There May Be 50 Ways To Leave Your Lover- But You May Only Utilize A CDP Challenge to Contest a Form 3520 Penalty Without Prepayment

There May Be 50 Ways To Leave Your Lover- But You May Only Utilize A CDP Challenge to Contest a Form 3520 Penalty Without Prepayment

Tax Law
安東尼-迪奧斯迪 根據 《國內稅收法》第 6677(a)條,如果任何美國人受益人(直接或間接)收到來自外國信託的分配,該人必須使用國內稅收署(“IRS”)的 3520 錶對該信託進行申報,並在上面顯示信託的名稱、收到的分配總額,以及 IRS 可能要求的任何其他數據。超過10萬美元的外國禮物、遺贈或繼承也必須在 3520 錶上披露。如果沒有及時提交3520錶,美國國稅局可能會判處相當於信託總價值的 35%或從信託中轉移的財產總價值的35%的年度罰款。如果沒有及時在 3520 錶上披露,國稅局還可以根據《國內稅收法》第6039F條評估相當於 25%的外國禮物的罰款。最後,國稅局可以對被要求提交國稅局3520錶的個人處以每年 1 萬美元或外國信託應報告總金額的 5%的罰款(以較高者為准)。 不言而喻,未及時提交國稅局 3520 錶或不正確地提交此類表格的相關處罰可能是巨大的。在某些情况下,填寫 3520 錶可能是非常複雜的,許多納稅人甚至不知道他們必須提交這樣的表格,直到它太晚了。事實上,3520 錶非常複雜,或者許多納稅人不知道他們需要提交這些表格,但這並沒有封锁美國國稅局積極懲罰那些沒有正確提交3520錶或延遲提交這些表格的納稅人。事實上,國稅局最近宣佈,它將自動對任何遲交3520錶的人進行處罰,不管是什麼原因。這些罰款不是開玩笑的。它們可以很容易地達到數萬甚至數百萬美元。 許多稅務從業人員已經習慣於向國稅局發送一封信,指出由於可以證明有合理的理由,所以應該免除罰款。在這些情况下,請求寬大處理可能不會很有效。被評估為3520 罰款的納稅人應該考慮擴大他們的抗議,而不僅僅是合理原因的立場。特別是,納稅人應該關注國稅局評估罰款的程式,並考慮基於科技理由挑戰這些罰款。 與 3520 錶相關的處罰被歸類為“可評估的處罰”。從程式上講,“可評估的罰款”是非常難以質疑的。本文將討論對未及時提交 3520 錶和未正確提交 3520 錶(以下簡稱“3520罰金”或“3520 罰金”)的相關處罰提出異議的可用抗辯。本文將討論如何通過被稱為國稅局徵收正當程式聽證會(“CDP”)的程式來質疑 3520 表格的處罰。 是什麼讓 3520 的處罰變得特別? 與未及時提交 3520 錶或未準確提交 3520 錶有關的處罰,與收入或所得稅相關的處罰不同。3520 錶的處罰被歸類為“可評估的處罰”。作為可評估的處罰,3520 表格的處罰不受缺陷程式的限制。見 Smith 訴專員,133 T.C. 424,428-430(2009)。可評估的罰款可以由國稅局評估和收取,而沒有機會在諸如稅務法院這樣的預付款論壇上對罰款提出異議。由於國稅局在法律上可以通過徵收或扣押來評估和收取3520 的罰款,國稅局並沒有太多的動力來消除或减免這些罰款。囙此,一封請求减免罰款的信可能不會給被評估為3520 罰款的納稅人帶來多少希望。當然,一個被評估為 3520 罰款的納稅人總是可以全額支付罰款,並在退稅訴訟中質疑罰款的有效性。問題是,許多被徵收3520 罰款的人沒有能力支付這些罰款並提起退稅訴訟。幸運的是,在某些情况下,被評估為3520錶罰款的個人可以對罰款提出 CDP 質疑(無需首先支付罰款),如果有必要,可以在稅務法院對 3520 錶罰款提出異議。 這一過程將在下文中詳細討論。但首先,讓我們回顧一下對 3520 罰款的抗辯。 合理的理由辯護 對 3520 處罰最常引用的辯護理由可能是合理原因。