Top Audit Triggers of a CFC that Will Catch the Attention of the IRS. Part Two- Form 8993
By Anthony Diosdi Introduction For those who are or will be involved in international business and investment transactions, it is important to have some basic understanding of the relevant tax laws. These series of articles are intended to warn individual shareholders of controlled foreign corporations (“CFCs”) (whether individual or corporate) of the mistakes that will likely catch the attention of the Internal Revenue Service (“IRS”) and trigger a potential costly audit. Over the several months we have noticed a number of IRS Form 8993 prepared incorrectly. In this article, we will discuss the Form 8993 and the mistakes on the form that will likely catch the attention of the IRS.The Section 250 DeductionEffective for taxable years of foreign corporations beginning after December 31, 2017 and to taxable years of U.S.…