Check endorsement: A foreign estate under 26 USC 7701 (a)(31)

[Slavic38]

Has anyone used this endorsement? Any thoughts?

All rights reserved, UCC 1-308 A foreign estate under 26 USC 7701 (a)(31) ( http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00007701----000-.html )
This is from evEvidenceOfCitizenship.pdf found at: http://sedm.org/Forms/FormIndex.htm

[ThomPaine]

I know ppl who use this for an actual foreign trust (incorporated in the islands or central america) but have never heard of any man or person using it any other way. Would be interested to see what a "foreign estate" entails specifically and if its without the jurisdiction of the IRS, income is not includable, etc., it may be worth investigating. AFAI am concerned I am outside the US and not subject to IRS regs, so in that sense I am a foreign entity.

Knew a guy who used an IBC to trade currency within the US, but he didnt pay taxes on the profits, maybe using something like the above. BC the home country of the IBC only taxed domestically earned income, he paid no taxes anywhere on the profits and used foreign banks to handle all of the transactions, wires, disbursals, etc.

Thom

[weishaupt1776]

"foreign" means foreign to the "United States" insurgent 14th Amndmt body politic which is HQ'D IN D.C.

If you and the trustees are state nationals, then the Trust (w/no TIN!) is completely foreign to their "D.C." SANDBOX

[David Merrill]

Originally Posted by weishaupt1776

"foreign" means foreign to the "United States" insurgent 14th Amndmt body politic which is HQ'D IN D.C.

If you and the trustees are state nationals, then the Trust (w/no TIN!) is completely foreign to their "D.C." SANDBOX

Of course for the IRS to recognize any trust, the trustee must be a citizen of the US.


Regards,

David Merrill.

[sfergnel]

David -

Originally Posted by ThomPaine via above link

(30) United States person

...

(D) any estate (other than a foreign estate, within the meaning of paragraph (31)), and

(E) any trust if—

(i) a court within the United States is able to exercise primary supervision over the administration of the trust, and

(ii) one or more United States persons have the authority to control all substantial decisions of the trust.

(31) Foreign estate or trust

(A) Foreign estate

The term “foreign estate” means an estate the income of which, from sources without the United States which is not effectively connected with the conduct of a trade or business within the United States, is not includible in gross income under subtitle A.

(B) Foreign trust

The term “foreign trust” means any trust other than a trust described in subparagraph (E) of paragraph (30).

- based on this, the IRS is "supposed" to recoginze a non-US person trust.