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U.S. Transition Tax – A Fourth Update

In mid-April, there is usually a race against time by taxpayers and accountants to meet U.S. tax filing deadlines. The normal U.S. tax filing deadline for the 2017 year for individuals and certain U.S. entities is Tuesday, April 17th (a few days later than the usual April 15th due to weekends and a U.S. 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 U.S. 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 U.S. 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.

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U.S. Transition Tax – Next Update

April 3 2018

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

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

U.S. Education Savings Plans for Residents of Canada

March 22 2018

Canada and the U.S. have similar tax laws for education savings plans. Unfortunately, neither recognizes the each other’s plans the same as their own. For example, a U.S. 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

US Transition Tax – Update

March 14 2018

On March 13th, the Internal Revenue Service provided further guidance on how US taxpayers should report activity subject to the US Transition Tax on their 2017 US income tax returns.  Our previous blog describing the tax and its impact to US taxpayers can be found HERE. This IRS guidance references earlier IRS updates and provides instruction on how to complete US federal income tax returns, file elections and make US federal income tax payments.  Full details of the IRS’s guidance can be found at the link below. 

Transition Tax