IRS Offshore Account Penalties Increase, Hunt Continues

Tweet The number of Swiss banks that have entered deferred prosecution agreements with the U.S. government keeps growing. The subject is tax evasion involving American account holders. Today, banks everywhere want to know if you are compliant with the IRS. Under FATCA, the entire world is lending the IRS a hand. The IRS keeps updating its list of [...]

Defined benefit plans to be prohibited from replacing annuities with lump-sum payments

Tweet In Notice 2015-49, the IRS announced that it will amend the Sec. 401(a)(9) required minimum distribution regulations to prohibit the use of lump-sum payments to replace annuity payments in defined benefit plans. Some plans have treated the right to accelerate benefits and receive a lump sum as complying with the regulations because the plans [...]

Last date for filing IT returns extended till September 7

Tweet NEW DELHI: In a relief to individual tax payers, the finance ministry on Wednesday extended last date for filing income tax returns to September 7. Earlier, the income tax department had extended last date for filing I-T returns by residents of Gujarat by seven days to September 7 in view of agitation over reservation [...]

Accounting Issues That Small Businesses Must Avoid

Tweet Small business owners face many of the same challenges that larger businesses face. However, unlike with large corporations or partnerships, many small business owners lack the financial resources to pay for professional services or third-party help. As a result, many operations that are typically outsourced by large corporations — such as bookkeeping and accounting [...]

IRS Tips to Help People Pay Their Taxes

Tweet If you owe tax, the IRS offers safe and easy ways to pay. Check out these payment tips: Pay your tax bill.  If you get a bill, you should pay it as soon as you can. You should always try to pay in full to avoid any additional charges. See if you can use [...]

When to Hire a Bookkeeper or Accountant

Tweet Entrepreneurs thrive on a DIY mentality: Do everything you can yourself and don’t pay for anything new until you have absolutely have to. It’s especially difficult to justify hiring financial help like a bookkeeper. With user-friendly software such as QuickBooks available, many business owners feel they should be able to do keep their records [...]

Black money fight: India, Seychelles sign information exchange pact

Tweet NEW DELHI: In its fight against black money, India today signed an information exchange agreement with Seychelles on tax matters, along with pacts to deepen ties in security and defence among other areas. While the foreign direct investments from Seychelles have been small at just about Rs 1,100 crore over the last 15 years, [...]

I.R.S. Cracks Down on Hedge Fund Tax Strategy

Tweet Hedge funds that used a strategy to claim billions of dollars in tax savings will face new scrutiny from the government, according to guidance issued by the Internal Revenue Service on Wednesday. So-called basket options — complex financial structures that allowed hedge funds like Renaissance Technologies to bypass taxes on short-term trades — will [...]

Tax Treatment and Planning Strategies for Nonresident Individuals

Tweet Alien individuals that have U.S.-source income can be taxed as residents of the United States if they meet certain requirements. Otherwise, they will be taxed under the generally less favorable rules for nonresident aliens. Nonresident aliens who are engaged in a trade or business in the United States or have income that is subject [...]

India, U.S. to sign tax pact: sources

Tweet India and the United States has signed a tax information sharing agreement under a new U.S. law meant to combat offshore tax dodging by Americans, two Indian government sources and a source at the U.S. embassy said. Washington has so far signed pacts covering more than 80 tax jurisdictions to implement the Foreign Account [...]

When You Haven’t Filed Tax Returns in a Few Years

Tweet Sometimes, when a person has not filed a tax return in a while, the IRS will prepare a tax return based on the information they have available. This is called a substitute for a tax return. The IRS does this so they can assess tax and begin collection activities. For example, suppose Frank is [...]

Determine If You Are Subject to the Individual Shared Responsibility Provision

Tweet The Affordable Care Act includes the individual shared responsibility provision that requires you, your spouse, and your dependents to have qualifying health insurance for the entire year, report a health coverage exemption, or make a payment when you file.  Who is subject to this provision? All U.S. citizens living in the United States are [...]

Moving Expense Deduction

Tweet If you move your home you may be able to deduct the cost of the move on your federal tax return next year. This may apply if you move to start a new job or to work at the same job in a new location. In order to deduct your moving expenses, your move [...]

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