Canadians looking to immigrate to the United States must consider a number of tax issues. Despite similarities in the countries’ taxing systems, some significant differences must be properly planned for to avoid paying significantly higher cumulative taxes. This item focuses on a couple of the major differences that need to be considered before emigrating from Canada.
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International Tax
Form 5472 Filing Requirements to Become More Stringent
The IRS issued final and proposed regulations amending the rules for filing Form 5472.
New Rules on Covered Asset Acquisitions Will Shut Down Transactions to Avoid Sec. 901(m)
The IRS will issue regulations to prevent taxpayers from misapplying the statutory disposition rule in cases where the gain or loss from the disposition of the relevant foreign asset is recognized for U.S. income tax purposes but not for foreign income tax purposes.
Country-by-Country Reporting: Challenges and Considerations
Multinational enterprises should assess the potential challenges that country-by-country reporting could present for their organizations so they can adapt quickly to any future reporting obligations.
Sec. 956 and Subpart F Inclusions, Actual Distributions, and Previously Taxed Income
Previously taxed income rules were designed to prevent double taxation of a controlled foreign corporation’s earnings. Keeping track of a foreign corporation’s earings and profits under the rules can be complicated.
Understanding Your Clients’ FBAR Filing Obligations and Getting Them in Compliance
This item highlights two nuances of the scope of the FBAR reporting requirements that commonly result in filing missteps. For those who are delinquent, this item offers guidance on potential relief from penalties in accordance with applicable IRS procedures.
Filing Protective Claims Following Redetermination of Foreign Tax Liability
U.S. multinationals that have undergone a tax audit in a foreign jurisdiction resulting in additional foreign tax liability may be able to file an amended U.S. return with the IRS to claim a credit for foreign taxes paid. A special 10-year period of limitation applies to refunds resulting from these claims.
Two-Year FATCA Enforcement Transition Period Introduced
Foreign financial institutions that make a good-faith effort to comply with the requirements of the Foreign Account Tax Compliance Act will benefit from lighter enforcement during 2014 and 2015, the IRS announced. The IRS is treating those years as a “transition period” for the implementation of FATCA by withholding agents, foreign financial institutions, and other entities with FATCA reporting and withholding responsibilities.
New Streamlined Procedures and Changes to the Offshore Voluntary Disclosure Program Are Announced
The IRS announced changes to its streamlined filing compliance procedures and its Offshore Voluntary Disclosure Program designed to make it easier for taxpayers to comply with their obligations to report offshore assets and accounts.
Regs. Tighten Form 5472 Filing Requirements
The IRS is amending the rules for filing Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business.
Of Soccer, Samba, and Taxes: An Overview of Brazil’s Indirect Tax System
Brazil has what may be the most complex indirect tax system in the world. This item provides an overview of the four major Brazilian indirect taxes that foreign business investors may encounter, including their scope, sourcing, base, rate, and recoverability.
IRS Announces Two-Year FATCA Enforcement Transition Period
Foreign financial institutions that make a good-faith effort to comply with the requirements of FATCA will benefit from lighter enforcement during 2014 and 2015.
FBAR and FATCA Compliance in the Age of Digital Currencies
Recent guidance and the popularity of new digital currencies raise questions about FBAR and FATCA reporting requirements.
A 21st Century PFIC Regime: Must All Working Capital Be Passive?
Draconian penalties of the PFIC rules may risk pushing U.S. investors toward missing the proverbial “information age” boat.
Changes for Foreign Financial Account Reporting
A new form has sections for including the reason for a late filing and the preparer information and must be electronically filed.
Foreign Corporations: Procedures and Pitfalls in Adopting and Changing Methods of Accounting for Purposes of Determining E&P
This item provides a high-level discussion of the general timing for certain foreign corporations’ adoption of methods of accounting for purposes of determining E&P, the procedural rules regarding how such foreign corporations change their method of accounting, and the importance of understanding when and how a method is adopted in light of the increased limitations such foreign corporations may face in changing methods.
Americans Living Abroad and the Net Investment Income Tax
This article describes how the net investment income tax may affect Americans living abroad.
Eight Countries Sign FATCA Agreements
The United States has signed eight more bilateral agreements to implement the reporting and withholding provisions of the Foreign Account Tax Compliance Act.
Income Derived Through Fiscally Transparent Entities: Practical Issues and Unintended Consequences
This discussion summarizes the general approach adopted by regulations and highlights practical difficulties encountered when determining whether a foreign company is entitled to treaty benefits when investing in the United States through an entity that may be fiscally transparent under the laws of one or more jurisdictions.
Final FATCA Rules Are Issued
The IRS released a large package of regulations needed to implement the Foreign Account Tax Compliance Act.
INDIVIDUALS
Current Developments in Taxation of Individuals: Part 1
This update surveys recent federal tax developments involving individuals, including court cases, rulings, and guidance issued during the six months ending October 2025.
