Special Areas
Expatriation Tax
U.S. citizens and long-term residents who expatriate must file IRS Form 8854 to comply with IRC sections 877, 877A, and 6039G. Failure to file or inaccuracies can result in a $10,000 penalty, especially for those subject to the alternative expatriation tax.
In 2019, the IRS introduced special procedures to help individuals meet reporting obligations, avoid penalties, and prevent “covered expatriate” status under IRC 877A.
U.S. citizens and long-term residents who expatriate must file IRS Form 8854 to comply with IRC sections 877, 877A, and 6039G. Failure to file or inaccuracies can result in a $10,000 penalty, especially for those subject to the alternative expatriation tax.
In 2019, the IRS introduced special procedures to help individuals meet reporting obligations, avoid penalties, and prevent “covered expatriate” status under IRC 877A.
Amending Your Federal and State Tax Returns
If you notice errors or incomplete information on your original federal or state tax returns, you can correct them by filing an amendment.
For federal returns, use IRS Form 1040-X to make changes to Form 1040. For state tax returns, follow the amendment process specific to your state, typically using a designated amended return form.
If you notice errors or incomplete information on your original federal or state tax returns, you can correct them by filing an amendment.
For federal returns, use IRS Form 1040-X to make changes to Form 1040. For state tax returns, follow the amendment process specific to your state, typically using a designated amended return form.
Reporting Foreign Gifts or Bequests
U.S. persons receiving large gifts or bequests from foreign individuals may need to file Form 3520, Part IV. This form is due by April 15 (or with an extension). Reporting is required only if the gift exceeds the IRS threshold.
U.S. persons receiving large gifts or bequests from foreign individuals may need to file Form 3520, Part IV. This form is due by April 15 (or with an extension). Reporting is required only if the gift exceeds the IRS threshold.
FATCA Compliance: Reporting Foreign Assets
Under FATCA, U.S. taxpayers must report offshore assets on Form 8938. Non-compliance may result in severe penalties. This is separate from FBAR (FinCEN Form 114) reporting. Foreign financial institutions must also disclose U.S. account holders to the IRS. Reporting thresholds vary based on filing status and residency:
Under FATCA, U.S. taxpayers must report offshore assets on Form 8938. Non-compliance may result in severe penalties. This is separate from FBAR (FinCEN Form 114) reporting. Foreign financial institutions must also disclose U.S. account holders to the IRS. Reporting thresholds vary based on filing status and residency:
- Living Abroad: File Form 8938 if assets exceed $200,000 (single) or $400,000 (joint).
- Living in the U.S.: File if assets exceed $50,000 (single) or $100,000 (joint).
FBAR Filing Requirement
Under the Bank Secrecy Act, you must report foreign financial accounts annually by filing FinCEN Form 114 (FBAR) with the Treasury Department.
Under the Bank Secrecy Act, you must report foreign financial accounts annually by filing FinCEN Form 114 (FBAR) with the Treasury Department.
US taxation on Foreign Assets
Buying property overseas doesn’t always require U.S. tax reporting, but selling it triggers capital gain or loss reporting on your U.S. tax return. Foreign property transactions may also create tax obligations abroad, potentially leading to double taxation.
Buying property overseas doesn’t always require U.S. tax reporting, but selling it triggers capital gain or loss reporting on your U.S. tax return. Foreign property transactions may also create tax obligations abroad, potentially leading to double taxation.
How We Can Help
- Consultation to help understand the cost of insuring, policy fees, rights/riders, and taxable/nontaxable events.
- Analyze previous tax returns to analytically determine the right life insurance plan
- Help you set up with MassMutual, which is one of the largest life insurance company and is owned by its policyholders
- Reach out through our contact form for a consultation!