Tax Law Archives | Page 6 of 56

19Oct 2023 by Anthony Diosdi

Why You Need an Experienced Tax Law Attorney in San Francisco, California

Tax Law

The complex world of tax law can be daunting for individuals and businesses alike. Navigating through federal and state tax codes, understanding intricate financial documents, and negotiating with the IRS can be overwhelming. That's where a specialized tax law attorney comes into play. In the bustling hub of San Francisco, California, you'll find no shortage of tax dilemmas that warrant professional assistance. Here’s why hiring a tax law attorney from Diosdi Ching & Liu, LLP can be invaluable. Expertise in Complex Tax Issues Tax laws are complex and constantly evolving, making it difficult for a layperson to keep up with the latest changes. A qualified tax law attorney stays updated on these changes and can provide informed advice. From helping you with tax planning to representing you in tax court, a specialized attorney will…

18Oct 2023 by Anthony Diosdi

When Are You Required to File a Form 3520 with the IRS?

Tax Law

By Anthony Diosdi United States persons with foreign assets are subject to an ever expanding universe of reporting requirements. A prime example of this can be found in Internal Revenue Code Section 667(a). This Internal Revenue Code Section provides that if a United States person beneficiary receives (directly or indirectly) a distribution from a foreign trust, that person is required to make a return with respect to such a trust using IRS Form 3520, and show thereon the name of the trust, the amount of the aggregate distribution received, and any other data the IRS may require. Transfers to foreign trust also need to be reported on a Form 3520. In addition, large foreign gift, bequest, or inheritance that exceeds $100,000 from a nonresident must also be disclosed on a…

18Oct 2023 by Anthony Diosdi

Factors to Consider When Developing a Strategy to Contest a 3520 Penalty

Tax Law

By Anthony Diosdi Chapter 61 of the Internal Revenue Code contains countless reporting requirements regarding foreign information filing obligations. Many of the sections under Chapter 61 impose significant penalties for the failure to comply with its reporting requirements. A well-known provision in Chapter 61 by tax attorneys is Section 6039F. Section 1905 of the 1996 Tax Act created new reporting requirements under Section 6039F for U.S. persons (United states person means United States citizens, United States residents, corporations, partnerships, or limited liability companies created or organized in the United States) that receive large gifts (including bequests) from foreign persons. The information reporting provisions require U.S. donees to provide information concerning the receipt of large amounts that the donees treat as foreign gifts, giving the Internal Revenue Service (“IRS”) an opportunity…

04Oct 2023 by Anthony Diosdi

A Closer Look at the U.S.-Japan Estate and Gift Tax Treaty

Tax Law

By Anthony Diosdi Foreign investors generally have the same goal of minimizing their tax liabilities from their U.S. real estate and other U.S. investments, as do their U.S. counterparts, although their objective is complicated by the very fact that they are not domiciled in the U.S. The U.S. has a special estate and gift tax regime that is applicable to foreign investors that are not domiciled in the U.S. This article summarizes the basic concepts of the U.S.-Japan Tax and Estate Tax Treaty also known as the U.S.-Japan Estate and Gift Tax Treaty. An Overview of the Estate and Gift TaxU.S. Federal law imposes a transfer tax upon the privilege of transferring property by gift, bequest or inheritance. During an individual’s lifetime, his transfer tax takes the form of a gift…

04Oct 2023 by Anthony Diosdi

The United States- Japan Income Tax Treaty and a Closer Look at Issues Involving “Hybrid Entities” in the Taxation of International Transactions

Tax Law

By Anthony Diosdi The major purpose of an income tax treaty is to mitigate international double taxation through tax reduction or exemptions on certain types of income derived by residents of one treaty country from sources within the other treaty country. Because tax treaties often substantially modify U.S. and foreign tax consequences, the relevant treaty must be considered in order to fully analyze the income tax consequences of any outbound or inbound transaction. The U.S. currently has income tax treaties with approximately 58 countries. This article discusses the implications of the United States- Japan income tax treaty.There are several basic treaty provisions, such as permanent establishment provisions and reduced withholding tax rates, that are common to most of the income tax treaties to which the United States is a party.…

26Sep 2023 by Anthony Diosdi

Is the Section 965 Transition Tax, Subpart F, and GILTI Constitutional?

