Foreign investors with assets in the United States often encounter complex estate tax rules that can significantly impact taxation of their U.S. assets at death. If the individual is a non-resident, non-citizen of the U.S. (NRNC), the U.S. estate tax applies only to assets situated or deemed to be situated within the U.S. (for example, U.S. real property or stock in a U.S. corporation). The rules are complex, though. For example, certain assets which might appear to be situated within the U.S., such as U.S. bank accounts, might not be treated under the tax law as U.S. assets. Graduated tax…

Following the January inauguration, a flurry of executive orders, and Senate confirmations rolling in, the timing of when federal tax reform will take place still appears to be undecided amongst the Republican party. Federal tax reform will include the extension of tax provisions provided under the Tax Cuts and Jobs Act (“TCJA”) that are set to expire on December 31, 2025. If federal tax reform cannot be passed, the vast majority of individual and private businesses federal income taxes will significantly increase. While President Trump’s campaign promised to extend the TCJA sunsetting provisions, the Republican party seems divided on the…

Most years, the rush to open tax season has the same energy–like a kid on the first day of school. Not this year. Even though tax season opens on Monday, January 27, 2025, there are very few headlines talking about it–and the IRS news website, normally a flurry of activity in the run-up to the open, hasn’t been updated in over a week. It’s clear that things are changing, and this tax season could be very different–and difficult. And yes, I realize this is the exact opposite of what I’ve been saying. I didn’t think there would be any immediate…

The U.S. government has filed charges against seven people, alleging that they attempted to steal more than $600 million related to COVID-19 tax credits. Those charged in the crime are Keith Williams, Jamari Lewis, Morais Dicks, Janine Davis, Tiffany Williams, James Hames Jr., and Ewendra Mathurin, all current or former New York residents. The scheme was allegedly headquartered at Credit Reset, a purported credit repair business owned and operated by Keith Williams. The defendants were indicted by a grand jury—an indictment is merely an allegation. Defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of…

Taxpayers should give as much consideration to the form in which they make charitable donations as they do to the amounts they give. By making some changes they might deliver more benefits to themselves and the charities. Cash contributions, including donations made by checks and payment cards, are the most common and easiest way to donate. The donor makes the transfer to the charity, and the gift is complete. The amount of the gift is clear and easy to prove to the IRS. An alternative is to give property. Non-cash gifts might generate more tax benefits for you and the…

The Supreme Court has ruled—for now—on the Corporate Transparency Act (CTA). Today, it granted the government’s application for a stay of a Texas ruling that had blocked the beneficial ownership interest (BOI) reporting requirements in the CTA. But wait. There’s more. While the High Court was considering the Department of Justice’s request that the Texas injunction be blocked, another Texas court got into the act (with a different result). Bottom line: The legal drama is continuing and it does not appear that businesses need to rush to file just yet. (No official word yet from FinCEN—that’s the Financial Crimes Enforcement…

I assume that if you were reading this non-spouse IRA article, you may be suffering through the loss of a loved one. My condolences. It’s been my experience that it’s not just the money; it’s a tie to someone that cared enough about you to make you a beneficiary. Ties to money can be good and bad. The good part is that you now have money that you otherwise wouldn’t have. However, you may be challenged with spending that money. Inheriting an IRA as a non-spouse beneficiary can be a great financial opportunity, but it comes with a unique set…

During and after the Covid-19 pandemic, the employee retention credit became a massive source of new business for many accountants and other tax professionals. But as has been widely reported for years, the IRS often pushed back on aggressive and downright bogus claims. There were also plenty of good faith interpretive questions, where taxpayers and their advisers believed they qualified for the credit but where the IRS said otherwise. Some claims, though, were beyond the pale, and even have become criminal tax cases. Can a tax audit lead to serious criminal charges? In some cases yes. A case is point…

During and after the COVID pandemic, the employee retention credit (ERC) became a massive source of new business for many accountants and other tax professionals. But as has been widely reported for years, the IRS often pushed back on aggressive and downright bogus claims. There were also plenty of good faith interpretive questions, where taxpayers and their advisers believed they qualified for the credit but where the IRS said otherwise. Some claims, though, were beyond the pale, and even have become criminal tax cases. Can a tax audit lead to serious criminal charges? In some cases yes. A case is…

The capital gains tax is destructive. By lowering the rewards of successful risk-taking—essential to innovation and a higher standard of living—the cap gains tax needlessly hobbles progress. It also hurts people’s retirement incomes. Equity prices would be higher with a lower rate or, even better, without it altogether. This is why President Trump and his tax-writing team should include a sizable reduction in the capital gains levy in the bill they’re cobbling together with various members of Congress. Such a cut would not only help the economy but also instantly raise more revenue for Uncle Sam. This should appeal to…