatriation tax" or 'transition tax' of 15.5% on untaxed foreign earnings or business profits accumulated overseas from 1986- 12/31/17 held in cash or cash-equivalents and 8% for pr...
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September 20, 2018, 12:00 am
US Expats with non US corporations, hold your hats…..The TCJA of 2017 imposed a one time "deemed repatriation tax" or 'transition tax' of 15.5% on untaxed foreign earnings or business profits accumulated overseas from 1986- 12/31/17 held in cash or cash-equivalents and 8% for profits hel...
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February 28, 2018, 12:00 am
Shame on the IRS. Court rules that whether the individual willfully failed to submit an accurate FBAR was an inherently factual question that could not be resolved by summary judgment, since this deals with intent of the taxpayer.
The IRS was not entitled to summary judgment on the issue ...
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February 23, 2018, 12:00 am
The national Taxpayer Advocate Nina Olson to the rescue - Ms. Olson issues Taxpayer Assistant Orders TAO's for almost 800 taxpayers whose cases were with the Taxpayer Advocate Services office that Ms. Olson oversees as the National Taxpayer Advocate.
On January 16, 2018 July 24, 2017, Apr...
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February 20, 2018, 12:00 am
On January 16, 2018 the IRS further warned that Travelers Requiring Passports to Pay Their Back Taxes or Enter into Payment Agreements; People Owing $51,000 or More Covered. This month, the IRS will begin implementation of new procedures affecting individuals with “seriously delinquent...
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February 16, 2018, 12:00 am
Please remember at the end of 2017 (to file for 2017 tax returns in 2018) ITINs expire after not being used for 3 tax years, as well as ITINs with middle digits of 70, 71, 72 or 80! ITINs that have middle digits of 78 or 79 expired on December 31, 2016.
Taxpayers with an expired Individ...
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February 15, 2018, 12:00 am
Beware U.S. Expats! On December 14, 2015 and then again on April 1, 2016 we reported that under The Fixing America’s Surface Transportation Act (FAST Act), P.L. 114-94, was added Sec. 7345, which authorizes the IRS to certify to the secretary of State that a taxpayer is seriously delin...
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January 2, 2018, 12:00 am
Did you know that you can use the foreign tax credit on qualified dividends but that you need to calculate the amount of foreign tax credit that the taxpayer can offset against his U.S. tax liability? Foreign-source qualified dividends may require certain adjustments to those amounts befor...
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January 2, 2018, 12:00 am
Every tax year the IRS reminds us of our Rights as Taxpayers. Please keep these in mind as we navigate together the slippery slope of dealing with the IRS!
Get to Know Your Taxpayer Bill of Rights
Every taxpayer has rights. The Taxpayer Bill of Rights takes these rights from the tax code...
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December 28, 2017, 12:00 am
H.R. 1, known as the Tax Cuts and Jobs Act, which both houses of Congress passed on Dec. 20 starting for 2018 will significantly alter the taxation of individuals starting for tax year 2018. We have outlined the differences between current law and the conference report. This table comp...
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December 28, 2017, 12:00 am
H.R. 1, known as the Tax Cuts and Jobs Act, which both houses of Congress passed on Dec. 20 starting for 2018 capped the State and local taxes deduction (affectionately known as SALT) : for individuals to deduct up to $10,000 ($5,000 for married taxpayers filing separately). The big ques...
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December 28, 2017, 12:00 am
H.R. 1, known as the Tax Cuts and Jobs Act, which both houses of Congress passed on Dec. 20 starting for 2018 capped the State and local taxes deduction (affectionately known as SALT) : for individuals to deduct up to $10,000 ($5,000 for married taxpayers filing separately). The big ques...
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December 28, 2017, 12:00 am
H.R. 1, known as the Tax Cuts and Jobs Act, which both houses of Congress passed on Dec. 20 starting for 2018 capped the State and local taxes deduction (affectionately known as SALT) : for individuals to deduct up to $10,000 ($5,000 for married taxpayers filing separately). The big ques...
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December 28, 2017, 12:00 am
H.R. 1, known as the Tax Cuts and Jobs Act, which both houses of Congress passed on Dec. 20 starting for 2018 will significantly alter the taxation of individuals starting for tax year 2018. The following article represents an excellent summary of these new changes and how they will affe...
