By Eugenio Montesano
International Adviser

A US court has dismissed a complaint by an American citizen residing in Canada who claimed to have paid an unconstitutional penalty for failing to file the fiscal documentation required for his offshore business.

United States District of Columbia Judge Christopher R. Cooper upheld the $120,000 (£92,588, €102,070) penalty imposed on Donald Dewees, an American citizen currently residing in Toronto, Canada, where he set up a small consulting company.

Because the business is incorporated abroad, Dewees was required to provide certain annual information about the firm to the United States Internal Revenue Services (IRS).

Instead, for the 12 tax years from 1997to 2008 he failed to file the Forms 5471 (Information Return of US Persons with Respect to Certain Foreign Corporations)…

Read the full article at International Adviser.