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US Transition Tax – Update Number Five

As they did before the April 15th tax filing deadline, the IRS once again issued guidance on the US transition tax right before a tax filing deadline. This time, the filing deadline is June 15, the extended filing deadline for US taxpayers abroad, the very group US transition tax impacts. Guidance published on Monday, June 4th provides filing and payment relief for individuals in certain circumstances

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US Transition Tax – A Fourth Update

April 14 2018

In mid-April, there is usually a race against time by taxpayers and accountants to meet US tax filing deadlines. The normal US tax filing deadline for the 2017 year for individuals and certain US entities is Tuesday, April 17th (a few days later than the usual April 15th due to weekends and a US holiday on Monday).  Entering the “race against time” this year is the Internal Revenue Service itself, who on Friday April 13th published more guidance on the US’ Transition Tax, a mere four days before the filing deadline.  The IRS has been very active this winter and spring providing updates and guidance for the US Transition Tax enacted by the Tax Cuts and Jobs Act in December.  Links to our blog entries on the previous updates are at the end of this blog.

Repatriation Tax, Transition Tax, US Citizen, US Citizen Living Abroad, US Citizens Resident In Canada, US Tax

US Transition Tax – Next Update

April 3 2018

On April 2nd, the IRS and US Treasury issued more guidance on the US Transition Tax enacted by the Tax Cuts and Jobs Act (“TCJA”) in December 2017.  As the US moves to a territorial tax system for profits earned outside the US, this provision assesses a tax rate on accumulated earnings and profits in specific non-US corporations owned by certain US corporations and US individuals.

Repatriation Tax, Transition Tax, US Citizen, US Citizen Living Abroad, US Citizens Resident In Canada, US Corporation, US Tax Law

US Education Savings Plans for Residents of Canada

March 22 2018

Canada and the US have similar tax laws for education savings plans. Unfortunately, neither recognizes the each other’s plans the same as their own. For example, a US education savings plan, such as a “529 Plan,” has Canadian tax reporting requirements which are not applicable to a Canadian Registered Education Savings Plan.

US Citizens Resident In Canada