Category Archives: International

Can a Professional Gambler Take the Foreign Earned Income Exclusion?

Posted on September 15, 2018 by Russ

I was asked that question this past week: Can a professional gambler take the Foreign Earned Income Exclusion? The Exclusion allows one to exclude about $100,000 of income from income tax. The IRS website (which is quite good) has a … Continue reading →

Posted in Gambling, International | Tagged | Comments Off on Can a Professional Gambler Take the Foreign Earned Income Exclusion?

The FBAR Is *Not* Due Tomorrow

Posted on June 28, 2018 by Russ

Most tax-related deadlines are on the 15th of various months. Income tax returns for individuals are due on April 15th; the extended deadline is October 15th. But just to have fun with us there are some exceptions. One of these … Continue reading →

Posted in FINCEN, Gambling, International | Tagged | Comments Off on The FBAR Is *Not* Due Tomorrow

IRS Offers Penalty and Filing Relief on New Transaction Tax on Foreign Earnings

Posted on June 4, 2018 by Russ

Individuals who own foreign entities typically have complex returns. I prepare returns for three such individuals; they’re all on extension. Yet one item needed to be prepared for these individuals by April 18th: the new Section 965 transition tax. One … Continue reading →

Posted in International, IRS | Tagged | Comments Off on IRS Offers Penalty and Filing Relief on New Transaction Tax on Foreign Earnings

Bozo Tax Tip #3: Use a Foreign Trust to Avoid Taxes!

Posted on April 11, 2018 by Russ

By far the worst tax schemes in the view of the IRS are offshore (foreign) trusts. In fact, trusts of all sorts—domestic and foreign—are regularly abused. First, not all trusts are bad. Many trusts serve a legitimate purpose, such as … Continue reading →

Posted in International | Tagged | Comments Off on Bozo Tax Tip #3: Use a Foreign Trust to Avoid Taxes!

Bozo Tax Tip #7: Only Income Earned Outside the US Is Taxable

Posted on April 5, 2018 by Russ

A few days ago I was explaining to a client the basics of the US Tax Code: All income is taxable unless Congress exempts it; nothing is deducible unless Congress allows it. That’s the basics. My office is in Las … Continue reading →

Posted in International, Tax Evasion | Tagged | Comments Off on Bozo Tax Tip #7: Only Income Earned Outside the US Is Taxable

Israel Tax Authority Targets Poker Professionals

Posted on November 1, 2017 by Russ

Some unknown bureaucrat working at the Israel Tax Authority was likely reading something about poker or perhaps watching the World Series of Poker on television when he asked himself, “I wonder if Israeli poker players are paying their income taxes?” … Continue reading →

Posted in Gambling, International | Comments Off on Israel Tax Authority Targets Poker Professionals

The Other March 15th Deadlines

Posted on March 15, 2017 by Russ

Today’s the deadline for filing partnership and S-Corporation returns. An extension is available by filing Form 7004. Most (but not all) states grant an automatic extension. Do realize that if your state charges a tax for your entity (i.e. New … Continue reading →

Posted in International, IRS | Comments Off on The Other March 15th Deadlines

Casinos and ITINs: IRS Confirms Cease and Desist Letters Sent to “Several Large Casinos” (Update #2)

Posted on March 3, 2017 by Russ

My stakeholder liaison at the IRS got back to me this morning and told me that the IRS has indeed sent letters to “several large casinos” ordering them to cease and desist issuing Individual Taxpayer Identification Numbers (ITINs). She was … Continue reading →

Posted in Gambling, International | Tagged | Comments Off on Casinos and ITINs: IRS Confirms Cease and Desist Letters Sent to “Several Large Casinos” (Update #2)

The Hidden Bitcoin Trap: FBAR

Posted on February 26, 2017 by Russ

A lot of my clients have invested in Bitcoins. For those who aren’t aware Bitcoins are a “cryptocurrency.” For tax purposes, Bitcoins are treated like stocks and bonds; realized gains (and losses) are reported on Schedule D. And that’s everything … Continue reading →

Posted in International, IRS | Tagged | Comments Off on The Hidden Bitcoin Trap: FBAR

Online Gambling Addresses for 2017

Posted on February 20, 2017 by Russ

This list has been superceded by the 2018 list. With the United States v. Hom decision, we must again file an FBAR for foreign online gambling sites. An FBAR (Form 114) is required if your aggregate balance exceeds $10,000 at … Continue reading →

Posted in Gambling, International | 1 Comment