Is donation to a tax exempt NPO deductable?
1) Not all NPOs fit the rule.
2) NPOs under tax code 510(c) and IRC 170(c) are qualified.
3) NOTE: A. Donation over $250 needs receipt.
B. Fair market value.
Does US citizen living abroad have time frame limitation?
1) Myth: Only report tax for last three years.
2) Tactics: Ask accountants to report unreported income in the past, in order to avoid IRS using indirect calculation method which usually ends up with a higher tax due.
How to deal with the IRS Criminal Investigation Department (CID)?
Criminal investigations involving tax evasion, tax fraud, money laundering.
Conviction rate is around 80%.
2) Cases Source: Comptroller suspicion of tax evasion and transferred. Sometimes, CID investigates with audit staff.
3) Survey: Background information has been searching for a considerable number of respondents from colleagues, friends, neighbors, and credit card companies prior noticing.
Suspicion of Money Laundering
A. Suspicion of illegal funds.
B. Transaction evades reporting requirements.
C. Transaction has no commercial or lawful purpose.
D. Identified by bank to assist crime.
2) People should avoid following behaviors：
A. Deposited a large number of $50 or $100 face value cash.
B. Deposited a huge amount of cash but not count beforehand.
C. Often exchange large face value cash into small face value cash.
D. Refuse to provide Social Security Number or refuse to explain the purpose of transaction.
E. No obvious income source, but has frequent transactions.
F. There are extremely nervous behaviors.
G. Ask questions about reports and records.
H. Account has low balance but has high exchange rate.
I. Has a permanent address outside the bank’s normal service area.
J. Home or business phone number is cut off.
K. Has no official job but has large amount of cash flow in and out.
L. An Account used to have no transaction but suddenly has a lot of international remittance transactions.
M. Have a lot of accounts.
N. There are more cash transactions than check transactions.
O. Have abnormal times of currency exchange.
Precautions Chinese performs cash transactions in United States Banks.
1) US bank secrecy law requires any transaction has more than $10,000 cash should be disclosed by a cash transaction report.
2) if a Non-American send money to an American and the value is more than $100,000, a disclosure report should be made in #3520.