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Three red flags for a casino winner to look for a different service provider of US tax withholding r

Paid tax professionals aren’t permitted to endorse or otherwise negotiate a refund check issued to a taxpayer. This is true, even if the taxpayer requests their refund be directed into the paid tax professional’s bank account or in his/her name. Failure to comply could result in an Internal Revenue Code, Section 6695(f) penalty of $510 for each tax return with no maximum penalty amount and no reasonable cause exceptions. This brings up the point regarding companies who advertise refunds of withholding of U.S. gambling winnings and insist that the refund go directly to their office. Other potential violation of IRS rules are a U.S. tax preparer charging a client a contingency fee typically di

Missed the March 15 1042-S filing due date? Better hurry up!

The following penalties apply to the person required to file Form 1042-S. The penalties apply to both paper filers and electronic filers. Late filing of correct Form 1042-S. A penalty may be imposed for failure to file each correct and complete Form 1042-S when due (including extensions). The penalty, based on when you file a correct Form 1042-S, is: $50 per Form 1042-S if you correctly file within 30 days after the required filing date; the maximum penalty is $545,500 per year; if you file after August 1 or you do not file correct Forms 1042-S; the maximum penalty is $3,275,500 per year. If you intentionally disregard the requirement to report correct information, the penalty per Form 1042-

Your bank just asked you to confirm you're a US taxpayer to enable your govt tax authority to re

So, you or your non-US company received W-9 from your bank. If Canadian the notice says it needs info under Income Tax Act Part XVIII to release your info to CRA so that if CRA chooses, it can squeal on you to IRS, as FATCA designed. Should CRA release said banking info it receives to IRS, since IRS designed FATCA to catch US taxpayer omission of foreign account information if you have not reported income from non-US accounts on your US tax returns, you may wish to consider quickly filing amended returns to report it under an IRS streamlined program before IRS asks you to do so if and when IRS receives the bank info and if that info shows income. Same goes For FBAR, which was designed to aid

2014 Offshore Voluntary Disclosure Program (OVDP) closing on Sept. 28, 2018

The Internal Revenue Service today announced (IR-2018-52, March 13, 2018) it will begin to ramp down the 2014 Offshore Voluntary Disclosure Program (OVDP) and close the program on Sept. 28, 2018. By alerting taxpayers now, the IRS intends that any U.S. taxpayers with undisclosed foreign financial assets have time to use the OVDP before the program closes. “Taxpayers have had several years to come into compliance with U.S. tax laws under this program,” said Acting IRS Commissioner David Kautter. “All along, we have been clear that we would close the program at the appropriate time, and we have reached that point. Those who still wish to come forward have time to do so.” Since the OVDP’s initi

Tax Cuts and Jobs Act withholding calculator and new W-4

The Internal Revenue Service this week released an updated withholding calculator and a new version of Form W-4. The calculator and new W-4 can be used to ensure 2018 individual tax withholding amounts are accurate in light of the recent tax law changes. The Tax Cuts and Jobs Act made changes to the tax law, including increasing the standard deduction, removing personal exemptions, increasing the child tax credit, limiting or discontinuing certain deductions and changing the tax rates and brackets. If changes to withholding should be made, the Withholding Calculator gives employees the information they need to fill out a new Form W-4, Employee’s Withholding Allowance Certificate. Employees w

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