International Tax Accountants You Can Trust
To remain competitive in today’s global marketplace, companies and individuals cannot be concerned with traditional borders or their constraints. In a global economy, international business, and therefore international tax affect increasingly more entities and individuals. Complicated tax planning, reporting, and compliance challenges abound. Individuals and businesses seeking international investment opportunities need to understand the tax issues and business risks associated with foreign ventures and international investments.
Similarly, foreign companies venturing or investing in the United States, requires attention to tax planning and structuring. International expansion brings both growth opportunities and associated challenges. Expertise is required to address the tax implications of international exposure. Whether you are determining the needs and opportunities of an existing operation or evaluating potential new ventures and investments, our team of expert international tax accountants can help you address both the outbound and inbound international tax issues that affect partnerships, individuals, trusts, and corporations.
In addition, our international tax accountant’s have experience helping organizations comply with the Foreign Account Tax Compliance Act (FATCA).
OUR CLIENTS INCLUDE:
- U.S. citizens with interests overseas
- Non-resident aliens with business operations in the U.S.
- Foreigners with investments in U.S. real estate
- U.S. businesses with foreign operations
- Non-resident aliens migrating to the U.S.
CORPORATE INTERNATIONAL TAX SERVICES:
- Comprehensive tax planning relating to hybrid instruments and entities, foreign tax credits, controlled foreign corporations, income tax treaties, branch profits tax, branch-level interest tax, cross-border transactions, classification, withholding, and location of intellectual property and holding companies
- Structuring of foreign investment in the United States and U.S. investments abroad
- Inbound tax planning for foreign investment/operations in the United States
- Cross-border financing
- Bitcoin Tax Acccounting
- Repatriation of funds analysis
- Foreign tax credit planning and reporting requirements
- Tax treaty planning
- Implementing and optimizing IC-DISC structures for U.S. exporters, including benefiting from the new Foreign Derived Intangible Income (“FDII”) deduction
- International mergers & acquisition
- Anti-deferral regimes (commonly known as subpart F, GILTI and PFIC regimes) analysis
- Foreign Account Tax Compliance Act (FATCA) registration, analysis, implementation and compliance
- Reporting and withholding on payments to foreign persons, including FATCA withholding considerations
- Coordination and preparation of U.S. federal, state and local income tax returns for U.S. business entities with foreign owners and foreign business entities operating in the United States including information returns with regards to cross-border withholding, transactions with foreign related parties, foreign bank accounts, and U.S. ownership of foreign corporations and partnerships
- Transfer pricing studies
- Due diligence
- Use of tax holidays in foreign jurisdictions
- International tax planning and compliance including tax planning considerations due to changes in international law resulting from the Tax Cuts and Jobs Act
- International mergers & acquisitions
INDIVIDUAL INTERNATIONAL TAX SERVICES
- Comprehensive tax planning including the analysis of foreign tax credits, income tax treaties, foreign earned income exclusion, expatriation, residency elections, and dual-residency filing including tax planning considerations due to changes in international law resulting from the Tax Cuts
- and Jobs Act
- Pre-immigration and expatriation planning
- Compensation planning to minimize U.S. income, payroll, and estate taxes
- Foreign trusts, estates, and foundations
- Coordination and preparation of U.S. federal, state, and local income tax returns
- U.S. permanent residents living abroad
- Foreign nationals residing in the U.S.
- Foreign investments in the U.S.
- Voluntary disclosures
- Repatriation of funds analysis
- Foreign tax credit planning and reporting requirements
- Tax treaty planning
- Foreign Account Tax Compliance Act (FATCA) registration, analysis, implementation and compliance
- U.S. international assignment services
- Recipient of foreign gifts and inheritance
- Expatriate tax return preparation
Expatriate Tax Services
Tax Planning, Audits, and Compliance for American Expatriates and Businesses
Moving abroad is an exciting time in your life! Whether you’ve been abroad for years or whether you’re still packing your bags, you may not have given much thought to taxes for expats. Unfortunately, leaving the United States does not relieve you of your tax obligation. Put simply, international taxation is a nightmare for many Americans. Every U.S. citizen – regardless of whether they are living in the U.S. – must file a tax return with the federal government. From Foreign Housing Deductions to Form 1040, there’s no end to the paperwork. Luckily, an international tax accountant can help guide you through the process of paying international taxes.
As American tax reform dominates recent news cycles, you may have noticed the continuance of a phenomenon known as “double taxing”. Double taxing is a tenant of our current tax system that remains unchanged by the recent tax bill. Under double taxing, Americans are taxed both by their host country and by the United States. Double taxes for expats significantly reduces take-home earnings without providing a service in exchange for the taxation.
