The new law gives specific authority to the Secretary of the Treasury (his/her minions are the ones who actually write the regulations ‘n stuff) to write regulations which extract more information from taxpayers. Here’s the text of the HIRE Act:
SEC. 534. REPORTING REQUIREMENT OF UNITED STATES OWNERS OF FOREIGN TRUSTS.
(a) In General – Paragraph (1) of section 6048(b) is amended by inserting ‘shall submit such information as the Secretary may prescribe with respect to such trust for such year and’ before ‘shall be responsible to ensure’.
(b) Effective Date – The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
What it means to you
More paperwork. The rules have yet to be written, but they’re coming. The forms have yet to be designed, but watch out. There will be more opportunities for the IRS’s present enforcement mentality: “Death Penalty for Parking Tickets!” Your professional fees will be higher.
Sorry. This is what entropy looks like when applied to bureaucracies.
Phil Hodgen
Philip D. W. Hodgen is the principal attorney of HodgenLaw PC, an international tax law firm based in Pasadena, California. He earned his undergraduate degree from Claremont McKenna College and his law degree from the School of Law at the University of California, Los Angeles. He then went on to earn a Master of Laws degree with a specialty in taxation from the University of San Diego School of Law. Admitted to the California bar in 1982, Phil spent nine years in law firms and with a large U.S. bank before starting his own firm in 1991.
Phil is a past chair of the International Tax Committee of the State Bar of California's Tax Section and was a member of the Executive Committee of the State Bar of California's Tax Section for 2004-2007. Phil frequently speaks on a variety of international tax, trust and estate topics to attorneys, accountants, and real estate professionals.
You cannot do a tax-free rollover of your RRSP into an IRA. An Individual Retirement Account in the United States is the equivalent of the Registered Retirement Savings Plan in Canada. One idea people have is that if they are going to live in the United States permanently they would like to roll over their…
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One Comment
I can’t access parts 3 and 4 (it’s like reading a really good horror story with some of the juicy parts left out).
The links lead to your “Oops” page…
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Tax laws change over time, and the information in this post above may be less accurate today than it was at the time of the last revision. This post is not tax advice for your specific situation. Please contact an international tax professional to get personalized advice for your situation.
I can’t access parts 3 and 4 (it’s like reading a really good horror story with some of the juicy parts left out).
The links lead to your “Oops” page…