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How the U.S. became one of the world’s biggest tax havens

The Washington Post

Contrary to popular belief, notorious tax havens such as the Cayman Islands, Jersey and the Bahamas were far less permissive in offering the researchers shell companies than states such as Nevada, Delaware, Montana, South Dakota, Wyoming and New York, the researchers found. But one of the least recognized facts about the global offshore industry is that much of it, in fact, is not offshore. Indeed, some critics of the offshore industry say the U.S. is now becoming one of the world’s largest “offshore” financial destinations.

Source: The Washington Post

Business man working with laptop on the small island on the sea

Business man working with laptop on the small island on the sea

Website (www.washingtonpost.com)

October 15 US Tax Deadline is Near Do Not Miss It

Just 10 days remain before the October 15 tax filing deadline, so if you haven’t filed yet, it’s definitely time to do so now! If you aren’t sure why you should not let this deadline pass, here are a couple of very good reasons.

Why you shouldn’t miss October 15

Penalties and interest charges are assessed against taxpayers who file late or not at all. Your extension was granted as extra time to file your tax return, but not extra time to pay the balance due. There are two penalties:  Failure to File and Failure to Pay.
If you filed an extension for your 2014 taxes, October 15th is the deadline to avoid a very stiff penalty. The Failure to Filepenalty runs 5.0% per month plus interest on any balance due.
Failure to Pay penalty is the other one. Just remember you have to be paid-in-full by October 15.
While there is no penalty for Failure to File if you are due a refund, you cannot obtain a refund without filing a tax return. If you wait too long, you run the risk of losing it. In cases where a return is not filed, you generally have up to three years to claim a refund.

Filing Is Easy

Capital Tax has the experience, knowledge and expertise to guide you through the complexities in US income taxes. Use our Contact/Quote Request form right away to get started.
Don’t miss this deadline; the headache and extra financial costs aren’t worth it. Get your tax return filed so you can move on with your life.

Pay Your Taxes or Lose Your Passport!

This month the U.S. Congress is putting into effect a new law that empowers the government to revoke passports of citizens who refuse (or somehow neglect) to pay their taxes. According to various sources, this law also gives the U.S. State Department the right to deny tax scofflaws new passports.

If you are in arrears to the tune of $50,000 or more, (including penalties and interest), then your passport may soon be rendered meaningless. The law basically allows for the denial or, as mentioned, the actual revocation of passports for taxpayers who owe Uncle Sam.

The law officially takes effect in January and is a rider to the overall highway funding bill. It is estimated that getting tough with tax delinquents will bring in an additional $398 million over the next decade.

If you are an American who is living and working abroad, this may be particularly troublesome as you, likely, would prefer to someday return home. However, in 2014 there were almost 900,000 notices sent by the U.S. Internal Revenue Service to U.S. citizens living abroad and, should you be one of them, you might find yourself stuck in a legal limbo. Didn’t get any such notice? Well, you’re not off the hook. If you have not received a letter or some kind of notification you are still accountable. Citizens living abroad often may not get the IRS letter as the system does not allow for the best of communication with expats.

This issue will potentially affect so much of an expats life. Expats need their passports for such normal activities as banking, reserving a hotel room and even registering a kid for his or her school. This is not something to ignore as the long arm of U.S. law is extending ever further into the lives of those, who in the past, have managed to avoid paying their taxes.

There are some small exceptions. For example, if you are an American who is venturing forth for humanitarian service, you may be able to receive an exception even if you are behind on tax payments. This new rule is also not applicable to those who are on an IRS payment plan or who are in court contesting a tax case.

The bottom line: You, as an expat citizen living and working abroad, are fully responsible for and accountable to the timely and full payment of taxes owed. There are few hiding place in this increasingly interconnected world, (mail from the IRS notwithstanding)…

IRS Releases Draft FATCA Form For Comment

Tax-News.com

The United States Internal Revenue Service (IRS) has released, for public review and comment, the draft form that will enable foreign financial institutions (FFIs) to register under the Foreign Account Tax Compliance Act (FATCA).

Source: Tax News – GLOBAL TAX NEWS (Tax-News.com)