FILING US TAX RETURNS AND FBAR’S ARE NOT THE WHOLE STORY: THE FOURTH IN A SERIES ABOUT OTHER US TAX SURPRISES – REPORTING REQUIREMENTS – IRS FORM 5471 – Category 4 Filers

US TAX SURPRISES AND REPORTING REQUIREMENTS SERIES US Taxes for Non-Residents

US persons who have ownership interests in foreign corporations, or who are directors or officers of foreign corporations, are subject to special reporting rules.  The first article of this series provided the general reporting requirements under Form 5471; the second article of this series about the reporting requirements of “Category 2 Filers”, which are the…

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Foreign Earned Income Exclusion

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The US taxes its citizens and residents based on their worldwide income. A US citizen living abroad can elect to exclude a certain amount of foreign earned income on his or her US income tax return, if certain requirements are met. For 2013, the maximum foreign earned income exclusion (“FEIE”) amount is $97,600 per taxpayer (amount indexed for inflation each year). The FEIE is available only to exclude income from wages or self-employment income earned for services performed outside the US. The FEIE is claimed on IRS Form 2555.

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FILING US TAX RETURNS AND FBAR’S ISN’T THE WHOLE STORY: THE SECOND IN A SERIES ABOUT OTHER US TAX SURPRISES – REPORTING REQUIREMENTS – IRS FORM 5471 – Category 2 Filers

FBAR IRS News & Regulations US TAX SURPRISES AND REPORTING REQUIREMENTS SERIES US Taxes for Non-Residents

US persons with ownership interests in foreign corporations or who are directors or officers of foreign corporations are subject to special reporting rules.  The first article of this series provided the general reporting requirements under Form 5471.  This article will focus on the reporting requirements of “Category 2 Filers”, which are the reporting requirements of…

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US signs Bilateral FATCA Agreements

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Thanksgiving was quite a feast for the US Treasury Department. On November 26, 2013, the US and Costa Rica signed a bilateral agreement to implement the Foreign Account Tax Compliance Act (FATCA) and on November 28, 2013, the US and the Cayman Islands signed a bilateral agreement to implement FATCA. The Costa Rican agreement is…

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FILING US TAX RETURNS AND FBAR’S ISN’T THE WHOLE STORY: RULES AND CATEGORIES FOR IRS FORM 5471

FATCA FBAR International Business IRS News & Regulations US TAX SURPRISES AND REPORTING REQUIREMENTS SERIES US Taxation US Taxes for Non-Residents

US TAX SURPRISES AND REPORTING REQUIREMENTS SERIES Here we will briefly discuss the ownership attribution rules for purposes of Form 5471, and introduce the different filing categories under Form 5471. The rules and reporting requirements for each category of filer are unique and will be discussed in more detail in subsequent articles. Before describing the…

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US and France sign Bilateral FATCA Agreement

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On November, 14 2013, the US and France signed a bilateral agreement to implement the Foreign Account Tax Compliance Act (FATCA). The agreement is based on the Model 1A treaty and requires French financial institutions to report US account holders to the French government, which will then report those accounts to the US. Similarly, US financial institutions are required…

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