Are you a foreign national in the U.S. or a U.S. national abroad who is subject to the taxing authority of the United States? As recent international controversies involving overseas accounts have shown, the U.S. government’s taxation powers have grown far beyond our country’s borders. That is why it is important to retain the services of an experienced tax lawyer who protects your rights, safeguards your interests and works proactively to help you avoid crippling Internal Revenue Service (IRS) issues.
Our team of Miami tax law professionals can help protect your rights in IRS tax litigation matters, and can help safeguard your interests when attention to income, employment taxes, transfer pricing issues and departure taxes become priorities.
Experienced Help With Foreign Bank Account Reporting Compliance
The IRS closely monitors matters concerning Foreign Bank Account Reporting (FBAR) compliance. Essentially, if you have $10,000 or more tied up in foreign bank accounts or overseas investments, you must file a Form TDF 90-22 to report the account(s) as part of your taxes. In addition, U.S. citizens must report all foreign income on their tax returns. There are also voluntary disclosure initiatives that must be considered as part of FBAR compliance. We can discuss what this may mean in terms of tax liability and what options you may have.
Guiding You Through the Offshore Voluntary Disclosure Program
Taxpayers who have unreported foreign income and unreported foreign bank accounts may be eligible for the IRS Offshore Voluntary Disclosure Program (OVDP). In order to comply with OVDP amnesty terms, you must:
- File all original and amended tax returns for up to the past eight years reporting all income from world-wide sources
- Ensure that all FBAR’s are filed
- Pay back taxes, interests and any penalties for up to eight years
A 27.5 percent penalty will be calculated against your non-compliant offshore accounts with the highest aggregate account balance over an eight year period. At the end of the OVDP, you may either accept the penalty or opt out of the penalty framework. We will let you know whether the OVDP is right for you.
The Foreign Account Tax Compliance Act
Recently, financial institutions are being required to follow the terms of the Foreign Account Tax Compliance Act (FATCA). FATCA requires financial institutions to collect information on account holders and to withhold U.S. taxes on earnings from selected accounts. With international tax enforcement becoming a priority for the IRS, it is important to get experienced legal advice to learn how FATCA may affect your interests.
We Handle a Wide Range of Offshore Tax Issues
We have extensive experience handling a wide range of offshore tax issues, including those involving:
- Passive Foreign Investment Company Reporting (PFIC). (Form 8621). Including: Section 1291, Mark-to-Market, Qualified Electing Fund (QEF) Election
- Statement of Specified Foreign Financial Assets (Form 8938)
- U.S. Information Return for Beneficiaries of Certain Canadian Registered Retirement Plans, including: Registered Retirement Savings Plans “RRSPs”, Registered Retirement Income Funds “RRIFs”, Canadian Profit Sharing Pension Plans “PSPs”, Guaranteed Investment Certificates “GICs” (Form 8891)
- Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts (Form 3520)
- Information Return of U.S. Persons With Respect To Certain Foreign Corporations (Form 5471)
Contact Our International Tax Attorneys in Florida
Whether you are headquartered in the U.S. or are a foreign business breaking ground on U.S. soil, we can be an eloquent voice for you in a wide variety of international tax matters. We also serve individuals with significant assets in foreign accounts. Contact our Tax Attorneys in Miami online or call 305-363-6176 to schedule an initial consultation to discuss your situation.