Time to get ready for tax season

We are here to assist you toward the goal of filing by Tax Day...be it April 15 or June 15.

1. Tax Preparation Checklist - get your documents together and here's a list so you can start checking off your documents. 
2. Year-End Tax Planning tips to help get over the learning curve of learning new laws.
   1. Individuals
   2. Businesses 
3. 2019 U.S. Tax Due Dates - check the due dates for this year on this list. 
4. IRS begins processing on January 28, 2019
5. Questions on the new tax laws for 2019? Contact us or read this summary of the changes.
6. Reminder Child Tax Credit has increased this year. 
7. No exemptions but increased standard deductions for 2018.

Available in January only ... an early bird discount is available to all clients including new clients. However, this expires on January 31, 2019 so contact us today and inquire on how much the discount is and the conditions to qualify for the discount. Inquire today or face this option in the coming months. ;-) 

New Mileage Rates start January 1, 2019.

Internal Revenue Service Updates Offshore Voluntary Disclosure Procedures

The Internal Revenue Service updated their voluntary disclosure procedures which expired on September 28, 2018. The updatedOffshore Voluntary Disclosure Program (OVDP) will apply to all disclosures filing made after the September expiration date.

Previously, the OVDP instituted a fixed civil penalty framework and protection from criminal prosecution for failing to file correct and complete U.S. Federal tax returns and Foreign Bank Account Reports (FBAR) for non-compliant taxpayers. The updated procedures will continue to provide non-compliant taxpayers with protection from criminal prosecution, however, the civil penalty structure will not be fixed and the cost of filing under OVDP will likely be considerably higher.

The updated procedures have not been finalized yet, but a number of significant changes have been initiated. These changes include: 1) the taxpayer must submit a descriptive narrative stipulating the facts and circumstances correlated to the taxpayer's noncompliance; 2) the disclosure period is now generally six years, instead of the previous eight years rule; and 3) the civil penalty basis is now based on the Internal Revenue Code's existing fraud penalties and willfulFBAR penalties These penalties can reach as high as 75% of the tax underpayment. As far as the FBAR, it can be 50% of the highest balance of undisclosed non-U.S. financial accounts.

Taxpayers who have any concerns about their U.S. Federal tax payment or reporting obligations should contact a U.S. international tax professional to discuss potential disclosure options.