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2011 Individual Income Taxes
Tips and “Taps”
Brian T. Whitlock, CPA, JD, LLM
Tax Partner




                                  1
Topics

     Overview
          A few New things
          Lots of expiring provisions in 2012
     Federal Changes for 2011
          Expanded 1099-B reporting
          Loss of some Tax Credits
          Payroll Tax Cut
          Extended Unemployment benefits
          Foreign Asset Reporting
     State of Illinois Tax Increase – from 3% to 5%




                                                       2
Some IRS Form 1099 Rules - Changes

    Good news - IRS Form 1099-MISC only needs to be issued
     for Services rendered by non-corporations if total is more than
     $600
         If you operate a business get IRS Form W-9 for each Vendor
         Vendor will check box on Type of Entity
    Good news - Landlords and Lessors of Real Property are not
     in ―Trade or Business‖ therefore they do not need to issue IRS
     Form 1099-MISC to service providers
    Bad news - Penalty Increases for failure to file 1099s
         $100 for each omitted 1099
         $250 for each – if intentionally disregarded Rules
         Maximum penalty $1.5 million per taxpayer


                                                                       3
IRS Form W-9




               4
New IRS Form 1099 Rules

     IRS Form 1099-B
         Stock Brokers must report Basis on Stock Acquired after
         January 1, 2011 (at time of sale)
           — Deadline for brokers postponed until Feb 29th
           — Look for delays in receiving 1099’s




                                                                   5
IRS Form 1099-B




                  6
New IRS Form 1099 Rules

     IRS Form 1099-B
         Stock Brokers must report Basis on Stock Acquired after
         January 1, 2011 (at time of sale)
           — Deadline for brokers postponed until Feb 29th
           — Look for delays in receiving 1099’s
         New IRS Form 8949 must be filed in addition to Schedule D
           — One form will report 1099-B Stock sales with reported basis
           — A Second form will report 1099-B sales w/o reported basis
           — A Third will report sales not reported on 1099-B
           — Separate Schedule of Short-Term and Long-Term (6 possible)
         IRS intends to track and match taxpayer reports to 1099’s
         Watch for IRS notices for not reporting on separate 8949



                                                                           7
IRS Form 8949




                8
IRS Form 8949




                9
New IRS Form 1099 Rules
     IRS Form 1099-K (NEW)
          Filed by ―Payment Settlement Agents‖ (PSE)
             — Debit Cards, Credit Cards, E-Bay and Pay Pal
          If you are in a trade or business (file either Schedule C, E, or F)
             — Show 1099-K revenue on separate line [IRS will track and match]
          If you are selling personal collectibles (file Sch D and Form
          8949) Top Capital Gains Tax Rate = 28%
     Trade or Business (?) [Sole Proprietor = Schedule C]
          Regular activity vs. Infrequent sales (1099 has monthly data)
          Inventory
          Resale Number and Sales Tax Collection
          Self employment Tax on Net earnings of Schedule C
     Rental [Schedule E] or Farming [Schedule F]

                                                                            10
IRS Form 1099-K




                  11
Form 1040 - Schedule C




                         12
Form 1040 - Schedule E




                         13
Small Business Items

 100% Depreciation Expense for 2011
      Bonus depreciation for qualifying property
      No AMT Adjustment
 Section 179 for $500,000 of new property placed in service
 Section 125 ―Cafeteria Plan‖ available to small business
      Pre-tax treatment of health care premiums
 Standard Mileage Deduction
      51 cents per business mile January 1, 2011 thru June 30, 2011
      55.5 cents per business mile July 1 through December 31, 2011
      19 cents per moving mile January 1, 2011 thru June 30, 2011
      23.5 cents per business mile July 1 through December 31, 2011
      14 cents per charitable mile
 100% gain exclusion for sale of small C Corporation (Section 1202)
                                                                      14
Small Business Items

 35% Small Business Health Insurance Credit
     Under 25 employees only appeal to those with wages of $25k-50k
 Employee Retention Credit (IRS Form 5884-B)
     Tax Credit of lesser of $1,000 (or $6.2% of first $16,129 of wages)
     Hired after 2/3/10 and before 12/31/10 if retained for 52 weeks
 Tax Credit for hiring unemployed Veterans
     Hired after 11/21/2011 and before 2013
     Up to $5,620 if out of work over 6 mo. ($2,400 if out over 4 weeks)
     Up to $9,600 for disabled vet over 6 mo ($4,800 if less than 6 mo)




