Will This Black American Woman Be Forced To Renounce US Citizenship?

Will This Black American Woman Be Forced To Renounce US Citizenship?

Kathleen Dameron was born in East St. Louis, MO. She volunteers as a Democratic voter out reach. Out of the thousand of people she has toaked to, exactly no one has demanded Citizenship Based taxation. Yet, here we are. In completely contentious times like these, Democrats, Independents, and Republicans can all agree the US tax code is a dumpster fire. So much so, Kathleen is very close to being forced to renounce her US citizenship. Watch this video to gind out exalty why. Joining is is John Richardson of citizenshipsolutions.ca whose unparalleled expertise offer quite an indictment of US law, alogn with Keith Richardson, advocate for the US person aboard. Parent & Parent LLP 144 South Main Street Wallingford, CT 06492 (203) 269-6699 https://ift.tt/1RfwK1f https://youtu.be/UaTILxfPs0M IRS Medic

US District Court Welcome's IRS new Sec 965 wealth tax. Inside the horrible decision of Moore v. US

US District Court Welcome's IRS new Sec 965 wealth tax. Inside the horrible decision of Moore v. US

The US tax code is so complicated that US Federal Judges are wholly incompetent to adjudicate tax matters. That is the claim. But seriously, how smart should we expect federal judge to be? In fact, the judge who got the result in Moore v US is probably a VERY smart person. But he was no match for the utter density and complete disaster that the US Tax Code has devolved into. The judge was must have been completely oblivious to what he signed on to. Section 965 Transition Tax -What is it really? In 2018, the IRS imposed a tax on foreign corporations based upon assets the foreign corporations held. In this case, the asset tax was the foreign corporations’ Earnings and Profits. But the IRS did not hold the foreign corporations responsible for payment of the taxes, but rather, its US shareholders. It is important to note that “Earnings and Profits” are not the same thing as “Income.” “Earnings and Profits” are assets located on a balance sheet. Meanwhile income is calculated with an income statement. Taxes on assets are called property or wealth taxes. The Court in Moore didn’t even require the taxpayers to receive any money to pay this tax bill. You can be taxed on property that isn’t really yours, in a country where you don’t actually live that you must pay with income you never received. Section 965 of the US. And now we wonder. What could be worst than this? IRSMedic Parent & Parent LLP 144 South Main Street Wallingford, CT 06492 (203) 269-6699 https://youtu.be/BQd6YODiTIg IRS Medic

Fed up with FATCA, FBAR, GILTI. etc? Take this SEAT - Stop Extraterritorial American Taxation!

Fed up with FATCA, FBAR, GILTI. etc? Take this SEAT - Stop Extraterritorial American Taxation!

SEAT is an independent, nonpartisan organization with no affiliation with the tax compliance industry. The mission of SEAT is to provide an educational platform for: individuals, politicians, governments, academics and professionals about terrible effects of US extraterritorial taxation. The imposition of US taxation on the residents of other countries damages the lives of the affected individuals, and siphons capital from the economies of other nations while eroding their sovereignty. Founding Members SEAT was founded by: Laura Snyder (President) Laura Snyder is a Paris based lawyer. She is the international member of the Taxpayer Advocacy Panel (TAP) and a member of the Board of Directors of the Association of Americans Resident Overseas (AARO). Keith Redmond (Treasurer) Keith Redmond is an advocate for Americans overseas, Accidental Americans, and others who are adversely affected by the United States imposing its tax code on tax residents of other countries. He is the founder of the 7000+ member social media group American Expatriates. Karen Alpert (Secretary) Karen Alpert is the founder of Fix the Australia/US Tax Treaty, a group advocating for Australia to stand up to extraterritorial US taxation. She is a finance lecturer at the University of Queensland with experience in the US tax compliance industry. Suzanne Herman Suzanne is both a Canadian and United States citizen at birth. She has lived in Canada since the age of 12 and is a tireless advocate against the unfairness of taxation based solely on citizenship David Johnstone David Johnstone is a United States citizen who has lived in France since 2002. He formerly worked in investment banking in Paris and is now disabled. John Richardson John Richardson is a Toronto, Canada based lawyer who assists US citizens and green card holders living outside the United States. He works with individuals around the world with respect to problems linked to FATCA and US citizenship, including renunciation and green card abandonment. His website is: https://ift.tt/1pShFnD. https://youtu.be/8yqsr8k54HU IRS Medic

Why the Glenshaw Glass Test for Income Is Total Crap and Federal Courts just do whatever they want.

