Uncategorized

By Koh Fujimoto Cross Border Individual Tax Practice Per the Bank Secrecy Act, you must report certain foreign financial accounts every year by filing a Report of Foreign Bank and Financial Accounts (FBAR) on Form 114. There are numerous unique financial accounts in...

ITASCA, IL (January 1, 2022) — CDH, P.C. (CDH), a leading international accounting and advisory firm, has united with Pier & Associates, Ltd. (Pier), an Illinois-based full-service accounting firm. Strategic growth is a primary initiative for both CDH and Pier....

By Koh Fujimoto Support cross-border life In this article, I will discuss how the IRS will treat your foreign defined benefit plan under its exit tax regulations. I will also discuss briefly the treatment of a defined contribution plan.  This article is helpful if you...

By Koh Fujimoto Support cross-border life When U.S. green card holders and U.S. citizens open bank accounts in Japan, they face increasing difficulties. In this article, I describe the types of issues, reasoning why they face such issues, and how to cope with them....

By Koh Fujimoto Support cross-border life Cross Border Inheritance gives headaches even to professionals. My mission is to explain the essence of the matter in plain English. I consider the U.S. federal tax only here in this article. Case A U.S. citizen mother has two...

By Koh Fujimoto Support cross-border life If you are a US citizen who owns a Japanese company, you are subject to the very complex U.S. tax rules. Without going through the details of the rules, I focus on the danger of not consulting with appropriated tax...

Support cross-border life If IRS finds that you willfully did not report your foreign financial accounts in FBAR, under the 31 U.S.C. 532(a)(5)(c), the maximum penalty you face is higher of $129,210 or 50% of the amount in 2021. [i] This is a very serious penalty...

Support cross-border life From May 2022, if your Japanese spouse participates in Japan’s National Pension, he or she becomes eligible to participate in iDeCo. [i] (I am going to use “she”.) iDeCo’s name came from an Individual-type Defined Contribution pension plan....

Support cross-border life This chart is on the website of the Japan Pension Service. [i] In this article, I want t to explain why the WEP provision of the Social Security system should not reduce your U. S. Social Security benefits simply because you are receiving the...

Further COVID-19 Relief for Businesses Illinois Governor JB Pritzker released an overall economic recovery strategy, including a $250 million Back to Business (B2B) grant initiative. The recovery plan aims to assist small businesses that experienced significant...

  The pandemic has put extreme pressures on many businesses, and protecting profitability is of vital concern. The jury is still out on long-term inflation, but for now, we must deal with escalating material costs and shortages as well.   Lumber, steel,...

By Koh Fujimoto Support cross-border life   1, Income Tax Rates: I made this chart using the exchange rate of $1 equals 100 JPY. This is the tax rate table for the Japanese income tax rates. There is another important tax that you cannot forget besides the income...

By Koh Fujimoto Support cross-border life   Do you plan to move to Japan for your retirement with your Japanese spouse?  There are, in fact, many couples who want to move to Japan. Many think of high-quality medical service and low-cost medical and long-term care...

  Accounting for Leases: Accounting Standards Codification 842: Overview of Operating Leases   Main changes from prior standard: Under Accounting Standards Codification (ASC) 842, operating leases will still be called “operating leases,” so you may ask why...

    Although the lease standards have been delayed multiple times, the new effective date is coming up quick. Nonpublic entities should apply the new standard for fiscal years beginning after December 15, 2021, and interim periods within fiscal years...

Annual tax returns. How are you filing them? Do you purchase tax preparation software, use filing agency services, or use an accounting firm?

If your Japanese spouse is receiving the pension payment from Japan, you may be able to receive the survivor’s benefits when your spouse passes away. The essential function of the system is very similar to the U.S. social security’s survivor’s benefits. A surviving spouse can receive a pension in the U.S. or Japan. There is no discrimination based on the nationalities of the spouse. Here is the writing by the Japan Pension Service:

I will explain three indispensable pension knowledge of Japan and the United States that I would like you to know when obtaining U.S. citizenship from permanent residency status. In the U.S., not knowing certain critical information can quickly put you in a very disadvantageous position.

Supporting cross-border life   A test called the Net Worth Test for exit taxes determines whether a global asset in your name exceeds $2 million or not as of the day before the permanent residence abandonment. Those with defined benefit plans or annuities must...

Recently, there were changes made to the child tax credit that will benefit many taxpayers. As part of the American Rescue Plan Act that was enacted in March 2021, the child tax credit: Amount has increased for certain taxpayers Is fully refundable (meaning you can...