INTERNATIONAL TAX SERVICES
If you are a U.S. citizen, green card holder, or U.S. tax resident with foreign income, overseas financial accounts, or international business interests, understanding your U.S. tax reporting obligations is essential.
SBA Accounting provides CPA-led international tax preparation and compliance support to help you address applicable reporting requirements, foreign income, and related tax considerations.
Worldwide Income
Reporting
FBAR & FATCA
Reporting
Foreign Tax Credit
Guidance
Ongoing International
Tax Support
International financial activity can create U.S. tax reporting responsibilities, even when income is earned or financial accounts are held outside the United States. U.S. citizens, green card holders, and individuals who meet U.S. tax residency requirements may have reporting obligations involving foreign income, overseas financial accounts, investments, or business interests.
SBA Accounting provides international tax services to help taxpayers understand their applicable U.S. filing and reporting responsibilities and address the tax considerations associated with their international financial activities.
U.S. citizens who live or work outside the United States may still need to report income earned overseas on their U.S. tax returns. Foreign employment income, self-employment earnings, investment income, and other sources of income may require careful reporting and consideration of available tax provisions.
Green card holders and individuals treated as U.S. tax residents may have U.S. reporting responsibilities that extend to income earned outside the country. Understanding residency status, worldwide income reporting, and applicable filing requirements is important when preparing an accurate tax return.
Holding financial accounts or investments overseas may create additional reporting requirements. Depending on the circumstances, foreign bank accounts, investment assets, and certain financial interests may require disclosures separate from the regular federal income tax return.
Owning rental property abroad, operating an overseas business, or receiving income from international business activities can introduce additional tax reporting considerations. Proper reporting requires understanding the income involved, applicable expenses, and any relevant foreign tax considerations.
Generally, U.S. citizens must report worldwide income on their U.S. federal tax returns, including employment, self-employment, rental and investment income earned outside the United States. Certain exclusions or foreign tax credits may be available depending on eligibility. The applicable reporting requirements depend on your income, circumstances and filing status.
Generally, lawful permanent residents who are treated as U.S. tax residents must report worldwide income, including income earned outside the United States. However, tax residency, applicable exceptions and treaty considerations can affect individual filing obligations. Reviewing your circumstances helps determine which reporting requirements apply.
FBAR and FATCA are separate foreign financial account reporting requirements. FBAR is generally filed electronically with FinCEN using Form 114 when applicable foreign financial accounts exceed the aggregate $10,000 threshold at any time during the calendar year. FATCA reporting for individuals generally uses IRS Form 8938 when specified foreign financial assets exceed applicable thresholds. The filing rules and thresholds are different.
Foreign tax credits may help reduce double taxation when eligible taxpayers have paid qualifying foreign income taxes. The credit is generally calculated using IRS Form 1116, subject to applicable limitations and rules. Eligibility and the amount of any available credit depend on the type and source of income, foreign taxes paid and other tax circumstances.
You may have a separate foreign account reporting obligation if you have a financial interest in or signature authority over qualifying foreign financial accounts. FBAR filing is generally required when the aggregate value of reportable accounts exceeds $10,000 at any time during the year. Other reporting requirements, including FATCA Form 8938, may also apply depending on your circumstances.
If foreign income or required disclosures were omitted from previous filings, the appropriate next step depends on the years involved, the nature of the omissions and your filing history. Possible options may include amended returns or applicable IRS compliance procedures. A review of your records can help identify the reporting issues and available options.
SBA Accounting provides CPA-led tax preparation and advisory support for U.S. taxpayers with foreign income and international tax considerations. We can review your circumstances, discuss applicable U.S. reporting requirements and help determine the appropriate next steps. The specific forms and services available depend on the complexity of your tax situation.
