Category Archives: International

German Court to Decide Whether Poker Is Taxable for a Professional

Posted on August 23, 2012 by Russ

In 2011, Pius Heinz of Germany won the main event of the World Series of Poker and a nice tax-free $8,715,638. Well, maybe it’s not tax-free. Via @Taxdood and @Taxnews1 comes word that a German court in Cologne will be … Continue reading →

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Another FATCA Consequence: Sending 1042-S’s With No Withholding

Posted on July 19, 2012 by Russ

One of my clients who played in the World Series of Poker asked me to prepare his Form 1042-S’s to show the required withholding for some of his backers. The 2012 form is available, and it looks identical to the … Continue reading →

Posted in Gambling, International, IRS | 1 Comment

If Only He Had Driven a Yugo Instead of a Ferrari

Posted on July 8, 2012 by Russ

Sometimes it’s best to be inconspicuous. That’s definitely the case if you’re doing something that’s illegal. From Bergamo, Italy comes the story of an unidentified Italian man who loved his Ferrari F131. Even in Italy that’s a car that will … Continue reading →

Posted in International, Tax Evasion | 2 Comments

When an Agent’s Fees Are Not Deductible

Posted on July 5, 2012 by Russ

Suppose you are a professional athlete and you hire a sports agent to negotiate with you. Those fees are, in the United States, generally deductible as an “ordinary and necessary” business expense. However, the same is not true in Canada. … Continue reading →

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eFile an FBAR? Use Internet Explorer, Not Firefox or Chrome

Posted on June 28, 2012 by Russ

Some of my clients have had problems efiling the FBAR on the BSA system. The FINCEN support group have confirmed that the system works only using Internet Explorer. So if you need to file an FBAR, use Internet Explorer, not … Continue reading →

Posted in International | Tagged | 1 Comment

IRS Announces New Procedure on RRSPs; Jaywalkers Apparently No Longer Subject to Firing Squad

Posted on June 27, 2012 by Russ

The IRS announced yesterday a new procedure to deal with “low compliance risk” taxpayers who have innocently not filed FBARs or tax returns noting their RRSPs (a Canadian retirement account similar to a 401(k) or IRA). While the full details … Continue reading →

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FBAR Due Next Saturday, June 30th

Posted on June 24, 2012 by Russ

Anyone with $10,000 in one or more foreign financial accounts (determined by taking the maximum balance of each account at any time during the year, summing the maximums, and comparing the sum to $10,000) must file Form TD F 90-22.1 … Continue reading →

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Liechtenstein Bank Appears Ready to Cooperate with IRS

Posted on June 10, 2012 by Russ

I’ve written about bank secrecy in Liechtenstein before. One Liechtenstein bank, Liechtensteinische Landesbank AG (LLB), has received a “group request” for information. The IRS wants information on accounts with $500,000 or more from 2004 or later. If you happen to … Continue reading →

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Bozo Tax Tip #1: Get Out of Town, Fast

Posted on April 15, 2012 by Russ

There’s an old saying: When the going gets tough, the tough get going. Well, with Bozos things work differently. “Oh my,” a Bozo thinks. “Tax Day is just a couple of days away. I’m completely unprepared. I know: I’ll go … Continue reading →

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Last Mailbag Prior to Tax Day, With an Emphasis on Being Abroad

Posted on March 25, 2012 by Russ

We get more mail: I was thinking of taking a trip to Belize in mid-April to fish. My accountant told me that if I’m out of the country on April 17th, I get a two-month extension on my taxes and … Continue reading →

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