Why the Glenshaw Glass Test for Income Is Total Crap and Federal Courts just do whatever they want.

"Taxation is theft." It's not just a catchy slogan. Rather, even for those who think an income tax isn't theft, this video shows still, how the income tax is defined to include things that aren't income. The test for income comes from Glenshaw Glass, a 1955 Supreme Court case, which defined income as an ascension to wealth, clealry realized over which the taxpayers has dominio. And this test is pretty much ignored. Not so much that the test is crap, it actually makes sense. But how it is it applied dilutes the word "income" into nothingness. Joining tax attorney Anthony E. Parent is John Richardson of citizenshipsolutions.ca. The two give precise examples of how the current application of the law reveals that the income tax is simply a way for the government to confiscate whatever asset they want for whatever reason. Here are some of the games the government plays: Loss limitations Tax periods games Credit limitations Phantom income Losses Currency gains PFICs Transition Tax Expatriation Tax The two also discuss how the test for income is completely ignored when it comes to the Government's pet causes. The 16th Amendment only allowed an income tax. What we have now just isn't. Parent & Parent LLP 144 South Main Street Wallingford, CT 06492 (203) 269-6699 info@irsmedic.om https://youtu.be/qrMoATA2m3E IRS Medic

IRSMedic has job openings for the best US tax professionals around the globe!

IRSMedic has job openings for the best US tax professionals around the globe!

Our business is expanding. We are lookign for US tax professionals with international experience to work remotely. Parent & Parent LLP currently has several job openings. We are looking for tax professionals around the globe with international experience. We are looking for both seasonal workers and full-time team members. If you are a highly motivated individual who also possesses excellent communication skills, this might be for you. As you will play a critical role in our effort to enhance our brand by delighting our clients worldwide. Let’s talk about what you'll bring  - You must possess an active unrestricted credential: Enrolled Agent, CPA, or Practicing Attorney with strong tax preparation experience and extensive knowledge of tax laws  You must possess or be able to obtain any related State licenses, certificates, permits, or bonds.  You must possess an active PTIN, 3 or more years of recent experience preparing federal and state individual 1040 tax returns for clients/customers, using commercial tax preparation software. You possess a working knowledge of Circular 230 Audit experience a plus (IRS and state tax authorities) You are proficient with technology; solid knowledge of computer operations and software  You must have a dedicated reliable hardwired internet connection  You possess strong client service skills - with an ability to interact with clients and team members around the globe with video and audio tools in a way that is professional, friendly, and reassuring.  You have the ability to work in a fast-paced environment with minimal supervision  Critical thinking, problem solving, research skills and determination are key. Knowledge of other countries tax regimes is a plus; Multi-lingual communication skills are a plus  This is a client-facing role; you will be using our state of the art SECURE video and audio communication software. You will not be frustrated with technology issues, but rather, you will be on the forefront of all of the best, most secure IT developments.  You will create high quality client interactions and experiences that instill confidence utilizing your deep empathy, along with your substantial knowledge, curiosity, and expertise in the field of tax preparation and tax resolution.   You will utilize and leverage government websites, professional resources, and team expertise to seek out and deliver the best answers to clients using everyday language  If you love making clients happy all day every day and want to be part of a great team, then you are strongly encouraged to apply. Simply forward a cover letter and email to employment@irsmedic.com and we will get back to you promptly.  Parent & Parent LLP 144 South Main Street Wallingford, CT 06492 (203) 269-6699 info@irsmedic.com https://youtu.be/xMxpaDSlaZI IRS Medic

