FATCA explained

The Foreign Account Tax Compliance Act (FATCA) is designed to fight against tax evasion by US persons holding investments in offshore accounts. There are two aspects to the FATCA: 1. Foreign financial assets Some US taxpayers who hold financial assets specified outside the United States must declare these assets to the IRS.   2. Statement ...

Understand the US taxation of RRSPs and RRIFs

The US tax policy The US tax system is a Citizenship Based Taxation, meaning that US citizens (and permanent residents) are taxed on their worldwide income wherever they live. By default, income earned in an investment account would be taxed. Fortunately, income tax treaties allow for the tax deferral of income earned within a retirement account in the ...

Application of the mandatory health insurance requirement (The Individual Shared Responsibility Provision) in the Affordable Care Act (Obamacare) for US citizens living abroad.

Application of the mandatory health insurance requirement (The Individual Shared Responsibility Provision) in the Affordable Care Act (Obamacare) for US citizens living abroad.
I tried to make this post as readable as I could. Please keep in mind that a large part of the interest of this post is to show that the Affordable Care Act as passed into law was unnecessarily complicated (regarding this issue at least). As such, please forgive me if this post seems confusing. ...

Texts From A Dog

A lighter post today…                                                                    

IRS Customs Hold

I’ve seen much talk in the community of American abroad about the ability to of the IRS: To prevent the issuance of a passport to delinquent taxpayers (currently not true, but when applying for a passport, the Department of State will inform the IRS of the address you provided). Interestingly enough, the Department of State ...

1099-K / 1099-MISC dual reporting concern – and a solution

1099-K / 1099-MISC dual reporting concern - and a solution
Question: Would a company be subject to 1099-K & 1099-MISC dual reporting if it receives credit card payments (in excess of $20,000) and over $600 from a given client? Could I not issue a 1099-MISC if I paid a merchant/contractor by credit card? This post is more about US domestic payments but interesting nevertheless. Following ...

Working offshore for a foreign company in foreign waters, pay UK taxes, and from what I can gather, I’m not eligible for the FEIE

Hi, I saw an interesting situation described over on reddit. Here it goes: The taxpayer was a bona fide resident of the United Kingdom but was working on international waters (oil field). Question: How can he avoid dual taxation: Foreign Earned Income Exclusion, Foreign Tax Credit? Cool stuff. So, as discussed in Income earned on international ...

Humor – Courtroom Quotations

These are humorous courtroom quotes that have been circulating on the Internet. But hey, a little laugh doesn’t hurt, so here they are: The following quotations are taken from official court records across the nation, showing how funny and embarrassing it is that recorders operate at all times in courts of law, so that even ...

US Estate Tax May be Payable by Canadians

All amounts in this article are in US dollars Canada-U.S. Tax Treaty Article XXIX B Taxes Imposed by Reason of Death A U.S. estate tax return must be filed if a deceased Canadian resident who is not an American citizen owned U.S.-situated assets exceeding $60,000 fair market value at death.  However, if the deceased made substantial lifetime ...

RRSP : Response to concerns regarding Revenue Procedure 2014-55 (Which obsoletes form 8891 and changes the way a treaty election for RRSPs is made)

While not everything is good news, I think that the concerns found in this comment (similar to the ones voiced by Moodys Gartner here) are not always founded.   The Rev. Proc. is a problematic for a multitude of reasons, including: 1. it substitutes a form for which there is no failure to file penalty ...