Seminar ID: 107053

Form 5472 International Tax Evasion & Money Laundering

Form 5472 International Tax Evasion & Money Laundering

Accounting complexities bode dangerous for foreign investors.

Prior to 2017, foreign investors used a 2-tier investment approach for US source assets. They would obtain a single member US LLC, which invested as a 25% foreign shareholder of a US corporation which made US investments to purchase US assets. This white paper reviews how investors were able to hide their ownership and the tax compliance penalties involved.