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Reporting US Single Member LLCs with Foreign Ownership

Single Member LLC

Reporting your foreign owned single member LLC will be different going forward.

By Bethany Bouw, CPA

If you are a foreign person who has a US single member LLC, there are some new developments that you should be aware of for tax year 2017. Reporting policies regarding foreign ownership of single-member LLCs have recently changed. First and foremost, it is important to know your status – US or foreign. To determine this, you should check the IRS rules and contact a lawyer. Read more

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International Tax Technical Update- June 2018

IRS Offers Limited Relief to Certain Taxpayers Subject to the Section 965 Transition Tax

June 2018

Summary

On June 4, 2018, the Internal Revenue Service (IRS) announced that it will provide penalty relief to certain taxpayers subject to the Section 965 transition tax, and provided additional information for individuals subject to the Section 965 transition tax regarding the due date for relevant elections. Read more

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The Basics of Form 3520

Form 3520

Form 3520 is required for many U.S. taxpayers with international activity. However, there is still a lot of confusion regarding the basics of the form.

By Bethany Bouw, CPA

Many taxpayers with international activity are becoming more familiar with informational reporting on foreign bank accounts, foreign corporations, and foreign financial assets. However, many still struggle with certainty when it comes to reporting transactions with foreign trusts or receipt of foreign gifts/bequests on Form 3520. As with most foreign informational reporting, this is not a form to be ignored or taken lightly as it carries significant penalties. Read more

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Foreign Reporting: Changing Landscape for Forgetful Filers

Foreign Reporting

Changes are on the way for anyone who misses a foreign tax filing deadline.

By Bethany Bouw, CPA

Big changes are coming for those who have missed a foreign filing requirement. As we have previously noted, there are a variety of procedures for becoming compliant. One of those methods will soon be closing, and this may signal additional changes on the horizon. Read more

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Royal Wedding Excitement for the IRS

Royal Wedding

International marriages may be full of romance, but they also lead to complex tax situations that not even royals are immune to.

By Bethany Bouw

Many young, American women perhaps used to imagine what it might be like to marry a prince and live in a faraway kingdom. As the news has been widely covering, one American is about to have that dream come true.  While Meghan Markle prepares for her new fairytale life, she will also be facing the many tax pitfalls of an international marriage. Even those who marry their foreign “prince” and move abroad will have to consider some of the same situations Ms. Markle must now deal with. Here are ten tips for those who, like Ms. Markle, will marry a non-resident and non-citizen, and move abroad. Read more

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How do I Prove US Residency for Foreign Purposes?

US Residency

Proving your US residency for tax purposes is a lot more complicated than showing your passport or ID.

 

By Bethany Bouw

Often when doing business or living overseas, people are asked to prove that they are US residents for tax purposes to eliminate or reduce foreign tax withholding. Residency certification may be needed to claim tax treaty benefits or exemptions from value added tax (VAT). Doing so is not as simple as showing a copy of your driver’s license or other government issued identification. Instead, there is an important process you must follow to obtain the proper documents which prove your US residency to foreign jurisdictions. Read more

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International Tax Technical Update- April 2018

CHANGES IN SECTION 965 SPECIFIED FOREIGN CORPORATIONS’ TAX YEARS

Summary

On February 13, 2018, the Department of the Treasury and the Internal Revenue Service (collectively, “Treasury”) issued Rev. Proc. 2018-17 (the “Rev. Proc.”).  The Rev. Proc. provides additional guidance under Section 965, Treatment of deferred foreign income upon transition to participation exemption system of taxation, as amended by the “Tax Cut and Jobs Act,” which was enacted on December 22, 2017.  In particular, the Rev. Proc. provides guidance regarding certain changes in Section 965 specified foreign corporations’ tax years. Read more

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What to do if You are Out of the Country on Tax Day

Out of country

The IRS has different definitions and rules for being ‘out of the country’ on Tax Day.

By Bethany Bouw

There are a variety of ways one may be considered ‘out of the country’ on the due date of individual income tax returns (April 17, 2018). In regards to filing the automatic two-month extension, the IRS has a slightly complicated definition of ‘out of the country’. You will want to make sure that you fully understand their definition in order to know when your due date is and how best to extend. Read more

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Do I Qualify for the Automatic Two Month Extension?

Two Month Extension

Tax Day this year is April 17th, though some may qualify for the two month extension.

By Bethany Bouw

The due date for individual income tax returns (April 17, 2018) is nearly upon us. Some of you may be wondering if you qualify for the automatic two-month extension. Ryan & Wetmore is here to help you with your extension concerns. Read more