Expatriate Tax Services
For over 20 years, E&A has helped U.S. citizens and resident aliens (Green Card holders) living outside of the U.S., and citizens of other countries living in the U.S. with their U.S. tax obligations. E&A has worked with personal and business clients in/from 75 countries. While the myriad laws and treaties of other countries and specific licensing requirement in many countries means E&A only handles U.S. tax issues, our colleagues around the world help with non-U.S. tax matters.
Our services include tax compliance and return preparation services for Federal income taxes, state taxes, and foreign asset reporting. We also provide tax planning services for those considering retirement abroad, etc. Because penalties can be very harsh for even inadvertent non-compliance, it’s important to ensure that what you don’t know won’t hurt you—and E&A provides that peace of mind.
Recent legislation (Foreign Account Tax Compliance Act, or FATCA) now requires more than 100 countries to report back to the IRS on accounts held by U.S. citizens and Green Card holders. The main components of tax compliance obligations are:
- Income tax filings—These issues can be complex and can have huge ramifications. Overseas retirement accounts, residency status, the number of days outside the U.S., foreign tax credits against U.S. tax, and a $104,100 Foreign Earned Income Exclusion can easily have an impact of tens of thousands of dollars if handled incorrectly.
- Foreign Bank Account Reporting (FBAR)—FBAR applies to bank or investment accounts (including some retirement accounts) over which a person has signatory control with a balance over $10,000 any time in the year, even without an ownership interest. Penalties are draconian and can include criminal investigations in addition to monetary penalties of up to half the account balance, but ways to minimize the impact exist if you comply voluntarily.
- Foreign Financial Asset Reporting—Separate reporting is required if the aggregate balance of all foreign bank and investment accounts (including some retirement accounts) a person owns, even without signatory control, exceed certain levels. Those levels vary based on marital status and residency, but the threshold can be as low as $75,000. The same draconian penalties can apply.
- Foreign business ownership reporting—U.S. citizens and Green Card holders also have an obligation to report greater than 10% ownership in non-U.S. businesses and trusts. Noncompliance can trigger penalties up to $100,000 per failure.
We will be pleased to help you navigate the complex rules, avoid taking undue risk, and minimize your tax due. Unless someone works with these issues all the time, it is very easy to overlook something that could have a huge impact on you.