Tax News

Prior to the Tax Cuts and Jobs Act, in order to qualify as a controlled foreign corporation (CFC), U.S. persons had to control the foreign corporation for an uninterrupted period of 30 days.  Classification as a CFC is very important because it requires certain informational reporting and subjects the taxpayer to tax rules such as […]

While we have not heard of any official policy from the IRS, we have been witnessing an unsettling trend.  In the past month we have had three clients who owed taxes received unexpected visits from the IRS.  This is despite being in constant contact with the IRS and having a power of attorney on file.  […]

There are several options for filing status when a U.S. person is married to a non-U.S. person.  First, the standard method is to file as married filing separately.  This is the easiest option as it does not require any election nor does it require your spouse have a U.S. tax identification number.  Next, there is […]

One of the biggest changes the 2017 Tax Cuts and Jobs Act (TCJA) enacted in the international tax arena was section 951A, also known as the Global Intangible Low-Taxed Income (GILTI). GILTI requires certain U.S. owners of foreign corporations to include in their personal income taxes the GILTI from the foreign corporation.  This reporting is […]

The GILTI laws apply to far more taxpayers than expected, require long detailed calculations, and after all that work could likely result in no tax.  However, the cost of ignoring the application, even if no tax is due, could come with very high penalties. Overview On the surface, the new GILTI (Global Intangible Low-Taxed Income) […]

In general, there are not any restrictions on foreigners owning U.S. businesses.  The corporation, LLC, or other business entity files its formation documents with the appropriate state government office in a very straightforward process.  Next, the entity must apply for a tax identification number known as an “EIN.” In the past, there was no problem […]

In general, foreign owned businesses are taxed to their U.S. owners as if they were setup in the U.S.  Therefore, it is very important to determine what the business would be considered for U.S. tax purposes.  In some circumstances, the taxpayer can make an election of how the entity will be taxed.  For various reasons, […]

We had a very fun and successful trip to Hong Kong and China meeting friends and colleagues, seeing the sights, making presentations, and spending time together.  It was a rewarding experience to show my kids different cultures and places, as well as what I have been doing when I am on the other side of […]

The normal tax deadline for individual taxpayers is April 15th.  However, for taxpayers living and working abroad there is an automatic extension to June 15th.  This year, since June 15th is a Saturday, the actual deadline will be June 17th. A few key points to remember: Taxpayers eligible for this deadline are still able to […]

I am honored and excited to be presenting at this year’s Binational Conference of the Colegio de Contadores Publicos de B.C.  The event will take place on June 28th in Tijuana.  Please join us and let me know if you have any questions. Tijuana-Binational-Conference-June-28