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Santander Bank Polish PFIC Investments | International Tax Lawyers Chicago Illinois

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Hello and welcome to Sherayzen Video Blog. My name is Eugene Sherayzen and I’m an international tax attorney and owner of Sherayzen Law Office, Ltd.

Today, I’m continuing a series of blogs from Chicago, Illinois. Today I would like to discuss a difficult but very interesing subject of PFIC compliance concerning Polish investments. In particular, (I mean) those very popular former WBK bank (now it’s Santander Bank) investments in Polish mutual funds.

These investments are considered to be PFICs for US international tax compliance purposes. PFICs – Passive Foreign Investment Companies have very special and very unfavorable treatment in US international tax law. If you are a US Person who is doing these types of investments, you should be very careful because these investments have to be worth it. Why? PFIC tax compliance could cost you more than a potential gain that you can get from those PFIC investments, especially if we’re talking about small investments. The trouble that they can bring you could be enormous.

Not only are those investments reportable on FBAR and Form 8938 but you also have to consider the fact that you could/would be paying potentially tax at the highest marginal rate in existence on income related to gains from foreign mutual funds.

If you have any of these former WBK bank investments (now Santander bank investments) in Polish mutual funds you should contact me at (952) 500-8159 or email me at: [email protected]

Thank you for watching, until the next time.

Chicago International Tax Lawyer | Reporting of Polish Income Paid in Poland on US Tax Returns

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Hello and welcome to Sherayzen Video Blog. My name is Eugene Sherayzen and I’m an international tax attorney and owner of Sherayzen Law Office, Ltd.

I’m continuing my series of blogs from Chicago, Illinois, United States. Today, I’d like to talk about something that I mentioned in the very first blog from this city and this is the fact that there is a very large Polish speaking community here in Chicago. Polish is still the second most spoken language among immigrant groups here in Chicago after Spanish. But since I’ve started many topics concerning Latin America in my blog from Mexico City, I wanted to focus today on the discussion of Polish-related issues, particularly income tax reporting concerning Polish-source income.

The reason why I thought about this topic is because I recall I had client from Chicago whose mother runs a successful busines in Poland and in order to reduce her Polish taxes, she would pay a salary to her daugher but her daughter never reported the Polish-source income, that is never until she came to know about the worldwide income reporting requirement. This is precisely what I wanted to emphasize in this blog:

Just because an income is paid in Poland to a Polish account of a US person, this income, and if this income is never brought into the United States, this will not be enough for this income not to be taxed in the United States.

The worldwide income reporting requirement applies irrespective of whether the income ( the foreign-source income) is ever brought into the United States.

Thank you for watching, until the next time.

US Taxation: Barter Exchange of Gold & Silver | US International Tax Attorney Chicago Illinois

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Hello and welcome to Sherayzen Video Blog. My name is Eugene Sherayzen and I’m an international tax attorney and owner of Sherayzen Law Office, Ltd.

Today, I’m continuing a series of blogs from Chicago, Illinois, United States. In a previous blog I discussed precious metals accounts and the FBAR and FATCA compliance requirements that apply to this type of an account and I promised that I would mention another aspect concerning income tax compliance with respect to precious metals.

I always keep my promises and I want to talk to you about a very interesting question: Does the change of gold for silver trigger income tax compliance requirements? Let’s say you have one bar of gold and you’ve exchanged it for an equivalent amount of silver bars. A barter exchange of gold to silver or gold to platinum or silver to platinum or silver to gold, it doesn’t really matter, is a taxable event. You will have to recognize income on the sale in essence of your gold bar. Let’s say that you bought gold and let’s say it was $1200 an ounce; you were very lucky. Now you’ve exchanged it for silver and the price for gold today is say $1850 an ounce which is not that far from the literal price as of today. While that exchange will trigger a gain between today’s price of gold and the $1200 an ounce cost-basis if you had in that gold.

Thank you for watching, until the next time.

FBAR Gold & Precious Metal Accounts Reporting | International Tax Lawyer & Attorney Chicago Illinois

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Hello and welcome to Sherayzen Video Blog. My name is Eugene Sherayzen and I’m an international tax attorney and owner of Sherayzen Law Office, Ltd.

Today, I’m continuing a series of blogs from Chicago, Illinois, United States. For some reason, that I still do not fully understand, there’s an inordinant amount of people in Chicago who came to my office with respect to FBAR compliance concerning their precious metals accounts.

This is a good time to discuss FBAR compliance concerning precious metals. If you own a gold bar or more realistically gold coins and you place them in your safe at your house, even if this house is located in Switzerland, that is not a reportable account. However, if you place your ownership of precious metals (when I say precious metals, I mean gold, silver, platinum, valuable minerals etcetera). If you place these items, these precious metals with a bank in the bank vault and there is a number that identifies your ownership of these precious metals, then this is a reportable account for FBAR purposes. Interestingly enough, it’s also a reportable account for FATCA purposes on Form 8938.

As long as there is a fiduciary relationship with respect to precious metals that you own, there will be a reportable foreign account; of course it has to be a foreign account in order to be reportable for FBAR/FATCA purposes. If you have it here somewhere in the United States, that of course would not matter and for some inexplicable reason, there has been a very large number of people from here (Chicago) who came to my office and asked me to do FBAR compliance or to do an offshore voluntary disclosure with respect to their prior FBAR noncompliance concerning their foreign precious metal accounts.

(But) I want to warn you in this video, if you have any of these accounts, you need to make sure that you are fully compliant with US international tax law with respect to FBAR compliance, with respect to FATCA compliance and with respect to foreign income reporting requirements. You have to report any income from sale of your foreign precious metal accounts or precious metals, I should say.

In the next blog, I will talk about another income tax aspect of having foreign precious metals accounts.

Thank you for watching, until the next time.

Chicago Illinois International Tax Lawyer: Link Between FATCA and IRS Offshore Voluntary Disclosure

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Hello and welcome to Sherayzen Video Blog. My name is Eugene Sherayzen and I’m an international tax attorney and owner of Sherayzen Law Office, Ltd.

Today, I’m continuing my series of blogs from Chicago. I’m in Grand Park in downtown Chicago. As I mentioned in a previous blog, this park has a very special meaning for me because it was precisely here where Obama made his speech and it was precisely under the Obama administration when FATCA the Foreign Account Tax Compliance Act, the most influencial piece of legislation, in US international tax law history was passed into law.

Once of the most important things we should note about FATCA is the link between FATCA and the popularity of the various IRS voluntary disclosure programs, including OVDP, the 2009 OVDP that was put into place while FATCA was still under discussion, the 2011 OVDI, the offshore voluntary disclosure initiative – a highly successful offshore voluntary disclosure program and it was precisely highly successful because of FATCA. It was FATCA that was a major impetus for US owners of foreign accounts to bring themselves into full compliance with US international tax laws and of course the 2012 OVDP with its modification of 2014 OVDP as well as the 2014 Streamlined compliance programs: the Streamlined Domestic Offshore Procedures and Streamlined Foreign Offshore Procedures.

All of these voluntary disclosure programs are directly linked to FATCA. Without FATCA, they would never have been as successful as they were and US international tax rules would not have had such a big impact as they do today.

In the next blog, I will talk more about US international tax issues concerning Chicago and (the) people who live here.

Thank you for watching, until the next time.