Employee Plans Compliance Unit (EPCU) - Current Projects - International Project - Domestic Trusts

Foreign entities may maintain domestic trusts in the United States for U.S. citizens and nationals. In general, the trusts must be administered exclusively in the United States and substantive decisions must be under the control of persons in the United States. It is our goal to determine the total number of existing domestic trusts maintained by foreign entities, whether they are in compliance and if they can be identified by their Employer Identification Numbers (usually beginning with ninety-eight (98)).

Project Process

Compliance letters will be sent to entities (corporations, partnerships, sole proprietors) selected from the population identified from W-2’s filed for the 2007 year. The responses to the questionnaire will be used to:

  • Determine the accuracy of the information from the data source
  • Determine the demographics of plans maintained by foreign entities
  • Determine whether entities are following the requirements for trusts maintained by foreign entities
  • Determine if all required returns have been filed
  • Determine the need for education/awareness initiatives.

If You Receive A Letter

Please provide the information requested in the letter. You may also furnish any other documents or clarifying material that you believe will be helpful to us for review. You should make every effort to answer the letter as accurately as possible by the due date. If you need additional time, make sure to contact the person whose name is listed on the letter to request an extension. Failure to provide the information requested could result in further action or examination of your tax return.

If You Have Questions

Please feel free to e-mail us and we will be glad to answer any questions you have about the project and how it relates to your situation. Please indicate “International Project – Domestic Trusts maintained by Foreign Entities” in the subject line of the message. We regret that we cannot answer technical questions unrelated to your compliance check. 

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