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New Changes Are Coming to Partnership Withholding

In International Tax, Offshore Tax, Partnership Tax, Tax Reform by Vu LeLeave a Comment

Section 13501 of the Tax Cuts and Jobs Act created a withholding requirement on the transfer of non-publicly traded partnership interests[1] by amending §§864(c) and 1446 of the Internal Revenue Code.[2]   Section 864(c)(8) provides that gain or loss from the sale, exchange, or other disposition of a partnership interest by a nonresident alien or foreign corporation is effectively connected with …

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20/22 Vision – Tax Consequences for Puerto Rico

In International Tax, Offshore Tax by Zach MontgomeryLeave a Comment

In 2012, Puerto Rico enacted two pieces of legislation to encourage and attract an infusion of foreign capital—Act 20 and Act 22. These two acts provide tax incentives for both individuals and businesses depending on their circumstances. Taxpayers looking for tax-saving opportunities should consider the benefits of these two acts, especially in relation to the U.S. tax system and recent …

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The Paradise Papers Continue to Shed Light on the Use of Offshore Tax Havens

In FATCA, FBAR, Offshore Tax, OVDP by Jason Freeman and Spencer BanksLeave a Comment

The Paradise Papers represent the latest large-scale leak of financial documents believed to link thousands of companies and individuals to hidden offshore accounts and secret tax havens.  The leak was massive, totaling some 1,400GB of data—that translates to an estimated 13.4 million documents covering a period from 1950 to 2016.[i]Nearly half of the leaked documents come from corporate registries in …

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Foreign-owned domestic disregarded entities: The new reporting requirements

In International Tax, IRS Regulations, Offshore Tax by Jason FreemanLeave a Comment

Domestic disregarded entities wholly owned by foreign persons are now subject to new reporting obligations. The Treasury Department and the IRS recently issued final regulations (T.D. 9796) that treat such entities as domestic corporations rather than as disregarded entities for purposes of the reporting requirements under Sec. 6038A. The regulations are effective for tax years beginning on or after Jan. …

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An Update on International Tax Enforcement

In Audit, International Tax, Offshore Tax, OVDP by Jason FreemanLeave a Comment

International tax enforcement remains one of the nation’s top tax priorities. Indeed, a number of important developments over the past year signal that offshore enforcement issues remain firmly in the government’s crosshairs. Notably, the past year saw the Treasury Department implement several key regulations that impose new reporting obligations and that are designed to increase transparency and promote its ability …

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Offshore Tax Evasion Remains on IRS “Dirty Dozen” List for 2017

In International Tax, Offshore Tax, OVDP by Jason FreemanLeave a Comment

Every year, the IRS compiles its “Dirty Dozen” list of tax scams/priorities—a list of tax enforcement priorities that the IRS and the Department of Justice work closely to address and, where appropriate, prosecute.  Not surprisingly, offshore tax evasion is once again among the agency’s top enforcement priorities. Offshore tax evasion has been a high priority since the IRS’s rollout of …

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A Brief on the New Final Regulations For Shareholders of PFICs

In International Tax, Offshore Tax by Jason FreemanLeave a Comment

The IRS recently issued final regulations that will affect United States persons that own interests in PFICs, and certain United States shareholders of foreign corporations.  The new regulations provide guidance on determining ownership of a passive foreign investment company (PFIC) and on certain annual reporting requirements for shareholders of PFICs to file Form 8621, ‘‘Information Return by a Shareholder of …

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The Swiss Bank Program: The Justice Department Announces Final Resolutions

In International Tax, Offshore Tax, OVDP by Jason FreemanLeave a Comment

The Justice Department recently announced that it has reached final resolutions under the Swiss Bank Program. The Program allowed cooperating Swiss banks to resolve their potential U.S. criminal liabilities and to cooperate in DOJ’s ongoing investigations into the use of foreign bank accounts by U.S. taxpayers to commit tax evasion. The announcement marked the completion of the examination of Category …

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IRS Issues Final Regulations Governing Foreign-Owned Single Member LLCs

In International Tax, Offshore Tax by Jason FreemanLeave a Comment

In December, the IRS issued final regulations that treat a domestic disregarded entity that is wholly owned by a foreign person as a domestic corporation separate from its owner for purposes of the reporting, record maintenance, and associated compliance requirements that apply to 25-percent foreign-owned domestic corporations under section 6038A of the Internal Revenue Code.  A link to the final …