為了獲得與3520 表格處罰相關的减免,必須確定被評估處罰的個人不僅有“合理的原因”,而且缺乏“故意忽視”的行為。是否同時存在“合理原因”和缺乏“故意忽視”是一個事實問題。1985 年美國最高法院在博伊勒一案中,將“故意忽視”一詞定義為有意識的、 故意的失敗或魯莽的漠不關心“。國稅局在其法規中對博伊勒案的裁决進行了解釋,將”合理原因“和缺乏”故意忽視“定義為納稅人行使了”普通的商業關懷和審慎“。見 Treasury. Reg. Section 301.6651-1(c)(1)。囙此,如果一個納稅人能够證明他行使了普通的商業關懷和審慎,他可能有合理的理由接受3520 的處罰。當然,問題隨之而來,什麼構成了普通的商業關懷和謹慎?在過去,國稅局認為以下的例子構成了對拖欠申報罰款的合理原因。 1.及時郵寄但因郵資不足而被退回的退貨。 2.及時向地區專員或國內稅收專員提交的申報表,但在錯誤的地區。 3.國稅局官員提供了錯誤的資訊。 4.納稅人或其直系親屬的死亡或重病。 5.納稅人不可避免的缺席。 6.企業或企業記錄因火灾或其他意外事故而被毀。 7.國稅局沒有及時提供適當的回報要求。 8.通過親自到國稅局辦公室獲得完成申報所需的幫助或資訊,但由於納稅人不是因為自己的過錯而無法見到國稅局的代表,所以沒有成功。 囙此,如果一個被徵收 3520 罰款的人能够證明他或她在上述任何一個例子中行使了普通的商業關懷和謹慎,這個人就可以對 3520 罰款進行合理的辯護。判例法也規定了基於合格稅務顧問的建議而對 3520 罰款的合理理由辯護。明確地說,沒有及時提交3520錶並不能因為個人對稅務專家的依賴而得到原諒。這種依賴不屬於3520 罰款的“合理原因”。依賴稅務專業人員,即使是合理的依賴,也不能免除個人提交3520 表格的義務,也不能作為 3520 罰款的辯護理由。 說到這裡,對稅務專業人員的行為的依賴和對稅務顧問的建議的依賴是有區別的。在海伍德木材和礦業公司訴專員,172 F2d 769771(2d Cir.1950)案中,法院說。“當一個公司的納稅人選擇一個有能力的稅務專家,向他提供所有必要的資訊,並要求他準備適當的納稅申報,我們認為該納稅人已經做了所有普通的商業關懷和審慎可以合理要求的事情。” 囙此,從一個合格的顧問那裡真誠地尋求和得到的建議,構成了未能提交3520錶的合理原因。最後,在某些有限的情况下,如果有其他因素支持這一論點,如個人是第一次提交3520 錶,或被要求提交 3520 錶的個人英語不流利,對法律的無知可被視為合理原因。 要求準予《國內稅收法》第 6751 條規定的 3520 處罰措施 許多專業人士錯誤地認為,3520 罰款的唯一辯護理由是合理的理由。合理理由並不是3520 罰款的唯一辯護理由。如果美國國稅局在評估罰款時沒有遵循適當的程式,納稅人也可以對 3520 項罰款提出異議。根據《國內稅收法》第 6751(b)節,所有處罰(包括3520 項處罰)必須符合某些程式要求。第 6751 節要求美國國稅局在對納稅人進行處罰時遵循兩項程式要求。首先,個人必須收到罰款通知、《國內稅收法》中規定罰款的部分,以及如何計算罰款。這一要求通常很容易滿足。其次,評估處罰的“初步决定”必須得到“直接首長”或“準予的高級官員”的“書面”準予 參見 IRC 第6751(b)節。美國國稅局有不遵守第二項要求的歷史。 任何最近被評估 3520 罰款的人都應該考慮到,國稅局不僅對逾期申報自動評估罰款,而且還在大量評估。自 2020 年初以來,國稅局已經在很短的時間內評估了數千份3520罰款。鑒於國稅局在相對較短的時間內發出的處罰通知的數量,國稅局很有可能沒有遵守第6751 條的要求,在評估 3520 處罰時沒有獲得“直接首長”或“經準予的更高官員”的“書面準予”。國稅局沒有遵守第 6751 條的規定可能是對第 3520 條處罰的一個非常有力的辯護。這就提出了一個問題:納稅人在收到 3520…
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A Closer Look at the 2021 Schedule I-1for IRS Form 5471

