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Sunday, October 4, 2015

IRS To Start Sharing Tax Data with Mexico

The Internal Revenue Service has kicked off a new program under which it shares large amounts of individuals’ financial-account information with certain foreign countries, the agency said Friday.  One of those countries is Mexico
If you are a permanent resident of Mexico, or dual citizen and your are not reporting all of your worldwide income on your Mexican tax return (if you file one), the Hacienda (SAT) may soon be at your door with their yellow tape and asking about all of  the income on your US return that you have not reported on your Mexican income tax return.  If  you are in Mexico more than 183 days you are considered a full time tax resident and must report and pay taxes on your worldwide income in Mexico. That is not as bad as it sounds since you do get a tax credit on your US return for monies earned in Mexico which offsets your US tax on the same income. .... and on your Mexican tax return you can get a tax credit for taxes you paid on income from the US.  It gets complicated. 
The IRS said it received digital information about U.S. taxpayers’ foreign accounts from governments and firms around the world, and it sent information on foreigners’ U.S. accounts to government authorities in as many as 34 countries. While governments have exchanged such information in the past, the sharing wasn’t automatic and the scope was often far narrower. The deadline for the exchange to begin was Sept. 30.  Read more  below  and see what countries are on the exchange list in the linked Wall Stree Journal article.

Saturday, October 3, 2015

Only 1 (low) minimum wage in Mexico effective Oct. 1 of 70 pesos per day.

The minimum wage in Mexico is now 70 pesos per day nationwide!  That is about $5 US.  And the current presidents wants it to go up to 140 pesos per day by 2018.  Can the economy stand it?

Thursday, September 10, 2015


So the IRS will stop accepting checks of more than $99,999,999 effective Jan. 1, 2016. After that date, you'll have to send in at least 2 checks to cover your big tax bill. This is really true!

Or, says the IRS, you can still send 1 large payment if you electronically wire it to the appropriate Federal Reserve bank.

In announcing the upcoming limit on big checks in the Sept. 7 Internal Revenue Bulletin, the IRS cited an earlier memo from the Treasury's Bureau of the Fiscal Service that noted the risks of manually processing checks of $100 million or more.

"Fraudulent activity, processing errors and uncollectible funds are more likely when checks over these amounts are accepted by TGA (Treasury General Account) depositaries," wrote David M. Metler, director, over-the-counter division of the Treasury Bureau of the Fiscal Service. "No check processing equipment can handle amounts over a million dollars."
Although the manual processing kicks in at $1 million, the IRS still will take checks up to $99,999,999 million, for now.

Saturday, September 5, 2015

Sunday, August 16, 2015

US Expats Can Vote From Mexico - Learn How... it might make a difference!

The following US State Department site has all rules and forms to register to vote when you live abroad.  There is still time....over 500 days before the next Presidential election.

Mediation of Disputes in Mexico in Lieu of Litigation or Arbitration

If you want to dramatically cut costs and waiting for a resolution, consider using Mediation of your disputes in Mexico.

Mediation is an informal process where an impartial third-party, the mediator, helps the disputing parties find a mutually satisfactory solution to their issue. The mediator guides the parties toward a mutually agreeable settlement by helping them clarify their underlying interests and concerns, and encouraging compromise and trade-offs based on the relative importance of each item to each party.
Mediators cannot impose a resolution upon the parties since they are not able to make legally binding decisions. Any settlement reached, if in fact one is reached, is simply an agreement signed by the parties just like any other contract. The settlement does not have the same legal force as an Award which results from arbitration.
Mediation is usually well-suited to disputing parties who still have a somewhat amicable relationship, who are still able to negotiate, and who do not want a third-party to make final decision.  Statistically mediation has historically been successful somewhere between 40 to 50 percent of the times it has been used.
Email us at if you want to learn more about mediation in Mexico and using it to resolve  your legal disputes.