Feigenbaum Law

foreign disregarded entities

Corporate Tax Planning

US Moves to Regulate Foreign Disregarded Entities

Efforts to fight cross-border tax evasion and other forms of international financial fraud are on the rise. As part of this effort, the US Treasury Department and Internal Revenue Service are making it more difficult for foreign entities to evade local taxes by increasing the compliance and reporting requirements for foreign disregarded entities. Tax evasion concerns associated with foreign disregarded entities The DRE enables a foreign entity to use a single owner LLC to hold… Read More

Nova Scotia

Corporate Tax Planning

The Income Tax Benefits of “Disregarded Entities”

What is a disregarded entity? A disregarded entity (“DRE”) is a legal entity, such as a corporation, that is largely “disregarded” for the purposes of calculating income tax. Instead of tax liabilities being determined at the corporate level, the business is reported directly on the individual owner’s income tax return as if it were a sole proprietorship. For the purpose of federal income taxes, the business activities of a DRE are treated as being the… Read More