Amy P. Jetel
Any professional who serves high-net-worth clients eventually comes face to face with a Mexican fideicomiso (pronounced fee-day-kah-mee-so) and has to decide how to advise the client on how the fideicomiso should be taxed and reported under U.S. tax law.
The Internal Revenue Service's representatives with whom my firm has spoken acknowledge that fideicomisos are not the types of tax-avoidance structures that are targeted by the onerous U.S. reporting requirements for foreign trusts. Nonetheless, because IRS agents also admit that the Service has no idea what a fideicomiso really is (and doesn't have the resources to figure it out), they recommend that foreign-trust reporting be done, just to be safe. After all, fideicomiso mea...
Unlock All Access Premium Subscription
Get Trusts & Estates articles, digital editions, and an optional print subscription. Choose your subscription now and dive into expert insights today!
Already Subscribed?