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In order to force ‘Specified Persons‘ to report all of this; there’s a set of penalties. ‘Failure to File’: $10,000 per form. If the IRS sends out a notice and within 90 days the person still does not file the form the penalty accumulates at about $10,000 per month capped at $50,000. Accuracy-related penalty: if […]
In my handout you see that here the general definition of under the ‘Specified Domestic Entity’ table we see the general definition here directly from the Treasury Regulations 1.6038D-6(a) and it says: ‘A specified domestic entity is a domestic corporation, a domestic partnership or a trust described in IRC Section 7701(a)(30)(E), if such a corporation, […]
Who is required to file Form 8938? ‘Specified Persons’. Okay, we are getting real close to our discussion of ‘Specified Domestic Entity’. Specified Persons until 2016, or if you want to be more technical, until all the tax years that start after December 31, 2015, if you want to take the direct line and use […]
If the ‘Specified Individual‘ is a current beneficiary of the trust then the trust is considered a ‘Specified Domestic Entity’. What it means is that any type of a US Beneficiary will make the trust a Specified Domestic Entity by definition; it’s very easy for a ‘Specified Trust’ to be a Specified Domestic Entity. Now […]
Let’s put it put it this way: a majority of foreign companies would be considered as foreign corporations under US Law except the check-the-box rules, that’s a major exception. You can choose what the company will be irrespective of its default classification under US Tax Law. So, in your example if the US Company, a […]