Wealth Strategies Journal

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Author: cyuzna

IRS Revises ITIN Expiration Policy: All ITINs Unused for Five Years to Expire

The IRS has revised its ITIN expiration policy announced in November 2012, whereby all ITINs issued after January 1, 2013 would expire after five years regardless of their state of use.  Under the new announced policy, only those ITINs for which a return is not filed for five consecutive years … Continue reading

New FATCA Form Instructions Published, Critiqued

Last week the IRS updated the instructions for a pair of important forms:  Form @-8BEN-E, “Certificate of Status of Beneficial Owner for United States Tax” and Form 8966, “FATCA Report.”  Tax Analysts contacted two leading practitioners, Deborah J. Pflieger of EY, Laurie Hatten-Boyd of KPMG, and Cheryl S. Riedlinger of … Continue reading

Evaluating the Constitutionality of the Zwerner FBAR Penalty

Under the Bank Secrecy Act, taxpayers are required to disclose to the Treasury Department all ownership interests in overseas bank accounts.  In the process of a failed 2009 Offshore Voluntary Disclosure Initiative submission, Carl Zwerner disclosed that he had a Swiss bank account with $1.5 million in it from 2004-07, … Continue reading

Court of Claims Upholds FICA on Full Amount of Deferred Compensation Reduced in Bankruptcy

One of the many losers in United Airlines’ 2002 bankruptcy was a retiring pilot whose $290,000 in non-qualified pension benefits became fully vested in 2004.  Under the special timing rule for FICA, whereby income becomes subject to the tax in the later of the year in which the income is … Continue reading

Forbes: 13 Tips to Make An IRA Last Longer

Although majority of the $5.3 trillion (and growing) in assets currently held in individual retirement accounts will be spent by retirees to support themselves in retirement, a significant portion will also be left to heirs.  Forbes has written an article with tips regarding how to ensure that the tax advantages … Continue reading

FATCA Compliance Audits Scheduled to Begin in Early 2016

According to a program manager in the IRS Large Business and International Division, IRS review of financial information provided by foreign financial institutions will begin early in 2016.  The reason for this delay is that it is estimated that it will take approximately one year for 2014 data, collected in … Continue reading

IRS Publishes “Taxpayer Bill of Rights”

On Tuesday the IRS announced that it would adopt a Taxpayer Bill of Rights in the latest version of Publication 1.   Like the US Constitution, the Internal Revenue Code defines certain rights applicable to all governed by the document.  Unlike the US Constitution, however, the rights contained in the … Continue reading