Showing posts from September, 2005

Reporting Foreign Bank Accounts and Insurance Transactions

Taxpayers must use Form 8300 (see TD F 90-22.1) to report transactions over $10,000 in cash and to report a foreign bank account.

TD F 90-22.1 requires insurance companies to report if a taxpayer has cash surrender value in a insurance policy over $10,000 if the company is foreign company.

The policy could have been purchased in the USA with a foreign company or with a USA company that later got brought out by a foreign company or you may actually live out of the USA and brought your policy from a foreign insurance company.

This is part of the continuing attempt to by the IRS to tax all worldwide income of taxpayers.

IRS Raises mileage rate to 48.5 cents

In response to the sharp jump in gas prices, the Internal Revenue Service yesterday said it raised the standard mileage reimbursement rate by 8 cents to 48.5 cents a mile, the single largest increase ever.

The new rate will be retroactive, applying to business travel from Sept. 1 through the end of this year.

Workers who use their vehicles for business can deduct their actual expenses or the standard mileage rate on tax returns. The federal government and many private employers use the IRS rate when reimbursing workers who use their car on the job.