Outbound transfers of intellectual property can raise difficult tax issues for U.S. persons.
Advertisement
Topics
International Tax
FIRPTA and the Return of Capital Distributions
FIRPTA is quite complex and filled with traps for the unwary, especially in the area of return of capital distributions.
IRS Suspends Foreign Asset, Passive Foreign Investment Company Information Reporting Rules
The IRS announced that it is suspending the information reporting requirements for certain individuals with foreign assets and shareholders of passive foreign investment companies (PFICs) under Secs. 6038D and 1298(f) (Notice 2011-55)
IRS Further Extends Deadline for Certain 2009 and Earlier FBARs
The IRS has further extended the deadline for certain persons to file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), for 2009 and earlier years (IRS Notice 2011-54). The new filing deadline is November 1, 2011. The extension applies to persons with signature authority over a foreign financial account, but no financial interest in the account.
IRS Eliminates Form 5472 Duplicate Filing Requirement
The IRS issued temporary and proposed regulations to remove the duplicate filing requirement for Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business.
Foreign Disregarded Entities May Face U.S. FICA Tax Issue
This item shows how restructuring international businesses to operate through entities disregarded for U.S. federal income tax purposes may also affect the employment tax treatment of the organization’s individual employees.
Emerging Issues for Non-U.S. Shareholders in Corporate Inversions
This item discusses significant potential tax issues for foreign investors that invest in a foreign IPO that is related to the inversion of a U.S. company.
IRS Issues Foreign Financial Account Reporting Guidance
The IRS issued a second notice giving guidance on various reporting requirements under the Foreign Account Tax Compliance Act.
Offshore Voluntary Disclosure Initiative
The IRS announced another special voluntary disclosure initiative designed to bring U.S. persons hiding assets offshore back into the U.S. tax system. This item discusses some of the issues related to the IRS effort to bring U.S. persons into compliance.
The Education, Jobs, and Medicaid Assistance Act of 2010
This item explains significant changes to foreign tax credits made by the Education, Jobs, and Medicaid Assistance Act of 2010.
Form 5471 Penalties
This item discusses the importance of timely filing federal income tax returns that include Form 5471, regardless of whether the return shows a balance due, because of the extensive penalties for failure to comply with the reporting requirements.
Second Offshore Voluntary Disclosure Program Started
The IRS has announced that it is starting a new program designed to bring money held in foreign accounts back into the U.S. tax system and to help taxpayers with income from offshore accounts comply with federal tax law.
FinCEN Amends BSA Regs on FBAR Filings
FinCEN amended the FBAR regulations to clarify when an account is foreign and therefore reportable as a foreign financial account and the definition of key terms like “signature or other authority.”
IRS Announces Second Offshore Voluntary Disclosure Program
The IRS announced that it is starting a new program designed to bring money held in foreign accounts back into the U.S. tax system and to help taxpayers with income from offshore accounts to comply with federal tax law.
New Procedures Permitting Prepayment Review of International Information Reporting Penalties
The authors review the recently published new Internal Revenue Manual (IRM) Section 8.11.5, which permits taxpayers that have been assessed certain international information reporting penalties to elect prepayment review of those penalties by IRS Appeals.
Cost-Sharing Agreements and the Arm’s-Length Standard
The Xilinx case has created turmoil in the international tax community for quite some time, and there is no clear end in sight. Although the Ninth Circuit reversed its controversial decision, uncertainty surrounds the validity of Treasury’s new regulations explicitly requiring that cost sharing include stock options.
The HIRE Act of 2010
In March 2010, Congress enacted the Hiring Incentives to Restore Employment Act, which includes provisions to encourage employers to hire new employees and to make new capital investments. This article discusses these new incentives, as well as the revenue-raising provisions included in the act to offset their cost.
Scope of Foreign Trust Provisions in the HIRE Act
This article analyzes the foreign trust provisions of the HIRE Act and offers some practical guidance for practitioners to consider in their development of best practice procedures.
FATCA: Should U.S. Financial Institutions Be Concerned?
The Foreign Account Tax Compliance Act requires foreign financial institutions to identify U.S. account holders and reveal details about their accounts to the IRS.
Congress Votes to Limit Use of Foreign Tax Credits
P.L. 111-226 makes changes to how corporations can use the foreign tax credit and also terminates the advance refundability of the earned income credit (under Sec. 3507), effective for tax years beginning after December 31, 2010.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