Our experience with the taxation of U.S residents working abroad and foreign citizens working in the U.S. has provided us with an extensive base of knowledge in the area of international taxation. We offer the careful attention required to address tax implications of international expansion as well as exceptional customer service. We know that it’s hard enough to move abroad, and we believe that expat taxes should be the least of your worries. So what does it mean to work with an expert international tax accountant? In addition to providing great service, we can also answer your most pressing questions:
What are the challenges of filing taxes for expats?
There are numerous challenges involved in filing taxes for expats including dense tax legislation, reconciling host country tax, as well as confusion surrounding federal and state returns. You are required to prepare your return within the United States tax year even in circumstances where your new country of residence operates under a different tax schedule. In addition, you are obligated to keep a careful record of taxes paid in your host country in order to receive a tax credit for any taxes you’ve already paid. Although many expats will not owe money, failure to file will lead to financial penalties. The IRS also spends a great deal of money pursuing individuals who attempt to dodge taxes by living overseas.
Why do I have to file expat taxes?
This is a good question and it’s one many other expats have asked before! The original intention of expat taxes was to collect funds from draft dodgers who moved to Canada during the Civil War. So why is this system still in place? Taxes pay for public services, such as roads, libraries, and the postal system. If you are no longer a resident of the United States, you may not want to fund these programs. Ultimately, there’s no clear answer to be found. Although there was some discussion of moving to resident based taxation during the most recent tax reform, no action has been taken at this time.
What can an international tax accountant do for me?
Put simply, hiring Origins Group team of international tax accountants is the best way to ensure that you are not overpaying when it comes to your international taxes. The complexities of international taxation require a substantial investment of time. Additionally, you may not be aware of the latest changes in tax legislation and may miss deductions that you would otherwise be entitled to. What’s more, there’s no clear road map when it comes to taxes for expats. Depending on your former state of residence you may still be required to file a state tax return in addition to a federal tax return. When you hire an international tax accountant at Origins Group, you can take advantage of decades of experience as well as rigorous review procedures.
The U.S. Treasury estimates that approximately 10% of all expat tax returns are filed incorrectly, which can result in penalties or overpayment. When you partner with us, your international tax accountant will help you retain as much of your hard-earned income as the law allows.
Although it may be tempting, moving abroad does not mean you can ignore your U.S. taxes. Many variables affect how much expatriates pay Uncle Sam – including whether you deduct your foreign taxes, your host country, and your employment situation. Although the IRS provides some reading about the process of paying international taxes, your exact tax liability can still be difficult to determine.
U.S. Taxes for Expats- Pitfalls and Traps
If you take up residence in a foreign country without exploring the tax ramifications, you may find yourself paying more than you may have expected in federal and state taxes.
Some of the important considerations include:
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- The amount of your earned foreign income. You can deduct a substantial amount in earned foreign income from your U.S. taxes.
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- Your host country. Many countries have tax treaties or conventions with the United States, which will dictate how you file your U.S. taxes.
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- Which state you most recently lived in. Some states do not have income taxes; others make it difficult to sever your ties with that state.
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- Rental income and dividends/interest from assets in the U.S. You must pay taxes on these exactly as if you were living in the U.S.
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- Self-employment. You must pay self-employment tax on your income, even if you can exclude it as foreign earned income on your income taxes.
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- Your holdings in a foreign bank account. You must report any authority or interest in foreign financial accounts over a certain amount to the U.S. Treasury Department.
Our Expat Tax Services
Although the IRS offers numerous deductions, credits, and exclusions to expats, taking advantage of them is not straightforward. You may need an international tax accountant.
Moreover, some exclusions vary by country, and there are others which must be claimed during a specific portion of the year. In addition, each requires supporting forms and worksheets, which can be more than cumbersome to prepare.
For people who are either planning a move or have already settled abroad, we offer the following tax services:
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- U.S. Tax Returns – We prepare your U.S. income tax return, including the most common schedules and forms.
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- State Tax Returns – Depending on which state you most recently lived in, you may need to file a state return.
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- Small Business Tax Returns – We assist small business owners, self-employed individuals, or folks with significant rental property with their returns.
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- Online Filing – When you’re living in a foreign country, it’s not practical to send forms and documents back and forth through the mail. Our highly secure, fully encrypted Client Portal enables the quick, free, and safe transfer of files between our office and yours.
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- Foreign Bank Account Reporting – We file the FBAR form for individuals who have above a certain threshold in a foreign account.
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- Compliance – It’s not uncommon for expats to fall behind on their expat taxes. We help you sort through the paperwork, forms, and rules, and get you back in compliance with the IRS.
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- Consulting – If you’re unsure of your need to file federal or state tax returns, give us a call. We can help you clear your situation.
These are the most common expat tax services we offer – but it’s not our full list. Please contact us to discuss your needs if you don’t see them reflected here.
Just because the process is complicated, there’s no need for expats to pay more than require or suffer unnecessary penalties and interest. An international tax accountant is a great investment.
Let us help you navigate the tricky waters of U.S. taxes for expats. Give us a call or send us an email today – and use more of your money to enjoy your time abroad!
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