September 2020 - Accel Tax & Business Services

Watch Out for PFIC Status if You Own Foreign Investments

The term “passive foreign investment company” (PFIC) suggests a sophisticated, highly specialized investment that the majority of U.S. persons probably would not own. In reality, many U.S. persons--whether living in the United States or abroad--may unwittingly become PFIC shareholders and thus subject to unexpected federal income tax and reporting requirements. PFICs are foreign corporations [...]

Say No to Payroll Tax Deferral

On August 8, 2020, the President issued a Memorandum allowing employers to defer withholding and payment of an employee's portion of the Social Security tax (i.e., the 6.2% FICA portion of the federal payroll tax on employees). Medicare taxes, however, are not covered. The payroll tax deferral is effective starting September 1, 2020, and [...]