Tax consequences of an expired (or not) US Green Card: The Twilight Zone Edition

Tax consequences of an expired (or not) US Green Card: The Twilight Zone Edition

Did you know that it is possible for you NOT to have a legal right to enter the US yet still be treated as a US tax resident on your worldwide income? That's right, the IRS can impose taxes and penalties on you - even if you can not legally come into the United States. This is just one of the many absurdities that can result when your earn a US Green Card but are not aware of how all the laws work. In this podcast, Immigration/Tax lawyer John Richardson of citizenshipsolutions.ca and Keith Redmond of American Expatriates 2.0 on Facebook join host Anthony Parent as they discuss some of the most bizarre hypothetical: 1. When it make sense to expatriate for tax purpose 2. Meghan Merkle's and Prince Henry's likely escape from the exit tax trap 3. The 8 year decision point. 4. Other ways you may want to enter in the US aside from a Green Card - it might be the wrong thing 5. What to do if you are not in compliance or are worried about something else. Parent & Parent LLP 144 South Main Street Wallingford, CT 06492 (203) 269-6699 info@irsmedic.com https://youtu.be/bHXdm97I5JI IRS Medic

Can the IRS Exit Tax be retroactive? Does IRC Section 877A go back in time?

Can the IRS Exit Tax be retroactive? Does IRC Section 877A go back in time?

Prior to 2004 a Certificate of Loss of Nationality (CLN) was not needed to renounce ones US citizenship for tax purposes. In 2004, that all changed with a law, Section 877A which now requiresd a CLN There is considerable debate whether or not Section 877A is retroactive in cases where a CLN was not issued. If a the interpretation that 877A is retro-active that would mean many US citizens are missing years of tax returns and foreign reporting. An because they would still be considered US persons, they would need to file Form 8854 and expatriate correctly,y including paying an Exit Tax, if due. One of the top experts, if not the top expert on nationality issues and how they relate the the IRS is John Richardson, Esq. of citizenshipsolutions.ca. John joined host Anthony E. Parent, Esq. of Parent & Parent, LLP a top international tax firm located in Connecticut. With them is Keith Redmond, a global advocate for the American overseas, founder of American Expatriates 2.0 Facebook. The three discuss there conclusions on why 877A is likely NOT retroactive, but why few professionals are willing to say that and give more detail to an article John wrote in 2015 on this subject at Isaac Brock Society https://ift.tt/2E8zaUl Parent & Parent LLP 144 South Main Street Wallingford, CT 06492 (203) 269 6699 info@irsmedic.com https://ift.tt/1RfwK1f https://youtu.be/xfqRLjYMozQ IRS Medic

How to Renounce Your US Citizenship: A Quick Start Guide

How to Renounce Your US Citizenship: A Quick Start Guide

Other Links: Common Questions on Renouncing US Citizenship https://youtu.be/j-ldR0VncF0 Dedicated podcast on answering specific US and hypothetical questions https://ift.tt/2V8jm9p https://ift.tt/1pShFnD American Exptriates 2.0 on FaceBook Https:/www.irsmedic.com https://youtu.be/jPl2QGFsAl8 IRS Medic

Renouncing your US citizenship: Top Questions Answered.

Renouncing your US citizenship: Top Questions Answered.

Questions about renouncing your US citizenship. This video might answer some Joining attorney Anthony E. Parent are Keith Redmond, global advocate oft he America abroad and admin of American Expatriates 2.0 on Facebook, along with attorneys John Richardson of citizenshipsolutions.ca as they answer the most common questions people have about their relinquishing or renouncing their US citizenship FAQs includes: Can you actually renounce your US citizenship? Do you have to renounce your citizenship to become a US citizen? How long does it take to renounce your citizenship? Can you renouncing your US citizenship and still remain in the US? Get you get your citizenship back after renouncing? Can you get a green card after renouncing? Can you get a visa after renouncing? Is giving up a green card the same as renouncing? How do you renounce your citizenship? Does it matter when you made an act? What about taxes? What if you are not in tax compliance and renounce? = Is there a cheaper way to get into tax compliance? What if I don’t qualify for the Streamlined Disclosure Program? What about the US exit tax? If you are born with dual citizenship are you still subject to the exit tax? If you have questions, leave them below in the comments below! https://youtu.be/j-ldR0VncF0 IRS Medic

Share this US Expat Tax Survey far and wide!

Share this US Expat Tax Survey far and wide!

