Individuals who are living in the UK and hold their assets in a US revocable living trust will, in many cases, be required to register their trust with HMRC’s Trust Registration Service before 1 September 2022. New rules mean that …
Expat Tax
10 TALKING POINTS ON BIDEN’S US TAX REFORMS
BIDEN’S US TAX REFORMS LOOK SET TO INCREASE TAXES FOR HIGH INCOME US PERSONS LIVING IN THE UK
Following the passing of President Biden’s infrastructure plan attention in Congress will be turning towards a budget reconciliation that is expected to …
Understanding the Relief Procedures for Certain Former US Citizens
In September 2019, the IRS announced new relief procedures to support former US citizens to come back into compliance with their US tax filing obligations and avoid any potential “Exit tax”.
The program allows taxpayers to become US tax compliant …
Taxation of Gifts: UK rules vs US rules
There are many misconceptions about the tax implications of making gifts. Consequently, efficient methods may not be utilised in gifting which may result in an avoidable tax bill. From exemptions and allowances, to capital gains taxes, we explore the different …
An Overview of US Entity Classification Regulations
Many businesses and taxpayers find themselves forming foreign corporations, either with the intention of expanding into a global marketplace or, in the case of many of our clients, because they live outside of the United States.
One of the most …
Your Basic Guide to Passive Foreign Investment Companies (PFICs)
US citizens used to be able to take advantage of a tax loophole by investing in foreign mutual funds. These offshore investments were able to defer the US imposition of mandatory distributions, which resulted in the deferral of underlying income …
FBAR Basics & FAQs
Commonly known as FBAR, the FinCEN Form 114 came out of the Banking Secrecy Act (BSA) and requires US persons and residents to disclose overseas financial accounts. It is a requirement, of any US citizens and residents with an aggregate …
Coronavirus Relief: Extension of US Federal and State Tax Deadlines
UPDATED:
Do the IRS read these posts? Twelve hours after setting out our view below, (and frustratingly for our team after having explained to clients why they still needed to take action by 15 April) the IRS provided an advance …
Coronavirus Aid Relief and Economic Security (CARES) – Retirement Distributions
The Coronavirus Aid Relief and Economic Security (CARES) Act has removed the 10% penalty for early withdrawals from retirement plans, if the withdrawal is for “Coronavirus related distributions”.
This applies to all defined retirement plans such as:
- 401(K)
- 403(B)
- 457(B)
Coronavirus Aid Relief and Economic Security (CARES) – Recovery Rebate
The recovery rebate is an automatic tax-free payment to help with financial situations, with the amount available being dependant on the filing status of the individual:
- $1,200 to those married filing separate or single
- $2,400 to those married filing jointly
