Cross-border tax issues, expat filing rules, and international tax policy — because taxes don’t stop at the U.S. border.
On September 11, GlaxoSmithKline (NYSE: GSK) agreed to a settlement with IRS which requires GSK to pay more than $3 billion in back taxes. Yes, billion. With a b. The IRS has been pursuing a claim with GSK since 2001 when it sent the company a bill for $8.6 billion for back taxes and interest. The tax…
In more news about international taxpayers, the IRS has apparently decided to make US residency issues a priority in 2006. To that end, they have been sending out notices to expatriates who have not complied with the requirements to file federal form 8854, Initial and Annual Expatriation Information Statement. The form is intended for US…
Changes to the Tax Code, tax reporting, and tax policy are generally reflective of the state of mind of the country at any given time. In other words, Congress uses taxes to modify your behavior (gasp). Think about it… We tax cigarettes and alcohol (sin taxes) to discourage those behaviors and we call those taxes…
In 2002, the 7,500 largest foreign corporations controlled by large U.S. multinational corporations held $5.8 trillion in assets and reported receipts of $2.3 trillion. Of these corporations, 28.9% sold goods, 26.1% sold services, and 24.2% were in the finance, insurance and real estate rental and leasing industries. More than half of foreign corporations controlled by…
A federal court in San Jose, California, gave the IRS permission to ask PayPal Inc. for account information for American taxpayers who have bank accounts, credit cards or debit cards issued by financial institutions over the last ten years in more than 30 countries reputed to be tax havens. This is similar to a summons…
The IRS has recently issued a reminder that U.S. citizens and residents who are officers, directors or shareholders of foreign corporations may have to file Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations. The level of control the U.S. taxpayer has in the foreign corporation is the determining factor of…