CCH Tax Briefing – February 1, 2024 Late on January 31, 2024, the House passed the Tax Relief for American Families and Workers Act of 2024 by a 357 – 70 vote. The bill provides for increases in the child tax credit, delays the requirement to deduct research and experimentation expenditures over a five-year period, extends 100-percent bonus depreciation through 2025, and increases the Code Sec. 179 deduction limitation, among other business-friendly provisions. The post House Passes Wide-Ranging Tax Bill first appeared on American Expat Tax Services ..read more

From CCH – Jan. 5, 2024 IRS Busy Despite Any Significant Legislative Action In 2023 Just because Congress failed to act on passing any significant legislation affecting taxes, although they did take some money away from the Internal Revenue Service, it does not mean there was not a lot going on in the tax world. In fact, 2023 saw some significant actions taken by the IRS. Early in 2023, the agency got new leadership in the commissioner slot as Daniel Werfel, nominated in late 2022, was confirmed. That was followed by the much anticipated release of the Strategic Operating Plan that detailed ho ..read more

We are kicking off a new tax season It’s hard to believe another year has come and gone, and we are getting ready for the new tax filing season to open. While there have not been many changes in the US Tax Code since last year, there has been some major challenges to the IRS’s administration of the Internal Revenue Code in certain areas of international taxation. We are watching these developments closely and will make you aware of any changes that may impact the way we file your tax returns. Click Here to read the newsletter The post 2024 AET Newsletter first appeared on American Expat Tax Se ..read more

Accounting Today By  Michael Cohn  August 02, 2023, 4:32 p.m. The IRS launched what it’s calling a “paperless processing” initiative Wednesday. Taxpayers would have the option to go paperless for IRS correspondence by the 2024 filing season, with the goal of achieving paperless processing for all tax returns by filing season 2025. The IRS is making the digital push as part of the extra funding it received under last year’s Inflation Reduction Act to improve taxpayer service and technology after experiencing a long backlog of unprocessed taxpayer correspondence during the pandemi ..read more

Yahoo Finance by: Ashley Kilroy  Tue, June 27, 2023  The United States requires its citizens and permanent residents to file tax returns with the U.S. Internal Revenue Service (IRS) regardless of where they reside and earn income. Expats don’t get an exception to this rule. However, expats can be eligible for unique exclusions, deductions or credits to help reduce or eliminate their U.S. tax liability. The post Taxes Cost Expats in the U.S. This Much first appeared on American Expat Tax Services ..read more

Yahoo Finance – Nicole Spector… February 22, 2023 Millions of Americans work overseas, and these folks may be surprised (or merely woebegone) to learn that no matter where their income is generated, they still need to file U.S. tax returns. The only way to be exempt from filing a U.S. tax return is to abandon green card holder status by filing Form I-407 with the U.S. Citizen & Immigration Service or renounce U.S. citizenship under certain circumstances described in the expatriation tax provisions. Click here to read the entire article. The post Working From Abroad? 8 Tax Tricks To Know fi ..read more

From CNBC – Kate Dore MAR 6 2023 After a year of soaring prices, the IRS made annual inflation adjustments for dozens of tax provisions, including the federal income tax brackets for 2023, which may affect next year’s taxes, experts say. While the rates didn’t change, the brackets show the federal income taxes you’ll owe on each portion of your taxable income, which is calculated by subtracting the greater of the standard or itemized deductions from your adjusted gross income. Click here to read the full article The post Inflation boosted the 2023 federal income tax brackets. first a ..read more

The Bank Secrecy Act (BSA) and its implementing regulations require U. S. persons with certain financial interests in foreign accounts to file an annual report known as an “FBAR”—the Report of Foreign Bank and Financial Accounts. The statute imposes a maximum $10,000 penalty for nonwillful violations of the law. These reports are designed to help the government trace funds that may be used for illicit purposes and identify unreported income that may be subject to taxation. Petitioner Alexandru Bittner—a dual citizen of Romania and the United States—learned of his BSA reporting obligations afte ..read more

IRS Tax Tip 2022-49, March 30, 2022 Once taxpayers file their federal tax returns, they’re eager for details about their refund. When it comes to refunds, there are several common myths that can mislead taxpayers. The post Debunking myths about federal tax refunds first appeared on American Expat Tax Services ..read more

Washington, D.C. – January 28, 2022 PMA echoes the lawmakers’ enthusiasm for providing high quality and effective taxpayer services. We are also equally concerned regarding the current state of the IRS. However, there is an apparent disconnect between Congressional demands and the IRS’s practical capacity to address them. This disconnect exacerbates inefficiencies and results in negative taxpayer experiences, as well as excessive burden on our members and their staff. The post PMA Responds to Congressional Letter Urging IRS Action During 2022 Tax Filing Season first appeared on American Expat ..read more