Offshore Profit Tax : The Internal Revenue Service (IRS) issues a notification for all those companies in the United States that owe taxes on overseas profits. The companies that owe off-shore profit tax are continuously being monitored and watched by the Internal Revenue Service’s auditors in USA. If you are one such company and need help, then ask for IRS audit representation services in USA with guaranteed positive results.
Details of Offshore Profit Tax:
The IRS updated a list on the website for the inclusion of repatriation tax payments in order to make the auditors of the agency to pay more focus on offshore profit taxes. Repatriation tax payments are basically the levies or taxes that are owned by a company on its accumulated offshore earnings, as per the 2017 tax law. Previously, the officials at the IRS said that this area is fully prepared to be misused by the companies as the companies can try their best for the minimization of their foreign profits in an effort for the reduction of their tax bills in the United States.
New Tax Law for Offshore Profit Taxes:
The tax overhaul of the president of USA, President Donald Trump, requires all companies (U.S. based) for the payment of their taxes on the trillions in profits, which they have hide abroad, since 1986. A onetime rate is set according to this new rule that has 15.5% one-time rate on cash and 8% one-time rate on non-cash or non-liquid assets. Furthermore, these payments can be made over a period of 08 years. Beforehand, the companies were required to pay the previous 35% of corporate rate if in case they bring the money back to the United States. On the other hand, their taxes due can be deferred if they keep the money overseas. We provide best business advisory services in USA so that the IRS never catch you in any undesirable blunder in paying taxes to stay complaint.
The Internal Revenue Service (IRS) also mentioned that the audit can expand beyond reviewing the companies on behalf of their taxes paid on offshore profits. It means that the auditors have the right to review and examine additional changes that were made by those specific companies in regards of their tax strategies after the 2017 law that resulted in cutting down the corporate rate to 21% and overhauling the international tax rules. Recently, the IRS also increased 401(k) benefits for taxpayers in USA to facilitate the citizens in the States.
The IRS stated on its website, regarding the tax code section including the repatriation taxes in response to the tax law that,
It is anticipated that returns selected as part of the 965 campaign will also be risked and, if appropriate, examined for other material issues, especially issues related to the corporate planning.
Furthermore, the congressional scorekeeper, the Joint Committee on Taxation, makes estimation about the repatriation levy that it will lead to generate $338.8 billion in tax revenue over a period of 10 years. President Donald Trump too mentioned that he also expects that $4 trillion will return to the U.S, although he did not mention his source of information. What do you think about this initiative? Would it really be a success to boost U.S. stock exchange or it would only be a pain in the butt for the corporate industry of the United States? Share your thoughts with us in the comments section.