Foreign Taxes

Temporary Regulations Provide Guidance on Form 5471

Effective December 31, 2013, the IRS issued temporary regulations providing guidance on the reporting by U.S. officers, directors, and shareholders of foreign corporations. Generally, this information is required to be reported on Form 5471, Information Return of U.S. Persons with … read more

Filing Taxes for Foreign Students in the U.S. – Part 2

Once a foreign student has determined residency status, as discussed in Part I of this blog, the student and employer should be aware of the tax withholding requirements on wages.  If the student is considered a resident alien, tax withholdings … read more

Filing Taxes for Foreign Students in the U.S.

There are special tax rules for foreign students working in the United States.  The student should first determine if he or she would be considered a U.S. resident alien or nonresident alien for income tax purposes. Generally, foreigners will be … read more

Claiming Treaty Benefits

The United States has income tax treaties with many foreign countries.  These treaties may reduce the U.S. income tax of a resident of a foreign country.  The reduced tax rates or exemptions vary between each country and each type of … read more

Foreign Gift Reporting Requirements

Generally speaking, the United States imposes gift tax on all gifts above a certain threshold. But, in general, in the case of a nonresident not a citizen of the United States, gift tax shall apply to a transfer only if … read more

Foreign Tax Credit – Individuals

If your investment portfolio includes holdings outside of the U.S., it is not uncommon to see foreign taxes withheld on the foreign sourced income it generates.  Generally, you may claim a credit for foreign taxes if the following four tests … read more

United Kingdom Residents Investing in the U.S.

Non resident individuals investing in the U.S. may encounter many tax problems when their home country applies different tax treatment to an investment. One such example of this problem occurs when a United Kingdom investor becomes an owner or partner … read more

Temporary Suspension of "New Form" 8938

Starting in 2011, those taxpayers with foreign bank accounts and/or direct holders of foreign investments will have to file another informational tax form. This Form will be attached to their Form 1040, and does not replace the FBAR Form that … read more


There is nothing more complex than the world of taxes. We know this and yet we chose careers where we face these issues everyday. We get questions day in and day out about new tax laws, forms and news items and how they affect everyday people and businesses. Well, here at Henry & Horne we have set out to do what we do best; help everyday people understand what is going on in the world of state, local, federal, estate and international taxation. We will provide these weekly posts and we encourage you to give us feedback on those posts as well as letting us know what else you would like to know more about. Welcome to "Tax Insights." We hope you find this blog informative and worthy of your time.

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