Taking risks with Australian Superannuation US tax treatment 🇦🇺

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Joining Claudine and Anthony in this video is tax attorney Robert V. Hanson. Watch as they dismiss wishful thinking on the IRS treatment of Australian Superannuation Funds.

The number one concern of an Australian Superannuation, whether a Self-Managed Superannuation Fund (SMSF) or not, is whether it is classified for US tax purposes as a Grantor Trust or an Employee Trust. We always hope for a Employee Trust. Why? Because if it is classified as an Employee’s Trust the reporting is relatively easy and there is no tax is until the date of distribution (which still isn’t great, but but it is better than being taxed on its growth).

The reasons we hope our clients aren’t dealing with an Grantor Trust is that:
1) Taxes will likely be due on growth in the fund year over year even though it is a tax -deferred vehicle in Australia.
2) Very time-consuming accounting and compliance work to prepare Form 3520-A and Form 3520.
3) There still make be more complicated forms — For instance, Form 8621 if the fund is deemed to be investing in Passive Foreign Investment Companies (PFICs).

Some claim the Australian Superannuations funds are just like social security thus exempt from US taxation thanks to the treaty. This argument is discussed along with the abundant evidence that contradicts it.

Contact us if you're concerned about reporting of your Superannuation Funds, or if you'd like a second opinion about a submission already sent it. We can help. Any information you share with us will be kept confidential.

Parent & Parent LLP
144 South Main Street
Wallingford, CT 06492
(203)269-6699
info@irsmedic.com

Видео Taking risks with Australian Superannuation US tax treatment 🇦🇺 канала IRSMedic