Posts Tagged ‘Andrew Mitchel’

Quick hits

Wednesday, March 21st, 2012 by Joe Kristan

There’s much good stuff out there on taxes that I would to spend all day reading and posting about.  Tax returns pay better, though, so here are links to better reading for those of you with more persistence and longer attention spans:

Finally, Andrew Mitchel shows how voluntary expatriations have soared in the wake of the IRS foreign compliance pogrom, with this chart:

Courtesy Andrew Mitchel

When you fire into the crowd, the crowd will scatter.



Jaywalkers flee the gunfire

Thursday, February 2nd, 2012 by Joe Kristan

From Andrew Mitchel’s International Tax Blog:

In 2011, the total number of expatriates was 1,781, a 16% increase from 2010. Last year had the highest number of expatriates since at least 2004 (when I started keeping these records), and perhaps the most in any year in U.S. history.
According to the I.R.S., an estimated five to seven million U.S. citizens reside abroad. Many of these individuals have never lived in the U.S. and never expect to live in the U.S. However, these U.S. citizens must annually file U.S. tax returns.
For example, I spoke with a Canadian the other day who was born to two U.S. citizen parents in Canada. This individual therefore is a U.S. citizen. However, he has never lived in the U.S. and never expects to live in the U.S. Despite that he has never lived in the U.S., he will have to file U.S. tax returns for his entire working life.

The IRS hits people like these — many of whom had no idea they were supposed to be filing — with severe financial penalties. Meanwhile, it provides relatively cushy deals with actual criminals through its OVDI program, because you have to shoot the jaywalkers to really slap the wrists of the serious offenders. No wonder the jaywalkers don’t want to play anymore.
Update: The TaxProf has more.


Flight of the jaywalkers

Thursday, August 18th, 2011 by Joe Kristan

The dedication of the IRS to shooting jaywalkers in their foreign account compliance programs is yielding impressive results. From Andrew Mitchel:

The number of Published Expatriates for the second quarter of 2011 was 519. This is the second highest number of quarterly Published Expatriates during the past seven years. The only higher quarter during this time was the second quarter of 2010, with 560 Published Expatriates.
If current trends continue, the number of Published Expatriates for 2011 will exceed 2010 by 30% or more. The following graph shows the quarterly average number of Published Expatriates since 2004.

It’s a tribute to the sensitive and judicious IRS handling of trivial violations of the foreign account reporting rules.


Big news for Americans in the UK:

Tuesday, August 16th, 2011 by Joe Kristan

London may be burning, but there’s one piece of good news for Americans across the pond. Andrew Mitchel explains the new IRS Rev. Rul. 2011-19.


Hot video: the Big Busted 351 Transaction

Thursday, June 30th, 2011 by Joe Kristan

Is tax geekery suited for video? Andrew Mitchel, proprietor of the International Tax Blog, means to find out. He has posted a YouTube video on failed tax-free incorporations. Check it out for yourself.


Foreign accounts: IRS relaxed some deadlines for old years, but not for this year.

Friday, June 17th, 2011 by Joe Kristan

From Andrew Mitchel’s International Tax Blog:

In Notice 2011-54, the I.R.S. has provided an additional extension for persons having signature authority over, but no financial interest in, a foreign financial account in 2009 or earlier calendar years for which the reporting deadline was extended by Notice 2009-62 or Notice 2010-23. These persons now have until November 1, 2011, to file FBARs with respect to those accounts. The deadline for reporting signature authority over, or a financial interest in, foreign financial accounts for the 2010 calendar year remains June 30, 2011.

LInk: Notice 2011-54
Other coverage:
Federal Tax Crimes Blog: Pre-2010 FBAR Filing Extension to 11/1/11 for Signatories Only


Mechanics of carried interests

Monday, May 16th, 2011 by Joe Kristan

“Carried interests” of hedge fund and private equity fund managers remain a political hot potato. They are a form of “profits interests” in partnerships. Andrew Mitchel LLC has put up a great chart explaining the mechanics of how these things are taxed.