Tax Law

By Anthony Diosdi Internal Revenue Code Section 965 imposes a one-time transition tax on a U.S. shareholder’s share of deferred foreign income of certain foreign corporations accumulated deferred foreign income (“ADFI”). For Section 965 purposes, a U.S. shareholder is a U.S. person who directly, indirectly, or constructively owns at least 10 percent of either total combined voting power or total value of a foreign corporation’s stock. The transition tax is treated as a mandatory subpart F inclusion.On June 26, 2023, the United States Supreme Court granted a petition for a writ of certiorari in Moore v. United States to determine constitutionality of the transition tax. The plaintiffs, Mr. and Mrs. Moore invested in an India-based corporation. In exchange for the Mr. and Mrs. Moores’ investment, they received approximately 13 percent…

26Sep 2023 by Anthony Diosdi

Is the Exit Tax Constitutional?

Tax Law

By Anthony Diosdi The United States taxes the worldwide income of U.S. citizens and residents, regardless of where they reside or are domiciled. This approach differs markedly from that of the vast majority of other countries that do not tax unrepatriated foreign earnings of citizens residing or domiciled abroad. Because the United States subjects its citizens and residents to income tax on their worldwide income, many U.S. citizens and residents are actively considering expatriating from the United States. For U.S. tax purposes, the concept of expatriation can be very complicated. If you are considering expatriating from the United States, here are eight things to consider:The Exit or Expatriation TaxSection 301 of the Heroes Earnings Assistance and Relief Tax Act of 2008 added Section 877A to the Internal Revenue Code. Section…

21Sep 2023 by Anthony Diosdi

Demystifying the New 2022 IRS Form 5472

Tax Law

By Anthony Diosdi In order to effectively audit the transfer prices used by a U.S. subsidiary of a foreign corporation, the Internal Revenue Service (“IRS”) often must examine the books and records of the foreign parent corporation. Historically, foreign parties have resisted making their records available to the IRS, or have not maintained records sufficient to determine arm’s length transfer prices. In response, Congress enacted the requirement that each year certain reporting corporations must file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business, and maintain certain records. See IRC Sections 6038A and 6038C. A domestic corporation is a reporting corporation if, at any time during the taxable year, 25 percent or more of its stock, by vote…

21Sep 2023 by Anthony Diosdi

Top Eight Considerations for Anyone Considering Expatriating from the United States

Tax Law

By Anthony Diosdi Because the United States subjects its citizens and residents to income tax on their worldwide income, and subjects those who are domiciled in the United States to estate and gift tax on their worldwide assets, many U.S. citizens and residents are actively considering expatriating from the United States. For U.S. tax purposes, the concept of expatriation can be very complicated. If you are considering expatriating from the United States, here are eight things to consider:Number One- You May be Subject to an Expatriation TaxAnyone expatriating from the United States may have to pay an exit or expatriation tax.The U.S. exit tax is assessed against individuals that “expatriate” from the United States. The definition of “expatriate” means (A) any United States citizen who relinquishes his or her citizenship,…

15Sep 2023 by Anthony Diosdi

Tax Law Attorneys in San Francisco, California: Why Choose Diosdi Ching & Liu, LLP?

Tax Law

In the bustling city of San Francisco, California, the intricacies of tax law can quickly become overwhelming. Whether you're a business owner navigating corporate taxes or an individual looking to ensure compliance, the expertise of a skilled tax law attorney can be invaluable. At Diosdi Ching & Liu, LLP, we pride ourselves on offering top-tier services in the realm of tax law. The Importance of Specialized Expertise When you're confronted with tax-related concerns, it's imperative to have specialists by your side. San Francisco, California tax law attorneys are well-acquainted with both state and federal tax regulations. Their understanding ensures that you are always a step ahead, equipped with accurate and timely advice. By choosing attorneys who are well-versed in this domain, you optimize your chances of favorable outcomes. How Diosdi Ching…