There is one important exception to this rule: Per Se Corporations.
The IRS publishes a list of Per Se Corporations per country. There can be only one choice for this corporation; it was always a corporation, nothing else; this entity will always be a corporation.
In France a Societe a Limitee is a SA; in Canada it would be a company or a corporation. If either name appears in the title of the entity, it would be a corporation.
http://sherayzenlaw.com/wp-content/uploads/2018/01/sherlawltd_logo.png00adminhttp://sherayzenlaw.com/wp-content/uploads/2018/01/sherlawltd_logo.pngadmin2020-04-30 15:05:122021-12-28 17:08:53International Tax Attorney Edina | Per Se Corporations
Hello and welcome to Sherayzen Law Office Video blog. My name is Eugene Sherayzen and I’m an international tax attorney.
Today we’re doing a video from Milwaukee, Wisconsin and I was just walking on the streets and I heard French being spoken by two gentlemen, and it put me to mind about Assurance Vie Accounts.
Assurance Vie Accounts are a very common investment in France. Virtually everyone in the French middle class has them. But whenever a French citizen comes to the United States he runs into various problems with respect to reporting the Assurance Vie Accounts.
For example, a lot of Frenchmen do not know that once they become US Tax Residents they are required to report Assurance Vie Accounts on FBARs and if they meet the Form 8938 threshold, they will also be required to report them on forms 8938.
The second problem which is very common with French people who come to the United States is the issue of reporting income from the Assurance Vie Accounts. As you may already know, the income on the Assurance Vie Accounts is not taxable in France; however, it is taxable in the United States and most of Assurance Vie Accounts consist of two parts.
The first part is the investments; investments, usually in foreign mutual funds. The second part of Assurance Vie Accounts consists of the Euro-fund part and basically this is cash that is sitting in the account and just accumulates interest.
Now the interest is calculated under the specific rules which are associated with these Euro capital, but for US Tax Purposes this is just purely interest income.
So the first part which is the investments is the most complicated one because the second one really if you can figure out the interest income, the fees which are withdrawn by the bank from this interest income as well as social taxes which are being imposed by the French government on that income – then it becomes pretty easy. You just figure out what the gross income is; you convert it to US Dollars and you report it on your US Tax Return.
I will not talk today about the issue of deductibility or accrued ability of French Social Taxes. This is a different issue and a complicated one and an unsettled one as well.
But the first part, the investments is complicated because they’re usually considered to be PFICs for US Tax Purposes. As such, they are required to be disclosed on your US Tax Return on forms 8621 even if you didn’t have any transactions.
PFICs require very complex calculations and the part of PFIC gains or PFIC dividend income which are considered to be acts of distribution is going to be taxed at the highest marginal tax in existence plus the interest rate which is being calculated once you allocate your PFIC income throughout the holding period on a per-share basis.
Sounds very complex? It is; it requires a lot of calculations. Most of the information is not readily available; the French banks are not required by the French government to keep this information on file or more importantly to disclose it to French Taxpayers. Only US Taxpayers who need to report these Assurance Vie Accounts on their US Tax Returns, only they need this information and in order to get it, it’s a pain. It may take anywhere between three to nine months to get this information depending on the French institution, depending on whether you have contact with the French bank. If you don’t, it takes longer; usually it requires either a personal visit to a French bank or it may require actually a letter, a good old-fashioned paper letter being mailed to the French bank which holds the Assurance Vie Investments.
So, in short, there are a lot of issues associated with owning Assurance Vie Accounts by US Taxpayers.
If you would like to learn more about Assurance Vie Accounts and the associated US Tax Compliance requirements or you would like to get help with respect to US Tax Compliance, or if you were or think you may be required to comply with US Tax Requirements and haven’t done that yet and now you’re thinking about possible Voluntary Disclosure Options, contact Sherayzen Law Office.
Our professional team headed by myself, Eugene Sherayzen an International Tax Attorney will review thoroughly all of your documents, prepare all of the tax forms and then I will be drafting all of the legal documents associated with submitting your Voluntary Disclosure.
