By Cynthia Ruiz, CPA Investing in foreign rental properties can be a thrilling and rewarding experience. Imagine owning a villa in Italy or a beachside condo in Costa Rica, providing both a personal retreat and a source of income. However, before taking the plunge into foreign real estate ownership, it’s crucial to navigate the complex …
The Internal Revenue Service (IRS) has issued a reminder to U.S. citizens and resident aliens living and working outside the United States to file their 2023 federal income tax return by Monday, June 17, 2024. This deadline also extends to those with dual citizenship. However, certain taxpayers residing in specific regions, including Israel, Gaza, or …
No matter what your net worth or the size and shape of your family, estate planning is critical. For some, it can be relatively simple. But various factors — such as the complexity of one’s finances and certain family dynamics — can make estate planning much more complicated. Another factor that affects a certain percentage …
The IRS’s Large Business and International Division (LB&I) recently issued a “process unit” that provides guidance on determining the tax on a distribution received by a beneficiary of a foreign nongrantor trust. Process units serve as training materials for IRS staff to enhance their understanding of general tax concepts and specific transaction types. Although process …
If you haven’t filed a Foreign Bank Account Report (FBAR) this year, there’s still time, but not much. United States persons with a financial interest in or signature authority over one or more foreign financial accounts whose aggregate value exceeds $10,000 at any time during the calendar year must file FinCEN Form 114, also known …
Under Section 6038 of the Internal Revenue Code, some U.S. taxpayers must comply with information reporting requirements regarding their interests in certain foreign corporations and partnerships. In the recent case of Alon Farhy v. Commissioner, the U.S. Tax Court was tasked with deciding whether the IRS can assess failure-to-file penalties in relation to Sec. 6038. Forms Not …
The IRS recently announced through Notice 2023-31 that it will provide a longer transition period for the documentation requirement when the single-country exception to the source-based attribution requirement in the proposed foreign tax credit regulations is finalized. The amended transition period will provide that the required license agreement must be executed no later than 180 …
The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) in September 2022 issued final regulations implementing the Corporate Transparency Act (CTA). The law requires certain business entities created or registered to do business in the United States to report identifying information about their “beneficial owners” to FinCEN. Recently, FinCEN issued frequently asked questions (FAQs) on these …
Deadline to file is May 31 The BE-12 form is a survey conducted by the U.S. Department of Commerce’s Bureau of Economic Analysis (BEA) to collect information on the activities of foreign-owned U.S. companies. This survey is conducted every five years – including 2023 — and is used to gather data on the operations, finances, …
Both the United States and foreign countries may tax the foreign source income of U.S. taxpayers. To ease this double taxation burden, the Internal Revenue Code permits most U.S. taxpayers who pay income taxes to a foreign country to either deduct the taxes from gross income for U.S. purposes or credit them dollar for dollar against …
