Tax non-compliant, you might be ok

Tax non-compliant, you might be ok
Hi, This post is for those who have friends who might not be tax compliant. My goal is to put a little bit of perspective, so that you know instances in which your friend is ok. (The IRS has programs such the “Streamlined Foreign Offshore procedures” to remove any penalty, but I am limiting this ...

The IRS might know what is in your non-US bank accounts. What can you do about it?

The IRS might know what is in your non-US bank accounts. What can you do about it?
Hello, In a sign of the United States again thinking it can apply its laws in foreign countries, it passed the FATCA law. It became effective on ‎March 18, 2010. The threat to US persons living in Canada grew as the Canadian government signed an Inter-Governmental Agreement to allow Canadian banks to share their customers’ ...

Are you a US citizen with a foreign bank account and are concerned that the IRS might have your info? 2

Are you a US citizen with a foreign bank account and are concerned that the IRS might have your info?
Hello, The United States passed the FATCA law. It became effective on ‎March 18, 2010. Canadian banks (also known as Foreign Financial Institutions – or FFIs) have been checking their existing accounts for “indicia” that their customers might be US citizens, until July 1st 2014 when it transmitted the data of such US citizens to ...

When are you no longer a US taxpayer (relinquishment after 2004)

When are you no longer a US taxpayer (relinquishment after 2004)
Hello, This is Olivier Wagner from 1040 Abroad. This week’s question is: If you live outside the U.S. and relinquished US citizenship by performing an expatriating act after June 3, 2004, but failed to inform the Department of State are you still a U.S. taxpayer? Answer Yes. In 2004, IRC sections 7701(50) and IRC section ...

On my way to Portland, OR – and sourcing under the US-Canada tax treaty

On my way to Portland, OR - and sourcing under the US-Canada tax treaty
Hello from the Amtrak bus, This is Olivier Wagner from 1040 Abroad. I am going from Vancouver, BC Canada to Portland, OR United States. If you are going to Pioneer Nation, let me know, I’ll buy you a drink, also I’ll be in DCBKK (Dynamite Circle conference in Bangkok), same deal, let’s meet up. Nice bus ...

Unfairness to the self-employed accidental American

As a quick follow-up to yesterday’s post, the greatest unfairness again occurs to the accidental American who realizes after the fact his/her status of a US citizen self-employed in a country without a Social Security totalization agreement with the US. In order to relinquish US citizenship without becoming a covered expatriate, he/she would have to ...

Should a digital nomad, or other self-employed US citizen working abroad, pay social security taxes? 1

As we saw yesterday, such people have a choice to pay social security taxes or not. First of all, let me say that skipping social security taxes is not a way to build wealth, the way to build wealth is to generate more revenue. But, what if instead of skipping it, our self-employed person was ...

Do US citizens living outside the US have to pay into the US Social Security System? 1

This is particularly of interest for “digital nomads” and other self-employed people who have freedom in the way they arrange their employment or self-employment. For those living in countries with a Social Security Totalization Agreement US citizens living in these countries would only have to pay into the Social Security system of only one country. ...

Canadian banks are facing significant compliance costs due to FATCA

It is estimated that the five largest banks in Canada have already spent about C $ 750 million (or US $ 693.5 million). This amount does not include the ongoing costs of compliance -only expenses related to the initial launch for FATCA reporting. The cost of FATCA FATCA took effect on 1 July 2014 and ...

Santa taxation

Santa taxation
Merry Christmas everyone. So, now the topic that all the good boys and girls were waiting for:   * Is that that thing that you found under the Christmas tree taxable income? This reminds us of the court case of Cesarini v. United States: taxpayer found cash in a piano. Besides the timing issue addressed ...