So call or email me now to further discuss your Assurance Vie Accounts. Thank you for watching and until the next time.
http://sherayzenlaw.com/wp-content/uploads/2018/01/sherlawltd_logo.png00adminhttp://sherayzenlaw.com/wp-content/uploads/2018/01/sherlawltd_logo.pngadmin2020-04-29 18:56:132024-01-04 22:47:23Assurance Vie US Tax Compliance | FBAR FATCA Tax Lawyer
Hello and welcome to Sherayzen Law Office Video Blog. My name is Eugene Sherayzen and I’m an International Tax Attorney and today I would like to talk with you about accounts called Lokatas; these are Polish accounts and basically what they are for US Tax Purposes are fixed-deposit accounts like CD accounts in the United States.
A lot of Polish citizens who come to live and work in the United States do not realize that these Lokata accounts need to be reported here in the United States. The reporting has to be done not only from the income tax perspective but also from the perspective of information returns; in other words, US Taxpayers who have Lokata accounts in Poland have to disclose their foreign accounts on forms FBAR and potentially form 8938 as well as to report the income from those foreign accounts on their US Tax Returns, usually form 1040.
Now why is it a problem? Why is it that a lot of US Taxpayers who have these Lokata accounts not report them or do not report income from them? Well, one of the problems is that a lot of these accounts are opened automatically by Polish banks. In other words, these banks open them up automatically; these are Sweep Accounts. They sweep the balance from the savings account and they open up these accounts and they can open them for as little as one day; usually they’re open for at least a month. Some of them are long-term; they can be a year or even two years; but it’s uncommon for Lokata to be open for more than one year.
Because these are automatic accounts created by banks, a lot of US Taxpayers don’t realize that they have to be reported separately from their main savings accounts.
Failure to report Lokata accounts may lead to FBAR Penalties and Form 8938 Penalties in addition to income tax penalties with Accuracy-related Penalties and if the failure to report was intentional, you could also be looking at a 75% Fraud Penalty.
Now, Sherayzen Law Office can help you properly report the income from your Lokata accounts on your US Tax Returns as well as disclose the accounts themselves on the appropriate information returns such as FBAR or Form 8938.
If you would like to learn more about your US Tax Compliance concerning Lokata accounts, you can contact me directly at (952) 500-8159 or you can email me at [email protected].
Thank you for watching until the next time.
http://sherayzenlaw.com/wp-content/uploads/2018/01/sherlawltd_logo.png00adminhttp://sherayzenlaw.com/wp-content/uploads/2018/01/sherlawltd_logo.pngadmin2020-04-29 14:56:432021-12-28 17:29:07Lokata Accounts in Poland & US Tax Compliance | FBAR Lawyers
| 
International Tax Attorney Edina | Per Se Corporations
/in International tax attorney & lawyer Video /by adminThere is one important exception to this rule: Per Se Corporations.
The IRS publishes a list of Per Se Corporations per country. There can be only one choice for this corporation; it was always a corporation, nothing else; this entity will always be a corporation.
In France a Societe a Limitee is a SA; in Canada it would be a company or a corporation. If either name appears in the title of the entity, it would be a corporation.
Assurance Vie US Tax Compliance | FBAR FATCA Tax Lawyer
/in International tax attorney & lawyer Video /by adminHello and welcome to Sherayzen Law Office Video blog. My name is Eugene Sherayzen and I’m an international tax attorney.
Today we’re doing a video from Milwaukee, Wisconsin and I was just walking on the streets and I heard French being spoken by two gentlemen, and it put me to mind about Assurance Vie Accounts.
Assurance Vie Accounts are a very common investment in France. Virtually everyone in the French middle class has them. But whenever a French citizen comes to the United States he runs into various problems with respect to reporting the Assurance Vie Accounts.
For example, a lot of Frenchmen do not know that once they become US Tax Residents they are required to report Assurance Vie Accounts on FBARs and if they meet the Form 8938 threshold, they will also be required to report them on forms 8938.
The second problem which is very common with French people who come to the United States is the issue of reporting income from the Assurance Vie Accounts. As you may already know, the income on the Assurance Vie Accounts is not taxable in France; however, it is taxable in the United States and most of Assurance Vie Accounts consist of two parts.
The first part is the investments; investments, usually in foreign mutual funds. The second part of Assurance Vie Accounts consists of the Euro-fund part and basically this is cash that is sitting in the account and just accumulates interest.
Now the interest is calculated under the specific rules which are associated with these Euro capital, but for US Tax Purposes this is just purely interest income.
