Taxing Capital Gains of Nonresident Aliens
For a unique group of foreign individuals (i.e., non-US citizens referred to in the tax world as “aliens”), living in the U.S. does not trigger “resident” status for tax purposes. These so-called…
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IRS Peek into Royal Family’s Affairs
When it comes to having personal family affairs break into the major media news cycle, there’s no family quite like the British royal family. In this regard, the world was abuzz this week with the…
Read MoreGOP Bill Impact Expat Taxpayers
Last week, House Republican leaders released their long-awaited tax bill, called the Tax Cuts and Jobs Act. While the GOP bill retains many of the basic principles included in Trump’s previous…
Read MoreTax Compliance Rules for Non-Citizens Leaving America
In a number of blogs and articles, we’ve discussed the tax implications for U.S. citizens renouncing their U.S. citizenship. The tax rules that apply to expatriation, including the exit tax, are…
Read MoreU.S. Tax Classification of a Foreign Business Entity
A common misconception we find in our practice is the belief that the classification of a foreign (non-US) entity is necessarily the same under both the foreign country’s laws and under U.S. tax law.…
Read MoreHelicopter Pilot in Iraq Wins FEIE Case
In a decision that bucks the recent trend of taxpayer defeats, the Tax Court in Linde v. Commissioner (T.C. Memo 2017-180) ruled against the IRS in allowing a U.S. citizen helicopter pilot working in…
Read MoreFATCA Still a Work in Progress
In a recent blog, we reviewed a judicial decision that derailed efforts by opponents of the Foreign Account Tax Compliance Act (FATCA), including Republican Senator Rand Paul, to challenge the FATCA…
Read MoreOctober 16th Extension Deadline
If you are an American living abroad, you may have taken advantage of the automatic 6-month tax filing extension by filing Form 4868 by the original due date of your return (April or June 15). If so…
Read MoreThe Latest Republican Tax Reform Plan
On Wednesday, President Trump unveiled his latest framework for tax reform, which stems from a collaborative effort by the so-called “Big Six,” which includes members of the Trump administration and…
Read MoreCourt Denies Foreign Earned Income Exclusion
Following the trend of the past several years, courts continue to review foreign earned income exclusion cases at a relatively high rate. In most of the recent cases, the courts have denied the FEIE…
Read MoreStreamlined Program Leaves Snowbirds Out in the Cold
For many U.S. expats who are delinquent in their expat tax filings, the Streamlined Procedures offer a great solution for catching up with limited or no penalties. Due to the Streamlined program’s…
Read MoreIRS Cautions Against Overreliance on Its Website
In a recently-posted blog, National Taxpayer Advocate Nina Olson discussed the potential pitfalls of treating information on the IRS’s website, such as its FAQs pages, as authoritative. The Taxpayer…
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