Reviews of court rulings and IRS decisions affecting U.S. expats, especially on FBAR penalties, Form 5471 and the foreign earned income exclusion.
For several years, U.S. taxpayers living abroad have watched an important dispute over whether foreign tax credits can reduce the 3.8% net investment income tax (“NIIT”). Two taxpayer victories in…
Read MoreIn a case representing a major win for taxpayers, the U.S. Court of Federal Claims (Claims Court), in Bruyea v. United States, has concluded that the provisions of a U.S. tax treaty can in fact be…
Read MoreIn this week’s blog, we discuss a recent Supreme Court decision upholding the constitutionality of the Section 965 transition tax, which was imposed at the end of 2017. We also discuss the impact the…
Read MoreIn a surprising decision last year, the U.S. Tax Court, in Farhy v. Commissioner, 160 T.C, No. 6 (April 3, 2023), held that the IRS lacks the statutory authority to assess certain Form 5471…
Read MoreIn a recent intriguing decision, the U.S. District Court for the Southern District of California tackled the issue of whether a taxpayer is required to file an FBAR if he has the status of a non-US…
Read MoreIn a recent intriguing decision, the U.S. Court of Federal Claims tackled the issue of whether the provisions of an applicable U.S. tax treaty can be used to allow a foreign tax credit (“FTC”) to…
Read MoreIn this week’s blog, we do a case review of a district court decision involving FBAR instructions and penalties. The case joins a line of decisions addressing the scope and parameters of the FBAR…
Read MoreOn April 3, 2023, the U.S. Tax Court, in Farhy v. Commissioner, 160 T.C, No. 6 (April 3, 2023), made a surprising but welcome decision on international form penalties. The Court held that the IRS…
Read MoreIn a welcome decision for the U.S. expat community, the U.S. Supreme Court has ruled against the IRS on the issue of the scope of FBAR penalties, significantly reducing the proposed penalties on the…
Read MoreWhen immigrating to the United States, there are a number of tax planning opportunities to consider. For company owners, a particular opportunity may be available known as a “check-the-box election,”…
Read MoreOne of the more common misconceptions amongst expats is the belief that if your salary falls under the foreign earned income exclusion (FEIE) amount, then there is no requirement to file a U.S.…
Read MoreIn the last FBAR case of the year, Agrawal, (DC WI 12/9/2019) 124 AFTR 2d ¶2019-5522, a district court held that a U.S. taxpayer, an immigrant from India, was liable for the FBAR penalty and rejected…
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