Source: https://intltax.typepad.com/
Timestamp: 2019-06-18 15:34:41
Document Index: 727784747

Matched Legal Cases: ['§911', '§ 911', '§250', '§962', '§956', '§951']

U.S. Government Continues to Pursue Taxpayers Committing Tax Fraud
As we have reported in past years the U.S. government actively pursues taxpayers that are committing tax fraud and other tax crimes. The Justice Department publicizes its successes in its press releases. The press releases continue to demonstrate an impressive list of tax-related convictions, guilty pleas, injunctions, summonses, and other actions against taxpayers (and tax preparers). Many of the tax fraud schemes include offshore activities. See, for instance: Court Authorizes Service of John Doe Summonses... Read more →
Posted on June 05, 2019 in Other - Tax Fraud | Permalink
2019 1st Quarter Published Expatriates - 1,019 Names
Today the Treasury Department published the names of individuals who renounced their U.S. citizenship or terminated their long-term U.S. residency (“expatriated”) during the first quarter of 2019. The number of published expatriates for the quarter was 1,019. See the chart below for the quarterly expatriates from 2008 to the first quarter of 2019. The numbers seem to have leveled off at roughly 1,000 expatriations per quarter. For a discussion of how the IRS compiles the... Read more →
Posted on May 10, 2019 in 877A Individual Expatriation | Permalink
Section 911 Housing Cost Amounts Updated for 2019
Last week the IRS published Notice 2019-24 which provides adjustments to the limitation on housing expenses for specific locations in 2019. Code §911(a) allows a qualified individual to elect to exclude from gross income an “Exclusion Amount” related to foreign earned income and a “Housing Cost Amount.” The Exclusion Amount for 2019 is $105,900. The Housing Cost Amount is generally defined as an amount equal to the excess of (A) the “Housing Expenses” of an... Read more →
Posted on April 17, 2019 in 911 Foreign Earned Income Exclusion, 911 Housing Cost Amounts, Form 2555 | Permalink
Last week the IRS published Revenue Procedure 2019-15, which announced that Democratic Republic of the Congo, Cuba, Iraq, and Nicaragua are the countries for 2018 where it was determined that war, civil unrest, or similar adverse conditions precluded the normal conduct of business for purposes of Code § 911. The effective date for Democratic Republic of the Congo was December 14, 2018, the effective date for Cuba was January 4, 2018, the effective date for... Read more →
New IRS Practice Units published in March
Last week the IRS released 3 new practice units titled: Competent Authority Revenue Procedure 2015-40 Guidance: Foreign-Initiated Adjustment(s) (03-21-2019) Introduction to Traditional Automatic Exchange of Information (03-15-2019) Competent Authority Process Under a MAP Article of a U.S. Income Tax Treaty (03-08-2019) We updated our IRS Practice Units By Topic page to add these new practice units. Read more →
Posted on March 18, 2019 in 894 Competent Authority, 894 Treaties | Permalink
2018 4th Quarter Published Expatriates - A total of 685
Today the Treasury Department published the names of individuals who renounced their U.S. citizenship or terminated their long-term U.S. residency (“expatriated”) during the fourth quarter of 2018. The number of published expatriates for the fourth quarter was 685, bringing the total number of published expatriates in 2018 to 3,981. The number of expatriates for 2018 is a 22% decrease from 2017. For our prior coverage of expatriation, see all posts tagged Expatriation. Read more →
Posted on March 12, 2019 in 877A Individual Expatriation | Permalink
The IRS has issued proposed regulations on the GILTI deduction under Code §250. The proposed regulations indicate that a GILTI deduction will be available for an individual who makes a Code §962 election to be taxed at corporate rates. The preamble to the proposed regulations provides in part: Congress enacted section 962 to ensure that individuals’ tax burdens with respect to undistributed foreign earnings of their CFCs “will be no heavier than they would have... Read more →
Posted on March 05, 2019 in 962 Election to be taxed as corporate rates, 250 GILTI & FDII Deductions | Permalink
Eaton Corp. v. Commr., 152 T.C. No. 2 (2019)
Earlier this week the Tax Court concluded that the earnings and profits (E&P) of certain upper-tier CFCs was increased by the amount of Subpart F Income inclusions and Code §956 inclusions (Code §951(a) inclusions) that flowed up from lower-tier CFCs through a U.S. partnership. Below is a chart of the entity structure in the Eaton case. Read more →
Posted on March 01, 2019 in 701 Partnerships, 951 Subpart F Income, 956 Investments in U.S. Property, Charts - Situational Charts | Permalink
New IRS Practice Unit: Creation of a Permanent Establishment (PE) through the Activities of a Dependent Agent in the United States
Yesterday the IRS released a new practice unit titled: Creation of a Permanent Establishment (PE) through the Activities of a Dependent Agent in the United States. We updated our IRS Practice Units By Topic page to add this new practice unit. Read more →
Posted on January 31, 2019 in 894 Permanent Establishment, 894 Treaties | Permalink
A taxpayer cannot rent property to him or herself. This is similar to the concept that a taxpayer cannot pay themselves a salary. For example, if a taxpayer has a sole proprietorship and he or she reports the income and expenses of that business on Schedule C of Form 1040, the taxpayer is not able to deduct salary expense on the Schedule C for “wages” paid to him or herself. This makes sense because a... Read more →