Form 926 and transfers to a foreign corporation

If you send money or other property to a foreign corporation, you may be required to file Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation. If required to file, Form 926 is filed with your income tax return. It is an informational form only, meaning there is no tax paid …

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FIRPTA withholding on sale of U.S. real estate

The Foreign Investment in Real Property Tax Act of 1980 – a.k.a FIRPTA – gave rise to the withholding requirement when a foreign person sells U.S. real estate. The withholding requirement, which increased from 10% to 15% for sales on or after February 17, 2016, applies to the gross sale price of the property, not …

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ITIN mandatory renewal starts in 2017

The IRS has put into place mandatory renewal of Individual Taxpayer Identification Numbers (ITINs) for certain taxpayers beginning in 2017. An exception to this rule – taxpayers who only use an ITIN on an information return such as Form 1099 will not be required to renew their ITIN. Moreover, the filer of an informational return …

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FBAR Deadline Fast Approaching – Don’t Forget to File

Just a reminder to prepare and file the Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR) with the Treasury Department as the deadline is fast approaching – June 30, 2015. Any United States (U.S.) person or entity with signature authority over or interest in foreign accounts with the …

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