Monthly Archives: May 2015

What To Do If You Have Delinquent International Information Tax Returns

A U.S. taxpayer with international holdings and interests may not be fully compliant with U.S. tax reporting obligations even though they have currently reported all foreign source income on their annual tax return, filed Form 8938: Statement of Foreign Assets, and submitted a timely FBAR. Some taxpayers may also have ...

Foreign Account Holders: Don’t Forget to File Your FBARs by the June 30th Deadline

Now that the April 15th deadline has passed and tax season is over, most taxpayers can breathe a sigh of relief. At least for another year. For others with overseas financial accounts and interests, one more reporting hurdle must still be overcome: filing FinCEN Form 114, Report of

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Data Security Breach at IRS Disrupts Taxpayers and Tax Professionals

The Internal Revenue Service (IRS) announced on Tuesday, May 26, 2015 that criminals had fraudulently obtained the tax returns and account information of more than 100,000 taxpayers.  The criminals used this information to file fraudulent tax returns.  The IRS paid nearly $50 million in refunds before it detected ...

FATCA and New York Times Op-Ed Piece: “An American Tax Nightmare”

Passing along Stu Haugen's New York Times opinion article, "An American Tax Nightmare", dated May 13, 2015. It highlights the challenges U.S. taxpayers living abroad are exposed to under the Foreign Account Tax Compliance Act (FATCA).

U.S. Taxpayers Living Overseas: The June 15th Automatic 2-Month Extended Deadline and Other Filings Extensions

While most U.S. taxpayers must file their taxes by April 15th, U.S. taxpayers living abroad have additional options to extend the deadline of their filing due date. These extensions provide convenience as well as important benefits and protections. One major reason for overseas taxpayers to extend their filing deadline is ...

4th Annual Tax Update at Bentley University, Wednesday, June 24, 2015

Invitation

You are cordially invited to attend our 4th Annual Tax Program at Bentley University. This Program is co-sponsored by the New England Chapter of the American Association of Attorney-CPAs, a national organization.

Preregistration Required

Preregistration to this free event is required. To register, please click here....

Expect MDOR Audit Delays After the July 4, 2015 Holiday

Governor Charlie Baker’s recent plan to trim the number of Massachusetts employees was recently signed into law. According to published reports, more than half of all employees at the Massachusetts Department of Revenue are eligible to participate in the early retirement incentive. Yesterday, a senior staff member of the Massachusetts Department of Revenue disclosed unofficially that the biggest “hits” are likely to be in the ranks of MDOR tax auditors and collectors.  The early retirement incentive is scheduled to go into effect as of June 30, 2015. Accordingly, taxpayers and their representatives can expect audit slowdowns and delays beginning after the July 4, 2015 holiday.

Preserving Massachusetts Appellate Tax Board Appeals Rights: Recent ATB Decision Highlights Three Traps for the Unwary

Phillips v. Commissioner of Revenue (ATB 2015-113 published on March 20, 2015) highlights three traps for the unwary that can hurt Massachusetts taxpayers. For example, it may be a trap to follow the appeals procedures set forth in Massachusetts Department of Revenue (“MDOR”) letters to taxpayers. In Phillips, taxpayers followed these procedures. The Massachusetts Appellate Tax Board (“ATB”)[1] nonetheless dismissed the taxpayers’ appeal for lack of jurisdiction. The ATB decision in Phillips is summarized and discussed below. The full text is available for download on the ATB website.[2]

Filing a Timely Appellate Tax Board Appeal: Recent ATB Decision Highlights a Trap for the Unwary

Prompt appeal of an adverse tax audit result to the Massachusetts Appellate Tax Board (“ATB”) is essential in order to preserve your rights as a taxpayer. The ATB has jurisdiction to hear state tax appeals pursuant to Massachusetts General Laws, Chapter 62C, Section 39. You must appeal within sixty (60) days after the Massachusetts Department of Revenue (“DOR”) has denied your abatement application. The ATB does not have jurisdiction and cannot preside over a late-filed appeal. Therefore, taxpayers and tax professionals need to understand when the sixty-day appeal window opens and closes.