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The Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) guides real property sales when the seller is a foreign national who sells their ownership or interest in a U.S. real property interest. FIRPTA requires that sales that involve a foreign national seller must include withholding of either 10 or 15 percent of the seller’s gain from the sale. The majority of dispositions will fall under the 15 percent withholding requirement unless they qualify for an exception.

The Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) governs property sales when the seller is a foreign national. The law’s general rule is that the gains of any covered sale include a 10 or 15 percent withholding. FIRPTA has exceptions, however, which can exempt a taxpayer from any tax liability.

When a taxpayer owes money to the IRS, the agency may go after assets and property that are managed or handled by third parties. A third party may receive notice of a levy related to an employee, vendor, customer, or other third party.

The disposition of a U.S. real property interest by a foreign person, known as the transferor, is subject to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA). This law provides guidance on a non-citizen’s disposition of a U.S. real property interest. These dispositions are subject to income tax withholding. FIRPTA authorizes the IRS to withhold income tax when foreign persons dispose of U.S. real property interests.

Cryptocurrency presents a new income stream for taxpayers, and some have failed to report it on their taxes. In response, the IRS Criminal Investigation Division is aggressively pursuing any cryptocurrency trader who fails to report income.

The majority of IRS cases are civil, meaning taxpayers won’t face criminal penalties such as jail time. Civil cases can generally be resolved by filing the required documents, paying taxes and penalties, or working with the IRS to arrange a payment plan.

The IRS requires taxpayers to pay taxes as they earn income throughout the year. For those who do not have withholding, they must pay quarterly estimated payments.

A taxpayer will receive a CP504 Notice (Intent to Levy) as a final reminder that they have outstanding taxes due to the IRS. The CP504 notice generally follows other attempts by the IRS to communicate with a taxpayer and settle a tax issue.

Recognizing that donations to charity benefit society as a whole, the IRS allows taxpayers to deduct contributions to qualifying nonprofit organizations. It sounds counterintuitive, but doing good can also increase your chances of being audited, especially if a donation seems unusual.

When a taxpayer loses a property in a seizure to satisfy unpaid taxes, they have the right to reclaim the property within 180 days of the sale. Individuals who have an interest in the property may also redeem it.

Arizona doesn’t apply the transaction privilege tax (TPT) to commercial leases. Property owners should, however, be aware that county and local governments may impose taxes on commercial leases.

Mistakes on a TPT return can result in your TPT return not being processed. Here are some of the most common mistakes for businesses that file paper TPT returns.

Beginning in September 2024, Arizona revised its transaction privilege tax (TPT) laws. These changes specifically apply to individuals under the age of nineteen who do business in Arizona.

The Arizona Department of Revenue (ADOR) has the power to conduct audits on businesses in the state. This includes Transaction Privilege Tax (TPT) Field Audits.

After years of delays, the IRS is beginning to phase in changes to Form 1099-K. This includes how taxpayers report income from online marketplaces and digital payments.

Formally known as the expatriation tax, the exit tax applies when U.S. citizens decide to renounce their citizenship. It may also apply to long-term residents who end their U.S. resident status for tax purposes.

Trusts can be a valuable financial planning tool when they are created through the correct legal channels. Sham trusts, in comparison, are invalid legal trusts that are created for an unlawful purpose.

Beyond financial numbers, one of the confusing parts of navigating both the federal and Arizona tax systems is the abundance of acronyms and numbers. Two examples of these acronyms are TPTs and EIN. Many businesses and organizations will have both. They each serve an important but different purpose.

Most businesses in Arizona require a transaction privilege tax (TPT) license to operate. Where a business is located in Arizona, however, can affect its overall tax rate. Each local government is responsible for setting its local rates. This is why county and city TPT rates can vary.

To avoid being convicted of tax evasion, taxpayers need to report income related to all activities. This is regardless of the activity’s legality. 

The Foreign Account Tax Compliance Act (FATCA) was passed to reduce tax evasion through offshore accounts and other financial interests outside of the United States. The law involves anyone who pays taxes, including foreign nationals and foreign governments required to pay taxes in the U.S. FATCA certification is a way to ensure taxpayers are complying with these new requirements.

The Model City Tax Code's (MCTC) twin goals are to encourage uniformity of local taxes, which benefits businesses, while still respecting each city and town’s right to determine its tax code.  

With the rise of independent contractors as part of the workforce, businesses may be unsure of when a worker qualifies as an employee and when they qualify as an independent contractor. For tax purposes, failing to classify a worker properly can lead to penalties and fines.  

Cryptocurrency remains an evolving area of law for taxes. A 2023 ruling answered only one of the many questions that surround the relationship between cryptocurrency and taxes. 

Arizona requires remote sellers to collect and remit TPT when they reach certain transaction thresholds. This law covers both remote sellers and marketplace facilitators.