Fairfax Virginia International Audit Lawyers
The federal government’s taxation powers extend beyond the country’s borders. Glen E. Frost can protect your rights in international tax litigation matters and can help safeguard your interests if you are a U.S. resident, U.S. citizen residing abroad, or have foreign bank accounts.
Here are a few common taxation programs that can result in issues for those with offshore accounts:
Foreign Bank Account Reporting Compliance
The IRS pays close attention to Foreign Bank Account Reporting compliance. It is important to know that if you have $10,000+ in foreign bank account(s) or investment(s), you must file an FBAR (Report of Foreign Bank and Financial Accounts). In late 2013, the Form 114 FBAR replaced the form TD F 90-22.1 which was used in prior years. You can read more about the Foreign Bank Account Reporting Compliance here.
Offshore Voluntary Disclosure Program
Taxpayers who have unreported foreign income and/or 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 that report worldwide income for the past 8 tax years
- File all FBARs for the past 8 tax years
- Payback taxes, interests and any penalties for the past 8 tax years\
This program recently came to an end. However, some people may still be affected by it. Read more about the End of the Offshore Voluntary Disclosure Program here.
The Foreign Account Tax Compliance Act
Beginning on July 1, 2014, foreign financial institutions are required to follow the terms of the Foreign Account Tax Compliance Act (FATCA). FATCA requires these institutions to provide information on U.S. account holders to the U.S. government. This information will include taxpayer names, addresses, and largest account balance of the year. International tax enforcement is increasing dramatically and, if you have foreign accounts, it is imperative to contact a tax lawyer to find out how FATCA may affect you.
Offshore Tax Issues
We have extensive experience handling a wide range of offshore tax issues, including:
- Form 3520 Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts
- Form 5471 Information Return of U.S. Persons With Respect To Certain Foreign Corporations
- Form 8621 PFIC/Passive Foreign Investment Company Reporting
- Form 8891 U.S. Information Return for Beneficiaries of Certain Canadian Registered Retirement Plans
- Form 8938 Statement of Specified Foreign Financial Assets
Contact a Virginia International Tax Law Expert Today
We understand that International Tax Law can be both confusing and overwhelming. We also understand that the decisions made in such cases can have a long-lasting effect on your financial and personal life. For that reason, Glen Frost and the experienced team at Frost & Associates, LLC are ready to help you get the representation and compensation you deserve. Contact us today for a free consultation.