US Tax

When a US/UK child is born…

Unless you have been living on Mars you will have heard that Prince Harry and Meghan Markle are expecting their first child! Whilst this may be of minor interest to the non-royalists out there, for those interested in US tax (surely a larger target audience) there will be US tax consequences for the future lord/Prince or lady/Princess. Meghan, as a US citizen and as someone who would have been residing in the US during the 5 year period prior to her child ‘s ... Read More

Complexities of divorce involving a US Citizen and a non-US Citizen

Divorce is a very stressful time but the complexities of the US tax rules when a non-US spouse is involved add an additional layer of complexity. Under the general US tax rules, when assets are transferred between spouses incident to a divorce there is no realisation of a gain or loss by the transferor-spouse. Instead, the transfer is treated as a gift. If the spouses are both US citizens, the case is straightforward and simple and no US Income tax or Gift ... Read More

IRS urging early renewals of Individual Taxpayers Identification Numbers (ITIN)

Individual Taxpayer Identification numbers (ITIN) are designated to those who have tax filing and payment obligations under U.S. law but are not eligible for a security number. This includes those with US property, investments or income. The IRS have urged taxpayers to submit their ITIN renewal applications soon to avoid refund delays next year, predicting more than 2 million individual taxpayer identification numbers to expire at the end of 2018. Who needs to take action now? Only those taxpayers with an ITIN that ... Read More

Streamlined Filing Compliance Procedures

The US is one of the few countries in the world to tax their citizens not on their US residency status but on their citizenship. This means that US citizens (and Green Card holders) living outside of the US are still required to file an annual US tax return with the IRS. There are many individuals residing outside of the US that have been unaware of this. Some may even be considered to be “Accidental Americans” where they acquired US citizenship at ... Read More

US Passport denied due to unpaid taxes

Future passports applications will be at risk of being denied due to unpaid taxes, affecting thousands of Americans. Details have emerged from IRS officials on the enforcement of a law congress passed in 2015. In a move to make Americans settle their debts, the IRS and State department are to deny or revoke passports for taxpayers who have more than $51,000 of overdue tax debt. Taxpayer names are already being passed on to the State department by the IRS, with some taxpayers ... Read More

IRS issues draft form 1040 for 2018 Returns

The IRS recently released a draft of its new Form 1040 that every American taxpayer will use to file their 2018 tax returns early next year. And as expected, the new form is significantly different than the one it replaces. As promised by Donald Trump during the 2016 presidential campaign the new form has been reduced to the size of a postcard! The new postcard sized form 1040 includes just 23 lines, a significant reduction on the 79 lines included on the ... Read More

Transition Tax

Section 965 Transition Tax Many Americans with overseas business interests (i.e. business interests outside the USA) will face additional tax bills this year under the new transition tax rules enacted on 22 December 2017. Although these rules were intended to persuade the likes of Apple and Google to repatriate their historic profits to the US from low tax jurisdictions, they have also swept up other US citizens and green card holders who have more than a 10% interest in a controlled foreign ... Read More

White House Reveals Tax Plans

Yesterday President Trump revealed plans to significantly cut the tax rates for both individuals and businesses.  There are few details of how and when these changes will be made but below are the headlines of what to expect. The focus of these changes is to cut the US individual and business tax rates and also to simplify the US tax code. The number of individual income tax brackets will be reduced from seven (ranging between 10% and 39.6%) to just three ... Read More

President Donald J. Trump – What tax changes can we expect?

This morning, Donald J. Trump won the US Presidential Election. I’m sure that one of the many questions that US citizens may ask is what will be the impact of the election on my tax bill. Donald Trump’s main proposed tax plans for individuals are as follows: Change the current income tax brackets ranging from 10% to 39.6% to just three new brackets of 12%, 25% and 33%. Increase the standard deduction to $15,000 for single taxpayers and $30,000 for married taxpayers. Itemized ... Read More

US Election Results : Are you now considering expatriation?

Prior to the US Presidential election we heard comments first hand and in the press from US citizens and green card holders that they may consider expatriation after the election results. Following this morning’s news some of those US connected persons may now be considering renouncing their US citizenship or relinquishing their US green cards. This is a very personal decision to take and one which should never be taken lightly, however for those whose minds are made up we can certainly assist ... Read More
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