Though citizenship relinquishment’s have happened on and off over the years, they have risen recently from 742 relinquishment’s in 2009 to over 1,854 this year. Many politicians and tax professionals are attributing the IRS’s onerous international tax compliance headaches and draconian tax penalties as the cause.
The United States requires citizens and resident aliens to pay taxes on worldwide income. In 2010, to combat tax evasion, Congress passed the Foreign Account Tax Compliance Act (FATCA). FATCA requires US taxpayers holding foreign financial assets with an aggregate value exceeding $50,000.00 at years’ end to notify the IRS about the account(s). Continue reading
Are you aware of the tax breaks and loopholes that cost the IRS billions of dollars each year? The following areas are legal ways to keep your money and lessen the amount of tax that you send to the government each year.
When an employer provides health insurance as a benefit for its employees, the premiums that employer pays are one of the few compensations an employee is not taxed for. Over the next five years, the IRS will miss out on $760 billion tax dollars thanks to this little perk. Pension plans and retirement funds are tax-free until the worker takes out the money—estimated as costing the IRS an additional $548 billion over the next five years. Continue reading
Every tax payer wants to save money by paying as little to the Internal Revenue Service as possible. In order to achieve this, you must take advantage of every tax deduction, credit, or income adjustment that is available to you. Unfortunately, many of these simple tax breaks are missed by taxpayers. This list details 10 tax breaks that are easily overlooked and may save you money.
1. Additional charitable gifts
While you may already be aware that monetary gifts to charities can be counted, the expenses you incur while doing charitable work can also be counted on your tax return. You can’t deduct the value of your time spent volunteering but you can count the cost of materials for supplies purchased. Moreover, any the cost of the uniform you wear doing your charitable service and any cleaning bills can also be deducted. Continue reading
Have you received a phone call from a person identifying themselves as an IRS employee, claiming you owe the IRS money? The IRS is warning taxpayers of a fraudulent phone call scheme, designed to trick you into wiring money to the scammers running it. Continue reading
Thousands of people holding security clearances are also tax cheats — a major problem considering that financial troubles are frequently considered a threat to national security. The reason? The farther in debt a person is, the more likely it is that they will turn to illegal activity to obtain needed funds. Russia has shown repeatedly that it is willing to pay cash for national secrets and has previously bought off former CIA and FBI agents. Continue reading
Chris Christie’s long fight against same-sex marriage in New Jersey has officially drawn to a close. The Republican governor had considered using the appeals process in the aftermath of a judge’s ruling deeming recent gay marriage legislation as abiding by the state’s constitution. However, Christie’s advisors ultimately suggested that the governor drop the fight, as it was becoming abundantly clear that he and his cohorts were on the wrong side of history. Continue reading