San Francisco Tax Blogs | Diosdi, Ching, & Liu, LLP

09Nov 2021 by Anthony Diosdi

The Fourth Amendment Protection Against Unreasonable Search and Seizure in an IRS Criminal Tax Evasion or CriminalTax Fraud Case

Tax Law

By Anthony Diosdi An individual who is the subject of a criminal tax fraud case has the same rights as any other criminal defendant against unreasonable search and seizure in a criminal tax fraud case. The Fourth Amendment constitutional right against unreasonable searches and seizure typically comes into play in tax evasion cases principally in warrantless searches of a taxpayer’s books and records. The usual Fourth Amendment question arises as follows: An individual consents to the examination of his books and records believing the examination concerns only civil tax liability; he believes it is only a civil audit because the special agent has not advised him of the function of a special agent or of his constitutional rights. The taxpayer therefore contends 1) that a search of his “papers” has…

06Nov 2021 by Anthony Diosdi

A Deep Dive into the 2021 IRS Form 5471 Schedule J

Tax Law, Uncategorized

A Deep Dive into the 2021 IRS Form 5471 Schedule J By Anthony Diosdi Schedule J of Form 5471 tracks the earnings and profits (“E&P”) of a controlled foreign corporation (“CFC”) in its functional currency. In most cases, special ordering rules under Section 959 of the Internal Revenue Code apply in determining how E&P is reported on Schedule J. For the 2021 tax year, Schedule J was revised. This article will take a deep dive into each column and line of 2021 Schedule J of the Form 5471. Who Must Complete the Form 5471 Schedule J Anyone preparing a Form 5471 knows that the return consists of many schedules. Schedule J is just one schedule of the Form 5471. Whether or not a CFC shareholder is required to complete Schedule…

04Nov 2021 by Anthony Diosdi

Defense Considerations in an IRS Criminal Tax Investigation- Cooperation Versus Non Cooperation

Tax Law

By Anthony Diosdi The Internal Revenue Service (“IRS”) selective program to utilize criminal sanctions is part of an overall system of collecting taxes. It is part of an overall system that will send the best and the brightest to prison as a public reminder to file correct tax returns. When the IRS refers a case to the United States Attorney for criminal prosecution, in most cases, the United States Attorney will do so without compassion. Criminal tax cases are different then other criminal cases. A criminal tax case is the nearest thing to an inquisition in modern times. Unlike most other criminal cases, the question is not whether an individual did something wrong. The question in a criminal tax case is whether an individual targeted by the IRS did anything…

02Nov 2021 by Anthony Diosdi

The Immigration Consequences Counsel Should Understand When Representing a Noncitizen Who is Criminally Prosecuted for Failing to Disclose Foreign Income or Foreign Bank Accounts

Tax Law

By Anthony Diosdi The Internal Revenue Service (“IRS”) has been on a hiring spree and is gearing up for a major offensive. There has been a lot of saber rattling coming from the IRS that in the near future there will be a dramatic increase in referrals for criminal prosecution. One area that is always a favorite of the IRS is to go after undisclosed foreign bank accounts and reported foreign income. One group that may be hit particularly by an increase in prosecutions of unreported fotreign income or foreign bank accounts are noncitizens such as green card holders. This article discusses the immigration consequences a nonresident could face if he or she is charged with a tax crime or crimes associated for failing to disclose foreign income and foreign…

26Oct 2021 by Anthony Diosdi

Unraveling the United States- Australia Income Tax Treaty and How Australian Nationals with Superannuation Funds, 401(k) Plans, IRAs, and 403(a) Plans can Benefit From the Treaty

Tax Law

By Anthony Diosdi The major purpose of an income tax treaty is to mitigate international double taxation through tax reduction or exemptions on certain types of income derived by residents of one treaty country from sources within the other treaty country. Because tax treaties often substantially modify U.S. and foreign tax consequences, the relevant treaty must be considered in order to fully analyze the income tax consequences of any outbound or inbound transaction. The U.S. currently has income tax treaties with approximately 58 countries. This article discusses the implications of the United States- Australia Income Tax Treaty. There are several basic treaty provisions, such as permanent establishment provisions and reduced withholding tax rates, that are common to most of the income tax treaties to which the United States is a…

