COVID-19 General News

FATCA Reporting Deadline Extended

IRS Extends FATCA Reporting Deadline to July 15 Because of the ongoing novel coronavirus (COVID-19) crisis, the IRS has granted an extension to file Form 8966, “FATCA Report,” for Reporting Model 2 Financial Institutions and Participating Foreign Financial Institutions. Here are some key details. Background on Filing The Foreign Account Tax Compliance Act (FATCA) requires…

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Foreign Exclusion Residency/Presence Tests Waived

Residency/Presence Tests for Foreign Exclusions Waived Because of Pandemic In response to the novel coronavirus (COVID-19) pandemic, the IRS has waived the residency and presence tests that apply for purposes of the 2019 and 2020 foreign earned income and foreign housing cost exclusions under Internal Revenue Code Section 911. The waiver generally applies to certain…

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COVID-19 Relief: Nonresident Aliens, Foreign Corporations

COVID-19 Relief Available to Some Nonresident Aliens, Foreign Corporations In recent guidance, the IRS provided relief to nonresident aliens and foreign corporations affected by the novel coronavirus (COVID-19) pandemic. More specifically, the relief applies to eligible parties who normally wouldn’t conduct business in the United States but have done so because they couldn’t leave the…

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IRS FAQ Addresses Offers in Compromise and Section 965

New IRS FAQ Addresses Offers in Compromise and Section 965 The IRS has added a frequently asked question (FAQ) to its offer in compromise (OIC) web page. The question concerns taxpayers who’ve agreed to an OIC and own an S corporation that owns a deferred foreign income corporation. Section 965 and Transfer Agreements If a…

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2020 FBAR Penalties (Adjusted for Inflation)

2020 FBAR Penalties (Adjusted for Inflation) The Financial Crimes Enforcement Network (FinCEN) recently announced the inflation-adjusted penalty amounts for a failure to report an interest in a foreign financial account. This is done by filing a Report of Foreign Bank and Financial Accounts (FBAR). The increased penalty amounts apply to penalties assessed on or after…

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