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...
The Tax Implications of Offshore Bank Accounts and Investment
What are the tax implications of offshore bank accounts and investments as well as foreign corporate ownership? Allen Barron is uniquely positioned to provide proven international tax advice, as well as legal counsel and supporting accounting services. Tax, legal and accounting in a single source vendor. The IRS and California's...
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...
What is a PFIC and How Do Offshore Investments Lead to Higher Taxation?
What is a PFIC and how could your offshore investments actually lead to a higher taxation rate on earned income? A Passive Foreign Investment Company or PFIC is classified by the IRS in two ways: 75% or more of the income from the foreign corporation is classified as "passive income,"...