International Taxation, Cross-Border Assets & Expats
The United States enforces a unique citizenship-based tax system, requiring U.S. citizens and green card holders worldwide to declare their global income, foreign bank accounts, and corporate holdings. In tandem, foreign investors and non-residents establishing U.S. businesses must navigate strict disclosure rules to avoid severe penalties. Our international taxation team specializes in cross-border structuring, double-taxation relief, expat filings, and foreign asset disclosures.
We guide expats, multi-national businesses, and foreign-owned U.S. corporations through the filing protocols of FBAR, FATCA, and tax treaty provisions to secure assets and minimize global tax obligations.
Advanced Cross-Border Solutions & Disclosures
Navigating cross-border taxes requires understanding complex bilateral treaties and information exchange networks. Our key compliance services include:
- Streamlined Filing Compliance Procedures: An IRS amnesty program allowing expats who inadvertently failed to file historical returns or FBARs to catch up without penalties by submitting three years of delinquent tax returns and six years of FBARs.
- Foreign Tax Credit (FTC) & Treaties: Utilizing IRC Section 901 and bilateral tax treaties to offset U.S. liabilities dollar-for-dollar with foreign taxes paid, avoiding double taxation on foreign investments and wages.
- GILTI & Subpart F Consultation: Structuring ownership in controlled foreign corporations (CFCs) to manage Global Intangible Low-Taxed Income (GILTI) and Subpart F inclusions, which apply flat tax rates to pass-through corporate earnings.
Key International Tax Forms & Schedules
We specialize in preparing cross-border disclosures to shield clients from non-compliance penalties:
| IRS / FinCEN Form | Purpose / Description | Filing Threshold | Non-Filing Penalty |
|---|---|---|---|
| FinCEN Form 114 (FBAR) | Report of Foreign Bank and Financial Accounts - Disclosing foreign bank balances. | $10,000 aggregate balance at any time | $10,000+ (willful penalties higher) |
| Form 8938 | Statement of Specified Foreign Financial Assets (FATCA) - Filed with Form 1040. | $50,000+ (varies by residency/filing status) | Starting at $10,000 |
| Form 2555 | Foreign Earned Income Exclusion - Excluding foreign salary from U.S. income. | Up to $120,000+ (indexed annually) | Exclusion denied if not filed |
| Form 5472 | Information Return of a 25% Foreign-Owned U.S. Corporation (including single-member LLCs). | Any transaction between U.S. entity & foreign owner | Strict $25,000 fee |
| Form W-7 | Application for IRS Individual Taxpayer Identification Number (ITIN). | For non-residents without SSN filing U.S. returns | Filing delays/refund withholding |
Our Global Compliance Pipeline
We systematically assess and secure your international tax positions:
Foreign Asset & Holdings Assessment
We catalog your offshore bank accounts, securities, insurance policies, and interests in foreign corporations or trusts to determine active filing requirements.
Double-Taxation Audit & Treaty Evaluation
We analyze tax treaties between the U.S. and your country of residence, optimizing the use of Foreign Tax Credits (Form 1116) or the Foreign Earned Income Exclusion (Form 2555).
FBAR & FATCA Disclosure Reconciliation
We verify and convert foreign account balances to USD using official IRS exchange rates, preparing detailed disclosures for FinCEN and IRS submissions.
E-Filing & Non-Resident ITIN Support
We submit filings via specialized secure portals. For foreign business partners, we manage the entire W-7 ITIN application process through our certified channels.
Frequently Asked Questions
Who is classified as a U.S. person for tax purposes?
A U.S. person includes U.S. citizens, green card holders (permanent residents), and individuals meeting the Substantial Presence Test (based on the number of days spent in the U.S. over a three-year period). All U.S. persons must declare worldwide income to the IRS.
What is the physical presence test for the Foreign Earned Income Exclusion (FEIE)?
To qualify for the FEIE via the physical presence test, a U.S. citizen must reside outside the U.S. for at least 330 full days during any consecutive 12-month period. This allows them to exclude their foreign-sourced wages from federal income taxation up to annual statutory caps.
What is the difference between FBAR and Form 8938 (FATCA)?
FBAR (FinCEN Form 114) is filed with the Treasury Department if foreign bank accounts aggregate to $10,000+ at any point in the calendar year. Form 8938 is filed with the IRS as part of your Form 1040 if foreign financial assets aggregate to $50,000+ (or higher thresholds for couples or expats). Many clients must file both forms.
Why is Form 5472 critical for foreign-owned single-member U.S. LLCs?
Although single-member LLCs are typically treated as "disregarded entities" by the IRS, foreign-owned single-member U.S. LLCs are treated as corporations for information reporting. They must file Form 5472 and Form 1120 annual reports. The penalty for failing to file this form or filing it incorrectly starts at $25,000 per year.
What is an ITIN, and how does a non-resident alien acquire one?
An Individual Taxpayer Identification Number (ITIN) is issued by the IRS for tax processing to individuals who do not qualify for a Social Security Number (SSN). Non-residents need an ITIN to file returns, claim treaty benefits, or open U.S. business accounts. We prepare Form W-7 applications alongside certified tax returns.