                                                                           15
Making Work Pay Credit (Schedule M)

   $400 Refundable credit for 2009 & 2010

       GONE in 2011
       Replaced with Payroll Tax reduction
       If you made more the $20,000 you saved more than $400




                                                               16
2011 - 2% Payroll Tax Cut
   Typical Employee Payroll deductions include:
       Federal Income Tax
       State Income Tax (3%)
       FICA (Social Security) (6.2% employee + 6.2% match)
          — On first $106,800 of wages
       Medicare (1.45% employee + 1.45% employer match)
   Employee portion of FICA from 6.2% to 4.2% effective January 1,
    2011 through February 29, 2012
       For 2011 the maximum benefit was $2,172 (per worker)
       For 2012 (2/12 of $110,100 or first $18,350 of wages or self
       employment income exempt)
   Example: Josh earns $50,000 in wages during 2011. He will
    have 2% less FICA withheld from his check meaning his take
    home pay will increase by $1,000.
                                                                      17
2011 and 2012 – 2% Illinois Tax Increase

      Ones are Wild 1/1/11 + 1 (January 11, 2011 plus 1 AM)
           Illinois legislature increase individual income tax from 3% to 5%
           Increases withholding tax 2%


      Example: Josh earns $50,000 in wages during 2011, but he
       lives and works in Illinois. He will have 2% less FICA withheld
       from his check, but he will have 2% more withheld for the
       State of Illinois meaning his take home pay will be
       unchanged.




                                                                         18
IRS Form W-2

  Employers to report Health Care Premiums Paid
      Optional in 2012 for 2011 Forms
      Mandatory in 2013 for 2012 Forms
      DD in Box 12a followed by Amount




                                                   19
IRS Form W-2 – Health Care Premiums (optional ‘11)




                                                     20
Individual Tax Rates Extended through 2012
    Marginal Individual Income Tax Rates (MFJ) (indexed for inflation)
      — up to $16,750 …………… 10%
      — $16,750 to 68,000……….15%
      — $68,000 to 137,300… …..25%
      — $137,300 to 209,250……28%
      — $209,250 to 373,650……33%
      — Over $373,650…………..35%
    Kiddie Tax – Parent’s rate over $1,900 of Income
    Marriage Penalty Reduced (difference in brackets married v single)
      — Single brackets are exactly ½ of MFJ Rates
    Reduced Rate on Dividends and Capital Gains
      — 15% bracket …………………………………..0%
      — Dividend and LTCG above 15% bracket ….15%
      — Real Estate Recapture of Depreciation……25%
      — Collectibles…………………………………...28%

                                                                         21
Personal Exemptions and Standard Deductions
   Personal Exemption - $3,700 per dependent
   Standard Deduction if you do not itemize
           — $5,800 …………… Single and Married Filing Separate
           — $950……………… .For Dependents on other’s return
           — $11,600……………Married Filing Joint (MFJ)
           — $8,500……………..Head of Household (HH)
           — $1,450……………..Add’l deduction if over 65 or blind (Single and HH)
           — $1,150……………..Add’l deduction if over 65 or blind (Single and HH)
   Marriage Penalty Reduced (difference in brackets Married v. single)
        Single brackets are exactly ½ of MFJ Rates
        New Civil Union Law
           — Federal Defense of Marriage Act (only accepts for heterosexuals)
           — Same Sex Couples (Can file Joint Illinois but can not file MFJ Federal)
               – Illinois - need to attach a facsimile Joint Federal return


                                                                                       22
Extended and Enhanced Tax Breaks for 2011
  Alternative Minimum Tax (IRS Form 6251)
  The AMT Exemption amount was raised from
      2010 - $47,450/$72,450 (MFJ)
                and to
      2011 - $48,450/$74,450 (MFJ)
  Calculate Regular Tax then Calculate AMT and pay Higher one
  AMT Marginal Tax Rates
      Dividends and Capital Gains Rate = 15%
      Rate = 26% if AMT income is under $175,000
      Rate = 28% of AMT income is over $175,000




