Sunday, August 12, 2012

Attention Home Owners With Fideiocomisos

This was just published in the Baja Pony Express newsletter. If you have a fideiocomiso, it may pertain to you.
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IMPORTANT INFORMATION FOR US CITIZENS AND
THEIR IRS REPORTING.
a.  IRS ruling on fideicomisos - I am attaching the IRS ruling that Amy Jetel, a lawyer in Austin, TX, received last week. I had written a notice in the Baja Western Onion about it a month or so ago. It's a private letter ruling, meaning that only the taxpayer to whom it was addressed may cite it as authority in a court case. As a practical matter, an IRS agent is unlikely to contest it in a case involving another taxpayer. It will be published on the IRS website in a month or so.
*** Editor's Note: Link to copy of ruling in PDF
 Format:  www.bajawesternonion.com/documents/Redacted_PLR_Fideicomiso.pdf 

It's important because it means U.S. holders of fideicomisos are not required to file forms 3520 and 3520A. - John, john_g_brant@yahoo.com
b.  This is the notice that was posted a month ago:  Early this spring, Amy Jetel, a partner with the Morgan Adler Buxton Jetel law firm in Austin, Texas, requested a ruling from the Dept. of the Treasury that a fideicomiso is not a foreign trust that requires a taxpayer to file forms 3520 and 3520A. The Treasury advised Amy last week that it intends to rule in her favor. Amy expects to receive the written ruling by the end of the month. It may be a month or more after that before personal information is redacted and the ruling published.
     If the ruling is published as a Private Letter Ruling, as is more likely, it only binds the IRS with respect to the taxpayer who obtained the ruling. If published as a Revenue Ruling, it binds the IRS with respect to all taxpayers. As a practical matter, it is unlikely that the IRS will take an adverse position to a Private Letter Ruling issued by the Treasury.
     If you want your own ruling, you can reach Amy at 512-370-2750. The process is not inexpensive.
I have no connection, financial or otherwise, with Amy. John

Apture