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November 2, 2017, 12:00 am
A terrific read on what Streamlined is and when Streamlined can be used without going to the more over reaching OVDP Offshore Voluntary Compliance Program, including some facts that may not support non-willful behavior.g
The Pitfalls of Streamlined Foreign Account Disclosures
Tax professio...
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November 2, 2017, 12:00 am
Rules have exited for nearly a century (since 1921) under IRC Sec. 6851(d) providing that all resident aliens and certain nonresident aliens must obtain a "Certificate of Compliance" before leaving the United States. In practice this is rarely done, but new IRC Sec 7345 may put a wrinkle i...
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October 17, 2017, 12:00 am
The IRS reminds taxpayers that they do not call taxpayers, do not demand immediate payment without allowing the taxpayer to question or appeal the amount owed, do not request a prepaid debit card or credit card and not over the telephone, and the IRS does not threaten to bring in local pol...
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September 20, 2017, 12:00 am
In a compassionate move realizing the extent of the devastation from Hurricane Irma and Harvey before it to taxpayers in FEMA designated areas, as has become customary the IRS grants an extension from October 16, 2017 to January 31,2018 those taxpayers filing personal tax returns, in addit...
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September 20, 2017, 12:00 am
In a compassionate move realizing the extent devastation from Hurricane Irma and Harvey before it to taxpayers in FEMA designated areas, the IRS has included in the definition of Hardship under IRC Sections 401(k) and 403(B) distributions to victims of hurricane Irma as followed hurricane ...
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September 20, 2017, 12:00 am
In a compassionate move realizing the extent devastation from Hurricane Irma to taxpayers in FEMA designated areas, FinCEN has extended the October 16, 2017 FBAR Form 114 deadline to January 31, 2018.
Virgin Islands, Puerto Rico, and parts of Florida now eligible, extension filers have un...
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September 20, 2017, 12:00 am
The IRS has begun notifying taxpayers as expected under the PATH Act that ITINs that have not been used in at least once in the last 3 consecutive tax years and all ITINs with middle digits 70,71,72 and 80 will expire on December 31, 2017 and must be renewed.
The Internal Revenue Service ...
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September 19, 2017, 12:00 am
WASHINGTON — The Internal Revenue Service today reminded U.S. citizens and resident aliens, including those with dual citizenship, to check if they have a U.S. tax liability and a filing requirement. At the same time, the agency advised anyone with a foreign bank or financial account tha...
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September 11, 2017, 12:00 am
April 18 was this year’s deadline for filing your federal tax return and paying any tax you might have owed . When taxpayers are due a refund, there is no penalty for filing a late tax return.
However, If you owe tax, and failed to file and pay on time, chances are you will owe interest...
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September 2, 2017, 12:00 am
If you’re a taxpayer who gives money or property to others, you may wonder if the federal gift tax applies to you. Fortunately, while any gift is potentially taxable, gifts are only subject to gift tax in a few specific situations.
Here are seven things taxpayers need to know about the ...
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September 2, 2017, 12:00 am
It’s important for businesses and business owners to know the rules when it comes to classifying a worker as an employee or an independent contractor. This is especially true for tax purposes, as there are different reporting, taxation and withholding requirements for each.
As an employ...
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February 24, 2017, 12:00 am
For the third year, the IRS has compiled an official list of top tax scams, dubbed the Dirty Dozen. And again, offshore tax cheating has earned a place on the list. Recently, the IRS boasted of obtaining more than half a million disclosures of unreported offshore money from dodgers and...
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February 23, 2017, 12:00 am
Every year the IRS compiles a Dirty Dozen list of the most prevalent tax scams for the previous year. Topping the recently published 2017 report are phone scams, phishing, and one that really hits home: Return Preparer Fraud.
"The vast majority of tax professionals provide honest, high...
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January 25, 2017, 12:00 am
There are many penalties the IRS can impose on taxpayers, but don’t worry just yet there may be a solution for you. This blog discusses common IRS penalties that come up on a regular basis and ways to either reduce the penalty or have it completely removed.
Failure-to-File and Failure-t...
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December 29, 2016, 12:00 am
Recently, many tax return preparers have learned that a number of their clients failed to report their interest in a foreign bank account, corporation or trust to the IRS. Because the Foreign Account Tax Compliance Act (FATCA) requires foreign financial institutions to report their U.S. de...
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