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Investment in a Foreign Trust Creates Complex Reporting Requirements

The IRS has clearly identified legitimate reasons why "US Persons" would establish or maintain ownership in a foreign trust.  However, there are significant and complex tax reporting requirements associated with US taxpayers who are beneficiaries with an investment in a foreign trust.  There are specific transactional reporting requirements for those...

IRS Form 5471 Carries Heavy Penalties and Consequences

If you have any ownership position in an offshore or foreign corporation it is important to understand your reporting responsibilities to the IRS.  If you own 10% or more of any foreign corporation's voting authority, you are required to accurately and transparently complete IRS Form 5471 and attach it to your federal return...