                                                                 23
Individual Tax Relief Extended through 2012
    Exemptions and Deductions
        Personal Exemption Phase-out – OUT
        Sales Tax Deduction (available if higher than State Income Tax)
        3% Limitation of Itemized Deductions (Pease Amendment) – OUT
        Marriage Relief
          — standard deduction is double - single and married filing separate
        Real Estate Tax Increase in Standard Deduction - gone
          — For people who don’t itemize, there is no increase in the 2010
            standard deduction for real estate taxes and net disaster losses
        Educator Expense Deduction extended
          — Eligible Educators can deduct up to $250/$500 (MFJ) of any
            unreimbursed expenses for books, supplies, equipment, materials
            used in the classroom
          — Eligible educators are K-12 teachers, counselors, principals and aides
            who work at least 900hrs per school year
                                                                                24
Enhanced Credits for 2010 extended through 2012
     Adoption Credit    (fully refundable beginning in 2010)
          $13,360 largest refundable tax credit
             — Any child under age 18
             — Any disabled person physically or mentally unable to take care of
               himself
          Phase out if MAGI starts at $185,210 gone at $225, 210
          Qualified expenses include
             — Adoption fees, attorney fees, court costs, travel (including meals)
          Paper return is required – not allowed to file electronically
             — File IRS Form 8839 with Form 1040
             — Attach Required Documentation
                  – Adoption Decree from Court or Subsidy Agreement
             — Refund takes three weeks longer
          IRS auditing a high percentage of these returns

                                                                                 25
FORM 8839 – Qualified Adoption Expenses




                                          26
Enhanced Credits for 2010 extended through 2012
     Child Tax Credit
          Credit for people who have a qualifying child
          Maximum amount you can claim for credit is $1,000 per child
          Phase-out begins at $75,000/$110,000 (MFJ)
          Qualifications for Qualifying Child include:
            — Under age 17 at end of tax year
            — Is your child, stepchild, foster child, sibling, step sibling, or a
              descendant of any of them
            — Lived with you for more than half of tax year
            — Didn’t provide half of their own support for tax year
          Minimum earned income amount used to calculate credit was
          reduced from $12,550 to $3,000 which will allow more taxpayers
          to use the credit and increase the amount received.



                                                                                    27
Energy Efficiency and Renewable Energy Incentives

      Residential Energy Property Credit

           Extends tax credit for energy efficient improvements to existing
           homes through 2011

           Applies to improvements such as adding insulation, energy
           efficient exterior windows and energy-efficient furnaces, water
           heaters, and air conditioning systems

           30% of the cost of all qualifying improvements in 2010 (lowers
           to 10% in 2011).

           Maximum credit limit $1,500 for 2010 (lowers to $500 in 2011).

                                                                         28
Enhanced Credits for 2010 extended through 2012

      Earned Income Tax Credit
          45% Refundable credit for low to moderate income working
          individuals and families with three or more kids
          Amount of credit increase:
             — One Qualifying Child: $3,403
             — Two Qualifying Children: $5,028
             — Three Qualifying Children: $5,657
             — No Qualifying Children: $457
          Maximum earned income amounts:
             — One Qualifying Child: $35,463/$40,463 (MFJ)
             — Two Qualifying Children: $40,295/$45,295 (MFJ)
             — Three Qualifying Children: $43,279/$48,279 (MFJ)
             — No Qualifying Children: $13,440/$18,440 (MFJ)


                                                                     29
Going, Going, Gone


   First Time Homebuyer Credit (Form 5405)
        GONE – 2011
        Possible Recapture if house sold too soon


   Hybrid Auto Credit
        GONE for card purchased after 2010




                                                    30
Education Benefits
  Credits
       American Opportunity Tax Credit
       IL Education Expense Credit
  Exclusions
       Educational Assistance Exclusion
       Nat’l Health Service Corp and Armed Forces Scholarship Exclusion
  Deductions
       Tuition and Fees Deduction
       Student Loan Interest Deduction
       Business Deduction for Work-Related Education
  Savings Plans
       529 Plans – Illinois Bright Start
       530 Plans - Coverdell Education Savings Account

                                                                          31
FBAR – Foreign Bank Account Reporting




  IRS Form 1040 Schedule B Questions
      Signature Authority over a financial account in Foreign country
      Over $10,000
      Required to file Form TD F 90-22.1 with Treasury before June 30th
      Distributions from Foreign Trust – File Form 3520 with IRS


                                                                          32
FATCA – Foreign Asset Tax Compliance Act

   IRS Form 8938 – NEW with IRS
       Foreign Financial Assets of more than $50,000
         — Bank, securities, partnerships, royalties, [could include real estate].
         — Broader definition of assets than FBAR
       Attach to IRS Form 1040 due April 15th (17th due to Emancipation
       Day in District of Columbia in 2012)
       To avoid duplicated reporting, not required to disclose assets
       otherwise reported on Forms 5471, 8621, 3520, 8865 or 8891;
       however required to file and identify the other form .




