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Hello Reader,

I've curated some great pieces of content I've found over the past month to help you and your business stay “in the know” 🧐 and keep you updated on any important tax updates 💡 and news worldwide that may affect your expat life.

So finish off your week with some notable news and interesting articles.

And in case you don't already follow Matriarch ....👇

🚨 Updates to BOI reporting under CTA: What You Need to Know

The enforcement of the Corporate Transparency Act has been temporarily paused following a preliminary injunction from a U.S. District Court in Texas. While the January 1, 2025, reporting deadline is on hold, businesses should stay prepared as the legal situation evolves. For detailed insights, check out our LinkedIn post here!

👩‍⚖️ The Farhy Tax Case: What Expats Need to Know

Tax compliance isn’t just a requirement—it’s a safeguard for your financial future. The 2024 Farhy case sheds new light on IRS penalties for unfiled foreign information returns under Section 6038(b).

Here’s the scoop:

• Missed filings can trigger penalties of $10,000 per instance.
• The DC Circuit confirmed the IRS's authority to collect these penalties.

This case is a wake-up call for anyone with interests in foreign corporations or international financial filings. Filing on time, staying informed, and working with a trusted tax professional are key to avoiding hefty penalties.

The Farhy case is still unfolding, but the message is clear: proactive compliance matters. Learn more about how this decision could affect expats and international taxpayers in our latest blog.

🏛 Supreme Court Ruling on Repratriation Tax

Last year, the Supreme Court heard arguments in Moore v United States, a case challenging the Constitutionality of the Mandatory Repatriation Tax (MRT).

This tax was part of the Tax Cuts and Jobs Act of 2017, which was a one-time tax for shareholders on priorly untaxed, accumulated undistributed earnings on American corporations’ foreign subsidiaries.

This was an important case because should the court rule in favor of the Moores, it would have had vast, ripping effects through the current tax code and the definition of taxable income.

The Supreme Court ruled 7-2 in favor of upholding the MRT, but kept the opinion very narrow, saying the decision only applied to pass-through entities and made no actual constitutional determination for application in income tax realization.

🧑‍🏭 Understanding the Labor Shortage: States Most Impacted

Nearly every state is grappling with an unprecedented worker shortage. Discover which states are most affected by this nationwide crisis.

🏭 Key Energy Industry Trends to Watch Under the 47th Presidency

A second Trump presidency could reshape the energy industry with a renewed focus on fossil fuels. However, coal is likely to remain stagnant due to poor economic fundamentals and limited capital access.

🏦 Banks to Face Softer Regulation

Morningstar DBRS notes that while the election results may lead to lighter regulation and lower corporate taxes, they don’t expect a significant impact on bank credit fundamentals, similar to the 2016 election outcome.

☀️ Solar Tariffs Struggle to Keep Up with Chinese Firms

For twelve years, the U.S. has imposed tariffs on Chinese solar imports, but Chinese manufacturers have continually bypassed these tariffs by shifting production to non-tariff countries and maintaining low production costs.

🤳 Tech Firms Warn Vietnam's Proposed Law Could Hamper Data Centers and Social Media

American tech companies warn that Vietnam’s proposed data protection law, restricting data transfers abroad, could stifle growth for social media and data center businesses. Vietnam, with 100 million people, is a key market for platforms like Facebook.

🏗 SBA-Backed Financing Rises 7% to $56B in Fiscal 2024

The Small Business Administration announced it backed $56 billion in financing to small businesses and disaster-affected areas during the fiscal year ending Sept. 30, a 7% increase from the previous year, driven mainly by smaller loans.

🪖 Meta Allows Its AI Models to Be Used for Military Purposes

Meta has updated its policies to allow national security agencies to use its AI models, Llama. The company is partnering with defense contractors like Lockheed Martin, Booz Allen, and tech firms like Palantir and Anduril.

See you next month!

Mary 💗

Now enjoy your morning brew ☕and finish the week strong! 🩷