The U.S. Addresses Its Role as a Tax Haven by Promulgating Regulations Targeting Single-Member LLCs Held by Foreign Persons
By Anthony Diosdi The U.S. banking and financial system, and other U.S. investments such as real estate have been prime targets for those seeking to evade the tax systems of foreigners seeking to evade the tax systems of their home countries. For years, the U.S. government has looked to foreign countries to assist it in combating tax evasion. In response, many countries have criticized U.S. laws that allow domestic entities to obscure the identity of beneficial owners and allow non-U.S. persons to conceal assets in this country. As a result of pressure from abroad, the U.S. government has implemented new disclosure requirements and conducted investigations targeting the use of U.S. entities used to evade foreign taxes.In order to combat the use of U.S. entities to evade foreign taxes, on January…