Are you planning to relinquish / give up your US citizenship? However, you have never filed any US tax returns and are worried about the potential issues with the Internal Revenue Service (IRS)? In these situations, you should obviously consult with the appropriate tax and legal advice about your situation. One option the IRS has listed [...]
Receiving a letter from the IRS can be a daunting experience, but it's important to remember that not all letters are bad news. In fact, many letters are simply informational or request additional information as the IRS may need verification in order to process your tax return. Here are some common reasons why the IRS [...]
In the past few years, there has been an upsurge in US citizenship renunciations. In a recent Forbes article[i], between 2005 and 2009, less than 2,500 people renounced their citizenship. Between 2010 and 2020, this number went up to 36,840. The reasons behind such renunciations could be political or personal and irrespective of the reasons [...]
Post-pandemic world has seen more and more people started working for themselves either by setting up their own business or working as a freelancer which potentially triggers self-employment tax. In this short article we will briefly look at a few basic questions of the self-employment tax: Who is considered self-employed? Generally, a taxpayer is considered [...]
Filing a tax return is crucial especially when you are a US citizen or resident alien living abroad. The filing process requires increased compliance with US tax laws of which the burden is placed on the shoulders of a taxpayer. To determine if a taxpayer needs to file a tax return, they may use the [...]
According to the IRS, a special write-off for cash contributions is provided for 2021 tax year for taxpayers who give to charity. This special deduction is offered to anyone even if they take the standard deduction and do not itemize deductions. For Non-itemizers: What are the maximum limits for deduction? Single/ Married Filing Separately/ Head [...]
The Foreign Account Tax Compliance Act (“FATCA”) is a 2010 US law requiring foreign financial institutions (FFIs) to review data for their account holders and identify all their US account holders or be subject to withholding on certain payments. FORM W-8 These foreign financial institutions would request W-8 series forms to identify and document their [...]
For all voluntary disclosures received after September 28, 2018, the IRS has a new program called the Voluntary Disclosure Practice (VDP). It is replacing the old Offshore Voluntary Disclosure Program (OVDP) which was closed on September 28, 2018. It applies to both domestic and offshore voluntary disclosures. It is an option designed for taxpayers to get back into [...]
Having to file tax returns every year can be challenging and painful. But what’s worse? The IRS can penalize you for all sort of reasons and it can cost you a great deal of money and time to resolve. Here is a list of penalties that are most encountered by taxpayers. Penalty for Not Filing [...]
Do you need assistance with Hong Kong salaries tax? Here is an overview of the general individual taxation system in Hong Kong. In Hong Kong, Hong Kong adopts a territorial source principle of taxation. Individuals are taxed only on income that has been “earned in Hong Kong”. There is no capital gains tax, no interest/dividend tax and no inheritance [...]