The Senate Finance Committee issued a tax reform option paper on international competitiveness. This marks their fifth tax reform option paper. An outline of the reform options are as follows: REFORM OPTIONS I. BASE EROSION AND DEFERRAL 1. Tighten anti-base-erosion rules and reform the treatment of non-subpart F earnings 2. Strengthen the subpart F rules 3. Repeal… Continue Reading
Category Archives: International
Subscribe to International RSS FeedPresident Obama Proposes Major FIRPTA Reform in Rebuild America Partnership
Posted in International, Legislative, Real EstateToday President Obama released major proposals to encourage private investment in US infrastructure as part of a proposed Rebuild America Partnership. For international investors, the most significant aspect is to reform the FIRPTA rules that tax gains of non-US investors in US real estate. FIRPTA reform has been the subject of much discussion in recent… Continue Reading
IRS Issues Final FATCA Foreign Account Regulations
Posted in Compliance, FATCA, InternationalThe IRS published extensive 544-page final regulations on Foreign Account Tax Compliance Act (FATCA), finalizing the 2012 proposed regulations. The final regulations address detailed taxpayer comments on the need to reduce FATCA administrative burdens and address technical implementation. The regulations are effective January 28, 2013. For an overview of the final regulations see the IRS… Continue Reading
IRS Publishes Streamlined FBAR Compliance Procedures for Certain Non-Residents
Posted in FBAR, InternationalAs promised, the IRS issued new instructions on streamlined procedures for certain low-risk non-residents to file late FBAR and income tax forms. The applicability of these procedures is very limited and applies only to taxpayers who: (1) are non-resident U.S. taxpayers who have resided outside of the U.S. since January 1, 2009 (2) have not… Continue Reading
IRS Issues New FBAR Guidance – Updated FAQs and New Streamlined Procedures for Low-Risk Cases
Posted in Compliance, General, InternationalThe IRS published the anticipated update to the Frequently Asked Questions relating to the Offshore Voluntary Compliance Initiative (OVDI) relating to reporting of foreign financial accounts (commonly referred to as the “FBAR” reporting). The guidance also includes favorable rules for (1) U.S. citizens living abroad and dual citizens with low compliance risks (generally less than… Continue Reading
New Proposed FATCA Regulations Try to Ease Compliance Burden
Posted in FATCA, General, International, ProcedureNew proposed regulations under the Foreign Account Tax Compliance Act (FATCA) implement FATCA’s obligations in stages to minimize burdens on foreign financial institutions (FFIs), and to allow time for resolving local law limitations to which some FFIs may be subject. The IRS press release notes that the 388-page proposed regulations will: Permit FFIs in many… Continue Reading
New Final and Temporary Foreign Tax Credit Regulations – Technical Taxpayer Rule and Credit Splitter Rules
Posted in Corporate, International, Partnership/LLCThe IRS issued Final Regulations under section 901 and Temporary Regulations under Section 909. The section 901 regulations adopt, with some changes, the 2006 proposed regulations, relating to who is considered to pay a foreign income tax for purposes of the foreign tax credit (the technical taxpayer rule). The temporary section 909 regulations include and… Continue Reading
IRS Announces Third Late FBAR Amnesty Program
Posted in FBAR, InternationalIt’s tax deja vu with yet another IRS amnesty program for persons filing late disclosures of offshore financial accounts, commonly referred to as FBAR (Foreign Bank Account Reporting). The IRS announced that the new program generally resembles the 2009 and 2011 programs, except that there is no explicit ending date to the new program and the special amnesty penalty… Continue Reading
New Regulations On Foreign Financial Account Reporting
Posted in International, ProcedureThe IRS issued temporary regulations under the recently enacted section 6038D, Reporting of Specified Foreign Financial Assets. Previously the IRS issued interim guidance in Notice 2011-55 and has also published draft Form 8938 instructions. The statute and regulations are effective for tax years beginning after March 18, 2010. In general, section 6038D requires individual taxpayers… Continue Reading
IRS Has Three New Wins On Tax Shelter Cases
