Foreign bank accounts, overseas income, a foreign-owned US company or a gift from family abroad can each bring US reporting requirements, with penalties that can exceed the tax itself. Our international tax services help individuals and businesses understand what to file and get current if filings were missed.
The Washington DC area is home to many people with family, accounts and business ties abroad. US citizens and residents are taxed on worldwide income, and many foreign assets must be reported even when no tax is due. Nonresidents with US income have their own filing rules.
The FBAR is filed with FinCEN, not the IRS, when the combined maximum value of your foreign financial accounts is over $10,000 at any time during the year. Form 8938 is filed with your tax return and has separate, higher thresholds that depend on filing status and where you live. Many people must file both.
If you paid foreign tax on the same income, the foreign tax credit can reduce double taxation. If you live and work abroad, the foreign earned income exclusion may apply instead. We compare the options to see which works better for you.
Many people only learn about these rules years later. The IRS has procedures for taxpayers who need to catch up, and the right one depends on your facts, including whether the failure was non-willful. We review your history, explain the procedures that may apply and prepare the filings. We do not promise a particular penalty outcome.
We list your foreign accounts, entities, income and family gifts.
We determine which forms apply and which years are affected.
For missed years, we review the catch-up options with you.
We prepare returns and information forms with supporting schedules.
Annual reminders and filings to keep you current.
International reporting is detailed and the forms interact with each other. We take the time to map your full picture before filing, so nothing is missed. We explain the rules in plain terms and are direct about risks.
International matters often overlap with tax planning and, when notices arrive, IRS representation.
Yes, if the combined maximum value of your foreign financial accounts was over $10,000 at any time during the year. The FBAR is a reporting requirement filed with FinCEN, separate from your income tax return. It applies even if the accounts earned nothing, and penalties for not filing can be significant, so it is worth getting right.
The FBAR (FinCEN 114) is filed with FinCEN and covers foreign financial accounts over a combined $10,000. Form 8938 is filed with your tax return, has higher thresholds that depend on filing status and where you live, and covers a broader range of foreign financial assets. Many people with foreign accounts must file both, and the information on them should be consistent.
Generally yes. Foreign-owned single-member LLCs and US corporations that are at least 25% foreign-owned usually must file Form 5472, reporting transactions with their foreign owners, even when the company has little activity. The penalty for missing it is steep, so new foreign-owned companies should plan for it from their first year.
It depends on where you live, how much foreign tax you pay and your long-term plans. The exclusion can remove a portion of foreign wages from US tax, while the credit offsets US tax with foreign tax already paid. In higher-tax countries the credit often works better. Choosing the exclusion can also limit your ability to switch later, so we compare both before you file.
Talk to a professional before filing anything. The IRS has several procedures for catching up, and the right one depends on your facts, including whether the failure was non-willful. Filing the wrong way can cost more than it saves. We review your history, explain the options that may apply and prepare the filings once you decide.
Book a 30-minute consultation to review your foreign accounts, entities or income and what you need to file.
Plan ahead, answer the IRS with confidence and resolve what you owe. Advanced tax planning, IRS and state representation, tax debt resolution, and international reporting for people and businesses with ties abroad.
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