Laura's survey here: https://ift.tt/2UcWju6 Washington DC is full of people inoculated from the horrors of the Congress' laws. We NEED TO MAKE SURE EVERYONE IN DC KNOW THE REAL STORY! Share this incredible US Expat tax survey conducted by Laura Snyder on behalf of the Taxpayer Advocate with everyone you know, including your congressperson. We can't expect any positive changes until Washington actually understands and appreciates the impacts of their current laws. Too often the IRS bears the brunt of the blame. But the fact is, as guests John Richardson, Keith Redmond and Laura mention, often times it is the unelected government bureaucrat that is far more humane and reasonable than Congress. This seems like a failure of our Republic. A potential cure is to blast this survey and the others that support it to Congress all day and night until they finally get it through their thick heads that their dumb tax laws fail to raise revenue, waste resources of the IRS, and terrorize and diminish Americans everywhere. https://ift.tt/39eBDpV https://ift.tt/39eBhQi Thanks to attorney John Richardson of citizenshipsolutions.ca and Keith Redmond, global advocate for the American aboard, you can find him on Facebook at American Expatriates 2.0. Parent & Parent LLP 144 South Main Street Wallingford, CT 06492 (203) 269 -6699 info@irsmedic.com https://youtu.be/v0RIPUCihEA IRS Medic

IRS Form W8-BEN-E discussed and explained

IRS Form W8-BEN-E discussed and explained

How do you fill out IRS Form W8- BEN-E. Even if you are familair with the US tax code, Form W8-BEN-E can challenge even experience tax professionals. In this video, Ryan Socash of KultAmerica discusses advice his tax team in Europe gave him about how to fill out IRS Form W8-BEN-E. Ryan looked at the instructions and thought his tax team made an error. So he and tax Attorney Anthony Parent thought ti would be great to analyse who was right while the two dicusss general questions about IRS Form BEN-E. And you probably can guess who was right (hint: he is a huge fan of our channel). Form W8-BEN-E is a critical tax document used by entities around the world which provide services to their American counterparts. Common reactions to this form include confusion, insecurity, and frustration. However, when handled by a professional Tax Attorney W8-BEN-E is not difficult or expensive to resolve. In this episode of Tax-line, Attorney Anthony parent breaks down the purpose for Form W-8-BEN-E, and offers insight on how to properly complete it with out opening new liabilities. https://youtu.be/mdowoMfeDb0 IRS Medic

IRS Form 3520 and 3520-A Penalty Relief Program: Can it work for your foreign retirement reporting?

IRS Form 3520 and 3520-A Penalty Relief Program: Can it work for your foreign retirement reporting?

Understand that the IRS can not be expected to know the IRS does. At the SAME EXACT TIME the IRS announces a penalty relief program, the IRS still sends out automatic computer generated Form 3520 and Form 3520-A for $10,000 a piece...in error. Even our clients have received these completely wrong penalty notices that we have forced the IRS to take back. But we wonder - does the average taxpayer or tax professional know when the IRS is wrong about Form 3520 or Form 3520-A? In this video, guests tax attorney John Richardson and citizenshipsolutions.ca and Keith Redmond of Americans Expatriates 2.0 join Anthony E. Parent, Esq. and the three discuss the new IRS Form 3520-A Form 3520 penalty relief program (a program the IRS wouldn't need so much if they stopped wrongfully assessing Form 3520 and Form 3520-A penalties) for US taxpayers who have foreign pensions overseas where they live as expats, or had pensions before they came to the US. The new program allows certain taxpayers from having to file an otherwise-required Form 3520 or Form 3520-A. But this only applies for foreign pension and pension like accounts - not for true foreign trusts or foundations. Also there are contribution limits yearly and total to be aware of. Additionally, taxpayers must be in compliance in order to use the program. For help with this program or how to reduce or eliminate your IRS penalty exposure follow the links to IRSMedic.com info@irsmedic.com Parent & Parent LLP 144 South Main Street Wallingford, CT 06492 (203) 269-6699 https://ift.tt/1RfwK1f https://youtu.be/HsAPBYQNF6o IRS Medic

US expats: What kind of tax preparer is best for you?

US expats: What kind of tax preparer is best for you?

