IRS Eases Foreign Trust Reporting for Tax-Compliant Individuals

March 2, 2020, 7:52 PM

U.S. citizens and residents who have paid the income taxes they owe on transactions involving foreign trusts no longer need to comply with certain annual information reporting requirements, the IRS said in new guidance.

Tax code Section 6048 generally requires U.S. persons to annually report money or property transfers to, ownership of, or distributions from foreign trusts. Failure to comply can result in penalties.

The Monday revenue procedure (2020-17) said the new exemption from this requirement is appropriate because “applicable tax-favored foreign trusts generally are subject to written restrictions, such as contribution limitations, conditions ...

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