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There are many different
systems worldwide. Individuals may have difficulties interpreting what tax system is a work. Uncertainties of the common tax systems or what tax system should be used if you are a dual citizen often lead to questions like the ones answered below by the thousands of Experts.
What are the most commonly used tax systems worldwide?
Virtually every country in the world has some form of taxes. The primary tax system worldwide are personal
, social security and
, domestic goods and services taxes, trade taxes,
, import and
, and nontax revenues from seigniorage and public enterprises.
Items that will change depending on what country would be things like the percentage of tax, the mix of the tax, and what they deem as taxable. Addition they may call a certain tax by a different name.
might be called a VAT (
value added tax
) in some countries.
If I work on an unincorporated territory. Do I have to pay into the federal tax system?
U.S. possessions are islands that the U.S. owns but have not made into a State of the United States. U.S. possessions are divided into two groups. One group has their own governments and tax systems. This group includes the possessions; Puerto Rico, U.S. Virgin Islands, Guam, American Samoa, and The Commonwealth of the Northern Mariana Islands. The second group does not have their own government or their own tax systems. This group consists of; Midway Island, Wake Island, Palmyra Island, Howland Island, Johnston Island, Baker Island, Kingman Reef, Jarvis Island, and some other U.S. owned islands.
People who are in the second group that do not have their own tax system are subject to the income taxes and
of the U.S. federal income taxes.
Does the Trust have to pay Federal and State Estate Income Taxes at the time of death on the value of transferred assets contained within the Trust?
It is possible that two different tax systems would be in the mix. If it is an irrevocable trust and has its own tax Identification number then it pays its own income taxes per the tax rates created for trusts. If it is not an irrevocable trust then the income, gains, etc. go through to the grantor.
are transfer taxes that are due from the estate.
How does dual citizenship of the United States and Brazil affect taxation of earned income in the United States?
Dual citizenship does not affect
of earned income in the United States. Any income earned in the U.S. is taxable in the U.S. even if you are a non-resident alien. If you are trying to figure out which country of your dual citizenship is considered your primary regarding taxations of all your income then you would typically refer to the mutual bi-lateral tax treaty. Currently the U.S. and Brazil are still in negotiations of this treaty.
One of the items considered when a country deems themselves as primary would be where the individual has their primary home. This would surround determinations like vital interests and where the habitual home is. Often times the amount of years in the primary home comes in to play as well.
If I exercise stock options and end up triggering Alternative Minimum Tax (AMT) for 2011, how does that impact deductions?
What you are referring to are two separate tax systems. The regular tax system and the AMT tax system. They each have their own
of what is included into the
as well as what can be deducted.
Obtaining correct information and insight about tax systems can help when faced with circumstances involving one or more tax systems. Experts can helps answer what kind of tax systems are used worldwide or if wages working in a possession of the U.S. is taxed under the
system. Get the answers fast and affordably by asking an Expert.
Recent Tax System Questions
I am considering giving a large amount of money to a UK
I am considering giving a large amount of money to a UK resident individual. I am a US resident and not subject to UK taxation. From my research, it appears that a large gift from a UK resident individual to a UK resident individual could be subject to
UK Inheritance Tax. My assumption is that, due to the fact that I am a US resident individual, the gift would not be subject to UK Inheritance Tax. Is this true?
Currently I work with a US company in DC. reasons I want to start telecommuting
Currently I work with a US company in DC. For family reasons I want to start telecommuting from Puerto Rico, where the company does not have a presence (nor intends to have one). I know I should continue paying Federal Taxes because my income is generated in DC, but I am unsure about my local tax obligations as a bona fide resident of Puerto Rico. Do I continue paying state taxes in DC, in PR, both or neither?
We are going through an IRS tax audit . We filed on
We are going through an IRS tax audit for 2013. We filed on time through our CPA, and two months later we were informed of an audit by the IRS. We informed the CPA, who stated that there must be a mistake on the W2, but wasn't sure exactly what the problem was. Even though I informed my employer that there was some kind of mistake on my W2 (and the very reason the IRS has withheld our Federal refund), they kept on denying any mistakes on their part. It took almost 8 months for my employer to finally admit to their actual mistake, after issuing almost 3 corrected W2. The numbers on W2 my employer submitted to the IRS did not match the W2 they issued to me.
The IRS owes us over $11,000.00 Federal tax refund. I had a call from an IRS agent asking me for information. I declined to answer the questions over the phone and asked them to write to me. But instead, the IRS agent sent a letter and denied everything that we were claiming for! So I hired a lawyer to conduct an IRS investigation, but all they came up with is that I was denied everything, which I already knew! They informed us that we needed to move forward with an Audit Defense, so we continued with them for this purpose by signing a phase II agreement which simply stated that we were retaining the services of the attorney for a fee.
The IRS issued a Notice of Deficiency and our lawyer failed to respond to the notice within the 90 day limit, and when I rang the IRS this week, they informed me that it had expired!
Via signed email we fired the lawyer, because she failed to respond to this notice and I felt that this was negligence, and informed them, that we were canceling our payment authorization. The lawyer showed no dedication to my case and certainly didn’t act upon this notice in a timely manner.
My option going forward according to the IRS, is to begin a reconsideration process which I may use our CPA for, but what if the IRS decides that they don't want to give back my money? That money was supposed to go to our child’s college fund, and we want it back!
The initial Phase I contract we signed for the IRS Investigation with this law firm, had an arbitration process that we are supposed to go through for any disputes, does that mean we cannot sue this law firm? As for the Audit Defense Phase II, that we signed, it didn’t state the arbitration process, as it did in the Phase I contract.
1. Does the arbitration process still stand, even though it was in the first contract we signed with this law firm?
2. What are our options with this situation, how do we rectify it, get our money back?
3. How and who do we complain to / file a grievance to, and is this even permitted with a binding arbitration clause?
4. Who do we sue if we cannot recover our money from the IRS, my employer for starting this whole fiasco with their mistakes on my W2 or the lawyer that failed to do their job?
5. What are the best form of actions for us to proceed with?
Please help, we really need this money for our child's college fund. Thank you.
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