Section 6048 requires US taxpayers to make an annual report regarding financial or asset transfers in relation to the receipt of distributions from foreign trusts. Taxpayers can be penalised if they fail to comply. Unfortunately many taxpayers have been caught out when it comes to reporting foreign retirement investments and other trusts. 

On March 2nd 2020 the IRS released Rev. Proc. 202-17. This change comes into effect on March 16 and provides taxpayers with certain foreign investments with an exemption from section 6048 reporting requirements on those investments. Accordingly, eligible US citizens with some tax favored foreign retirement investments and other trusts, have less duties in their reporting requirements. Furthermore, eligible individuals can now apply for a refund of any penalties that they have incurred as a result of section 6048 reporting requirements with their applicable tax-favored foreign trusts. 

The reason behind the change is that there are already a number of restrictions imposed by the countries where those trusts are located and there are already additional reporting requirements in the US under section 6038D regarding interests in these trusts. This alleviates the pressure of being penalized for meeting the section 6048 reporting requirements and reverses the penalties previously imposed in such cases. 

Once the change comes into place it will apply to any prior tax year that is still open. 

One of the reasons this relief is important is because it covers a requirement that many taxpayers and tax professionals haven’t realized was in place. This is because people tended to assume that the tax and reporting requirements were deferred until the point of retirement and they didn’t understand which international information reporting forms were to be used. Alleviating this reporting requirement will help reduce a lot of confusion in the field. 

If you have a foreign retirement or trust investment that may qualify you should look into Rev. Proc. 2020-17 or seek further advice for your specific situation. 

Our Founder, John Marcarian, has won the prestigious Longevity Award in The Finder’s Expatpreneuer Awards 2019.

The Expatpreneur Awards honour foreign-born entrepreneurs running successful expat-owned businesses in or from Singapore.

Read more on the finder website.

Americans living abroad, in countries like Great Brittan, are being affected by tax hikes. Although there are some ways that you can dance around these increases in other countries, it is not always that easy. These increases affect not only those with luxury properties, but more average investors, as well.

UK tax hikes affecting expat property owners: is it too late to act?

Some companies have had to deal with a lot of backlash do to immigration, but here this company is the complete opposite. This company has been able to become better since immigrants have joined the workforce and this article tells you exactly how and why the owner is grateful to their foreign workers.

Immigrants Have Made my Company Stronger

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Disclaimer:
This document is intended as an information source only. The comments and references to legislation and other sources in this publication do not constitute legal advice and should not be relied upon as such. You should seek advice from a professional adviser regarding the application of any of the comments in this document to your fact scenario. Information in this publication does not take into account any person’s personal objectives, needs or financial situations. Accordingly, you should consider the appropriateness of any information, having regard to your own objectives, financial situation and needs and seek professional advice before acting on it. CST Tax Advisors exclude all liability (including liability for negligence) in relation to your reliance in this publication.

If you have concerns regarding the current administrations immigration rulings this article is a great way to increase you immigration knowledge. It explains the current immigration status regarding the H1B visa and the changes that may be heading our way in the future. It also helps to understand how this could be a benefit to America but cause for stricter laws for those hoping to immigrate to the United States.

Stop Panicking: H-1B Visa Reform May Keep More Bright Foreign Minds In The U.S.

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Disclaimer:
This document is intended as an information source only. The comments and references to legislation and other sources in this publication do not constitute legal advice and should not be relied upon as such. You should seek advice from a professional adviser regarding the application of any of the comments in this document to your fact scenario. Information in this publication does not take into account any person’s personal objectives, needs or financial situations. Accordingly, you should consider the appropriateness of any information, having regard to your own objectives, financial situation and needs and seek professional advice before acting on it. CST Tax Advisors exclude all liability (including liability for negligence) in relation to your reliance in this publication.

There are new tax laws that will impact small business owners in 2017. It is always good to be prepared when it comes to taxes and being aware of the changes is essential. There are tighter filing deadlines out there that you need to understand. Taxes are always changing so it is important to keep up to date on them.

New Tax Laws That Impact Small Business Owners in 2017

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Disclaimer:
This document is intended as an information source only. The comments and references to legislation and other sources in this publication do not constitute legal advice and should not be relied upon as such. You should seek advice from a professional adviser regarding the application of any of the comments in this document to your fact scenario. Information in this publication does not take into account any person’s personal objectives, needs or financial situations. Accordingly, you should consider the appropriateness of any information, having regard to your own objectives, financial situation and needs and seek professional advice before acting on it. CST Tax Advisors exclude all liability (including liability for negligence) in relation to your reliance in this publication.

U.S technology startups are in panic over the immigration ban. One company has foreign employees and their advice to them right now is to not travel outside the country. Silicon Valley draws from a global workforce and it makes sense why a ban on immigrants would spark panic in them.

U.S. technology startups panic over immigration ban

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Disclaimer:
This document is intended as an information source only. The comments and references to legislation and other sources in this publication do not constitute legal advice and should not be relied upon as such. You should seek advice from a professional adviser regarding the application of any of the comments in this document to your fact scenario. Information in this publication does not take into account any person’s personal objectives, needs or financial situations. Accordingly, you should consider the appropriateness of any information, having regard to your own objectives, financial situation and needs and seek professional advice before acting on it. CST Tax Advisors exclude all liability (including liability for negligence) in relation to your reliance in this publication.

Almost every business has to face some kind of regulations from government agencies in order to do business in the U.S. or elsewhere. Many of those regulations are designed to protect consumers or spur competition. But there can also be some negative effects for businesses even in the most well-intentioned regulations. Here are 25 regulations that could potentially impact your small business in some way.

U.S. labor market tightening, productivity still weak

Sales of new cars in Germany increased by 10% in January. Last year German automakers sold more vehicles throughout the year than in any other year since 2009. Volkswagen remains the number one automaker, with luxury car designers Audi and Porsche continuing to compete with Mercedes and BMW. Ford and General Motors were the top foreign car manufacturers in Germany in 2016. Analysts predict that this year will not see any increases because of uncertainty in Europe and changes in inflation and petrol prices.

German new car sales soar in January

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In it, Trump calls for, “…economic and other incentives to: induce private sector owners and operators of the Nation’s critical infrastructure to maximize protective measures; invest in cyber enterprise risk management tools and services; and adopt best practices with respect to processes and technologies necessary for the increased sharing of and response to real-time cyber threat information.”

Trump may ask businesses to boost cybersecurity

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Disclaimer:
This document is intended as an information source only. The comments and references to legislation and other sources in this publication do not constitute legal advice and should not be relied upon as such. You should seek advice from a professional adviser regarding the application of any of the comments in this document to your fact scenario. Information in this publication does not take into account any person’s personal objectives, needs or financial situations. Accordingly, you should consider the appropriateness of any information, having regard to your own objectives, financial situation and needs and seek professional advice before acting on it. CST Tax Advisors exclude all liability (including liability for negligence) in relation to your reliance in this publication.