News and Updates

Accountants move into cryptocurrency

By Michael Cohn
Accounting Today

Accountants are delving into the complexities of digital currencies such as Bitcoin and Ethereum to help their clients keep track of cryptocurrency assets and transactions, as well as the tax consequences, according to a new report.“In the past two or three years, especially with the crypto boom in 2017, it really caught a lot of people by surprise and created issues and complexities that are resulting now or over the past year,” said Muroch. “Those kinds of issues surface when you need to go through an audit or to pay your taxes.”

Read the full article at Accounting Today.

Training: GILTI Take 2 – What We Know Now

This course delves into the global intangible low tax income (GILTI) regime that takes effect for many taxpayers in tax year 2018 and how it has evolved over the last year. We will provide an overview of the final regulations and their intent, define the new terms of art in the regulations, calculate GILTI, demonstrate how the regulations affect entities and individuals differently, and outline strategies to mitigate potential tax consequences.

IRS has begun sending letters to virtual currency owners advising them to pay back taxes & file amended returns

By IR-2019-132
IRS

The Internal Revenue Service has begun sending letters to taxpayers with virtual currency transactions that potentially failed to report income and pay the resulting tax from virtual currency transactions or did not report their transactions properly.
“Taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest and penalties,” said IRS Commissioner Chuck Rettig. “The IRS is expanding our efforts involving virtual currency, including increased use of data analytics. We are focused on enforcing the law and helping taxpayers fully understand and meet their obligations.”
The IRS started sending the educational letters to taxpayers last week. By the end of August, more than 10,000 taxpayers will receive these letters. The names of these taxpayers were obtained through various ongoing IRS compliance efforts.

Read the full article at IRS .

Canadian court rejects the claim of two Americans by birth over the FATCA information sharing regulations

By Jim Bronskill
The Canadian Press

The federal government has shared more than 1.6 million Canadian records with the U.S. tax service A Canada-U.S. deal that lets Canadian financial institutions send customer information to U.S. authorities to help track down tax cheats does not violate the Charter of Rights and Freedoms, a judge has ruled.

Federal Court of Canada Justice Anne Mactavish dismissed an appeal from two American citizens, Gwendolyn Louise Deegan and Kazia Highton, who now live in Canada and have no real ongoing connection with the United States.

Read the full article at The Canadian Press.

The CRA sent more than 700,000 documents to the IRS in 2017

By Rudy Mezzetta
Advisor's Edge

Intergovernmental agreement between Canada and the U.S. targets offshore tax evasion

The Canada Revenue Agency (CRA) sent more than 700,000 records to the U.S. Internal Revenue Service (IRS) in 2017 as part of a tax-information sharing deal between the two countries, said a CRA official during a roundtable discussion at the annual national conference of the Canadian arm of the Society of Trust and Estate Practitioners (STEP Canada) in Toronto on Friday. The figure is current as of April 2019.

In 2014, the Canadian government signed an intergovernmental agreement (IGA) with the U.S. to exchange tax information on each other’s tax residents on an annual basis…

Read the full article at advisor.ca.

IRS Announces Tax Season Start Date Despite Government Shutdown

By Kelly Phillips Erb
Forbes.com

The Internal Revenue Service (IRS) has announced that tax season will open on Monday, January 28, 2019. The IRS will begin accepting paper and electronic tax returns that day.

The IRS made the start date announcement despite the ongoing government shutdown. “We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown. I appreciate the hard work of the employees and their commitment to the taxpayers during this period,” said IRS Commissioner Chuck Rettig…

Read the full article at Forbes.com.

Training: International Penalties and Abatement Strategies

Date: December 4, 2018
Time: 2pm – 4pm EDT

The IRS is focusing their resources on international tax compliance; as such, practitioners are seeing increasing numbers of examinations in this area along with FBAR and international information return penalties. We will discuss in detail methods to defeat these penalties, such as reasonable cause, as well as how to effectively represent clients in either an international non-compliance examination or penalty abatement engagement. In addition, we will look at case studies to bring a real-life perspective to these issues.

Learning Objectives:

  • Describe the penalty structures for FBARs and other international information returns.
  • Explain “reasonable cause” in the context of FBAR and international information return penalties and how to effectively demonstrate reasonable cause and advocate for your client.
  • Understand the different ways to contest FBAR and international information return penalties both pre-assessment and post-assessment.

Webinar Cost: $149.00 USD

Register for this course.

Advanced International Tax Issues – GILTI Fundamentals

This course will demystify the new global intangible low tax income (GILTI) regime that takes effect for many taxpayers in 2018. We will provide an overview of the regulations and their intent, define the new terms of art in the regulations, calculate GILTI, demonstrate how the regulations affect entities and individuals differently, and what strategies are available to mitigate potential tax consequences.

Learning Objectives:

  • Identify what taxpayers are subject to GILTI taxation.
  • Compare and contrast the taxation of entities and individuals under the GILTI regime.
  • Understand the calculations of tested income.
  • Describe potential strategies to mitigate GILTI taxation.

Register for this course.

PFIC Training Series – PFIC Masterclass: QEF & MTM

This webinar will instruct in both the details and computations required to complete Form 8621 under the qualified electing fund (QEF) and mark-to-market (MTM) regulations. This is a course aimed at practitioners that have an intermediate level of understanding of PFIC taxation. The materials will be computation-intensive and will cover both QEF and MTM theory as well as application on Form 8621.

Learning Objectives:

  • Describe the overall QEF and MTM mechanisms and their purposes.
  • Analyze the benefits and drawbacks of the QEF and MTM elections.
  • Complete a basic Form 8621 using the QEF and MTM regimes.
  • Transfer the tax items from a completed Form 8621 using the QEF and MTM regimes to the tax return.

Register for this course.

PFIC Training Series – PFIC Masterclass: Section 1291

This webinar will instruct in both the details and computations required to complete Form 8621 under the default §1291 regulations. This is a course aimed at practitioners that have an intermediate level of understanding of PFIC taxation. The materials will be computation-intensive and will cover both §1291 theory as well as application on Form 8621.

Learning Objectives:

  • Describe the overall §1291 mechanism and its purpose.
  • Compute both excess and non-excess distribution amounts under §1291.
  • Complete a basic Form 8621 using the §1291 regime.
  • Transfer the tax items from a completed Form 8621 using the §1291 regime to the tax return.

Webinar Cost: $149.00 USD

Register for this course.