In this podcast about International Tax Strategies and Forms, Janathan Allen provides insights for any US taxpayer with offshore interests, and any international person or expat with US interests. Beginning the conversation with an interesting observation: “I think the perception is that Americans don’t realize that once they leave our shores and they move to another country or they obtain residency in another country, that they have foreign reporting issues (to the IRS). I think sometimes the term foreign reporting is interpreted See more +

In this podcast about International Tax Strategies and Forms, Janathan Allen provides insights for any US taxpayer with offshore interests, and any international person or expat with US interests. Beginning the conversation with an interesting observation: “I think the perception is that Americans don’t realize that once they leave our shores and they move to another country or they obtain residency in another country, that they have foreign reporting issues (to the IRS). I think sometimes the term foreign reporting is interpreted to mean it’s not me because I’m an American citizen, when in fact if you are an American citizen outside of the states or you have foreign holdings, real estate, bank accounts, et cetera, outside of the United States, (filing an IRS tax return) does apply to you. And most people are quite surprised by that.”

It goes on to discuss various foreign investments, entities and real estate ownership as well as oft used IRS tax forms such as the 5471, 8858, FBAR (Form 114) and 8938. If you are a US taxpayer with 10% or more ownership in a 5471 there are certain forms which must be filed. The issue and associated tax reporting becomes much more complex when the entity is what is known as a “controlled foreign Corporation,” where a US taxpayer (or group of taxpayers) owns 50% or more of a foreign entity. It’s important to determine what ownership position you have in any offshore entity in order to determine and comply with foreign and US tax implications for your tax returns.

Any conversation on an international tax issue must include a focus on FBAR reporting as well as form 8938 and you will find that information.

Establishing the importance of not only international tax planning but transactional planning as it relates to international and US tax exposure with two simple goals: minimize tax exposure while protecting and preserving the associated assets. It may be to a taxpayer’s advantage form an entity or multiple entities in order to protect their assets and minimize the tax consequences of foreign asset ownership or investment(s).

The integration of Allen Barron’s legal, tax, accounting and business advisory services allow our clients to gain a more comprehensive understanding of the whole picture as well as the sum of it’s parts and structure one’s affairs to protect assets and minimize taxation.

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