Information Return Of A 25% Foreign-Owned U.S. Corporation Designated for foreign corporations or US Corporations 25% or more owned by foreign shareholders, IRS Form 5472 is required to be filed under sections 6038A and 6038C of the Internal Revenue Code. The international tax experts at ELLS CPAs have extensive experience executing IRS Form 5472 for past and present clients. IRS Form 5472 is essential for any foreign-owned corporation engaged in trade or business in … [Read more...]
The Importance of Business Succession Planning
August 20, 2012
For most entrepreneurs, planning for the continuity of the enterprise is the ultimate management challenge. All business owners will one day face the decision of either selling their business or transferring ownership to a family member. If you don’t lay out plans for the eventuality, it will be made for you by the IRS and the courts, as your family members sit helplessly by and watch your life’s work disintegrate. First step is to sit down with your family members … [Read more...]
Are you a “U.S. Withholding Agent”? Don’t be too quick to answer No.
October 12, 2011
The IRS considers any person that has control, receipt, custody, disposal or payment of any item of income of a foreign person that is subject to withholding a U.S. Withholding Agent. A withholding agent is responsible to withhold tax on payments of US sourced FDAP (Fixed or Determinable Annual or Periodic) income to foreign personals and to make deposits of such tax to the US Treasury. The following items are examples of FDAP income: compensation for personal … [Read more...]
IRS Compliance Assurance Program
August 16, 2011
The IRS initiated a program that enables mid to large size companies to work with the IRS to identify and resolve tax issues prior to filling. This program is known as the Compliance Assurance Program (CAP). The program was in trial mode for the past 6 years and in June the IRS announced that they would be keeping and expanding the CAP program. As part of the program, companies will work along side a team of IRS representative on tax issues and generally taxpayers … [Read more...]
Employee or Independent Contractor?
August 9, 2011
Is he/she an employee or an independent contractor? As the Internal Revenue Service begins to crack down on this issue business owners must be sure that they are choosing the correct classification. There are a few ways that you tell whether you have an employee on your hand or an idependent contractor. Take a look at this blog I wrote for advancedplanning4docs.com, click here. For more information call Greg Lewis at 714.569.1000 Posted 8/9/11 … [Read more...]
2011 Offshore Voluntary Disclosure Initiative Update
August 2, 2011
The IRS recently released additional information on the 2011 Offshore Voluntary Disclosure Initiative (OVDI) in the form of an update to their Frequently Asked Questions. These additions include: 1. 90 day extension of the deadline beyond August 31, 2011 - Request for extension must include a statement of those items that are missing, the reasons why they are not included, and the steps taken to obtain the missing items. 2. Clearer procedures for opting out of or … [Read more...]
New Deadline for Form 8955-SSA
July 29, 2011
The IRS has announced that they will be extending the deadline for 2009 and 2010 filings of Forms 8955-SSA from August 2011 to January 17th, 2012. Form 8955-SSA is used to report participants with deferred vested pension benefits. Only the 2009 form and instructions have been released, with the 2010 coming shortly. Filing the 8955-SSA can be done by paper or electronically. If you choose to go the electronic route, be sure you are using a third-party software with the … [Read more...]
Sherry Radmore says, “Beware of EFTPS E-mail Scam”
July 25, 2011
Employers should be advised on a bogus email scam referencing Electronic Federal Tax Payment System (EFTPS). The email being circulating contains a link, if clicked on, could be malicious software. This software is designed to gain scammers access to your financial information. The Internal Revenue Service does not make contact with taxpayers regarding EFTPS via email or tax account matters. If you receive an email report it to phishing@irs.gov Posted 7/26/2011 … [Read more...]
Electronic Tax Payments
March 24, 2011
Beginning January 1, 2011 Federal tax deposit coupons will no longer be accepted for submitting depository taxes by businesses. As of this date all federal payments should be made electronically. The system in which the IRS has set up to receive such payments is Electronic Federal Tax Payment System (EFTPS). The process of enrolling in EFTPS take about 15 days so make sure that you are allowing yourself plenty of time before the due date. For individuals, … [Read more...]
IRS Announces 2011 Offshore Voluntary Disclosure Initiative
February 21, 2011
On Tuesday, February 8th, the Internal Revenue Service announced that it will be offering another chance for taxpayers with foreign accounts to get in compliance with federal tax law. Under the 2011 Offshore Voluntary Disclosure Initiative, taxpayers have until August 31, 2011 to disclose offshore assets and income to the IRS. While the terms of this initiative are not exactly the same as the voluntary disclosure that was announced in 2009 it does provide essentially the … [Read more...]