A Closer Look at the 2021 Schedule I-1for IRS Form 5471

Tax Law
By Anthony Diosdi Schedule I-1 for Form 5471 is used to report information determined at the CFC level with respect to amounts used in “global intangible low-taxed income” or GILTI inclusions by U.S. shareholders. The information from Schedule I-1 is used by U.S. shareholder(s) of a CFC to file IRS Form 8892, U.S. Shareholder Calculation of GILTI, and may assist in the completion of Form 1118 and 1116. Who Must Complete the Form 5471 Schedule RAnyone preparing a Form 5471 knows that the return consists of many schedules. Schedule R is just one schedule of the Form 5471. Whether or not a CFC shareholder is required to complete Schedule R depends on what category of filer he or she can be classified as. For purposes of Form 5471, CFC shareholders…
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A Review of the 2021 Form 8992-U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (“GILTI”)

A Review of the 2021 Form 8992-U.S. Shareholder Calculation of Global Intangible Low-Taxed Income (“GILTI”)

Tax Law
By Anthony Diosdi The IRS Form 8892 is used to calculate a controlled foreign corporation (“CFC”) global intangible low-taxed income” or GILTI. Form 8892 consists of Parts I and II. A U.S. shareholder that owns, within the meaning of Section 958(a), stock in one or more CFCs must attach a Form 8892 to a Form 5471. This article will go line by line through the Form 8992 to determine how a GILTI inclusion is determined. This article is based on the Internal Revenue Service (“IRS”) instructions to Form 8992. CFC shareholders are also required to attach either separate Schedule A or separate Schedule B, depending upon whether the shareholder of the CFC is a member of a U.S. consolidated group. Part 1. Net Controlled Foreign Corporation (CFC) Tested IncomeIf the…
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A Closer Look at the Schedule R Used to Disclose Distributions from Foreign Corporations to CFC Shareholders on IRS Form 5471

A Closer Look at the Schedule R Used to Disclose Distributions from Foreign Corporations to CFC Shareholders on IRS Form 5471

Tax Law
By Anthony Diosdi Schedule R will be used to report basic information pertaining to distributions from foreign corporations. According to the instructions for Schedule R, the information reported on the schedule is required by Sections 245A, 959, and 986(c) of the Internal Revenue Code. Who Must Complete the Form 5471 Schedule RAnyone preparing a Form 5471 knows that the return consists of many schedules. Schedule R is just one schedule of the Form 5471. Whether or not a CFC shareholder is required to complete Schedule R depends on what category of filer he or she can be classified as. For purposes of Form 5471, CFC shareholders are broken down by the following categories:Key TermsU.S. person: A U.S. person is generally a citizen or resident of the United States, a domestic…
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Demystifying Schedule O Used to Report Foreign Corporate Reorganizations and Acquisitions on IRS Form 5471

Demystifying Schedule O Used to Report Foreign Corporate Reorganizations and Acquisitions on IRS Form 5471

Tax Law
By Anthony Diosdi Schedule O of Form 5471 is used to report the organization or reorganization of a foreign corporation and the acquisition or disposition of its stock. This article will take a deep dive into each column and line of 2021 Schedule J of the Form 5471. Who Must Complete the Form 5471 Schedule OAnyone preparing a Form 5471 knows that the return consists of many schedules. Schedule O is just one schedule of the Form 5471. Whether or not a CFC shareholder is required to complete Schedule O depends on what category of filer he or she can be classified as. For purposes of Form 5471, CFC shareholders are broken down by the following categories:Key TermsU.S. person: A U.S. person is generally a citizen or resident of the…
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Demystifying the 2021 Tax Year IRS Form 5471 Schedule P Tracking “Previously Taxed Earnings and Profits of U.S. Shareholder of Certain Foreign Corporations”

