Tag: FBAR
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How to avoid a scary PFIC Nightmare
A mutual fund that is invested in European stocks, but incorporated in the US may be taxed at a long term capital gains rate of 15%, but if the US taxpayer buys an identical fund listed outside the US, they will find their investment may be taxed at up to 50% The first de minimis…
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Broken Dreams – How Tax Non-Compliance Can Destroy the American Dream of Undocumented Immigrants – Part 2
Part I of this series focused on the unforeseen nightmare and problem of unfiled tax returns for undocumented immigrants. The consequences of “kicking the can down the road”, will have significant legal and financial consequences for the 12 million undocumented immigrants that have not filed tax returns at the federal and state level. It is…
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Guide on FBAR Reporting Requirements
Caplin & Drysdale Attorneys Offer Comprehensive Guide on FBAR Reporting Requirements Guide Discusses Regulations, Penalties, Enforcement, and Other Recent Developments In association with Bloomberg BNA, Caplin & Drysdale’s Zhanna A. Ziering, Mark E. Matthews, and Niles A. Elber authored the Tax Management Portfolio entitled “Report of Foreign Bank and Financial Accounts (FBAR),” a first of…
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Giving Up U.S. Citizenship – Estate and Gift Tax Traps
It may be a common misunderstanding that a U.S. citizen or permanent resident (Green Card holder) can give up their citizenship or surrender their Green Card and then as a non-U.S. taxpayer make gifts or pass their estate to U.S. taxpayers free of estate and gift tax. The IRS recognized this loophole and has proposed…
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The Panamanian Second Passport Program
Panama has become a popular destination for many Americans and Canadians for retirement purposes. As the Switzerland of Latin American, it is also a popular destination for many South Americans particularly Venezuelans and Colombians. Historically, Panama has been and remains politically and economically stable. The currency is tied to the U.S. dollar. For purposes of…
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An American in Paris (or Shanghai or Tel Aviv) – Part 3
How to retain your account in a Foreign Financial Institution A. Overview In my last installment, I discussed the benefits of a private placement insurance contract (life insurance or annuity) issued by a life insurer domiciled in Puerto Rico – Isla del Encanto – for Americans living overseas. Aside from providing tax-advantages, the Puerto Rican…
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Tax-Advantaged Offshore Investment
How to: Minimize U.S. Tax Reporting Requirements (Legally!) If you are an American living overseas, the walls are closing in on you quickly. If your foreign bank hasn’t already closed your account, don’t hold your breath because it is probably coming quickly. A large number of excellent articles have covered the implementation of FATCA and…
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An American in Paris (or Shanghai or Tel Aviv) – Part 2
Using Tax-Advantaged Investment to Minimize U.S. Tax Reporting Requirements (Legally!) Overview If you are an American living overseas, the walls are closing in on you quickly. If your foreign bank hasn’t already closed your account, don’t hold your breath because it is probably coming quickly. A large number of excellent articles have covered the implementation…
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FATCA – Dual Nationals, Expatriation or Voluntary Disclosure
Offshore Voluntary Disclosure Program (OVDP) and FACTA Many dual nationals, meaning those U.S. taxpayers who retain citizenship in another country as well as having U.S. permanent residence (Green Card) status or U.S. citizenship, may be considering surrendering their U.S. status and expatriating as opposed going through the Offshore Voluntary Disclosure process. The reason often offered…