Tax traps for new US persons and those thinking of expatriation

Tax traps for new US persons and those thinking of expatriation

We are joined today by guest Keith Redmond, an American overseas global advocate to talk about updates on the Repeal FATCA movement, Territorial Taxation for Individuals, and some tax traps for people who are, or are thinking about becoming a US person. Of concern in the current tax reform package - a one time 14% excise tax on deferred income for Controlled Foreign Corporations. The purpose of this excise tax is to end deferral that some large companies can take advantage of...but...people that live and work overseas that have their own corporation could get hit with this tax. This tax could ruin the smaller guys. While we are glad that people are paying to tax reform and disputing what they think are "unfair" suggestions, there is a glaring terrible tax law already in place that we think people should be outraged about. If someone comes to US with substantial assets and becomes a US person, they are taxed from date of acquisition of their assets, not the date they become a US person. And if they expatriate after that, even if the assets declined in value, they will pay the exit tax even if their assets lost money while they were a US person. Potentially, someone could inherit a property overseas while they were not a US person, do nothing with it, but have to pay an exit tax based on the entire increase in its value even though they were only a US person for a short time. We think the basis should be when you become a US person. So what’s the fix? Sell before you become a US person, they buy right back after. Get tax advice before becoming a US person…get tax advice before expatriating. Parent & Parent LLP 60 EAST 42ND STREET, SUITE 4600 New York, NY 10165 (212) 256-1335 info@irsmedic.com https://youtu.be/dAwMrGG9EbE IRS Medic

What are IRS Form 5471 penalty triggers? How can you avoid them?

What are IRS Form 5471 penalty triggers? How can you avoid them?

Additional "substantially incomplete" triggers found here: http://ift.tt/2BWo2mU In this video international tax expert and managing partner of Parent & Parent LLP Attorney Anthony E. Parent discusses common Form 5471 penalty triggers and why if you own a 10% or more interest in a controlled-foreign corporate you need to be extremely careful when filing a Form 5471. The IRS does not hide the fact that it intends to assess harsh penalty for 5471s that are technically wrong. Do not make the mistake and thick you have a run-of-the-mill tax problem . Form 5471 can require the utmost skill and care when filing or you can face up to a $60,000 penalty for any Form 5471 IRS deems is not in substantial compliance. International Tax Law Firm of Parent & Parent LLP 60 EAST 42ND STREET SUITE 4600 New York, NY 10165 (212) 256-1335 info@irsmedic.com https://youtu.be/raD2_7v8IU8 IRS Medic