26Oct 2021 by Anthony Diosdi

Unraveling the United States- Israel Income Tax Treaty

Tax Law

By Anthony Diosdi The major purpose of an income tax treaty is to mitigate international double taxation through tax reduction or exemptions on certain types of income derived by residents of one treaty country from sources within the other treaty country. Because tax treaties often substantially modify U.S. and foreign tax consequences, the relevant treaty must be considered in order to fully analyze the income tax consequences of any outbound or inbound transaction. The U.S. currently has income tax treaties with approximately 58 countries. This article discusses the implications of the United States- Israel Income Tax Treaty. There are several basic treaty provisions, such as permanent establishment provisions and reduced withholding tax rates, that are common to most of the income tax treaties to which the United States is a…

18Oct 2021 by Anthony Diosdi

Unraveling the United States- Italy Income Tax Treaty and a Closer Look as to How the Treaty Views Fiscally Transparent Entities Such as “Hybrid” and “Reverse Hybrid” Entities

Tax Law

By Anthony Diosdi The major purpose of an income tax treaty is to mitigate international double taxation through tax reduction or exemptions on certain types of income derived by residents of one treaty country from sources within the other treaty country. Because tax treaties often substantially modify U.S. and foreign tax consequences, the relevant treaty must be considered in order to fully analyze the income tax consequences of any outbound or inbound transaction. The U.S. currently has income tax treaties with approximately 58 countries. This article discusses the implications of the United States- Italy Income Tax Treaty. There are several basic treaty provisions, such as permanent establishment provisions and reduced withholding tax rates, that are common to most of the income tax treaties to which the United States is a…

18Oct 2021 by Anthony Diosdi

Did You Get an Audit Notice?

Tax Law

Most people assume that an audit will never happen to them. After all, they are honest on their taxes and pay what they should, so why would they be audited? But then, a notice of audit arrives in the mail, and you start to wonder whether you made mistakes on your taxes that can get you in trouble. What is the best course of action in this situation? Contact a Tax Attorney First, you should always consult with a San Francisco tax lawyer if you receive notice that you will be audited. We can review the returns in question, as well as all communications from the IRS. We can assist you in gathering and submitting all of the necessary information and documentation to the auditor. When an attorney helps you…

07Oct 2021 by Anthony Diosdi

Unraveling the United States- Ireland Income Tax Treaty

Tax Law

By Anthony Diosdi The major purpose of an income tax treaty is to mitigate international double taxation through tax reduction or exemptions on certain types of income derived by residents of one treaty country from sources within the other treaty country. Because tax treaties often substantially modify U.S. and foreign tax consequences, the relevant treaty must be considered in order to fully analyze the income tax consequences of any outbound or inbound transaction. The U.S. currently has income tax treaties with approximately 58 countries. This article discusses the implications of the United States- Ireland Income Tax Treaty. There are several basic treaty provisions, such as permanent establishment provisions and reduced withholding tax rates, that are common to most of the income tax treaties to which the United States is a…

07Oct 2021 by Anthony Diosdi

Unraveling the United States- Mexico Income Tax Treaty

Tax Law

By Anthony Diosdi The major purpose of an income tax treaty is to mitigate international double taxation through tax reduction or exemptions on certain types of income derived by residents of one treaty country from sources within the other treaty country. Because tax treaties often substantially modify U.S. and foreign tax consequences, the relevant treaty must be considered in order to fully analyze the income tax consequences of any outbound or inbound transaction. The U.S. currently has income tax treaties with approximately 58 countries. This article discusses the implications of the United States- Mexico Income Tax Treaty. There are several basic treaty provisions, such as permanent establishment provisions and reduced withholding tax rates, that are common to most of the income tax treaties to which the United States is a…