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International Tax Resolution

In addition to specializing in a variety of domestic IRS representation matters, our seasoned tax experts work with taxpayers across the U.S. to achieve and maintain international tax compliance. International tax matters like offshore investing (FBAR, FATCA) and international business / employment come with unique tax filing requirements, and the potential for serious consequences from the U.S. Government if not satisfied.

FBAR Compliance

FBAR (Report of Foreign Bank and Financial Accounts) is a regulation imposed by the U.S. Department of Treasury (under the Bank Secrecy Act). This requires any U.S. resident with offshore financial accounts to file a form called FinCen 114, fully disclosing all earnings and values of any financial account located offshore.

Further, you are required to comply with FBAR filing if:

  1. You own, or are in signature authority of at least one financial account located outside of the United States.
  2. The total value of all accounts at any time during the calendar year exceeds $10,000.

Types of foreign accounts that qualify:

  1. Bank accounts held at a foreign financial institution (FFI)
  2. Bank accounts held at a foreign branch of a U.S. financial institution
  3. Securities accounts
  4. Commodities futures or options accounts
  5. Insurance policies with cash values
  6. Mutual funds or pooled investment funds
  7. Indirect interests in foreign financial assets

If you meet any of these criteria and have failed to file, misfiled, or filed your FBAR paperwork late, you are at risk of civil penalties, and criminal investigations for more serious violations. FBAR compliance can be achieved by consulting with a professional FBAR tax professional that can provide the proper guidance, and ensure your paperwork is filed properly and on time.

Qualifying for OVDP

OVDP (Offshore Voluntary Disclosure Program) was introduced as a back channel for taxpayers that have failed to file, or properly file their FBAR paperwork every year. This gives taxpayers with noted FBAR compliance issues a second chance to disclose their deliquency with the IRS. In addition to filing amended FBAR paperwork, you also submit for the OVDP to avoid penalties as a result of your FBAR deliquency. As another offshore tax compliance service we offer, our team also works with offshore investors with FBAR issues to secure an OVDP status.

FATCA Compliance

FATCA (Foreign Account Tax Compliance Act) is another regulation established by the U.S. Treasury to monitor offshore accounts / investments owned by U.S. taxpayers. Similar to FBAR filing, the account holder must file a form once a year with their tax returns (Form 8938). However, FATCA laws also require the Foreign Financial Institution holding the assets to file a report of earnings/values of the accounts as well, and only applies to asset values that exceed $50,000.

FATCA regulations apply to the following assets:

  1. Bank accounts held at a foreign financial institution (FFI)
  2. Bank accounts held at a foreign branch of a U.S. financial institution
  3. Securities accounts
  4. Commodities futures or options accounts
  5. Insurance policies with cash values
  6. Mutual funds or pooled investment funds
  7. Indirect interests in foreign financial assets

FATCA regulations must be adhered to by the account owners, as well as the FFI to avoid hefty financial and criminal penalties. If you are a U.S. taxpayer with offshore assets that meet these criteria, it's important to consult with a FATCA tax professional or advisor that has the ability to organize all documentation and maintain compliance channels through you (asset owner) and the FFI. Pure Tax Resolution has helped taxpayers all across the U.S. with sound FATCA guidance, helping them resolve any compliance issues and maintain healthy compliance for the life of their offshore interests.

Pure Tax Resolution is a full-service resource for your tax consulting and resolution needs, extending beyond more common domestic IRS issues. With offshore investment or business comes more complex tax laws and regulations, and our international tax experts are equipped to handle any offshore tax resolution and consulting needs for taxpayers nationwide.

LEARN MORE ABOUT OUR INTERNATIONAL TAX COMPLIANCE SPECIALTIES

We offer free consultations, superior customer service, and 24-hour availability for our clients. See why Pure Tax Resolution is the preferred choice for your IRS representation needs.