" What Deadlines For Foreign Income & Assets ? "

US Citizens must report World Wide Income On Federal Tax Return.  If you lived Outside the US  on the due date of Regular Return, your 2016 Tax Return Deadline is June 15, 2016.  Deadline to report interest in Foreign Financial Institutions is End of June 2016.

 A) FATCA Requirements - Referring to the Foreign Account Tax Compliance Act, US Citizen and Resident Aliens must report World Wide Income.  That is disclose Income from Foreign Accounts on Schedule B.

B) You may have to file form 8938 showing Statement of Special Foreign Financial Assets with your Tax Return.

C) FBAR Requirements - It refers to Form 114, Report of Foreign Bank & Financial Accounts. This is filed with Financial Crimes Enforcement Network (FinCEN) a bureau of Treasury Department.if the Aggregate value of the Account exceeds $10,000.  This includes any Signature authority  on the accounts.This form 114 is filed electronically separately from Tax Return. Deadline for filing Form 114 is June 30.

Failure to File these forms can result in $10,000 or more in  Penalties including Jail time.

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How Does The Net Investment Income Tax Affect Taxpayers ?

The Lesser of the Net Investment Income Or the Amount of your Gross Adjusted Income Exceeds the thresholds set by your Filing Status, that is used to determine the Excess Income. 3.8% of the Excess Income is the Net Investment Tax.

A)          Filing Status                                      Threshold Amount
        1.     Single of HOH                                          $200,000
        2.     MFJ                                                           $250,000
        3.     Qualifying Widower with Child             $250,000
        4.     MFS                                                           $125,000

B)   Net Investment Income Includes - Interest, Dividends, Capital Gains,  Rental & Royalty Income, Non-Qualified Annuities

C)   Excludes Income From- Wages, Self Employment, Unemployed Compensation,  Social Security Benefits, and Alimony.

D)   Fill out Form 8960 to see if the Net Investment Income Tax is applicable.

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What Is The Best Defence Against IRS Scams & ID Thefts ?

List some Simple Procedures Tax Payers can Implement to Prevent IRS Scams & ID Theft ?

1. Don't Reply Emails that request any Financial Data or Offer a Reward - IRS Never Sends emails.
2. Destroy Credit / Debit Card Offer letters that are Unused.
3. Destroy any Insurance or Financial Document  with *****4 Digit number on it.
4. Don't be Intimidated by Phone callers who Threaten with IRS/Legal/ Police Action.
5.  Note IRS Only Uses US Postal Service to communicate with Tax Payers.

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" What Are The Tax Effects Of Divorce or Separation ? "

Some of the major effects of a Divorce or Separation are discussed below:
1. Child Support:  Not Deductible to the Payer and Non-Taxable to the Recipient.
2. Alimony Paid:  If the Alimony payments are made under a Divorce or Separation Decree or Separation Agreement, they can be deducted as Alimony for Federal Tax Purposes.
3. Alimony Received:  Spousal Alimony is taxable in the Year received. So  Plan for additional Taxes or make additional Estimated Tax Payments to avoid the Tax Surprise.
4.  Spousal IRA: If there is a Final decree of Divorce or Separate Maintenance by the Year end, you can't deduct the Contribution made to the Former Spousal's Traditional IRA. However, you can deduct Contribution to Your own IRA.
5. Name Changes - If you change your name after your Divorce, notify Social Security Administration about the change. Fill out Form SS-5. Your name on the Tax Return must match the SSA records.  A name mismatch can delay tax refund.

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" How Much Gambling Losses Can You Deduct in Taxes? "

Tax payer Reports Gambling Winnings & Losses in the Tax Year they happened. Winnings From Lottery,  Horse Racing, Sports Betting, Horse Racing, and Casinos are Taxable events including Cash and Non-Cash prizes. Fair Market Value Of Cars And Trips are Reported.
1. Gambling Establishment gives W2G Form for the winnings and sends a copy to IRS if the Tax is withheld. Taxpayer gets W2G Form.  The Winnings are included as Ordinary Income for Tax Purposes.
2.  However, if there are Gambling Losses, they are Limited to the extent of Gambling Income. So, the Gambling losses in Excess of Gambling Income can't be claimed by the Tax Payer.
3.  Keep Gambling Receipts i.e. all winnings & Losses
4. How to Deduct such losses ?  Schedule A Itemized Deductions on your Tax Return.

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" What Disaster Tax Relief IRS Provides ? "

With Hurricane Season on the Horizon, it's good to know what Relief can IRS Provide if you live in a Federally Declared Disaster area. See the Tips & Help listed below:
1.  Make Disaster Preparedness Plan before the Hurricane Season Start.
2.  Special Tax Laws Apply the Federally Declared Disaster e.g IRS might Extend Tax Return  Filing Dead line.
3. Faster Refunds for the Disaster Losses related to the prior year Tax Return.
4. Refer to the Disaster Declaration Page for Tax Relief.
5. Go to Around The Nation Section on www.irs.gov Web site, to find the Local Tax News.
6.  For more Relief, visit the Page for Disaster Relief Resources for Charities and Contributors.

For Q & A Contact :  Kash, (925) 963 4891 @ Yajnik & Mehta Associates  (YMA) 

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" Are You A Victim Of Recent IRS Hack Attack ? "

Are you One of the 100,000 IRS Data Theft Victims whose ID was stolen by the Global Gang of Foreign Hackers to Steal 50 Million Refund Dollars ?. Actually 200,000 Fraudulent Attempts were made using IRS "Get Transcript" On Line Program for the Prior Year's Tax Returns. What should you do following this event ?   If You are Affected this is What IRS Suggests:

1.  IRS Will now provide Copies Of Fraudulent Returns to Victims.
1.  IRS Will provide Free Credit Monitoring Services for the 200,000 affected Taxpayers.
2.  Affected Taxpayers will be Flagged For The Upcoming And Future Tax Returns.
3.  Victims Qualify for Six-Digit Identity Protection Pin to Verify Identity when Filing Returns.
4.  Taxpayers should Stay Vigilant about their Accounts.
5.  Affected Taxpayers should take Advantage of the Free Credit Monitoring Services.
6.  IRS will provide Redacted Fraudulent Return Copies to Hack Victims

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