Taking risks with Australian Superannuation US tax treatment

Taking risks with Australian Superannuation US tax treatment

http://ift.tt/2eK69Oy Joining Claudine and Anthony in this video is tax attorney Robert V. Hanson. Watch as they dismiss wishful thinking on the IRS treatment of Australian Superannuation Funds. The number one concern of an Australian Superannuation, whether Self-Managed Superannuation Fund (SMSF) or not, is whether it is classified for US tax purposes as a Grantor Trust or an Employee Trust. We always hope for a Employee Trust. Why? Because if it is classified as an Employee’s Trust the reporting is relatively easy and there no tax is due until the date of distribution (which still isn’t great, but but it is better than being taxed on its growth). The reasons we hope our clients aren’t dealing with an Grantor Trust is that taxes will likely be due on growth in the fund ya over year even though it is a tax -deferred vehicle in Australia. Adding insult to injury can be very time-consuming accounting and compliance work to prepare Form 3520-A and Form 3520. And there still make be more complicated forms — Form 8621 if the fund is deemed to be investing in Passive Foreign Investment Companies (PFICs). Yet some claim the Australian Superannuations funds are just like social security thus exempt from US taxation thanks to the treaty. This argument is discussed along with the abundant evidence that contradicts it. Parent & Parent LLP 144 South Main Street Wallingford, CT 06492 (203)269-6699 info@irsmedic.com https://youtu.be/U9ca1h18q4Q IRS Medic