How to Bring a Foreign Bank Account Into Compliance
Do you have a foreign bank account that may have international tax implications?
Tax Law News and Information Straight from The Tax Lawyer
Gifts from Foreign Corporations Included as Gross Income
When a U.S. person receives certain gifts or bequests from foreign corporations, those amounts may be considered as part of the U.S. person’s gross income under US International Tax regulations.
IRS Reporting Requirements for Gifts from a Foreign Person
Certain events, such as when a U.S. taxpayer receives a gift from a foreign person, trigger an international tax filing requirement. This event triggers the requirement to file form 3520.
Foreign Tax Credits
The foreign tax credit provisions (Internal Revenue code §§ 901-909) are among some of the most important for individual and corporate taxpayers in the international tax arena.
Foreign Tax Credit for U.S. Citizens and Residents
If you are a U.S. citizen or resident but you paid taxes to a foreign country, you may also be subject to international tax by the U.S. on that same income. However, in some cases, you may be able to take a foreign tax credit or itemized deduction on your U.S.
Foreign-Owned Business Reporting Requirements
Foreign corporations engaged in business in the United States must comply with particular record-keeping and international tax reporting obligations under the Internal Revenue Code.
Which Foreign Financial Accounts are Subject to the FBAR Requirement?
Any “person subject to the jurisdiction of the United States” that has “a financial interest in, or signature or other authority over, a bank, securities or other financial account in a foreign country” must report this “relationship” annually as part of the FBAR
Foreign Entities Subject to Reporting Rules On Financial Accounts of U.S. Persons
The IRS has instated some very aggressive rules to force Foreign Financial Institutions and Non-Financial Foreign Entities to enter into FATCA agreements and fully comply with new strict reporting requirements on the assets and financial accounts of US persons.
Foreign Earned Income Exclusions for U.S. Citizens and Residents
As a U.S. citizen or U.S. resident, you subject to US international tax law on your worldwide income even if you do not reside in the U.S. However, the IRS provides certain deductions and credits to U.S. taxpayers who live abroad.
Limitations on the Use of Foreign-Based Documentation in Tax Litigation
The Internal Revenue Code places certain limitations on the taxpayer’s ability to present foreign-based documentation during tax litigation.