International Taxes for Individuals
As an individual, navigating basic income tax returns can be difficult. For individuals with foreign assets or foreign nationals living and working within the United States, remaining compliant with changing domestic and international tax laws can be especially challenging. Too often, individuals are unaware of their tax obligations, thus opening the door for penalties from the IRS or double taxation.
At Helfer & Company CPAs, our team is well-versed in the dynamic nature of international taxes and offers comprehensive tax strategies to help U.S. citizens living abroad and foreign nationals living with the United States remain compliant with unique tax obligations.
Tax Obligations for U.S. Citizens
For U.S. citizens, expatriates, or resident aliens living abroad, understanding your tax liability is critical to proactively preparing for the future.
Contrary to popular belief, all citizens and resident aliens are responsible for filing U.S. tax returns on their worldwide income, even if they did not live within the United States during the tax year in question. Too often, individuals living abroad fail to file or improperly report their income when filing their annual returns, leaving them vulnerable to double taxation, underpayment, or overpayment.
There are also tax implications for U.S. citizens with foreign financial interests. In particular, citizens with foreign assets that have an aggregate value of $10,000 or more are required to file a Report of Foreign Bank and Financial Accounts form, or FBAR. Failure to do so can increase risk for steep penalties from the IRS, which can be as high as 50% of the value of the non-reported asset.
Tax Responsibilities for Foreign Nationals Working in the U.S.
Current federal regulations also stipulate that any individual with financial interests held in the United States is required to pay U.S. income taxes, including foreign nationals working within the United States. If you are a foreign national that worked and collected income within the US and are planning on leaving, you also need to file an annual income tax return and let the IRS know that you will no longer be living within in the U.S.
From marital status to determining which investments and income are taxable and identifying tax treaties, there are a number of other factors that can impact your U.S. income tax return, making accurate filing particularly difficult for foreign nationals.
International Tax Compliance in Greenville
At Helfer & Company CPAs, our professionals have years of experience helping U.S. expatriates and foreign nationals working within the United States develop efficient, compliant tax strategies. Beginning with an in-depth evaluation of your current tax status and prior year tax returns, our Greenville and Atlanta professionals develop comprehensive strategies that take advantage of tax treaties and tax equalization opportunities to limit applicable liabilities.
Through constant communication with our international clients, Helfer & Company CPAs provides clients with professional support to remain compliant wherever they go. To learn more about your tax obligations, contact Helfer & Company CPAs today. Our international tax consulting services are available at our Greenville, SC and metro Atlanta offices.