Demystifying the 2021 Tax Year IRS Form 5471 Schedule P Tracking “Previously Taxed Earnings and Profits of U.S. Shareholder of Certain Foreign Corporations”

Tax Law
By Anthony Diosdi Schedule P of Form 5471 is used to report PTEP of the U.S. shareholder of a controlled foreign currency (“CFC”) in the CFC’s functional currency. The term PTEP refers to earnings and profits (“E&P”) of a foreign corporation. In most cases, special ordering rules under Section 959 of the Internal Revenue Code apply in determining how E&P is reported on Schedule P. This article will take a deep dive into each column and line of 2021 Schedule P of the Form 5471. Who Must Complete the Form 5471 Schedule PAnyone preparing a Form 5471 knows that the return consists of many schedules. Schedule P is just one schedule of the Form 5471. Whether or not a CFC shareholder is required to complete Schedule P depends on what…
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A Closer Look as to How a Foreign Investor May Utilize a Section 897(i) Election to Avoid FIRPTA Withholding

A Closer Look as to How a Foreign Investor May Utilize a Section 897(i) Election to Avoid FIRPTA Withholding

Tax Law
By Anthony Diosdi Foreign investors actively invest in U.S. real estate by speculating on land and developing homes, condominiums, shopping centers, and commercial buildings. Many foreign investors own recreational property in popular U.S. beach and ski destinations. Any foreign investor in U.S. real estate should consider the Foreign Investment in Real Property Tax Act of 1980 (“FIRPTA”). FIRPTA is designed to ensure that a foreign investor is taxed on the disposition of a U.S. real property interest, which includes an interest in U.S. reality and an interest in a U.S. corporation that was a U.S. real property holding corporation (“RPHC”) at any time during the five-year period before the disposition. A corporation is deemed an RPHC if the value of its U.S. real property interests equals or exceeds the value…
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The Pros and Cons of Using a “Multi-Tiered Blocker Structure” to Avoid FIRPTA

The Pros and Cons of Using a “Multi-Tiered Blocker Structure” to Avoid FIRPTA

Tax Law
By Anthony Diosdi Foreign investors actively invest in U.S. real estate by speculating on land and developing homes, condominiums, shopping centers, and commercial buildings. Many foreign investors own recreational property in popular U.S. beach and ski destinations. Any foreign investor in U.S. real estate should consider the Foreign Investment in Real Property Tax Act of 1980 (“FIRPTA”). FIRPTA is designed to ensure that a foreign investor is taxed on the disposition of a U.S. real property interest, which includes an interest in U.S. reality and an interest in a U.S. corporation that was a U.S. real property holding corporation (“RPHC”) at any time during the five-year period before the disposition. A corporation is deemed an RPHC if the value of its U.S. real property interests equals or exceeds the value…
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The U.S. Tax Consequences of Terminating U.S. Residency With PFIC Shares and Potential Planning Options

The U.S. Tax Consequences of Terminating U.S. Residency With PFIC Shares and Potential Planning Options

Tax Law
By Anthony Diosdi In the last 20 years, there has been a significant upward trend of highly skilled foreign workers moving to the United States for temporary assignments. For foreigners planning to move to the United States for a temporary work assignment, pre-immigration tax planning is crucial. Whether the goal is to minimize the tax effects of the move or to structure the foreigner worker’s holdings to optimize tax consequences after the move, pre-immigration planning must be undertaken. One of the keys to developing strategies for minimizing U.S. federal tax in pre-immigration context is to understand that many foreign workers accepting a work assignment in the United States will become a U.S. person for U.S. federal tax purposes.Under Internal Revenue Code Section 7701(a)(3)(A), an individual is a U.S. person if…
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Unraveling the United States- Germany Income Tax Treaty and the Treaty’s Impact on the Global Taxation of Cross-Border Pension Plans

Unraveling the United States- Germany Income Tax Treaty and the Treaty’s Impact on the Global Taxation of Cross-Border Pension Plans

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 United States 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 United States currently has income tax treaties with approximately 58 countries. This article discusses the United States- Germany 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 U.S. is a party. In…
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