Virginia La Torre Jeker, J.D. — US tax matters affecting international clients
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
In IRS Notice 2024-11, the Internal Revenue Service (IRS) updated the list of treaties that can provide a foreign corporation with the special status of being a “qualified foreign corporation” (QFC). The list was updated to include the treaty with Chile, which entered into force on December 19, 2023, and to remove the treaty with … Continue reading Dividends Paid by Foreign Corporations – Are they “Qualified” & Eligible for Capital Gain Rates?
Most people have heard of it, but not many truly understand it. I will hear a foreign individual proudly state he cannot be taxed by the US since he has no income from US sources and has not spent 183 days or more in the US in any calendar year. Therein lies the “misunderstanding” and … Continue reading Too Many Days in America? The “Closer Connection Exception” May Save the Day (& the Tax Hit)
An earlier blog post explained how easy it is for the foreign person to fall into some nasty US tax traps when entering a foreign partnership with a US person. Even if that foreigner never sets foot in America and works solely from the foreign location, he can end up paying US taxes. In addition, … Continue reading Foreign Partnerships with a US Partner? Some Planning Ideas
Last week I blogged about the US income tax issues that plague a US partnership when it has a foreign partner. That post showed things can get ugly when a US partnership has a foreign partner. The post got a lot of views and feedback so it is evidently a topic of interest. I thought … Continue reading Tax Things Get Ugly for Foreigners When a Foreign Partnership has a US Partner
When non-US persons invest in US assets, the investment structure should be considered well in advance. In many instances, foreign investors using US-based entities for investment are blissfully unaware of the tax pitfalls with regard to the structure chosen. The tax ramifications typically involve US income and US estate tax exposure. Foreign investors must nail … Continue reading Investing in a US Partnership? – A Bevy of Tax Issues for the Foreign Investor
This will be a very short post with a few simple lessons I have shared before: Fast tax advice, is like fast fashion. A waste! It's all too often a big mistake with serious repercussions. If something sounds too good to be true, it is. So, if you have not heard of it yet, today’s … Continue reading Beware TikTok Tax Advice – IRS Tanks a Trust Scheme
Things are looking worse and worse for Americans who invested in Malta personal retirement plans. Not only has the Internal Revenue Service (IRS) listed them twice on its Dirty Dozen tax scams list, it has now proposed rules that will require taxpayers and material advisers to specially put the IRS on notice about their use. … Continue reading Malta Retirement Plans – The Jig is Really Up!
On vacation! Catch up to you next week with my usual Thursday blog post.
Virginia - US TAX TALK 