                                                                                     33
FATCA – Foreign Asset Tax Compliance Act




                                           34
Questions?
     Brian T. Whitlock, CPA, JD, LLM
     Blackman Kallick, LLP
     10 S Riverside Plaza
     Chicago, IL 60606
     Phone (312) 207-1040
     E-mail: bwhitlock@blackmankallick.com




                                             35

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2012 Income Tax Update

  • 1. 2011 Individual Income Taxes Tips and “Taps” Brian T. Whitlock, CPA, JD, LLM Tax Partner 1
  • 2. Topics  Overview A few New things Lots of expiring provisions in 2012  Federal Changes for 2011 Expanded 1099-B reporting Loss of some Tax Credits Payroll Tax Cut Extended Unemployment benefits Foreign Asset Reporting  State of Illinois Tax Increase – from 3% to 5% 2
  • 3. Some IRS Form 1099 Rules - Changes  Good news - IRS Form 1099-MISC only needs to be issued for Services rendered by non-corporations if total is more than $600 If you operate a business get IRS Form W-9 for each Vendor Vendor will check box on Type of Entity  Good news - Landlords and Lessors of Real Property are not in ―Trade or Business‖ therefore they do not need to issue IRS Form 1099-MISC to service providers  Bad news - Penalty Increases for failure to file 1099s $100 for each omitted 1099 $250 for each – if intentionally disregarded Rules Maximum penalty $1.5 million per taxpayer 3
  • 5. New IRS Form 1099 Rules  IRS Form 1099-B Stock Brokers must report Basis on Stock Acquired after January 1, 2011 (at time of sale) — Deadline for brokers postponed until Feb 29th — Look for delays in receiving 1099’s 5
  • 7. New IRS Form 1099 Rules  IRS Form 1099-B Stock Brokers must report Basis on Stock Acquired after January 1, 2011 (at time of sale) — Deadline for brokers postponed until Feb 29th — Look for delays in receiving 1099’s New IRS Form 8949 must be filed in addition to Schedule D — One form will report 1099-B Stock sales with reported basis — A Second form will report 1099-B sales w/o reported basis — A Third will report sales not reported on 1099-B — Separate Schedule of Short-Term and Long-Term (6 possible) IRS intends to track and match taxpayer reports to 1099’s Watch for IRS notices for not reporting on separate 8949 7
  • 10. New IRS Form 1099 Rules  IRS Form 1099-K (NEW) Filed by ―Payment Settlement Agents‖ (PSE) — Debit Cards, Credit Cards, E-Bay and Pay Pal If you are in a trade or business (file either Schedule C, E, or F) — Show 1099-K revenue on separate line [IRS will track and match] If you are selling personal collectibles (file Sch D and Form 8949) Top Capital Gains Tax Rate = 28%  Trade or Business (?) [Sole Proprietor = Schedule C] Regular activity vs. Infrequent sales (1099 has monthly data) Inventory Resale Number and Sales Tax Collection Self employment Tax on Net earnings of Schedule C  Rental [Schedule E] or Farming [Schedule F] 10
  • 12. Form 1040 - Schedule C 12
  • 13. Form 1040 - Schedule E 13
  • 14. Small Business Items  100% Depreciation Expense for 2011 Bonus depreciation for qualifying property No AMT Adjustment  Section 179 for $500,000 of new property placed in service  Section 125 ―Cafeteria Plan‖ available to small business Pre-tax treatment of health care premiums  Standard Mileage Deduction 51 cents per business mile January 1, 2011 thru June 30, 2011 55.5 cents per business mile July 1 through December 31, 2011 19 cents per moving mile January 1, 2011 thru June 30, 2011 23.5 cents per business mile July 1 through December 31, 2011 14 cents per charitable mile  100% gain exclusion for sale of small C Corporation (Section 1202) 14
  • 15. Small Business Items  35% Small Business Health Insurance Credit Under 25 employees only appeal to those with wages of $25k-50k  Employee Retention Credit (IRS Form 5884-B) Tax Credit of lesser of $1,000 (or $6.2% of first $16,129 of wages) Hired after 2/3/10 and before 12/31/10 if retained for 52 weeks  Tax Credit for hiring unemployed Veterans Hired after 11/21/2011 and before 2013 Up to $5,620 if out of work over 6 mo. ($2,400 if out over 4 weeks) Up to $9,600 for disabled vet over 6 mo ($4,800 if less than 6 mo) 15
