Category Archives: Tax Law

A Look at Celebrity Tax Evasion

So far, we’ve devoted a couple of blog posts to look at the celebrity financial difficulties. We’ve looked at celebrity bankruptcies and, more generally, looked at celebrity tax troubles.  Here, we’d like to continue this review.  Accordingly, in this post, we’re going to look at a few public figures who’ve gotten themselves into really big trouble.   We’ll look at three individuals, from different occupational fields, that have been charged with tax evasion.  One is a former professional baseball player, the second, a singer and the third is an actor. We’ve stated it before, but it’s worth repeating: being a celebrity doesn’t provide protection from hardship or financial trouble.  As we’ve seen, some of the most serious financial difficulties have been experienced by high profile celebrities. In some cases, their financial woes are noteworthy mostly because of the individual….. To continue reading this legal news please click Read full information...

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Cryptocurrency & FBAR – Include Overseas Cryptocurrency on FBAR?

Cryptocurrency & FBAR – Include Overseas Cryptocurrency on FBAR? (Golding & Golding) Cryptocurrency & FBAR – Include Overseas Cryptocurrency on FBAR? As the time to file an FBAR/FinCEN114 for tax year 2017 comes to an end (FBAR is on automatic extension through October 15, 2018) one of the most pressing questions involves the tax and reporting of cryptocurrency. Namely, “Do I Include Overseas Cryptocurrency on the FBAR?” Cryptocurrency & FBAR If you are wondering whether your overseas  cryptocurrency being held abroad in a foreign country is reportable to the IRS and FinCEN, you are not alone. The IRS and FinCEN are seemingly trying to keep the FBAR disclosure rules for cryptocurrency intentionally vague until they have a chance to catchup. Common questions about cryptocurrency FBAR disclosure: What if my crypto account is anonymous? What if I do not report my crypto account? Is overseas cryptocurrency FBAR….. To continue reading this legal news please click Read full information...

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Can a Professional Gambler Take the Foreign Earned Income Exclusion?

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 page on the general rules for the Exclusion. The IRS notes, Self-employment income: A qualifying individual may claim the foreign earned income exclusion on foreign earned self-employment income. The excluded amount will reduce the individual’s regular income tax, but will not reduce the individual’s self-employment tax. Also, the foreign housing deduction – instead of a foreign housing exclusion – may be claimed. A professional gambler (unlike an amateur) will have self-employment income. A professional gambler files a Schedule C, and that qualifies as “earned income.” As the name implies, you must have earned income to take the Foreign Earned Income Exclusion. But there are other requirements. Your….. To continue reading this legal news please click Read full information...

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IRS Extends Deadlines for Those Impacted by Hurricane Florence

Hurricane Florence is battering North and South Carolina. News reports indicate “biblical” amounts of rain will fall, with catastrophic flooding probable throughout the Carolinas. Today, the IRS announced that they are extending deadlines for those in the federal disaster zone to January 31, 2019. Hurricane Florence victims in parts of North Carolina and elsewhere have until Jan. 31, 2019, to file certain individual and business tax returns and make certain tax payments, the Internal Revenue Service announced today. The IRS is offering this relief to any area designated by the Federal Emergency Management Agency (FEMA), as qualifying for individual assistance. Currently, this only includes parts of North Carolina, but taxpayers in localities added later to the disaster area, including those in other states, will automatically receive the same filing and payment relief. The current list of eligible localities is always available on the disaster relief page on….. To continue reading this legal news please click Read full information...

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IRS Provides Clarification for Business Taxpayers That Make Payments To State or Local Tax Credit Programs

We recently wrote on the new proposed regulations addressing the availability of charitable deductions when taxpayers receive or expect to receive corresponding state or local tax credits for contributions.  The proposed regulations require a taxpayer who makes a contribution to a charitable organization to reduce his charitable deduction by any state or local tax credit that he receives or expects to receive.  Readers may find more about the proposed regulations here.  After the proposed regulations were issued, the IRS published a clarification for business taxpayers.  The IRS clarified that business taxpayers who make business-related payments to charities or government entities for which the taxpayers receive state or local tax credits may still generally deduct the payments as business expenses.  This general deductibility rule is not affected by the proposed regulations dealing with charitable deductions for donations to state or local tax credit….. To continue reading this legal news please click Read full information...

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