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Do Plaintiffs Have to Pay Income Tax on Emotional Distress Awards?
October 11th, 2021
If you represent plaintiffs in civil lawsuits, you often must negotiate the tax withholdings on their settlement awards. It is important to recognize how different legal claims are taxed and to draft your settlement agreements appropriately. Otherwis…
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How Does the IRS Prove Civil Tax Fraud in Court?
September 27th, 2021
No one wants to be the subject of an IRS civil tax fraud investigation. But a tax audit is only the beginning of the process. When a taxpayer challenges the IRS’s assessment, the government will have to prove civil tax fraud in court. Here’s what…
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Update: Sole Owner / Beneficiaries of Foreign Trusts Can Face Higher Penalties, Court Says
September 13th, 2021
A trust can be a useful wealth management tool to reduce tax obligations, and ensure beneficiaries receive their intended assets. However, when that trust is held overseas, the IRS requires extra tax returns from both owners and beneficiaries to make…
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Can the IRS Collect Non-Willful FBAR Penalties from a Deceased Taxpayer’s Estate?
August 23rd, 2021
There’s an old saying that nothing is inevitable but death and taxes. But in a fight between the two, which one wins? If a person dies before paying off an assessment, can the IRS collect non-willful FBAR penalties from the deceased taxpayer’s es…
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Appeals Judges Disagree Over Maximum Willful FBAR Penalty
August 11th, 2021
The question of just how expensive a willful penalty for failing to report foreign financial accounts has been making its way through the federal court systems. Now, the Second Circuit has issued a split opinion that shows just how divided judges are…
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Do You Have to File FBARs for Inherited Foreign Bank Accounts?
July 23rd, 2021
There can be a lot of confusion around who has a duty to report inherited assets. If you inherited foreign bank accounts from your parents, relatives, or loved ones, you need to know about the IRS reporting requirements, or you could end up paying hu…
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Categories: Tax News
CPA Should Have Known About FBARs, Asked Questions, Court Says
July 7th, 2021
Many taxpayers facing audits over their foreign financial accounts say they relied on their CPA or accountant and didn’t know they had a duty to file FBAR reports. But when the taxpayer was a CPA himself, his claims of ignorance weren’t enough to…
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Buyer Beware: Court Refuses to Rule on Real Estate Transfer Tax Withholding Question
June 24th, 2021
Could a question over taxes sink a complicated real estate transaction with a foreign investment company? When taxpayers Eric and Audra Gilbert asked the Arizona courts to weigh in on their right to withhold taxes under the Foreign Investment in Real…
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How to Contest an IRS Passport Certification of Seriously Delinquent Tax Debt
June 10th, 2021
An IRS passport certification of seriously delinquent tax debt can cause the passports of U.S. taxpayers living overseas to be revoked or not renewed, leaving you scrambling to avoid disrupting your life in another country. Here is what you can do to…
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Is the FAST Act’s Passport Certification Constitutional?
May 24th, 2021
Can the government restrict your ability to travel overseas if you don’t pay your taxes? Is the 2015 FAST Act’s passport certification process constitutional? One doctor challenged the law, but he may have filed his lawsuit a bit too soon. 20 Yea…
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Categories: Tax / IRS Penalties
