More and more Americans who own properties in Mexico find themselves in uncharted territory with the IRS. Fidecomisos are a hot topic among Americans expats living in Mexico. Many US citizens and green card holders are not aware of the fact that a fideicomiso is considered a foreign trust. A...

American expatriates who are beneficiaries of the foreign trust have to follow the special IRS reporting requirements too. Earlier we discussed that the responsible parties, trust owner and trustee are responsible for filing trust forms 3520 and/or 3520-A. However, beneficiaries who receive distributions from the trust have to file form...

American expatriates who are owners of the foreign trust have to comply with strict IRS reporting requirements. Earlier we discussed general rules that the responsible parties of a foreign trust must follow. The form 3520 is not the only form that must be filed in regards to a trust with...

Foreign trust or form 3520 is one of the latest tax puzzles for Americans living abroad. American expats face an increasing complexity of US expat tax returns. Many expats are familiar with foreign income exclusion, foreign housing exclusion and foreign tax credit. However, they don’t realize that the highest penalties...