An irrevocable foreign trust (with US beneficiaries) owns 85% of a domestic US LLC. The LLC received dividends from a domestic US corporation. All the income from foreign trust is distributed to the US beneficiaries, and they ultimately pay tax on all the trust's income (incl. dividends received).
If this withholding is applicable, then how will the US beneficiaries claim the credit for the withholding taxes paid if the irrevocable foreign trust doesn't prepare a US tax return?
Tax Professional Answers
Meet Leading Tax Advisors
Federal Tax Credits & Incentives Practice Leader
New York, NY
CEO/Certified Financial Advisor
Rancho Santa Fe, CA
San Jose, CA
Long Beach/ Park City, CA