Foreign Individuals Dealing with New US Tax Surprises

        One of the goals of the 2017 Tax Cuts and Jobs Act (TCJA) was to keep multinational corporations from hiding profits offshore to avoid paying US taxes. While this Tax Reform has taken great steps toward reaching this goal, unanticipated results have come to be seen. In applying this law, any foreigner who becomes a US citizen must report the global income of any family businesses in the US and pay the tax on the income of those businesses.

          The changing of tax rules in this area do not only impact business interests, these can be applied to domestic trusts, partnerships, and estates. This is a sharp increase in tax responsibility that many are unprepared for. This is a real situation that many are dealing with and have very limited options moving forward. With guidance, some can navigate this tricky situation, without having to renounce their claims or move out of the country.

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