New legislation affects reporting of foreign trusts and investments in non US financial assets

Legislation passed in 2010 significantly increases the number of transactions reportable to the US tax authorities. The legislation will particularly affect foreign trusts, but it will also mean enhanced reporting of investment in non US financial assets and Passive Foreign Investment Funds (PFIC’s).

As there are significant penalties associated with reporting failures, it is important that both trusts and individuals who have US or foreign investments (but file US tax returns) are aware of what is happening and talk to their advisers to ensure that they are not caught out.

Read the full Insight on the right.