Salt Lake City residents who have investments in foreign countries are still obligated to report those earnings to the IRS and pay taxes on them. Foreign nationals are also required to follow U.S. tax laws when dealing with U.S. business interests. But multi-jurisdictional tax compliance can get confusing for the layperson.
That’s why having a Salt Lake City UT international tax attorney is one of those services that pays for itself. We can help you understand your legal options for both maximizing your profits and reducing your tax burden. Learn more about how Randall & Associates can help.
We Help Our Clients Avoid Costly Mistakes
Offshore bank accounts are necessary for those who engage in global business. They are also necessary for those who spent a significant amount of time overseas. Nonetheless, the IRS requires full disclosure of these bank accounts regardless of whether your a natural born citizen, a legal resident, or a corporation. In some cases, this includes reporting foreign assets held in overseas accounts.
A failure to comply with IRS regulations can result in an audit. Some will be fined while others will be prosecuted.
What Does the Law Require Me to Report?
As an investor in foreign markets, you are generally required to report:
- Offshore bank accounts,
- Most foreign assets,
- And income and earnings from foreign sources.
What Tax Forms Do I Have to Fill Out?
Two of the most likely forms are the FATCA Form 8938 and FBAR (Foreign Bank and Accounting Report). Additionally, the IRS may require you to disclose:
- Earnings from a foreign trust,
- Earnings from foreign mutual funds, and
- Equity shares in foreign corporations.
In recent years, the IRS has become increasingly aggressive in their enforcement of foreign investment regulations. In addition, tax laws change each time a new president is elected. An international tax attorney can help you get in compliance with the current IRS tax laws and avoid the unnecessary hassle and stress of an audit.
Practical Solutions for Multinational Investors
The majority of those who are in violation of IRS regulations don’t intentionally violate federal law. The laws are subject to change. You therefore need a degree in law simply to parse through the many variables, exceptions, and disclosures that are relevant to your situation. What may appear to an IRS agent as an individual hiding earnings, may simply be an individual who wasn’t aware that the law requires them to disclose certain earnings. The fact is, there are some earnings that you do not have to disclose.
The attorneys at Randall & Associates have helped a number of clients out of tricky situations. Call us today to learn more.
We Build a Tax Plan Tailored to Your Needs
Randall & Associates helps Salt Lake City investors build a tax plan that is unique to their goals. We can discuss your individual goals for your investments and then build a plan that ensures compliance with the latest IRS regulations. In addition, we can help you achieve your long-term goals and identify opportunities for future investments. We’ll also help you understand your options.
Most of all, we’ll keep you safe from an audit as well as ensure that you don’t suffer unnecessary setbacks from IRS scrutiny.
The Offshore Voluntary Disclosure Program
The OVDP (Offshore Voluntary Disclosure Program) was designed to help those who may be non-compliant in reporting overseas assets. Those who voluntarily report income for foreign investments can gain amnesty from federal liability.
Act now. The program ends September 18,2018. This program was designed for those who may have exposed themselves to criminal liability due to underreporting their assets. The federal government has extended these individuals a grace period to voluntarily submit their foreign holdings and pay off their delinquent tax balance.
Assessing Your Options for Voluntary Disclosure
Randall & Associates will help you determine your best course of action for OVDP. What constitutes the best course of action will depend on your unique circumstances. These include the following:
- Disclosing assets via the OVDP. Even those who have intentionally skirted U.S. tax law can regain compliance through this program.
- Streamlined offshore disclosures. This program is set aside for foreign residents and did not willfully attempt to hide assets from the U.S. government.
- Reasonable cause. Reasonable cause is a defense to tax infractions. Invoking this defense requires a U.S. tax attorney to scrutinize your assets and holdings as well as paperwork.
Do Not Ignore the Requirements of the IRS
Ignoring federal tax law is not in your best interests. A Salt Lake City UT international tax attorney can help you to determine the best course of action if you find yourself out of compliance with the IRS.
The IRS can impose significant penalties on those who have wilfully skirted U.S. tax laws. It can impose penalties on those who have done it accidentally. There are, however, ways to get back in the IRS’s good graces without forfeiting a dime in fines and penalties. Even those who have intentionally tried to hide assets from the IRS can attain amnesty with the OVDP program.
Contact Us Today
Contact a Salt Lake City UT international tax attorney at Randall & Associates today. We will help you construct a plan to regain compliance with U.S. federal tax laws, as well as avoid costly mistakes.