• Reporting and withholding of payments to foreign persons
INTERNATIONAL TAX SERVICES OVERVIEW:
Delinquency Filings
When should a Voluntary Disclosure be used?
If you recently discovered that your client has undisclosed foreign accounts or assets, you may have also discovered that IRS penalties can be severe for not filing required forms in relation to foreign reporting. There are programs that can help bring clients into compliance.
The Offshore Voluntary Disclosure Program (OVDP) and the Streamlined Program are used to bring individuals into compliance with US filings in relation to the reporting of offshore accounts, income, investments, real estate, retirement, pensions, etc. These programs should be used in order to eliminate or minimize penalties for non-filing.
CONTACT OUR TAX EXPERTS
If you have questions regarding our tax services, schedule a call today.
KROST is a certified public accounting and consulting firm serving companies across Southern California with offices in Pasadena, Woodland Hills, and Valencia. With over 75 years of experience, KROST has assisted businesses and individuals reach their financial goals through their in-depth knowledge of tax, accounting, assurance and advisory, M&A, and consulting services. KROST also provides specialty tax services such as Cost Segregation studies, R&D tax credits, Green Building Tax Incentives, Repair vs. Capitalization, Fixed Asset, IC-DISC, and more. For additional information contact us at 626-449-4225.
ABOUT KROST
INTERNATIONAL TAX SERVICES
Common misconceptions that can get a taxpayer and tax preparer into trouble:
I am a US citizen or Green Card Holder, but I don’t live in the United States so I don’t have to file a US Income tax return.
US citizens and Green Card Holders MUST file US income tax returns, regardless of where they live or work.
I have several offshore bank accounts with less than $10,000 in each account, therefore, I don’t have to report these on the FBAR.
The $10,000 filing threshold for an FBAR is the AGGREGATE of all offshore accounts.
Only my US income is reportable on my US income tax return.
As a US citizen or Green Card Holder, you are taxed on your worldwide income.
I am not a US Citizen or Green Card Holder. I make sure to visit the US for less than 183 days a year in order to not meet the Substantial Presence Test and therefore, not file a US income tax return.
The formula for counting the number of days to meet the substantial presence test is not just for the current year. A third of the prior year’s days are counted and a sixth of the 2nd preceding year’s days are counted to come up with the 183 days.
Whether you have just one bank account outside of the United States or a complex business structure, we can help with your inbound or outbound taxation needs. We have experience in Offshore Voluntary Disclosure Programs, Streamlined Submissions, and Delinquency Procedures. We work with clients who have not properly disclosed foreign financial assets or income.