Does it make sense to file and prepare your taxes yourself? For some savvy folks, the answer is yes. For others, self-help software and a lot of bulk service providers aren't quite up to snuff. In this videos tax attorneys Anthony Parent and John Richardson discuss the best kind of tax preparers with Keith Redmond, one of the biggest Expat Advocates in the world. While tax reform did make filing taxes easier for most Americans, it did not make anything easier for US expats. And worse, the stakes are high, much higher than domestic returns if something goes wrong. but for US expats, it is common that Form 5471, 8938, 3520-A, 8865 and the like are required. Well that all have $10,000 penalties if the forms aren't filed or are field incorrectly. Additionally there is an FBAR penalty which doesn't require you to owe taxes to be penalized...even worse. So it is important that your return be done right with someone wit hthe irght level of expertise. Whether a CPA, attorney enrolled agent, all three can do a great jo for you -- assuming they are qualified. In this video, we give you some tips on how to qualify someone you are considering. if you feel we are a good fit for you contact us at 888-477-4258 or info@irsmedic.com Our clients come from around the globe to find us. Parent & Parent LLP 144 South Main Street Wallingford, CT 06492 (203) 269-6699 info@irsmedic.com https://ift.tt/1RfwK1f https://youtu.be/aUOJYeHjAg8 IRS Medic

2020 US Expat tax news, updates & compliance tips

2020 US Expat tax news, updates & compliance tips

https://ift.tt/2vcoijt A video every American living overseas really should watch. Between FATCA, FBAR, and tax reform there is a lot of changes that can really have dire consequences if that handled correct. And so too the IRS's new awareness of foreign information return reporting like Form 8938 and Form 5471 Tax attorney Anthony Parent interviews fellow tax attorney John Richardson, Laura Snyder, a lawyer from the IRS Taxpayer Advocate's office, and Keith Redmond, global advocate for the American abroad. The four give candid advice to taxpayers based on their decades of experience. Who needs to be in compliance. What the IRS can do if you are not in compliance. Who is at risk for audit or criminal proceedings? And the four discuss an issue look of how Congress and the IRS look at the problem - and possible ways to get relief for Americans aboard who often have to pay large tax preparation fee just to prove they ow no money to the IRS (or could be due a refund) The video concludes with Attorney Richardson suggesting a Treasury Regulation that could on its own - defeat citizenship based taxation and give the IRS a tax code it can enforce. Parent & Parent LLP 144 South Main Street Wallingford, CT 06492 (203) 269 6699 info@irsmedic.com https://youtu.be/osSq74gEPBQ IRS Medic

The IRSMedic 2020 IRS Form 5471 guide - Part 4: Categories, schedules & fees

The IRSMedic 2020 IRS Form 5471 guide - Part 4: Categories, schedules & fees

Complete guide here: https://ift.tt/2RN1tun How to determine your IRS Form 5471 Category: https://ift.tt/2Rtqrjz Questions of on IRS Form 5471 Schedules: https://ift.tt/318GTJv Questions on IRS Form 5471 Preparation fees https://ift.tt/2O30yF3 US Taxpayers, their CPAs, accountant attorneys, enrolled agents, taxpapyers and even th3 IRS are massively confused by IRS form 5471 rules. In this Part 4 of our 2020 Form 5471 series, Anthony Parent and Robert Hanson discuss the following questions: How do I know what Category I am for Form 5471? Here are some rules of thumb: • If you know that you directly, indirectly, or constructively own greater than 50% of the foreign entity, then you are probably a Category Four and/or Five filer. • If you have had a change in the percentage of ownership of a foreign company, are an officer or director of the company, then you could be a Category Two or Three filer. • Category One is back. Tax Reform brought back Category One, and thanks to the transition tax, this can be a big issue. Do I need Form 5471 schedule H? What is schedule H? Schedule H is the schedule that documents what your earnings and profits are for the year. You will only need this if you are Category Four or Five filer. When was Form 5471 schedule J introduced? Schedule J has been around for as long as we've been doing the form. Schedule P is new. Are there state Forms 5471? We are not aware of any particular information reporting forms at the state level. Some of the issues in recent years have been whether states will actually be taxing GILTI inclusion amounts. Is net income on Form 5471 schedule C cash flow? Not by default, and only in limited circumstances. Schedule C is used in situations where there is a disregarded entity, or just a sole proprietorship. You do not use a Schedule C to report income from a foreign corporation. If you “check the box” and possess an eligible LLC abroad, then you may be able to use schedule C income at that point. What is the average fee for preparation of a Form 5471? It is difficult to define an “average” 5471, as there are simply too many variables from case to case. The simpler cases – such as preparing Form 5471 on a dormant corporation – can be of negligible cost, whereas a more complicated or extensive Form 5471 can cost over $15,000 to prepare. Further, the large firms don’t necessarily want anything other than non-price-sensitive corporations as clients. So for the global entrepreneur, it can actually be very hard to find a firm that can complete a Form 5471 that would survive the toughest scrutiny, and be reasonably priced. https://youtu.be/ptKG3ivP9g8 IRS Medic

