Field Guide: Form 5471 Category 5a, 5b, or 5c? (Notice 2019-40)
I have been in New York this week to speak at the NYSSCPA’s International Tax Conference. The topic: filing categories for Form…
Field Guide: Form 5471 Category 3 Filing Requirement Analysis
Today, I’m trying something different. Let me know what you think. Field Guide: The Idea About 18 months ago, Cameron Ware and…
Form 5471 Penalty Litigation Demonstrates how Federal Courts Work
Form 5471 penalties are still in business By now, you have undoubtedly heard about the Farhy v. Commissioner case: a Tax Court…
Check-the-Box Election and Self-Employment Tax
Background Making the check-the-box election for a foreign operating business will make sense for many people. Certainly, it eliminates the dreaded Form…
Despite What the IRS Thinks, Form W-8CE has No Filing Deadline
A quick expatriation topic for you. Covered expatriate defined Covered expatriates are U.S. citizens or long-time green card holders who terminate that…
Form 5471 Category 1 Rarely Applies, and Never* for a New U.S. Resident
Typical scenario A nonresident owns 100% of a foreign corporation’s stock. Neither the shareholder nor the foreign corporation have any contact with…
How To Make Domestic Corporation Stock Not be a USRPI
International Tax Insiders Just dropping it here: if you want to join a group of international tax pros, maybe you’ll want to…
Deduction or Capitalization of Carrying Costs for U.S. Real Estate
Nonresident Owns a U.S. House The scenario is a common one: a nonresident individual owns a house in the United States. Having…
Don’t Forget Section 367(b) when Working with Foreign Corporations
Summary I engineered a Section 368(a)(1)(D) reorganization in 2023 involving two CFCs. Form a new corporation, contribute the stock of OldCo to…
Branch Profits Tax for Rental Income
This week I am writing about how rental income is taxed for nonresident investors in U.S. real estate, and when using a…