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Monday, February 13, 2012


For those with an interest, an article of mine was published in the Miami Herald today entitled “New Offshore Asset Reporting Not as Taxing as Feared.” It can be read online here.


Anonymous said...

quick q: in your last blog post on this issue you stated that you believe trusts do not have this reporting requirement. does this include revocable trust? so the settlor who is a trustee and life benef. would not need to report say 51k of bond holdings in a foreign country.
what about irrevocable trust, neither trust, trustee, settlor or beneficiaries would need to report the foreign assets of the trust?

Charles (Chuck) Rubin said...

Only individuals have a reporting obligation for the 2011 tax year. No trusts have one (although that may change for 2012). However, interests in a foreign trust may themselves be reportable. Generally, assets in a revocable trust are deemed owned by the grantor, and reportable by him if they would be reported if owned by him directly. Thus, under your facts, the settlor would report (but individually, and not as the trustee). There may be exceptions, however, based on other reporting of the holdings. If the irrevocable trust is not otherwise a "grantor trust" under the grantor trust rules, in most situations there should be no reporting by the trust, settlor or beneficiaries of the trust's assets. However, U.S. beneficiaries of the trust, if the trust if foreign, may still need to report their ownership interest in the trust - this is different from reporting as to the assets of the trust itself. The foregoing is general only - you will need to consult with your own tax advisor (or make your own review of the instruction and regulations, if you are a tax professional) in lieu of relying on the foregoing.