Insights
The knowledge and insight from NZ US Tax Specialists, demonstrating our understanding of complex tax issues and challenges facing our clients.
Trusts classification: what you don’t know can hurt you!
Are you getting the classification of your trust correct for US tax purposes? In 2018 the Internal Revenue Service started a campaign targeting foreign trusts’ failure to comply with the filing requirements of US owners[1] of foreign trusts, including ownership, and transactions with a foreign trust. For US expats it is a minefield requiring an experienced US tax practitioner to guide them through.
US Tax principles tested in 2018 Tax Court Case
Gina Gatchell examines a Tax Court case of Virginia-based taxpayers Toso & Salman which tested several US tax principles. These affect all US citizens and residents.
Assist Taxpayers to Comply – AICPA plea to the IRS
The American Institute of Certified Public Accountants (AICPA) penned a letter to the IRS just prior to Friday’s announcement of the end of the shutdown, citing the AICPA’s concerns around the ensuing effects of the IRS shutdown on taxpayers and practitioners.
Treatment of certain foreign currency transactions
Section 988 of the Internal Revenue Code Treatment of Certain Foreign Currency Transactions taxes certain transactions. The general rule is that the disposition of any non-functional currency will be treated as a section 988 transaction. However, there are exceptions, particularly with respect to individuals holding foreign-currency-denominated financial assets and liabilities. Gina Gatchell explains…
NZ tax case attracts international attention
A recent NZ court case involved a tax agent (Chatfield & Co), the Commissioner of Inland Revenue (CIR), the Korean National Tax Service and the NZ Competent Authority (Mr Nash).
Permanent Place of Abode Test
A recent New Zealand court case is the second one in recent years involving the determination of the permanent place of abode concept (‘PPOA’).
NZ tax treatment of foreign retirement accounts
Do you think that the United States has complex tax rules? New Zealand has some to match, and the country’s system of taxing United States retirement accounts such as IRAs warrants the advice of an expert in this area – preferably prior to migrating to New Zealand.
Why you should file a U.S. tax return
Filing a tax return starts the statute of limitations running, whilst any year during which a return is not filed is left open for the Internal Revenue Service to examine.
Troubles with the IRS’s Implementation of FATCA
The National Taxpayer Advocate’s Objectives Report to Congress for Fiscal Year 2016 included a focus on The IRS’s Implementation of FATCA.