If it feels like you just filed required federal forms about your overseas financial holdings, you're probably right. Last year, as we all were working to adjust to the myriad tax (and life) changes precipitated by the COVID-19 pandemic, lots of tax deadlines got pushed back. Some way back. One of those was the filing extension for Form 114, Report of Foreign Bank and Financial Accounts, usually referred to as FBAR. Some individuals didn't have to submit this document until Dec. 31, 2020. Now FBAR filers are facing a new deadline. Next week. On Thursday, April 15. That's right. The... Read more →
Global
A panoramic view of Positano, Italy, the famously vertical town where actor and food/travel show host Stanley Tucci found the highly-desired Amalfi Coast lemons. (Image courtesy Italia Agenzia Nazionale Turismo) Tonight, the hubby and I will watch our latest favorite television series, Stanley Tucci: Searching for Italy. The CNN show is part travelogue, but with routes determined by Tucci's tastes, which are so far spectacular. The award-winning actor, director, screenwriter, Instagram bartender and cookbook author (you're not surprised, are you?) essentially is eating his way through Italy, the county from which both sides of his family hail. He started in... Read more →
Pixabay via Pexels Members of the military have a lot of things to worry about. New enlistees are concerned whether they'll make it through basic training. Military personnel who are stationed far from their families worry about how spouses and children are faring. And, of course, those posted in dangerous parts of the world are in constant concern for their own safety. But every tax filing season, members of the military also must worry about taxes. Taxes for all, but some military breaks: Yes, with all the other responsibilities we place on the men and women who serve the United... Read more →
Photo by Emanuel Kluge via Flickr CC Could the COVID-19 pandemic produce changes in tax systems worldwide? That's what one global economic group thinks could and should happen. There's no argument about the revenue problems caused by the coronavirus in 2020. They are being felt acutely as we head into the heart of the year's holiday season. In addition to the coronavirus' disruption of traditional get-togethers due to health concerns, there's the pandemic's financial component. COVID-19 business cutbacks and closures have left too many with reduced, or no, paychecks. Businesses that are open are seeing fewer customers because of those... Read more →
Welcome to Part 8 of the ol' blog's series on 2021 tax inflation adjustments. We started with a look at next year's income tax brackets and rates. That first item also has a directory, at the end of the post, of all of next year's tax-related inflation updates. In today's post, we look at the tax considerations of U.S. taxpayers living and working abroad. Note: The 2021 figures in this post apply to that tax year's returns to be filed in 2022. For comparison purposes, you'll also find 2020 amounts that apply to this year's taxes, due April 15, 2021.... Read more →
Remote work has been among the many COVID-related challenges of 2020. Many employees have appreciated the added flexibility and no commute. Those who aren't that social say they've been more productive since they haven't had to spend time schmoozing with coworkers and bosses. The experience has many workers and companies exploring whether widespread working from home will — or should — continue once the coronavirus pandemic is under control. It's also raised tax questions, including an intriguing and unexpected one. A major European bank says that employees who work from home (WFH) should pay for the opportunity via a new... Read more →
Uncle Sam is always on the lookout for people who try to evade taxes by hiding money in foreign accounts. To keep track of taxable money abroad, the federal government relies on two agencies, the Internal Revenue Service and its sister agency within the U.S. Treasury, the Financial Crimes Enforcement Network, usually referred to as FinCEN. FinCEN requires a special filing from some of Form 114, Report of Foreign Bank and Financial Accounts, usually referred to as FBAR. FBAR filings have long been a pain for Americans who hold assets abroad. A couple of years ago, Treasury tried to make... Read more →
Robert Smith surprised the 2019 class of Morehouse College graduates with a pledge to pay off their student loans. Watch the happy moment via Bloomberg Quick Take on YouTube. It was one of last year's best feel-good stories. On May 19, 2019, billionaire entrepreneur and philanthropist Robert F. Smith promised graduates of Morehouse College listening to his commencement address that he would pay off their college debt. The approximately 400 grads at the historically black college in Atlanta were stunned. Then delighted. And the country cheered Smith's benevolence and commitment to making at least a little bit of the United... Read more →
If you live in Ireland and are thinking of playing a little fast and loose when it comes to taxes, make sure no one is looking. That could be harder than you think. Judging from government statistics, tax evasion reports from the public continue to increase. Last year, nearly 6,000 people filed so-called good citizen reports with Irish Tax and Customs, that nation's version of the United States' Internal Revenue Service. More reports in last five years: These alerts of suspected (or known) tax evasion or other illegal activity have grown exponentially since mid-2015. That's when Irish tax officials began... Read more →
The coronavirus pandemic has not only affected sports leagues, athletes and fans, but also gamblers and the state tax collectors that have come to rely on that related tax revenue. Shortened seasons, revised playoff rounds, cardboard fans in stands. Still, Americans' love of sports and boredom with COVID-19 self-isolation, along with the events being televised, has helped the seasons continue. But the actual reduction in the games mean fewer events on which to place bets. Unless bettors make that up by betting more on the remaining games, associated revenue, tax and otherwise, is likely to fall. And now a new... Read more →
