By: Wilda Lin
October 2018 Edition
The CPA Journal
Reports of Foreign Financial and Bank Accounts (FBAR) have gained prominence since the Department of Justice began investigating the accounts of Swiss banks, starting with UBS almost a decade ago. Who must file FBARs? Many people who own foreign accounts hail from other countries, and the answer to this question is not always obvious.
What Non-U.S. Athletes, Entertainers, and Agents Need to Know About U.S. Taxes and How to Reduce Them
Boxing fans who were looking forward to Manny Pacquaio' s fifth fight against Juan Manuel Marquez did not see it live in Las Vegas. The reason? Taxes. The Filipino boxer-actor-singer-politician reportedly refused to submit to recent U.S. federal income tax increases, which would drain millions of dollars from his take-home pay.1 He may have also been aware that foreign athletes and entertainers performing in the United States receive a great deal of attention from a most unwanted source: the Internal Revenue Service (IRS). Unfortunately for these individuals, the IRS has created an Issue Management Team that is "focused on improving U.S. income reporting and tax payment compliance by foreign athletes and entertainers who work in the United States."
Robert S. Fink and Wilda Lin examine the IRS Issue Management Team’s International Individual Compliance (IIC) Group. The purpose of the IIC is to scrutinize foreign athletes and entertainers to ensure that they have fully complied with their U.S. tax obligations.
The IRS has created an “Issue Management Team” within its International Individual Compliance Group (IIC). The purpose of this team is to scrutinize foreign athletes and entertainers to ensure that they have fully complied with their U.S. tax obligations.1 Spanish golfer Sergio Garcia’s star power and his millions of dollars of income made him a perfect target for the IIC. Mr. Garcia and the IRS recently faced off in the U.S. Tax Court. Mr. Garcia proved to have the better swing.