  • 16. Making Work Pay Credit (Schedule M)  $400 Refundable credit for 2009 & 2010 GONE in 2011 Replaced with Payroll Tax reduction If you made more the $20,000 you saved more than $400 16
  • 17. 2011 - 2% Payroll Tax Cut  Typical Employee Payroll deductions include: Federal Income Tax State Income Tax (3%) FICA (Social Security) (6.2% employee + 6.2% match) — On first $106,800 of wages Medicare (1.45% employee + 1.45% employer match)  Employee portion of FICA from 6.2% to 4.2% effective January 1, 2011 through February 29, 2012 For 2011 the maximum benefit was $2,172 (per worker) For 2012 (2/12 of $110,100 or first $18,350 of wages or self employment income exempt)  Example: Josh earns $50,000 in wages during 2011. He will have 2% less FICA withheld from his check meaning his take home pay will increase by $1,000. 17
  • 18. 2011 and 2012 – 2% Illinois Tax Increase  Ones are Wild 1/1/11 + 1 (January 11, 2011 plus 1 AM) Illinois legislature increase individual income tax from 3% to 5% Increases withholding tax 2%  Example: Josh earns $50,000 in wages during 2011, but he lives and works in Illinois. He will have 2% less FICA withheld from his check, but he will have 2% more withheld for the State of Illinois meaning his take home pay will be unchanged. 18
  • 19. IRS Form W-2  Employers to report Health Care Premiums Paid Optional in 2012 for 2011 Forms Mandatory in 2013 for 2012 Forms DD in Box 12a followed by Amount 19
  • 20. IRS Form W-2 – Health Care Premiums (optional ‘11) 20
  • 21. Individual Tax Rates Extended through 2012 Marginal Individual Income Tax Rates (MFJ) (indexed for inflation) — up to $16,750 …………… 10% — $16,750 to 68,000……….15% — $68,000 to 137,300… …..25% — $137,300 to 209,250……28% — $209,250 to 373,650……33% — Over $373,650…………..35% Kiddie Tax – Parent’s rate over $1,900 of Income Marriage Penalty Reduced (difference in brackets married v single) — Single brackets are exactly ½ of MFJ Rates Reduced Rate on Dividends and Capital Gains — 15% bracket …………………………………..0% — Dividend and LTCG above 15% bracket ….15% — Real Estate Recapture of Depreciation……25% — Collectibles…………………………………...28% 21
  • 22. Personal Exemptions and Standard Deductions  Personal Exemption - $3,700 per dependent  Standard Deduction if you do not itemize — $5,800 …………… Single and Married Filing Separate — $950……………… .For Dependents on other’s return — $11,600……………Married Filing Joint (MFJ) — $8,500……………..Head of Household (HH) — $1,450……………..Add’l deduction if over 65 or blind (Single and HH) — $1,150……………..Add’l deduction if over 65 or blind (Single and HH)  Marriage Penalty Reduced (difference in brackets Married v. single) Single brackets are exactly ½ of MFJ Rates New Civil Union Law — Federal Defense of Marriage Act (only accepts for heterosexuals) — Same Sex Couples (Can file Joint Illinois but can not file MFJ Federal) – Illinois - need to attach a facsimile Joint Federal return 22
  • 23. Extended and Enhanced Tax Breaks for 2011  Alternative Minimum Tax (IRS Form 6251)  The AMT Exemption amount was raised from 2010 - $47,450/$72,450 (MFJ) and to 2011 - $48,450/$74,450 (MFJ)  Calculate Regular Tax then Calculate AMT and pay Higher one  AMT Marginal Tax Rates Dividends and Capital Gains Rate = 15% Rate = 26% if AMT income is under $175,000 Rate = 28% of AMT income is over $175,000 23
  • 24. Individual Tax Relief Extended through 2012  Exemptions and Deductions Personal Exemption Phase-out – OUT Sales Tax Deduction (available if higher than State Income Tax) 3% Limitation of Itemized Deductions (Pease Amendment) – OUT Marriage Relief — standard deduction is double - single and married filing separate Real Estate Tax Increase in Standard Deduction - gone — For people who don’t itemize, there is no increase in the 2010 standard deduction for real estate taxes and net disaster losses Educator Expense Deduction extended — Eligible Educators can deduct up to $250/$500 (MFJ) of any unreimbursed expenses for books, supplies, equipment, materials used in the classroom — Eligible educators are K-12 teachers, counselors, principals and aides who work at least 900hrs per school year 24
