- The IRS has never issued any written ruling or opinion whether or not a fideicomiso is a foreign trust and IRS sources state it has no intention of doing so in the near future.
- Under US tax law, an oral decision made in an individual’s tax matter CANNOT be cited as authority by another taxpayer in a similar factual situation.
- No one has received a private letter ruling that the Mexican fideicomiso is not a foreign trust nor have any court cases so decided.
- A representative of the IRS General Counsels Office has said that since the IRS has not yet (nor may ever) issued a ruling that a Fideicomiso is not a foreign trust, it is not advisable to rely on an opinion on that requirement that does not come in writing from the IRS.
- The fact the IRS will not issue a written opinion on fideicomiso filing requirements should be cause to worry. It would be easy for them to issue written guidance if they really were certain that the beneficiaries of fideicomisos did not have to file the foreign trust forms.
- Currently in almost all situations, anyone who has filed these forms late and included a late filing excuse, has not been assessed penalties. Those who have filed the forms late and did not include a late filing explanation have been assessed penalties, but have subsequently been able to get the penalty abated after appealing. This could change in the future.
Author Linda Neil has over 35 years of hands on experience in all aspects of Mexican real estate. She holds membership in AMPI, NAR, and FIABCI and PROFECO Certificate 00063/96. Current member of the national advisory board of AMPI she is the owner broker of LINDA NEIL PROPERTIES for more information (512)-879-6546 THE www.TOPmexicorealestate.com NETWORK
“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”
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