Florida Tax Planning: Memo on Foreign Tax Compliance

Recently, I wrote a memorandum to outline the tax compliance matters you will need to attend to regarding the estate planning or corporate work we have structured for our clients. (Click here to read the entire memo.)

Upon the creation of a foreign trust or other type of entity (including but not limited to a foreign corporation), or a domestic trust which contains provisions to become a foreign trust, and at other intervals during the existence of those trusts, there are various informational and tax return filing requirements imposed by the Internal Revenue Service (“IRS”) on the parties connected to the trust or other entity. This memorandum briefly explains the various potential filing requirements for a foreign trust, foreign corporation, or other type of foreign business entity, as well as for a settled trust that may in the future become a foreign trust. This memorandum is not intended to take the place of competent advice from an accountant, tax return preparer, or other tax professional experienced in the filing of tax and informational returns relating to international transactions, but only to put you on notice of filings that may be required. Failure to comply with these reporting requirements may subject the fiduciary, grantor, settlor, and/or the beneficiary(ies) to possible civil penalties, and in some cases, if the failure to file is intentional, criminal penalties. It is highly recommended that professional advice be sought and adhered to in complying with the IRS requirements regarding your activities.

Click here to read the memo.

--Stuart Morris, Esq.