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Form 8621 Preparation

Do you or your firm provide tax services to American Expats with Passive Foreign Investments?

Form 8621 Prep

As you know many of these Expats likely have Passive Foreign Investments (PFICs) which require filing the Form 8621. Tax and reporting rules for Passive Foreign Investment Company can be complicated and confusing. The form can also take hours to complete in fact the computation is so complex that none of the large commercial tax software programs currently perform the multi-level, convoluted math needed to complete the form.

American Expat Tax specializes in the preparation of the Form 8621 form for Expat Tax firms. In fact, our President , Mary Beth Lougen, knows them so well that she has spoken and written articles on the topic for publications like Bloomberg BNA.

We can prepare your Form 8621s for you. We will provide you with Form 8621 with all required statements ready to enter into your 1040 and finish your tax returns with confidence.

If you need more information let me know. My email is B.Lougen@Form8621.com.

Kovel Agreements

American Expat Tax Services & Kovel Agreements

Kovel Agreements

We are experienced in working with Law firms under Kovel Agreements.

Kovel agreements are typically an arrangement between an attorney, a Tax Expert (typically an Enrolled Agent or US Tax Court Practitioner) and the client. The Kovel engagement letter must provide each party’s role, particularly that the tax expert’s work generally will be performed under the direction of the attorney. The Kovel agreement can extend the attorney-client privilege to a tax expert’s communications that were “made in confidence for the purpose of obtaining legal advice.

Please contact us for more information – B.Lougen@amexpattax.com.

Form 5471 Preparation

Information Return of U.S. Persons with Respect to Certain Foreign Corporations

Form 5471 Prep

The Form 5471 is officially called the Information Return of U.S. Persons with Respect to Certain Foreign Corporations.

  • In recent years, the IRS has increased its scrutiny of US taxpayers living abroad and those with foreign investments. Additional focus has been placed on US persons who are not in compliance with their US tax return filing obligations.
  • To compound the intensity surrounding the increase in attention from the IRS, the primary informational return used to report a US person’s interest in a foreign entity (Form 5471) has quadrupled in length since 2016. The introduction of the Tax Cuts and Jobs Act of 2017 brought with it new quantitative hoops through which all controlled foreign corporations must jump, including the Section 965 transition tax and the Global Intangible Low-Taxed Income inclusion – this is in addition to the existing, already-complicated subpart F regime.  The IRS estimates that it would take an individual shareholder of a controlled foreign corporation approximately 200 hours to learn about the relevant tax laws, prepare the Form 5471, and do all associated recordkeeping.  For many US shareholders, this burden is more than they can handle, but with penalties for non-filing (or not substantially completing) a Form 5471 set at $10,000 per Form per year, mistakes here can be very costly.
  • The experts at American Expat Tax Services have decades of experience assisting US citizens and permanent residents with their United States filing obligations. Whether you are an individual or corporate shareholder, with a large organizational structure or a small family-owned business, we can help assess the US tax filing obligations for any foreign entities in which you have an ownership interest and ensure that your tax returns are prepared and filed properly. 
For more Form 5471 FAQ’s click here.