The IRSMedic 2020 Form 5471 Guide Part 3: Top preparation and filing questions answered

The IRSMedic 2020 Form 5471 Guide Part 3: Top preparation and filing questions answered

Our entire 2020 Form 5471 guide is here: https://ift.tt/2RN1tun In this video, tax attorneys Robert Hanson and Anthony Parent of Parent & Parent LLP answer the most common question that taxpayers, CPAs, Enrolled Agents, tax preparers, attorneys, controllers - heck - even IRS employees have about IRS Form 5471! Including: When is IRS Form 5471 due? • Do I report controlled foreign corporation bank account information on Form 8938, since it's already on Form 5471? What about an FBAR form? FinCEN form 114? • Where on Form 5471 do you track foreign taxes and credits paid? • Can foreign corporation tax be used as a tax credit on Form 5471? • How does one value a company based on Form 5471? • Is a Form 5471 balance sheet required to be in U.S. dollars? • What schedule does Subpart F income go into on Form 5471? They have traditionally been on Schedule I, did tax reform change it? • How does one amend a Form 5471? If you need help with your own Form 5471 or those of your clients, feel free to reach out to us - info@irsmedic.com 888 477-4258 Parent & Parent LLP 144 South Main Street Wallingford, CT 06492 (203) 269 -6699 https://youtu.be/Jo9u2iI76J0 IRS Medic

The IRSMedic 2020 Form 5471 Guide Part 2: Who has to File Form 5471

The IRSMedic 2020 Form 5471 Guide Part 2: Who has to File Form 5471

Complete Guide here: https://ift.tt/2RN1tun In this video, Anthony Parent and Robert Hanson answer the most common questions taxpayers, CPAs, other tax lawyers, enrolled agents and tax preparers have about who has a Form 5741 filing requirements. Find out the answers to these common Form 5471 preparation and filing questions: • Who should file a Form 5471? • Who must file a Form 5471? • Is an LLC or other limited liability entity considered a corporation for Form 5471? • When employees are given restricted stock or preferred stock, are those reportable on Form 5471? • If you don't own more than 10% of the stock, is there any situation in which you would have to file a Form 5471? • Are there ways that you can legally avoid filing IRS Form 5471? • Is a Form 5471 required if you only own 50%? • Do I need to file Form 8938 if I file Form 5471? • Can I file a Form 5471 separately from a Form 1040 tax return? • When employees acquire more than 10% of stock in a company, are they reportable on Form 5471? • Do I need to file a 5471 if my parents are not U.S. citizens? • Do hedge funds have to file Form 5471? If you or your clients needs help with any Form 5471 issue, from a question about categories to preparing years of unfiled Form 5471s, don't hesitate to contact us. Parent & Parent LLP 144 South Main Street Wallingford, CT 06492 (203) 269-6699 (888) info@irsmedic.com https://youtu.be/DIFti6Q0REU IRS Medic

The IRSMedic 2020 Form 5471 Guide Part 1: Overview - What is IRS Form 5471?

The IRSMedic 2020 Form 5471 Guide Part 1: Overview - What is IRS Form 5471?

