A&C is experienced and qualified in preparing informational returns for international tax filings. However, these filings can be complex. If they are not completed correctly or filed on time, taxpayers may face significant penalties.
Examples of international tax reporting requirements include:
Reporting Foreign Gifts:
You must report foreign gifts exceeding $100,000 to the IRS.Reporting Foreign Trusts:
Beneficiaries must report distributions they receive from foreign trusts to the IRS.Reporting Foreign Pension Plans:
Owners of certain foreign pension plans must report contributions and distributions related to those plans.Reporting Transfers to Foreign Corporations:
Transferors must report certain transfers of money and property, including physical and financial assets, to the IRS.Reporting the Activities of Foreign Corporations:
U.S. citizens, permanent residents, and individuals considered U.S. residents for tax purposes may need to report the activities of a foreign corporation in which they are shareholders.Reporting the Activities of Foreign Partnerships:
Owners and partners may need to report the activities of their foreign partnerships to the IRS.Reporting the Activities of Foreign Sole Proprietorships:
Owners may need to report the activities of their foreign sole proprietorships to the IRS.Statement of Specified Foreign Financial Assets:
Individuals with an interest in specified foreign financial assets may need to report those assets if their value exceeds the applicable reporting threshold.Foreign Bank and Financial Account Reporting (FBAR):
You may need to file Form FinCEN 114, previously known as TD F 90-22.1, if you meet certain requirements. For example, you may need to file if:- You are a U.S. citizen and own bank or brokerage accounts outside the United States.
- You are not a U.S. citizen but live in the United States and own bank or brokerage accounts outside the country.
- You have signature authority over a bank account or brokerage account located outside the United States.
Reporting U.S. Entities Owned by Foreign Shareholders:
Certain U.S. citizens, permanent residents, and residents for tax purposes may need to disclose ownership interests in foreign entities.Reporting Passive Foreign Investment Companies (PFICs):
Owners of certain foreign mutual funds and other PFICs may need to report these investments correctly on their tax returns.Reporting Foreign Income:
U.S. citizens, permanent residents, and residents for tax purposes are generally taxed on their worldwide income. A&C can help ensure that you report foreign income correctly.
International Tax Streamlined Filing Compliance Procedures
Do you have foreign bank accounts, income, or assets that you have not reported to the Internal Revenue Service?
Several countries have signed agreements under the Foreign Account Tax Compliance Act (FATCA) with the United States. As a result, these countries may share financial account information with the IRS.
If you may qualify for the Streamlined Filing Compliance Procedures, it is important to review your individual situation. A careful review can help determine the most advantageous path forward under the current rules.
A&C can help you determine your IRS filing requirements and address other international financial planning needs. We can also assist with both short- and long-term planning.
Our experts can evaluate whether you qualify for the Streamlined Filing Compliance Procedures. If you do, we can guide you through the process and help you work toward an expedient and accurate resolution of your compliance issues.