IRS Clarifies Temporary ITIN Application Requirements

adminExpatriate, Inpatriate

Effective Oct. 2, 2012, the IRS implemented two separate clarifying changes to its temporary procedures for issuing Individual Taxpayer Identification Numbers (ITINs). First, the IRS will allow individuals studying in the United States under the Student Exchange Visitors Program (SEVP) to get ITINs under a streamlined procedure. SEVP participants already provide documentation to the Department of Homeland Security under the … Read More

Expiration of Bush Tax Cuts

adminGeneral

The tax law changes – commonly referred to as the “Bush tax cuts” – are scheduled to expire on January 1, 2013.  If Congress fails to extend them, many Americans will experience a tax increase.  Many are skeptical that Congress – which has not moved on extending the cuts in two years – will take action before the presidential election. … Read More

0.9% Medicare Surtax on High Income Earners

adminGeneral

Under the Affordable Care Act, effective January 1, 2013, there is an increase in Medicare tax for certain high earners.  An individual is liable for the additional tax to the extent his or her wages, other compensation, or self-employment income (together with that of his or her spouse if filing a joint return) exceed the following threshold amounts for the individual’s filing status: Filing … Read More

3.8% Medicare Surtax on Investment Income

adminGeneral

Beginning in 2013, certain investment income will be subject to an additional 3.8% surtax, enacted as part of the Health Care and Education Reconciliation Act of 2010.  This is sometimes referred to as the “Medicare” surtax because the legislation enacting this tax created a new section of the tax code entitled: “Chapter 2A – Unearned Income Medicare Contribution.” However, this was simply a … Read More

Additional 2 Month Extension

adminExpatriate, Inpatriate

In addition to the 6-month extension, taxpayers who are out of the country (as defined in he form 4868 instructions) can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 … Read More

New Tax Rule for Local Lodging Expenses

adminUncategorized

The IRS recently issued long-awaited regulations that permit certain not-away-from-home lodging expenses to be deducted by workers if they are not reimbursed by their employer. Alternatively, if paid for by the employer, the expense can be treated as a tax-free working condition fringe benefit (WCFB) or tax-free accountable-plan reimbursement. Thanks to prior IRS guidance, the value of an employer-provided WCFB … Read More

Foreign Financial Assets Reporting – Form 8938

adminUncategorized

My friend and associate Hale Sheppard has written an article called “The New Duty To Report Foreign Financial Assets on Form 8938: Demstifying the Complex Rules and Severe Consequences of Noncompliance.”  It was just published in the International Tax Journal. You might find the article interesting because (i) taxpayers and their adviors are struggling for the first time in 2012 … Read More

Dutch Tax Update

adminUncategorized

The 2013 Budget Bill or the so called Spring Deal has recently been approved by the Dutch Senate. This Budget Bill contains a number of measures which are intended to bring and keep the Dutch budget deficit at the EU required 3%. The Budget Bill measures will in principle be implemented on January 1, 2013. One of these measures consists … Read More

Affordable Healthcare Act & Dutch 30% Ruling

adminExpatriate, Inpatriate

July News Letter Happy Birthday USA.  Enjoy your holiday but remember to be safe and thank a veteran. Below is a list of hot tax topics.  We hope you find the information helpful and useful. US – AFFORDABLE CARE ACT (ACA) (aka OBAMA CARE) This past Thursday, June 28, 2012, the Supreme Court upheld the individual mandate of ObamaCare.  Therefore, … Read More

Chartered Global Management Accountant

adminGeneral

Chuck Heyde obtained his Charted Global ManageMent Accountant (CGMA) designation today.  Congratulations to Charles “Chuck” Heyde, Jr, CPA, CGMA You can read more about this important new global designation at www.CGMA.org. The Chartered Global Management Accountant (CGMA) is a new global management accounting designation that recognizes the unique role played by men and women at organisations around the world who … Read More