The annual Army-Navy game is the only college football matchup I make a point to watch. Go Navy! This year, the COVID-19 pandemic has put such gridiron rivalries in jeopardy. (U.S. Navy photo by Chief Photographer's Mate Johnny Bivera via Wikipedia Commons) The Mid-American Conference (MAC) today became the first Division 1 college football governing body to cancel its fall season because of the COVID-19 pandemic. "There are simply too many unknowns to put our student athletes in these situations. This is simply a miserable decision," MAC commissioner Jon Steinbrecher said. Yes, for the sports fans, schools, players and coaches,... Read more →
The Japanese anime television series Hamtaro is being used by some Thai protesters as a symbol of what they say is their government's insatiable appetite for taxpayer dollars. Here in the United States, we've been watching the continuing #BlackLivesMatter social and racial justice protests that were sparked by the death of George Floyd while in Minneapolis police custody. We are not alone. Similar protests have been held around the world. But in Thailand, there is another, tax-related protest that's taken a lighter approach to highlight a serious issue. Hundreds of Thai young people last weekend sang a Japanese cartoon jingle... Read more →
The Internal Revenue Service announced in late May that it had sent out more than 152 COVID-19 economic relief payments totaling almost $258 billion Some coronavirus cash, however, went to folks that weren't supposed to get it. This includes relief payments to deceased taxpayers, some foreign-based workers and incarcerated individuals, as well as those married to someone who is in prison. Request, not demand: The IRS wants these folks to send back their stimulus money, although there's no indication, either legislatively or regulatorily, that the agency has any authority to require it. There's also the question of how it would... Read more →
The COVID-19 crisis is global, so it's no surprise that actions by U.S. lawmakers to help taxpayers also have some decidedly global complications. And in some cases, it could work out well for U.S. taxpayers who are living and working in other countries. Worldwide earnings, U.S. taxes: Even though these folks no longer live in the United States, they still pay U.S. taxes. America's tax system for individuals is, for the most part, a worldwide one. That means that if you're an American living and working abroad, the Internal Revenue Service still gets a part of your income as U.S.... Read more →
Confused about who gets coronavirus relief payments? Apparently so is the Internal Revenue Service's distribution system. Thousands of foreign workers, many living overseas, were sent COVID-19 economic relief payments due to an unforeseen glitch that funneled the money, meant for U.S. taxpayers, to other countries, according to a Politico report. That story is this weekend's featured Sunday Shout Out. Former foreign college workers: The payments mostly went to college-age workers who spent time in the United States during the last two years. That's the time period the IRS is using to calculate who gets how much of the stimulus authorized... Read more →
National Guard troops have been deployed to help states meet COVID-19 needs, ranging from personal protective equipment training, support of medical testing facilities and healthcare professionals and assisting with disinfecting and cleaning common public spaces. (Photo courtesy U.S. Department of Defense) Taxes have been in the public spotlight this week, not because right about now we normally would be nearing the annual filing deadline, but because of how the coronavirus pandemic has thrown normal, including our tax obligations, out the window. By now you know that April 15 is not Tax Day this year. Instead, it's been pushed to July... Read more →
A revised version of this post was published on Jan. 27, 2021. (Pixabay via Pexels) When you're in the military, taxes are likely far down on your list of concerns. Members of the military, however, bear the same tax responsibility as do all U.S. citizens. The one bit of good tax news here is that the tax code and Internal Revenue Service take into account the special circumstances that armed services personnel face. Here are some tax highlights for military taxpayers. Affected armed forces: Military tax benefits typically apply to active duty or reserve members of the armed forces. The... Read more →
Oh, Canadians. A recent report on tax attitudes north of the 49th parallel is upsetting my idealized vision of your country. A recent Canada Revenue Agency (CRA) internal memo, first reported by Blacklock's Reporter, found that around 20 percent of Canadians believe the benefits of tax cheating outweigh the risks. In fact, the CRA said 26 percent don't think that tax officials will discover their tax evasion. The CRA also found that many Canadians did not view tax evasion on amounts less than $1,000 to be "serious tax cheating." And it classified 13 percent as outlaws who view tax evasion... Read more →
One of the hallmarks of the Trump Administration is tariffs, either put in place or threatened, on a variety of imported goods. If you have money in the stock market, you're probably pretty happy with 2019. Despite some blips, the market this year maintained its continued upward march. The positive news for investors, however, goes against conventional wisdom that tariffs are bad for the economy. Wall Street bulls say that tariffs eventually will take their toll. And others, including a pair of Federal Reserve economists, cite evidence that tariffs already are costing jobs and hiking prices. No tariff trouble for... Read more →
Greek street market vendors offer just about everything. (Photo: Travels with Gerri-Travellerspoint) Every day, more Americans go digital, at least partially, when comes to their finances. We pay via our smartphone features and apps. Our paychecks or gig earnings are directly deposited. Even the Internal Revenue Service is nudging (and sometimes shoving) us to handle our tax tasks electronically. But we are nowhere near where Greece is going. That Mediterranean country, the one that's been on the financial edge or over it for years, now is forcing its residents to use electronic transactions equal to around a third of their... Read more →