Scottsdale residents with investments in foreign markets are still required to report their earnings to the IRS. They are also required to pay taxes on them. In addition, foreign nationals must follow U.S. tax law when dealing with U.S. markets, business interests, or owning equity in U.S. corporations.
This does not, however, imply that multinational tax compliance is a simple thing to manage. Nor does it mean that the ever-changing federal regulations concerning overseas bank accounts, assets, mutual funds, and equity shares in foreign corporations are necessarily transparent to the majority of people.
For those with foreign holdings, an international tax attorney can help you manage your obligations to the IRS while considering your long and short-term goals.
At Randall & Associates, we help our clients navigate audits, identify opportunities, and avoid costly fines and criminal charges. If you need someone to take a look at your foreign assets and come up with a plan for tax compliance, a Scottsdale AZ international tax attorney can help you.
We Help Our Clients Avoid Costly Mistakes
Many of our clients have offshore bank accounts. These are necessary for anyone who engages in global business. They may also be necessary for those who spend a significant amount of time in foreign countries. The IRS demands full disclosure when it comes to foreign assets. That includes bank accounts; this remains true whether you are a natural born citizen, a legal resident, or even a corporation.
Failure to comply with IRS rules can result in serious fines or penalties. We help our clients maintain a profitable business by ensuring that they remain in compliance with federal regulations.
What Do I Have to Report?
Those with foreign holdings must report:
- Offshore bank accounts,
- Most foreign assets,
- And income and earnings from foreign sources.
What Tax Forms Do I Have to Fill Out?
You will likely need to fill out the FATCA Form 8938 and the FBAR (Foreign Bank and Accounting Report).
The IRS may also require you to disclose:
- Earnings from a foreign trust,
- Earnings from foreign mutual funds,
- And equity shares in foreign corporations.
The IRS has become increasingly aggressive in prosecuting those who attempt to hide assets overseas. They tend to target those who they believe are hiding a great deal of holdings. In other words, the more money you make, the more likely the IRS will target you for an audit. A Scottsdale AZ international tax attorney can help you get in compliance with the IRS while avoiding potential penalties that could hurt your bottom line or expose you to criminal prosecution.
Practical Solutions for Scottsdale Multinational Investors
In our practice, we’ve found that the majority of those who are in violation of federal tax laws did not intentionally try to break the law. Tax laws seem to change each time a new president takes office. In addition, they are incredibly complex, especially when you’re dealing with other jurisdictions. There are too many variables, exemptions, and disclosure rules that may or may not be applicable to your situation.
Those who have received notice of an audit may have cause to fear IRS scrutiny regardless of whether they have done anything wrong. There are some earnings that you may not be required to disclose. Other earns you may be required to disclose.
The attorneys at Randall & Associates have helped our clients navigate these tricky situations and restore their compliance with the IRS without having to endure heavy finds or the threat of criminal prosecution.
The Offshore Voluntary Disclosure Program
The OVDP (Offshore Voluntary Disclosure Program) is an IRS program that allows those who are not in compliance with federal law a grace period for them to disclose offshore holdings. This program will end on 9-28-18. This grace period is extended to those who may otherwise be prosecuted for criminal tax evasion. Act now. A Scottsdale AZ international tax attorney can save you criminal charges.
You may, in fact, have several options at your disposal. The best course of action will depend on your circumstance. Your options may include:
You may qualify for the streamlined offshore disclosures program. You may also be able to raise a reasonable cause defense to any tax infractions. Either way, Randall & Associates can help you assess the best course of action.
Don’t Ignore the Requirements of the IRS
Ignoring federal tax laws can hurt your bottom line. For a limited time only, the U.S. government is extending amnesty to those who have failed to report their overseas holdings. If you think you may not be in compliance, contact a Scottsdale AZ international tax attorney today and we can assess your options for managing your foreign assets. Call Randall & Associates today.