01Apr 2019 by Pat Geddie
U.S. Real Property Interest Non-Recognition Transfers- Can the Internal Revenue Service Assess Interest When No Tax is Due?

U.S. Real Property Interest Non-Recognition Transfers- Can the Internal Revenue Service Assess Interest When No Tax is Due?

Tax Law
By Anthony Diosdi When a U.S. income tax nonresident alien or a foreign corporation (hereinafter collectively referred to as a “Foreign Taxpayer”) disposes of a U.S. real property interest (“USRPI”), the Foreign Taxpayer is subject to the Foreign Investment in U.S. Real Property Tax Act of 1980 (“FIRPTA”). Pursuant to FIRPTA, a Foreign Taxpayer is subject to tax on the gain or loss from the disposition of a USRPI as if the Foreign Taxpayer was engaged in a U.S. trade or business during the taxable year, and as if such gain or loss was effectively connected with such trade or business. According to FIRPTA and presuming an exception to the general rule does not otherwise apply, if a Foreign Taxpayer disposes of a USRPI, the transferee of the USRPI is…
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22Mar 2019 by Pat Geddie
Did You Receive a Notice CP 508C From the IRS Stating That Your Passport is Being Revoked? Maybe the APA Can Prevent the IRS from Taking Your Passport

Did You Receive a Notice CP 508C From the IRS Stating That Your Passport is Being Revoked? Maybe the APA Can Prevent the IRS from Taking Your Passport

Uncategorized
By Anthony Diosdi IntroductionI have been assisting clients with tax problems for nearly twenty years. One question that I was always asked is,’Can the Internal Revenue Service (“IRS” or “Service”) stop me from traveling abroad?’. Up until fairly recently, I advised clients that the IRS could not prevent them from traveling abroad. That all changed in 2015 with the passage of Fixing America’s Surface Transportation Act (“Fast Act”). The Fast Act requires the State Department to deny a passport application by, and authorizes it to revoke the passport of, any individual that the Service certifies as having a “serious delinquent tax debt.” See Fixing America’s Surface Transportation Act, Pub. L. No. 114-94, Section 32101(e), 129 Stat. 1311, 1732 (2015). Internal Revenue Code Section 7345 governs the IRS’ certification process and…
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