Virginia La Torre Jeker, J.D. — US tax matters affecting international clients
I have written before about the new Internal Revenue Service (IRS) Direct File pilot program. "Eligible" taxpayers in 12 states can now file their 2023 US tax returns directly with the IRS (for free). No more need for Turbo Tax or a tax return preparer! According to the IRS, the Direct File pilot is easy … Continue reading IRS Direct File Pilot Program: Up & Running, but Not for Everyone!
My earlier blog post discussed National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.), the Northern District Court of Alabama decision that enjoined all relevant US government agencies from enforcing the Corporate Transparency Act (CTA). That post raised the issue: exactly who is entitled to the benefits of this injunction? Well, let's look carefully … Continue reading Corporate Transparency Act – Unconstitutional, But Keep Reporting!
With this surprising court decision issued March 1, 2024, millions of overwhelmed small business owners can now take a breather from scouring FinCEN’s website and go back to running their businesses. The Northern District Court of Alabama has enjoined all relevant US government agencies from enforcing the Corporate Transparency Act (CTA). The UNITED STATES DISTRICT … Continue reading Corporate Transparency Act Declared Unconstitutional
How difficult is it for a taxpayer to establish “reasonable cause” such that penalties for various tax mishaps can be forgiven or abated? It’s very difficult. The recent case of Wayne Lee v. United States, No. 22-10793 (11th Cir. 10/24/23) underscores the point and reminds taxpayers to get reliable tax advisors and return preparers. Going … Continue reading Taxpayer Denied “Reasonable Cause” When Preparer Fails to e-file Returns
My recent blog posts here, here and here have been examining the US estate tax and its impact on foreign investors in the US. The posts explored estate tax basics, the concepts of “domicile”, ”situs” of assets, the troublesome Federal Transfer Certificate and the paltry estate tax exemption of USD60,000 given to non-US non-domiciliaries for … Continue reading How do Estate Tax Treaties Work? They Don’t if the Decedent is a US Citizen or Domiciliary
Part I of this blog post examined some of the rules regarding the US estate tax and how it applies to non-US persons (noncitizen/nonresident - based on the concept of "domicile"). Unfortunately, the US estate tax often catches the non-US citizen non-domiciliary's family by surprise and when it does, it bites hard. Remember, the non-US citizen … Continue reading US Estate Tax: Location of Assets, More “Situs” Rules
My recent and upcoming blog posts are examining the US estate tax and how it often comes as an unwelcome surprise to the foreign investor in the US and to the foreign heirs when the investor passes away. The family is often left to clean up the mess if the investor has not properly planned … Continue reading US Estate Tax – What is “Situs”? Location of Assets Makes a World of Difference
My recent blog posts (e.g. here, and here) emphasized how important it is for Americans who are investing in foreign (non-US) assets to understand the US tax consequences of making that investment. Far too often I have seen individuals invest substantial amounts of money without knowing the tax impact of that infusion of hard-earned cash. … Continue reading The Real World: When Foreigners Die Owning US Assets – Estate Tax, Federal Transfer Certificate and Related Troubles
As will be recalled from the previous blog posting discussing the basics of so-called "Controlled Foreign Corporations" (CFC), a United States shareholder of a CFC can possibly be treated as having received “dividend” income at various times. These are when the US shareholder has (i) current income inclusions from the CFC under the anti-deferral regime (Subpart F … Continue reading “Qualified Dividend Income”: How do the Rules Apply to “Controlled Foreign Corporations?” (Part II)
Today’s post continues to explore the interplay between foreign corporations and the US shareholder’s ability for lower tax rates available only for "qualified dividends". It's a complicated topic. Not all dividends are treated the same and the nuances can make a big difference to the taxpayer’s ultimate investment return. As detailed in my earlier blog … Continue reading “Qualified Dividend Income”: How do the Rules Apply to “Controlled Foreign Corporations?” (Part I)
Virginia - US TAX TALK 