Net Investment Income Tax and US Territories – Take Two
Not long ago we pointed out here that apparently there is significant confusion regarding the applicability of the NIIT to residents of the U.S. Virgin Islands and Puerto Rico. There we discussed that there is conflicting information coming from BIR and Treasury and that LPs ought to talk to their CPAs right away. Apparently, the CPAs are also at a loss because today came out a comment by AICPA asking Treasury once and for all to come out on the record and clarify whether US Virgin Island residents have to pay the tax. Basically, the AICPA very nicely said, please, please Treasury, none of...
August 13, 2014 read more
Net Investment Income Tax and US Territories – Confusion and Inequality Abound
Filing season is done for taxpayers without extensions and will soon be approaching for those with extensions. One item on the menu that is new is the NIIT. That item slices a 3.8% cut off the investor’s revenue and forwards it promptly to Uncle Sam. Amid confusion regarding trusts, S corporations, real estate, netting losses and so on, apparently there is some confusion regarding the application of the NIIT to US territories. We were not aware of that confusion until today when we reviewed one USVI law firm’s plea to Office of International Tax Counsel to clarify the NIIT...
May 14, 2014 read more