Have you invested in a foreign trust? This can result in the highest IRS taxation rate for US taxpayers, which is 55%. Why would a US resident or citizen who is a taxpayer hold assets in a foreign trust? Unfortunately, many so called “gurus” have been selling the foreign trust idea as a way to protect income and assets in offshore accounts. This is simply not the case, and the resulting tax penalty is quite sobering for most US taxpayers.
If you are a US citizen, or a resident US taxpayer and you have assets in a foreign trust you should contact Allen Barron for a free and substantive consultation at 866-631-3470. We will help you to evaluate the significant tax savings that could be achieved by moving those assets into a US-based trust, reducing the underlying tax rate by substantial percentage, resulting in a significant reduction in taxes and increasing the amount of cash retained in the investment(s) by tens or hundreds of thousands of dollars.
These investments also usually trigger FBAR reporting requirements and consideration of IRS OVDP or streamlined voluntary disclosure programs. Those with foreign trusts have been forced to learn the meaning and significance of PFIC – Passive Foreign Investment Company. The reporting requirements of those participating in a PFIC continue to become more onerous with the passing of each year.
If you have invested in a foreign trust in the past, it is time to reconsider the tax implications associated with your investment and assets. We will develop side-by-side scenarios that help you to visualize the inherent taxes associated with foreign trusts when compared to US based options. The costs associated with this work are minimal when compared to the first year tax savings alone. Contact the experienced international tax attorneys at Allen Barron today at 866-631-3470 for a complimentary consultation that will make your portfolio even more profitable.