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U.S. Tax Treatment of U.K. Pension Plans

Contents1 U.S. Tax Treatment of U.K. Retirement & Pension Plans1.1 Types of U.K. Pensions1.2 Step 1: Defined benefit vs. defined contribution foreign pensions1.3 Step 2: Employees’ trust vs. grantor trust1.4 Step 3: Broad-based & non-discriminatory1.5 U.S.-U.K. Tax Treaty U.S. Tax Treatment of U.K. Retirement & Pension Plans Few things are more confusing for U.K. foreign … Read more

IRS Wins Default Judgment in $18M FBAR Penalty Case

Contents1 IRS Wins Default Judgment in $18M FBAR Penalty Case2 Summary of the FBAR suit3 What is an FBAR penalty suit?4 Maximum FBAR penalty amount5 FBAR penalty statute of limitations on assessment6 FBAR penalty statute of limitations on collection7 Challenging FBAR penalties — pre-assessment vs. post assessment Appeals8 What should non-compliant taxpayers do? IRS Wins … Read more

How to Read Tax Treaties

Contents1 How to Read Tax Treaties – Example IRA distribution for U.S. expat in the U.K.2 Step 1: Determine residency3 Step 2: Classify the income4 Step 3: Determine if the saving clause applies5 Step 4: Determine if there is an exception to the savings clause6 Step 5: Claim either a treaty-based return position or foreign … Read more

MMA Fighter in Court Battle re: FBAR Penalty Suit

Contents1 FBAR Penalty Suit: U.S. v. Gracie et al2 Obligation of U.S. persons to report foreign financial accounts3 Applicable statute and regulation4 Alleged FBAR violations in U.S. v. Gracie et al5 Defendants’ motion for partial summary judgment6 Government’s response7 Conclusion8 What should non-compliant taxpayers do? FBAR Penalty Suit: U.S. v. Gracie et al A mixed … Read more

Offshore Tax Compliance — How Fast are you Speeding?

Contents1 Offshore Tax Compliance — How Fast are you Speeding?2 Willfulness, non-willfulness, and reasonable cause2.1 Bob, the willful speeder2.2 Sarah, the non-willful speeder2.3 David, the reasonable cause speeder3 FATCA, red light cameras, and speed traps4 So you’re non-compliant — now what? Offshore Tax Compliance — How Fast are you Speeding? In my offshore tax compliance … Read more

Reporting Foreign Trusts

Contents1 Reporting Beneficial Interest in a Foreign Trust & Form 35202 Defining the entity — what is a “foreign trust”?3 Is it a foreign trust or a U.S. trust?4 Is it a grantor trust or non-grantor trust?5 International information reporting6 Reporting of foreign gifts and inheritances Reporting Beneficial Interest in a Foreign Trust & Form … Read more