tax law Archives | Page 6 of 30

18Nov 2021 by Anthony Diosdi

Are Holiday Gifts from Employers Taxable?

Tax Law

Many employers might be in the giving spirit this holiday season, especially as many companies might be trying to retain workers who might quit in the Great Resignation. However, employers should also consider possible tax implications of giving employees certain types of holiday gifts or bonuses. The IRS considers all compensation to be taxable, including fringe benefits that are more than a de minimis expense to the company. If employers are handing out cash or an equivalent - such as a Visa gift card or another general use voucher - it should be taxed as part of the employee’s compensation. It gets murkier when it comes to other gifts or perks handed out during the holiday season, however. Some fringe benefits that might be considered taxable compensation include: Season sporting…

09Nov 2021 by Anthony Diosdi

Tracking Form 5471 Section 959 PTEPs on Schedule J for the Modern Day CFC

Tax Law

By Anthony Diosdi Before enactment of the 2017 Tax Cuts and Jobs Act (“TCJA”), the Internal Revenue Service (“IRS”) Form 5471 was a reasonable exercise. Prior to the enactment of the TCJA, the IRS Form 5471 was approximately two pages long. This all changed with the enactment of the TCJA. The days of preparing two page long Form 5471s are long gone. The IRS Form 5471 along with its accompanying Schedule J has become one of the most difficult tax returns to complete. This is the result of the complexity and incompleteness of the TCJA’s international tax provisions, along with congressional failure to remedy the gaps that TCJA created in the Internal Revenue Code. Thus, the Department of Treasury (“Treasury”) and the IRS are left to bridge the gaps in…

09Nov 2021 by Anthony Diosdi

The Fifth Amendment Right to Remain Silent in an IRS Criminal Tax Evasion or Criminal Tax Fraud Case

Tax Law

By Anthony Diosdi A taxpayer who is the subject of a criminal tax fraud case has the same rights as any other criminal defendant to decline to make any statement to the special agent or to a grand jury on the grounds that such a statement would “tend to incriminate him.” The right is a complete one, subject only to a grant of immunity, and the fact that the right was evoked cannot be used as evidence against the taxpayer. The right is also subject to the requirement that it be asserted. Any statement of the taxpayer other than a claim of the Fifth Amendment privilege against self-incrimination is admissible in evidence if it is relevant. This is particularly important in criminal tax fraud cases because courts have held that…

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…