U.S. Citizen or Resident Tax Returns with Foreign Income and/or Assets

If you are a U.S. citizen or resident with foreign income or assets you are required to report them to the IRS and you need to make sure you are reporting them accurately. Should you fail to, the IRS will likely find out due to Foreign Financial Institutions (FFIs) reporting information on your foreign accounts and assets pursuant to the Foreign Account Tax Compliance Act (FATCA). The problem is, if the IRS finds out about your foreign accounts and assets from an FFI rather than from you, it may cost you more in penalties and fines than you actually have in foreign assets!


Preparing seemingly basic tax returns can often be challenging when you add foreign income and assets to the mix. You have to know how the U.S. is going to tax your foreign income or assets, what exchange rates to use, how tax or totalization treaties apply, what credits or exclusions are available, and what forms have to be filed to disclose various types of income and assets.


Remember, the U.S. doesn’t just want you to report your foreign income, they also want to know about your foreign assets and there is a myriad of forms that must be filed to report various types of assets.


The IRS does not take kindly to those who fail to properly report their foreign income or assets; penalties are severe. For example, failing to properly disclose your foreign assets can lead to an unlimited statute of limitations or penalties of 50% of certain undeclared foreign assets.


You need an expert like Esquire Group to prepare your return.

Esquire Group will expertly prepare your tax returns, properly reporting your foreign income and assets to ensure you are in tax compliance and remain there. We will also help you take full advantage of all of the deductions, credits exclusions, and treaties you entitled to; and timely complete and, when possible, e-file your tax returns.


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