U.S. Tax for Funds, Trusts & Investment Products

Your starting point for specialized U.S. tax issues affecting foreign funds, trustees, fiduciaries, custodians and investment products: PFIC & QEF, REITs & FIRPTA, foreign trust reporting, DNI & UNI, WP/WT, and U.S. estate tax.

Core modules

• PFIC & QEF for foreign funds — U.S. tax requirements and investor reporting
  When foreign funds are PFICs, how QEF elections work, and what fund managers need to provide to U.S. investors.
• QEF Annual Information Statements — what foreign fund managers need to provide
  Practical requirements for ordinary earnings, net capital gain, allocations, distributions and supporting records.
• REITs & FIRPTA — withholding and reporting for foreign investors
  How U.S. real-estate investments, REIT distributions and U.S. real property interests affect foreign investors and intermediaries.
• Foreign Grantor Trust reporting — Form 3520-A & U.S. owner statements
  Annual reporting for foreign trusts with U.S. owners, including trust information and Foreign Grantor Trust Owner Statements.
• Foreign Nongrantor Trusts — U.S. beneficiary statements, DNI & UNI
  Reporting support where foreign nongrantor trusts make distributions to U.S. beneficiaries.
• Form 3520 support — information packages for U.S. owners and beneficiaries
  What foreign trustees can prepare so U.S. owners and beneficiaries can complete their individual reporting.
• Foreign trust DNI, UNI & accumulation distributions — U.S. tax reporting
  Tracking current income, accumulated income and distributions where U.S. beneficiaries are involved.
• WP & WT withholding agreements — requirements for foreign partnerships and trusts
  How Withholding Foreign Partnerships and Withholding Foreign Trusts fit into the U.S. Chapter 3 and Chapter 4 framework.
• U.S. estate tax for foreign banks & custodians — transfer certificates and U.S.-situs assets
  U.S. estate tax and documentation issues that can arise when a non-U.S. client dies holding U.S.-situs assets.

Quick start — choose by structure

1. Foreign investment fund: start with PFIC/QEF and determine whether annual QEF information should be provided to U.S. investors.
2. U.S. real-estate investment or REIT: review FIRPTA, distribution characterization and withholding requirements.
3. Foreign trust with a U.S. owner: determine Form 3520-A and owner-statement requirements.
4. Foreign nongrantor trust with U.S. beneficiaries: establish beneficiary reporting, DNI/UNI tracking and distribution treatment.
5. Foreign partnership or trust receiving U.S.-source income: determine whether WP/WT status is relevant to the withholding structure.
6. Deceased non-U.S. custody client: determine whether U.S.-situs assets create Form 706-NA or transfer-certificate issues.

Who this guidance is for

• foreign investment funds and fund managers;
• fund administrators;
• private banks and custodians;
• trust companies and professional trustees;
• fiduciary service providers;
• family offices and wealth managers;
• foreign partnerships and investment vehicles; and
• administrators of structures with U.S. owners or beneficiaries.

Related U.S. financial-institution frameworks

• QI & U.S. Withholding
  Documentation, withholding, Forms 1042/1042-S, QDD, Section 871(m), PTPs and periodic review.
• FATCA for Foreign Banks — Operating Model & Reporting
  FATCA governance, GIINs, due diligence, reporting, corrections and Responsible Officer certification.

Related services

• PFIC/QEF reporting support for foreign investment funds
• Foreign trust U.S. tax reporting and Form 3520-A support
• U.S. beneficiary statement and DNI/UNI preparation
• U.S. tax support for foreign banks, custodians and fiduciaries