Jaywalkers flee the gunfire

Monday, March 7th, 2011 by Joe Kristan

I have likened the government’s brutal penalties for trivial failures to report offshore bank accounts to “shooting jaywalkers.” U.S. Citizens posted abroad for work or living abroad find penalties in the tens of thousands, or even hundreds of thousands of dollars, for failing to file the “FBAR” Form TD 90-22.1. The IRS is proposing these penalties even for taxpayers who attempted to come into compliance in the 2009 “amnesty” for FBAR penalties.
Now Andrew Mitchel reports that renunciation of U.S. citizenship is soaring:
The FBAR rules require U.S. citizens to file an FBAR report whenever they have a foreign bank account with a balance that rises over $10,000 in a year. Penalties can be up to half the account balance for each year the account is not reported. Americans who have move abroad after getting married, or who have taken overseas jobs, have found themselves in violation of a rule that many had never heard of. No wonder many Americans abroad have decided that it’s just too risky and expensive to remain U.S. citizens.
The IRS is conducting another FBAR amnesty. We can only hope this one is better-run than the last one. Meanwhile, an organization called American Citizens Abroad is collecting FBAR horror stories in an attempt to change government policy towards minor FBAR violators.
Update, 3/10/2011: The TaxProf has more.


Wait – you want me to withold on interest I pay to my broker?

Thursday, February 24th, 2011 by Joe Kristan

If you have an offshore margin account, you just might have to withhold and remit U.S. taxes on interest paid to your stockbroker. Andrew Mitchel explains.


IRS adjusts housing cost allowances for overseas taxpayers

Thursday, February 3rd, 2011 by Joe Kristan

The IRS has adjusted the housing exclusion numbers for overseas residents (Notice 2011-8). Andrew Mitchel explains.


Digging to the bottom of the stocking

Monday, December 20th, 2010 by Joe Kristan

Mom knitted us all giant Christmas stockings — so big it seemed like we could always find another piece of chocolate down there somewhere.
The new tax law signed last week is sort of like that. We’ll be finding goodies for weeks, probably. Unfortunately, it’s like a stocking with a few scorpions in the bottom too.
For payroll providers, the first challenge will be dealing with the 2011 2 percentage-point reduction in employee (but not employer!) FICA. The IRS has issued guidance (IR-2010-124), including an option for employers who can’t get their systems updated in time for their first 2011 payrolls to withhold at the old rates and refund the overpayment during the first quarter.
Meanwhile, the tax blog world is digging down into the stockings:
Roger McEowen summarizes the thing, as does Robert D. Flach.
Peter Pappas covers the payroll tax relief provisions.
Roni Deutch compares the FICA tax break to the now-defunct “making work pay” credit.
Kay Bell explains the choices available to people who die this year — well, to their executors.
Linda Beale calls for death to the fascist insect who preys on the life of the working people.
Andrew Mitchel reminds us that the rule that allows controlled foreign corporations to not treat interests, dividends, rents and royaltes received from another CFC as foreign personal holding company income.
You can find our discussion here.


Don’t be an international scam victim

Wednesday, November 3rd, 2010 by Joe Kristan

Nobody is really going to come to you from across the ocean with a risk-free opportunity to make a bunch of money. Sadly, the belief in financial unicorns leads many to grief, as Andrew Mitchel notes:

I don


What price citizenship?

Thursday, October 28th, 2010 by Joe Kristan

Sobering statistics from international tax attorney Andrew Mitchel show that Americans are turning in their passports in record numbers.
It could be just a coincidence that this increase occurs as Treasury steps up its shoot-the-jaywalkers approach to international tax compliance, but I doubt it.
Related: FBAR est FUBAR


A Prius driving backwards?

Thursday, July 29th, 2010 by Joe Kristan

Andrew Mitchell explains what a “reverse hybrid” is in “Hybrid Entities and Reverse Hybrid Entities.”


Details on the ‘Jobs’ bill

Monday, March 22nd, 2010 by Joe Kristan

Roger McEowen provides details on the recently-enacted “jobs” legislation, including the forgiveness of employer FICA and the $1,000 tax credit for “qualified” new employees.
Andrew Mitchell has more on the international tax “shoot the jaywalker” $10,000 penalties for failing to disclose foreign assets:

The accuracy related penalty under Code


Unintended consequences of the offshore crackdown

Monday, March 8th, 2010 by Joe Kristan

International tax lawyer Phil Hodgen files a report from his recent trip to Asia that should give us pause to consider how we deal with taxes of our offshore taxpayers:



Run for the border

Friday, March 5th, 2010 by Joe Kristan

Andrew Mitchel:

Today the Treasury Department published the names of individuals who renounced their United States citizenship (


97 years old, if it’s a day.

Wednesday, February 3rd, 2010 by Joe Kristan

Andrew Mitchel reminds us that the 16th Amendment, which paved the way for the modern income tax, is 97 years old today. Unless you are one of those folks who think it hasn’t been born yet (and good luck with that).
That means it’s time to hear from the Old 97s:


The trouble with Barry bearer bonds

Tuesday, January 12th, 2010 by Joe Kristan

Andrew Mitchel explains:

Under Code