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Showing posts from 2020

Foreign Pensions of US Expats and Inbound Foreign Nationals: IRS Simplifies Reporting Rules For Certain Foreign Trusts

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U.S. citizens and residents are generally required to file IRS Form 3520 to report their ownership of, or transactions with, foreign trusts. The potential penalty for noncompliance is the greater of US $10,000, 35% of the amount contributed to, or distributed from, the trust, or 5% of the gross value of the portion of the trust’s assets treated as owned by the U.S. citizen or resident. A separate Form 3520-A is required from the trustee, or, in its absence, a separate similar filing by the owner of the trust. The potential noncompliance penalty for Form 3520-A is similar to Form 3520.

This triggers troublesome reporting with respect to certain foreign pension plans, and certain foreign savings plans such as Canadian Registered Education Savings Plans (RESPs) and Registered Disability Savings Plans (RDSPs). A separate rule previously eliminated any required filing of Forms 3520 and 3520-A for certain Canadian retirement plans. The new rules issued in IRS Revenue Procedure 2020-17 now …

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Requirements for Safe Management Measures at the workplace

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We are NOT doing any in person appointments at our Singapore office.  For those unfamiliar with the new guidelines, here are the guidelines from the Ministry of Manpower - https://www.mom.gov.sg/covid-19/requirements-for-safe-management-measures


Here are the takeaways -

Working from home must be the default mode of working ...Employees who have been working from home so far must continue to do so, and go to the office only where there is no alternative.
Companies should continue to conduct virtual meetings as much as possible. Physical meetings between employees and with suppliers / contractors must be minimised, e.g. by using tele-conferencing facilities.
Employers must cancel or defer all events or activities that involve close and prolonged contact amongst participants, e.g. conferences, seminars and exhibitions.
Please join us in respecting the laws of the Republic of Singapore.
Thank you

BE-10 Benchmark Survey: U.S. Direct Investment Abroad

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Every five years, the Bureau of Economic Analysis (BEA) conducts the Benchmark Survey of U.S. Direct Investment Abroad (Form BE-10) to secure current economic data on the operations of U.S. parent companies and their foreign affiliates. 2020 is a benchmark survey year, and the survey will cover fiscal years ending in 2019 in place of the annual survey (Form BE-11). The BE-11 annual survey is conducted during the four years between benchmark surveys. Smaller businesses that are not required to file annual surveys are required to participate in benchmark surveys, for which there are no size exemption thresholds. Larger businesses that file the BE-11 survey annually will instead fill out Form BE-10 in a benchmark year. The BEA filing is required under the U.S. Department of Commerce rules and is not a tax return filing required by the IRS.
Here's the website - https://www.bea.gov/be-10-benchmark-survey-us-direct-investment-abroad

All U.S. “persons,” including individuals, estates, tru…

If you cannot print and sign a pdf form, you can sign electronically. Follow these steps.

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ITIN Training from the IRS Website

ITIN Training - This is the process which Certified Acceptance Agents like our team, must follow.

Sales and Use Tax - VDA?

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I previously wrote about registering for Sales and Use Tax in new states here -  http://www.mooresrowland.tax/2020/03/register-for-sales-and-use-taxes-in-new.html
As a foreign company doing business in the US here's a great intro -  http://www.mooresrowland.tax/2019/11/are-you-foreign-company-or-non-us.html

VDA TAX INFO: WHAT IS A VOLUNTARY DISCLOSURE AGREEMENT?

Any sales tax consultant will tell you that a Voluntary Disclosure Agreement, also known as a VDA, is the best way to bring a company in to compliance with its previously unmet sales tax responsibilities. With the recent changes, many companies have found that they now have sales tax liabilities in states or other local jurisdictions where sales taxes were not previously collected. In other cases, a taxpayer may have collected the appropriate sales tax, but not yet be registered with the state to remit the sales taxes collected. Regardless of the reason for the outstanding tax liabilities, Voluntary Disclosure Agreements or …

Tax in Andorra

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Andorra is an interesting low tax jurisdiction but it is not a tax haven. At least not any longer.

Andorra is a small country located in Europe between France and Spain. Although the country is not part of the European Union, it uses the euro as its national currency

Historically, Andorra had no income, capital gains, sales, gift, or inheritance tax, and gaining residency was relatively simple. But that all changed after 2015, when the country introduced its own taxation system. This was a direct result of pressure from the rest of the EU, which felt Andorra was being used by wealthy individuals and corporations to avoid paying taxes



Unlike most other tax havens, Andorra does not provide for the easy creation of offshore companies, so it is better suited to wealthy individuals who need offshore banking services than to businesses looking to hide assets in Andorran-based subsidiaries.


Nonresidents must request approval from the Ministry of Economy to own more than 10% of an Andorra-based …

Reporting foreign trust and estate distributions to U.S. beneficiaries

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Above is the Foreign Grantor Trust Beneficiary Statement from the 3520-A
If it's a FNGT?  The U.S. beneficiary should receive a Foreign Non Grantor Trust Beneficiary Statement which includes information about the taxability of distributions they have received and foreign trust income they must report.






The U.S. tax consequences and tax reporting requirements for a trust are determined by the residence and classification of the trust and its fiduciary.A trust is considered a foreign trust unless it meets the "court" and "control" tests. A trust may be an "ordinary" trust or a "business" trust, as described in the regulations. A business trust will not be treated as a trust for purposes of the trust rules in Subchapter J of the Code.A foreign nongrantor trust is treated for U.S. tax purposes as a nonresident alien individual who is not present in the United States at any time. The trust is taxed on income effectively connected with a U.S. trade …