  • 25. Enhanced Credits for 2010 extended through 2012  Adoption Credit (fully refundable beginning in 2010) $13,360 largest refundable tax credit — Any child under age 18 — Any disabled person physically or mentally unable to take care of himself Phase out if MAGI starts at $185,210 gone at $225, 210 Qualified expenses include — Adoption fees, attorney fees, court costs, travel (including meals) Paper return is required – not allowed to file electronically — File IRS Form 8839 with Form 1040 — Attach Required Documentation – Adoption Decree from Court or Subsidy Agreement — Refund takes three weeks longer IRS auditing a high percentage of these returns 25
  • 26. FORM 8839 – Qualified Adoption Expenses 26
  • 27. Enhanced Credits for 2010 extended through 2012  Child Tax Credit Credit for people who have a qualifying child Maximum amount you can claim for credit is $1,000 per child Phase-out begins at $75,000/$110,000 (MFJ) Qualifications for Qualifying Child include: — Under age 17 at end of tax year — Is your child, stepchild, foster child, sibling, step sibling, or a descendant of any of them — Lived with you for more than half of tax year — Didn’t provide half of their own support for tax year Minimum earned income amount used to calculate credit was reduced from $12,550 to $3,000 which will allow more taxpayers to use the credit and increase the amount received. 27
  • 28. Energy Efficiency and Renewable Energy Incentives  Residential Energy Property Credit Extends tax credit for energy efficient improvements to existing homes through 2011 Applies to improvements such as adding insulation, energy efficient exterior windows and energy-efficient furnaces, water heaters, and air conditioning systems 30% of the cost of all qualifying improvements in 2010 (lowers to 10% in 2011). Maximum credit limit $1,500 for 2010 (lowers to $500 in 2011). 28
  • 29. Enhanced Credits for 2010 extended through 2012  Earned Income Tax Credit 45% Refundable credit for low to moderate income working individuals and families with three or more kids Amount of credit increase: — One Qualifying Child: $3,403 — Two Qualifying Children: $5,028 — Three Qualifying Children: $5,657 — No Qualifying Children: $457 Maximum earned income amounts: — One Qualifying Child: $35,463/$40,463 (MFJ) — Two Qualifying Children: $40,295/$45,295 (MFJ) — Three Qualifying Children: $43,279/$48,279 (MFJ) — No Qualifying Children: $13,440/$18,440 (MFJ) 29
  • 30. Going, Going, Gone  First Time Homebuyer Credit (Form 5405) GONE – 2011 Possible Recapture if house sold too soon  Hybrid Auto Credit GONE for card purchased after 2010 30
  • 31. Education Benefits  Credits American Opportunity Tax Credit IL Education Expense Credit  Exclusions Educational Assistance Exclusion Nat’l Health Service Corp and Armed Forces Scholarship Exclusion  Deductions Tuition and Fees Deduction Student Loan Interest Deduction Business Deduction for Work-Related Education  Savings Plans 529 Plans – Illinois Bright Start 530 Plans - Coverdell Education Savings Account 31
  • 32. FBAR – Foreign Bank Account Reporting  IRS Form 1040 Schedule B Questions Signature Authority over a financial account in Foreign country Over $10,000 Required to file Form TD F 90-22.1 with Treasury before June 30th Distributions from Foreign Trust – File Form 3520 with IRS 32
  • 33. FATCA – Foreign Asset Tax Compliance Act  IRS Form 8938 – NEW with IRS Foreign Financial Assets of more than $50,000 — Bank, securities, partnerships, royalties, [could include real estate]. — Broader definition of assets than FBAR Attach to IRS Form 1040 due April 15th (17th due to Emancipation Day in District of Columbia in 2012) To avoid duplicated reporting, not required to disclose assets otherwise reported on Forms 5471, 8621, 3520, 8865 or 8891; however required to file and identify the other form . 33
  • 34. FATCA – Foreign Asset Tax Compliance Act 34
  • 35. Questions? Brian T. Whitlock, CPA, JD, LLM Blackman Kallick, LLP 10 S Riverside Plaza Chicago, IL 60606 Phone (312) 207-1040 E-mail: bwhitlock@blackmankallick.com 35