Our 2016 Form 5471 series proved to be such a success however, Tax Reform made some of that information obsolete. In this part of our updated guide, international tax attorneys Anthony Parent and Robert Hanson discuss the following commons questions that taxpayers, CPAs, enrolled agent and attorneys have about IRS Form 5471. What is IRS Form 5471? IRS Form 5471 is one of the hand full of forms part of the very consequential international information reporting forms, and it's for US persons who are shareholders in foreign corporations to disclose their ownership of that foreign corporation. It is a form few have to file. But for those who do, it is one the most complicated forms we come across. Is Form 5471 based on US sourced income or worldwide income? Really neither. It's definitely not based on US income and it's not even necessarily based on foreign income per se. For instance, you could have a foreign entity that doesn't generate income and still have a Form 5471 filing requirement. Be aware - Form 5471 actually might not have any tax due. There are some changes where there is not a tax return component but we'll get to that in a little bit. When was Form 5471 introduced? Sometimes 1960s. It has been around a long time. And if you don't file it the IRS has forever to assess. So even if you're missing one an unfiled 5471 keeps your entire return open permanently. So it's really one of those things you want to make sure you get done correctly because any tax year you have however unlikely could be open indefinitely without a correctly filed 5471 if one's required. So what is Form 5471 used for? It is fairly easy for the government to Summons or Subpoena any bank or business record in the United States. But what if the records were located overseas? Even with FATCA, it is very difficult and expensive for the IRS to do so. So this is what Form 5471 is meant to do. It is meant to make it as easy for the IRS to audit a foreign corporation owned by US persons as it is to audit a domestic corporation owned by US persons. But of course it doesn’t work that way at all, the forms complications ensure that there is nothing easy about audited a foreign corporation. Yet the Form 5471 labyrinth is enforced by severe penalties. So for many US taxpayers, their best choice is to simply pay the higher costs associated with being in Form 5471 compliance and leave it at that - as they simply have to much to lose. What about a situation you have a dormant 5471 and no income? If you otherwise don’t have tax return filing requirement and a dormant 5471 you might still have still want to file the Form 5471. Sometimes it might pay to be a little bit more conservative with this and file a 1040 within income an attachment 5471 if you're not sure. The benefit of being conservative here is that if you do start making money, you likely won’t forget about your Form 5471 requirement. Is Form 5471 a Standalone Form? It is not considered as such. Although there can be instances where stand alone For 5471 needs to be filed. The form is typically attached to a 1040 variant if filed by an individual or an 1120 variant if filed by a corporation. What’s the difference between an 1120-F and a Form 5471? A foreign corporation files an 1120-F to report its income, gains, losses, deductions, credits, and to figure their U.S. income tax liability. A Form 5471 is used to report certain US shareholders interests in a foreign entity. What is Form 5471 and what is Form 5472? While they are close in numbers, they are actually quite different. Form 5472 is almost the mirror image of the 5471. The 5471 is for US shareholders of foreign corporation and the 5472 is for domestic entities that are held more than 25% by non-US persons that also might have some non-reportable transaction and reportable transactions. Now while the Form 5472 doesn’t get the attention Form 5471 does, it should, as the Form 5472 are much higher than the 547. Tax Reform increased 5472 penalties to $25,000, while Form 5471 penalties remain at a still extreme, $10,000. Parent & Parent LLP 144 South Main Street Wallingford, CT 06492 Assisting US taxpayers worldwide (203) 269-6699 (888) 477 4258 https://youtu.be/9x-VCwWU8m8 IRS Medic

Tax preparation for US citizens moving abroad - don't get surprised!

Tax preparation for US citizens moving abroad - don't get surprised!

Joining is our great friend, Ryan Socash of Kult America. He helps us discuss some of the most common tax situation expats like himself encountered while building a new life for themselves overseas. Are you a US citizen considering employment in a foreign country? Although working abroad is a fantastic way to take advantage of new opportunities a top priority must be tax planning. The IRS enforces compliance on all citizen professional abroad, from English teachers to business tycoons or artist you must educate yourself on American tax compliance as it is the law! If you need help with your tax situations, follow the links to our website. https://ift.tt/35PpUfZ Parent & Parent LLP 144 South Main Street Wallingford, CT 06492 (203) 269-6699 info@irsmedic.com https://youtu.be/I6e2dEmjM1c IRS Medic