IRS Tax Treatment of Foreign Accounts & Income
Foreign to List Foreign Income & Accounts on My Tax Return: The United States taxes “U.S. Persons” on their worldwide income. The IRS also requires these Taxpayers to disclose their global assets on their Tax Return, in addition to the Form 8938 and FBAR. In recent year, the Internal Revenue Service has taken an aggressive approach on matters involving foreign accounts compliance. Therefore, if a Taxpayer is out of compliance for non-reporting, they may consider getting into compliance through one of the offshore amnesty programs.
Reporting Foreign Income & Accounts
When a person is required to file a 1040 tax return, they are also required to report their worldwide income (vs a 1040NR in which only U.S. Sourced income must be reported).
If you are required to report you worldwide income, then you are required to report even minimal interest or minimal foreign passive income from overseas.
There is no minimum threshold requirement once you are required to file a tax return.
In addition, when a person meets the threshold for reporting as well, they will have to file various international information returns. Some common examples, include:
- FBAR (aka FinCEN Form 114)
- FATCA Form 8938 (Foreign Account Tax Compliance Act)
- PFIC Form 8621 (Passive Foreign Investment Company)
Golding & Golding: About Our International Tax Law Firm
Golding & Golding specializes exclusively in international tax, and specifically IRS offshore disclosure.
We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe. Our attorneys have worked with thousands of clients on offshore disclosure matters, including FATCA & FBAR.
Each case is led by a Board-Certified Tax Law Specialist with 20 years of experience, and the entire matter (tax and legal) is handled by our team, in-house.
*Please beware of copycat tax and law firms misleading the public about their credentials and experience.
Less than 1% of Tax Attorneys Nationwide Are Certified Specialists
Sean M. Golding is one of less than 350 Attorneys (out of more than 200,000 practicing California Attorneys) to earn the Certified Tax Law Specialist credential. The credential is awarded to less than 1% of Attorneys.
Recent Golding & Golding Case Highlights
- We represented a client in an 8-figure disclosure that spanned 7 countries.
- We represented a high-net-worth client to facilitate a complex expatriation with offshore disclosure.
- We represented an overseas family with bringing multiple businesses & personal investments into U.S. tax and offshore compliance.
- We took over a case from a small firm that unsuccessfully submitted multiple clients to IRS Offshore Disclosure.
- We successfully completed several recent disclosures for clients with assets ranging from $50,000 – $7,000,000+.
How to Hire Experienced Foreign Accounts Counsel?
Generally, experienced attorneys in this field will have the following credentials/experience:
- Board Certified Tax Law Specialist credential
- Master’s of Tax Law (LL.M.)
- Dually Licensed as an EA (Enrolled Agent) or CPA
- 20-years experience as a practicing attorney
- Extensive litigation, high-stakes audit and trial experience
Interested in Learning More about Golding & Golding?
No matter where in the world you reside, our international tax team can get you IRS offshore compliant.
Golding & Golding specializes in FBAR and FATCA. Contact our firm today for assistance with getting compliant.