Posted in Economic Substance, General, International, Litigation/Controversy, Partnership/LLCThe Justice Department touted three significant wins on tax shelter cases involving importing foreign built-in tax losses, foreign tax credits, and generating tax losses from “underwater” commercial leases. In the first case, Southgate Master Fund LLC v. United States, the Fifth Circuit Court of Appeals, affirmed a lower court ruling that a purported “partnership” was… Continue Reading
Proposed FIRPTA Legislation For Foreign Investors in U.S. Real Estate
Posted in General, International, Real Estate, REITsOn September 21, H.R. 2989, the Real Estate Jobs and Investment Act of 2011, was introduced in the House to ease the rules for Foreign Investment in U.S. Real Estate known as “FIRPTA”. The legislation would increase the percentage of a publicly traded REIT that a foreign investor could own from 5% to 10% before… Continue Reading
JCT Publishes Cross Border Taxation Summary
Posted in Corporations: International, International, LegislativeIn advance of a September 8 Senate Finance Committee hearing, the Joint Committee on Taxation released a report summarizing U.S. tax treatment of cross-border income and related tax issues. The report includes a 25-page summary of existing tax rules applicable to inbound and outbound investment and a discussion of key issues such as the perceived need… Continue Reading
FBAR Voluntary Disclosure – IRS Provides Short-term Extension to September 9
Posted in Compliance, General, International, Litigation/ControversyNOTE (Aug. 29, 2011): The IRS clarified that the Sept. 9, 2011, extension also applies to taxpayers filing delinquent FBARs pursuant to IRS Q&A 17 and 18 for the simplified program applicable to taxpayers who did not owe tax but failed to file the appropriate tax forms. _________________________________________________________ Due to Hurricane Irene, the IRS extended… Continue Reading
IRS Reminds Taxpayers of Aug. 31 Deadline for FBAR Voluntary Disclosure
Posted in Compliance, General, International, Litigation/ControversyThe IRS issued a press release reminding taxpayers that they have until August 31 to join the 2011 Offshore Voluntary Disclosure Initiative. According to the press release, the 2011 initiative offers benefits to encourage taxpayers to come forward rather than risk detection by the IRS, observing that taxpayers hiding assets offshore who do not come… Continue Reading
Regulations Address Foreign Tax Credit Generator Transactions
Posted in International, Tax SheltersThe IRS issued new final and supplementary temporary regulations addressing foreign tax credit generator transactions. The final regulations retain the basic approach and structure of the 2008 temporary regulations. The final regulations provide that amounts paid to a foreign taxing authority that are attributable to a structured passive investment arrangement are not treated as an… Continue Reading
New Phased Implementation of Certain FATCA Requirements
Posted in Compliance, InternationalThe looming 2013 effective date of new Foreign Account Tax Compliance Act (FATCA) reporting for Foreign Financial Institutions (FFIs) has some new relief. In Notice 2011-53, the Treasury announced new phased-in implementation because “Chapter 4” of FATCA creates the need for significant modifications to the information management systems of FFIs, withholding agents, and the IRS. … Continue Reading
Latest FBAR Guidance – Limited Filing Extension
Posted in FBAR, InternationalThe IRS has again updated its guidance on their latest voluntary disclosure program for late FBAR filings for foreign accounts over $10,000. Specifically, certain persons having signature authority over, but no financial interest in, a foreign financial account in 2009 or earlier calendar years now have until November 1, 2011 to file those FBARs. This… Continue Reading
June 30 FBAR Deadline Extended for Certain Persons
Posted in InternationalJune 30th is the annual deadline for FBAR filing for certain persons with financial interest in, or signatory authority over, foreign accounts with balances over $10,000. Yesterday the government announced a one-year extension for a small subset of FBAR filers, namely certain employees of covered entities who have signature or other authority over accounts that… Continue Reading
New Foreign Account FBAR Voluntary Disclosure Program
Posted in InternationalToday the IRS released the long-anticipated 2011 Offshore Voluntary Disclosure Initiative (OVDI) for taxpayers who missed the FBAR disclosure program that ended October 15, 2009. The new program covers disclosures of unreported foreign accounts made through August 31, 2011. The new program raises the special OVDI penalty from 20% to 25% of the highest account… Continue Reading
Subscribe to this blog via RSS
Retail Law Advisor
Goulston & Storrs
Follow us on Twitter
Subscribe to this blog by email
Follow Us on LinkedIn