So the first part which is the investments is the most complicated one because the second one really if you can figure out the interest income, the fees which are withdrawn by the bank from this interest income as well as social taxes which are being imposed by the French government on that income – then it becomes pretty easy. You just figure out what the gross income is; you convert it to US Dollars and you report it on your US Tax Return.
I will not talk today about the issue of deductibility or accrued ability of French Social Taxes. This is a different issue and a complicated one and an unsettled one as well.
But the first part, the investments is complicated because they’re usually considered to be PFICs for US Tax Purposes. As such, they are required to be disclosed on your US Tax Return on forms 8621 even if you didn’t have any transactions.
PFICs require very complex calculations and the part of PFIC gains or PFIC dividend income which are considered to be acts of distribution is going to be taxed at the highest marginal tax in existence plus the interest rate which is being calculated once you allocate your PFIC income throughout the holding period on a per-share basis.
Sounds very complex? It is; it requires a lot of calculations. Most of the information is not readily available; the French banks are not required by the French government to keep this information on file or more importantly to disclose it to French Taxpayers. Only US Taxpayers who need to report these Assurance Vie Accounts on their US Tax Returns, only they need this information and in order to get it, it’s a pain. It may take anywhere between three to nine months to get this information depending on the French institution, depending on whether you have contact with the French bank. If you don’t, it takes longer; usually it requires either a personal visit to a French bank or it may require actually a letter, a good old-fashioned paper letter being mailed to the French bank which holds the Assurance Vie Investments.
So, in short, there are a lot of issues associated with owning Assurance Vie Accounts by US Taxpayers.
If you would like to learn more about Assurance Vie Accounts and the associated US Tax Compliance requirements or you would like to get help with respect to US Tax Compliance, or if you were or think you may be required to comply with US Tax Requirements and haven’t done that yet and now you’re thinking about possible Voluntary Disclosure Options, contact Sherayzen Law Office.
Our professional team headed by myself, Eugene Sherayzen an International Tax Attorney will review thoroughly all of your documents, prepare all of the tax forms and then I will be drafting all of the legal documents associated with submitting your Voluntary Disclosure.
So call or email me now to further discuss your Assurance Vie Accounts. Thank you for watching and until the next time.
Lokata Accounts in Poland & US Tax Compliance | FBAR Lawyers
/in International tax attorney & lawyer Video /by adminHello and welcome to Sherayzen Law Office Video Blog. My name is Eugene Sherayzen and I’m an International Tax Attorney and today I would like to talk with you about accounts called Lokatas; these are Polish accounts and basically what they are for US Tax Purposes are fixed-deposit accounts like CD accounts in the United States.
A lot of Polish citizens who come to live and work in the United States do not realize that these Lokata accounts need to be reported here in the United States. The reporting has to be done not only from the income tax perspective but also from the perspective of information returns; in other words, US Taxpayers who have Lokata accounts in Poland have to disclose their foreign accounts on forms FBAR and potentially form 8938 as well as to report the income from those foreign accounts on their US Tax Returns, usually form 1040.
Now why is it a problem? Why is it that a lot of US Taxpayers who have these Lokata accounts not report them or do not report income from them? Well, one of the problems is that a lot of these accounts are opened automatically by Polish banks. In other words, these banks open them up automatically; these are Sweep Accounts. They sweep the balance from the savings account and they open up these accounts and they can open them for as little as one day; usually they’re open for at least a month. Some of them are long-term; they can be a year or even two years; but it’s uncommon for Lokata to be open for more than one year.
Because these are automatic accounts created by banks, a lot of US Taxpayers don’t realize that they have to be reported separately from their main savings accounts.
Failure to report Lokata accounts may lead to FBAR Penalties and Form 8938 Penalties in addition to income tax penalties with Accuracy-related Penalties and if the failure to report was intentional, you could also be looking at a 75% Fraud Penalty.
Now, Sherayzen Law Office can help you properly report the income from your Lokata accounts on your US Tax Returns as well as disclose the accounts themselves on the appropriate information returns such as FBAR or Form 8938.
If you would like to learn more about your US Tax Compliance concerning Lokata accounts, you can contact me directly at (952) 500-8159 or you can email me at [email protected].
Thank you for watching until the next time.