The rules are complex. US individuals and businesses were subject to the tax if their ownership percentage in a foreign corporation exceeded certain thresholds in late 2017. For example, the tax often applied to: Individuals who, together with family members, owned or controlled a [...]
In some cases, amending can result in a sizable refund. If your Repatriation Tax was calculated conservatively (due to the absence of clear guidance at the time), then you may have overpaid the original tax. By amending your returns timely, you can recover the [...]
I totally missed including the Repatriation Tax on my 2017 returns. It’s been a couple of years now. Can I just skip it?
It’s not a good idea to ignore the tax. The IRS will be able to tell from your more recent tax returns whether you should have included the Repatriation Tax on your 2017 returns. And the IRS has already issued public warnings to say [...]
When the 2017 Tax Cuts and Jobs Act (TCJA) became law, a new international corporate tax system went into effect, replacing a tax system that dated back to 1962. Under the old system, businesses could defer US tax on foreign earnings if they did [...]
I had losses in my foreign business for many years, so my Repatriation Tax is $0. Do I still need to file?
Yes, the IRS requires that you file to show that no Repatriation Tax is due.
Yes. Since the Repatriation Tax is very complex, some tax professionals prefer to outsource it to a firm like ours that specializes in international tax. We have assisted wealth advisors, other US CPA firms, and overseas tax professionals with their Repatriation Tax needs. In [...]