Tax Reform & Subpart F: The good, the bad and what to do about it.

Tax Reform & Subpart F: The good, the bad and what to do about it.

If you are a US person and have a Controlled Foreign Corporation you may be subjected to the dreaded Subpart F rules. While tax reform initially looked promising and helpful, the result is less than desirable. While some income like oil and gas income is no longer subjected to Subpart F, tax reform instituted a hair-trigger test to determine CFC status. And perhaps more consequential, is that tax reform imposed an "excise tax" tax on retained earnings. Meaning if you avoided Subpart F over the years, you may not be able to entirely avoid a 15.5% tax on your built-up foreign income. This new taxing regime is testing our ability to find creative ways to lower our clients' tax bills, while avoiding any of the very severe foreign reporting penalties. Subscribe now so you will learn about these strategies we will be discussing in future episodes. If you are a prospective client contact us at: Parent & Parent LLP 144 South Main Street Wallingford, CT 06492 (203) 269-6699 info@irsmedic.com https://youtu.be/YJ4HaYPofgI IRS Medic