Is a SICAV a PFIC Taxable and Reportable in the US?
Is a SICAV a PFIC for IRS Filing
Is a SICAV a PFIC for IRS Tax and Reporting: Depending on which country you maintain your foreign or offshore assets, one type of foreign investment you may have is referred to as a SICAV. A SICAV is a type of investment which is often seen in European countries. Technically, a SICAV is a société…
FBAR Lawyers
FBAR Lawyers
FBAR Lawyers: Our experienced International FBAR Lawyers & tax team are trusted by clients worldwide in over 80 different countries. We specialize in offshore accounts compliance, with a primary focus on FBAR, FATCA and Amnesty Programs before the IRS. Our FBAR Lawyer team can help you to safely reduce or avoid Foreign Bank and Financial Penalties associated with FBAR (aka FinCEN Form 114). And, with the IRS taking an…
Delinquent FBAR
Delinquent FBAR
Delinquent FBAR: The FBAR is due at the same time a Taxpayer’s tax return is due. The FBAR filing deadline is on automatic extension. Therefore, a person has until October to file their FBAR (FinCEN Form 114) and they do not need to file any extension form to take advantage of the extension. If the FBAR is not filed timely, then it is considered late. And, in recent years, the…
Form 3520 Penalty Appeal
Form 3520 Penalty Appeal
Form 3520 Penalty Appeal: When the IRS issues a penalty for not timely or accurately filing a Form 3520, the penalties can be tough. When it comes to foreign gifts, the penalty is usually 25% of the value of the gift. When it comes to trusts, the penalties stagger based on the type of trust transaction involved. When a person receives a Form 3520 Penalty, it is…
When is the FBAR Due?
When is the FBAR Due?
When is the FBAR Due: There is a lot of misinformation online involving the IRS FBAR due date, and when the FBAR Deadline is. The FBAR used to be due on June 30th. Therefore, you would report the FBAR in June to report prior year maximum balance.
Then, the IRS (even though FBAR is a FinCEN Form, the Internal Revenue Service is tasked with enforcement…
Mark-to-Market & IRS Category 3 Notice 2009-85
Mark-to-Market (Category 3) Notice 2009-85
Mark-to-Market & IRS Notice 2009-85: When U.S. Persons are considering expatriation, one of the biggest concerns (of course) is the IRS mark-to-market computation. Presuming an expatriate meets the definition of a covered expatriate, they will then have to perform a mark-to-market analysis to determine their unrealized capital gain on the day before expatriation. Not all property is subject to the MTM analysis…
HTKO (High-Tax Kick Out) & Foreign Tax Credits
What is HTKO?
HTKO: The High-Tax Kickout Rules are referred to as HTKO, and they can be very a complicated IRS International Tax exercise. With the High-Tax Kickout, foreign investment income that would ordinarily receive foreign tax credit treatment is shifted into the general category. The reason the IRS limits the use of high-taxed foreign income, is to ensure that the foreign income does not result in…
PFIC & FBAR Disclosure Rules
PFIC & FBAR
PFIC & FBAR: A PFIC is an IRS tax mess. It requires an unnecessarily complex analysis, resulting in an (unnecessary) headache for the taxpayer. For the tax return, the PFIC is reported on Form 8621. Each PFIC is reported separately, which is done in order to parse out the income for each PFIC – while ensuring the proper basis remains intact. When it comes the PFIC,…
Section 2 Individuals Covered IRS Notice 2009-85
IRS Notice 2009-85 (Section 2: Individuals Covered)
Notice 2009-85 (Section 2: Individuals Covered): Expatriation and the exit tax do not apply to everybody. Rather, the IRS has very specific definitions on who is considered a possible covered expatriate. Noting, that only covered expatriates can be considered for the exit tax. Even if a person has resided in the United States for 30 years, if they do not…
IRS Notice 2009-85 (Section 1)
Notice 2009-85 (Section 1)
IRS Notice 2009-85: When certain persons expatriate from the U.S., they may become subject to IRS exit tax. This will depend on whether they are covered expatriates, and if they have sufficient unrealized capital gain that exceeds the exclusion amount. In addition, if the expatriate has ineligible deferred compensation, tax deferred investments, or ownership of certain non-grantor foreign trusts — they may still owe an…
