Panama Papers – Much Foreign Ownership Is Innocent
Form 5471 requires a lot of information about the foreign corporation. In my experience, the challenging part for American accountants is getting the information. Much gets lost in translation. Sometimes it is difficult to determine what kind of an entity it is that your client owns. Sometimes the people overseas controlling the books and records are less than cooperative.
If you are getting involved in overseas transactions of any sort, try to get your advisors on both sides of the border to coordinate things. This is one area where the national accounting firms really shine, but you may find that they are too expensive if you are involved in relatively modest transactions.
Freedom From Religion Foundation Attacking Clergy Housing Tax Benefit Again
In 2002 the IRS and mega church pastor Rick Warren were dueling about the fine points of the allowance. The Ninth Circuit decided that there was a question about the statute’s constitutionality and had Erwin Chemerinsky acting as amicus curiae, but arguably more like advocatus diabloli, start briefing the argument that the exclusion was unconstitutional, something not raised by either side in the case. Congress acted with alacrity to amend the statute to make the dispute moot and that was the end of that.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.