By: Jerald David August

Chair, International Taxation and Wealth Planning Group

This is the fourth and last segment to the set of posts that summarizes the expatriation rules contained in the Internal Revenue Code. This last segment addresses exceptions to the mark-to-market rules under Section 877A and moves onto to address the somewhat overlooked succession tax under Section 2801.

Exceptions to the Mark-to-Market Tax Under Section 877A

The mark-to-market tax applies to most types of property interests held by the individual on the date of relinquishment of citizenship or termination of residency, with certain exceptions.… Continue Reading

By: Jerald David August

Chair, International Taxation and Wealth Planning Group

 

Set of Expatriation Blog Posts

This is the third in a series of blog posts on the US income and wealth tax implications of expatriation. This post sets forth the U.S. approach to the expatriation of a U.S. citizen and long-tern resident prior to the effective date of the Heroes Act of 2008 which applied to expatriations occurring after June 16, 2008.… Continue Reading

By: Jerald David August

Chair, International Taxation and Wealth Planning Group

Set of Expatriation Blog Posts

This is the second in a series of blog posts on the US income and wealth tax implications of expatriation. This post sets forth the U.S. approach to the expatriation of a U.S. citizen and long-tern resident prior to the effective date of the Heroes Act of 2008 which applied to expatriations occurring after June 16, 2008.… Continue Reading

By: Jerald David August

Chair, International Taxation and Wealth Planning Group

 

Introduction of Set of Expatriation Blog Posts

This is the first in a series of blog posts on the US income and wealth tax implications of expatriation. This post sets forth an introduction into the minefield of tax and non-tax considerations for an individual to consider, with the advice of US and foreign legal and tax counsel, on the merits and drawbacks of expatriation.… Continue Reading

By: Jerald David August, Chair, Fox Rothschild LLP International Taxation and Wealth Planning Group

The Internal Revenue Service recently issued proposed regulations, REG-10476-18, 2019-27 IRB 63, with respect to withholding and information reporting for certain dispositions of partnership interests by non-US persons who are partners in a partnership that is engaged in the conduct of a US trade or business. Under the Tax Cuts and Jobs Act, P.L.… Continue Reading

By Jerald David August, Chair, International Taxation and Wealth Planning Group

The government recently issued temporary regulations under section 245A which provides a 100% dividends received deduction (DRD) for certain dividends received by a US corporation from a current for former controlled foreign corporation (CFC) defined in section 957. The provision is frequently referred to as the participation exemption which many countries have already had in place with respect to their domestic corporations in investing in subsidiary or affiliate corporations overseas.… Continue Reading

By: Jerald David August, Chair, International Taxation and Wealth Planning Practice Group

The Tax Cuts and Jobs Act, P.L. No. 115-97, §13923, added new Sections 1400Z-1 (Qualified Opportunity Zones) and 1400Z-2 (Gains Invested in Qualified Opportunity Zones (“QOZs”), to the Internal Revenue Code (“Code”) under the Tax Cuts and Jobs Act. The new tax deferral provision has received much attention from taxpayers realizing large capital gains.… Continue Reading

Taxpayer’s Constitutional Challenges Denied

In Interior Glass Systems Inc. v. United States, No. 17-15713 (9th Cir. 2019), a three judge panel of the Ninth Circuit, per the opinion of Judge Watford, affirmed the holdings of the trial court below that the Service’s imposition of four penalties under section 6707A against the taxpayer for engaging in a transaction that was “substantially similar” to a “listed transaction” was proper.… Continue Reading

 

The international business press has recently reported that India has promulgated stricter rules pertaining to tax evasion and related offenses in an effort to limit the number of investigations for tax evasion, including the willful non-disclosure of off-shore bank accounts, which result with taxpayers paying an additional fee in avoiding prosecution and a period of incarceration. In the past, Indian resident taxpayers who did not disclose their foreign bank accounts and other foreign investments required to be disclosed have also avoided prosecution by a special relief rule referred to as “compounding” with the Central Board of Taxes.… Continue Reading

On March 4, 2019 in REG-104464-18, the government released proposed FDII regulations under section 250. The rules provide important computational and definitional provisions in applying section 250. The much-awaited proposed rule-making also contains rules coordinating the deduction for FDII with the  deduction also allowed under section 250 with respect to global intangible low-taxed income (GILTI). Under section 14202(a) of the Tax Cuts and Jobs Act, P.L.… Continue Reading