Ines Zemelman

US contractors abroad still owe US tax on worldwide income. The core math: report net business income on Form 1040, calculate self-employment tax on Schedule SE. The 15.3% rate applies to 92.35% of net earnings, with the Social Security portion capped at the annual wage base. FEIE and the Foreign Tax Credit are separate ways to reduce f...

The taxation of foreign dividends can be complex for US taxpayers, especially expats who invest globally. Tax obligations and withholding requirements vary, but proper reporting helps you avoid double taxation and stay c...

Passive foreign investment companies (PFICs) are foreign corporations subject to complex US tax rules that can lead to high tax rates, interest charges, and strict reporting obligations. US investors holding shares in fo...

A US tax treaty is a bilateral agreement between the US and a foreign country that reduces or eliminates double taxation on cross-border income. The IRS currently lists 68 treaty entries on Table 3, which was last updated...

It is a payer or issuer reporting flag, not a box you complete yourself. In current IRS instructions, the 1099 FATCA filing requirement box is tied to chapter 4 account-reporting rules, which are part of FATCA. ...

Form 8858 is the IRS return that links your foreign entity's books to your US taxes – and missing it can trigger a $10,000 penalty per entity. Following Farhy, section 6038(b) penalties are treated as assessable in the D.C. Circuit – meaning the IRS can collect them administratively – but the issue remains actively litigated...