International Taxes Can Be Complex But They Don’t Have to Be
If you are facing complex international tax issues, the tax lawyers at Wiggam Law have the knowledge and experience to guide you through your unique situation.
International Tax Compliance
If you are an American citizen who lives outside of the United States, you could be surprised and caught off guard to learn that you’re still responsible for paying taxes. The IRS is able to track U.S. citizens’ income earned in a foreign country, as well as assets held overseas or in foreign bank accounts.
Reporting Foreign Income and Assets
By federal law, U.S. citizens have the responsibility to report any and all foreign income and some assets to the IRS. In addition to filing all applicable forms, you may be required to file:
- Form 8938 – Statement of Foreign Assets
- FBAR – Foreign Bank Account Reporting Form
Undisclosed Foreign Bank Accounts
Whether non-compliance was a mistake or something purposefully executed, the IRS can apply severe penalties if you have undisclosed foreign bank accounts.
What Is the Penalty of Not Disclosing a Foreign Bank Account?
Depending on your circumstances, the penalty for an undisclosed foreign bank account can be up to $250,000 or five years in jail, or both. The IRS takes offshore tax evasion seriously and even mistakes can be harshly punished. They continue to strengthen global efforts to improve the exchange of foreign account information with over 100 nations.
How to Disclose Your Foreign Bank Account
As with any tax issue, the best method of resolution is to take action towards compliance with the IRS. There are four main options available:
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- IRS Streamlined Compliance Procedures
- Voluntary Disclosure Program
- Delinquent International Information Return Submission Procedures
It is necessary to thoroughly review each option to understand which program you’re qualified to participate in. Wiggam Law tax attorneys are able to assist you in discovering the most appropriate program and then guiding you through the process to become compliant with the IRS.
IRS Streamlined Filing Compliance Procedure
In order to qualify for the IRS Streamlined Filing Compliance Procedures, you must verify that you did not purposefully plan to evade paying taxes.
You’re not eligible for the Streamlined Filing Compliance Procedures if you have previously been investigated by the IRS.
Offshore Voluntary Disclosure Program
The Offshore Voluntary Disclosure Program Voluntary Disclosure Program offers protection from criminal liability and allows terms for resolving civil tax and penalty obligations if you failed to report foreign assets to avoid paying taxes.
You must qualify for the program through the IRS Criminal Investigation Lead Development Center (LDC). A Wiggam Law tax attorney can help you contact the LDC.
Offshore Foreign Bank Reporting Compliance (FBAR)
The Report of Foreign Bank and Financial Accounts (FBAR) is not a tax return, but instead an information report that is meant to deter tax evasion. The FBAR is required if:
- You have a financial interest in or signature authority over a foreign financial account, including bank accounts, brokerage accounts, mutual funds, and trusts.
- The value of all foreign financial accounts exceeded $10,000 at any time during a calendar year.
You will need to file the FBAR in addition to all other relevant filing requirements.
Delinquent FBAR Submission Procedures
To qualify for the Delinquent FBAR Submission Procedures, you must properly report your foreign accounts on your tax returns and pay the appropriate tax. If you did not file the required Report of Foreign Bank and Financial Accounts (FBAR), you may qualify to submit the delinquent FBARs without penalty. Note that if you don’t file or take advantage of this submission process in a timely manner, you can face severe FBAR penalties.
Delinquent International Information Return Submission Procedures
If you can exemplify reasonable cause as to why you did not file the appropriate returns, you may be able to qualify for the Delinquent International Information Return Submission Procedures.
If you do not qualify for the Voluntary Disclosure Program or Streamlined Filing Compliance, you can use the Delinquent International Return if you:
- Are Not Under a Criminal Investigation by the IRS
- Have a Reason for Not Filing the Information Returns on Time
- Have Not Previously Filed the Required International Information Returns
- Have Not Been Contacted by the IRS About the Delinquent Information Returns
International Tax Services
Wiggam Law tax lawyers have the expertise to guide you through a diverse range of international tax law matters. We understand the complex issues that arise when transacting business overseas. Our team of knowledgeable tax lawyers are able to deconstruct your unique international tax situations. Then, interpret and communicate next steps, priorities and required actions based on U.S. tax laws and regulations.
International Tax Disputes
International tax disputes may result when two or more jurisdictions pursue the same tax transactions or activities, resulting in double taxation. Tax treaties are able to resolve most cases, however some double taxation cases remain in which the two jurisdictions disagree on the interpretation of the treaty.
Wiggam Law tax lawyers are experienced in all international tax disputes, including:
- Tax Litigation
- Criminal Tax Matters
- Tax Investigations
- Tax Arbitrations
- Tax Mediations
International Tax Audits
An International Tax Audit occurs when the IRS contacts you to investigate overseas money. Their goal is to acquire penalties for unreported income and non-reporting of offshore accounts and/or assets.
It is crucial to have legal representation during an International Tax Audit to guide you through the complex maze of foreign tax procedures and policies. Wiggam Law tax lawyers can assist with defense against IRS overseas penalties, statute of limitations and international transactions.
International Tax Fraud
The IRS continues to increase forces against International Tax Fraud or Evasion. Tax Evasion is a serious crime penalized by monetary fines and prison sentences.
The IRS defines International Tax Fraud as: “Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution.”
Wiggam Law tax attorneys are prepared to defend your case against International Tax Fraud. International tax laws can be confusing and overwhelming, causing taxpayers to misunderstand necessary procedures and filings. Our team of tax professionals have the knowledge and expertise to represent your case.
Strategic Defense
The tax lawyers at Wiggam Law take the time to listen to your specific international tax situation. We gather information, paperwork, forms and filings in order to create a strategic defense that will give you the best solution for your situation.
Wiggam Law provides superior international tax representation through detailed research, strategic evaluations, and experienced execution.
International Tax Resolution Success Story
“I consulted Wiggam LawWiggam & Geer about an issue with my international employer and Georgia income tax liability. They gave me some excellent and nuanced advice, based on some research they undertook, for a very reasonable fee. I will certainly use their services again if an issue like this comes up again.”
-Wayne Stargardt
Contact Our International Tax Attorneys in Atlanta, GA
The Wiggam Law tax lawyers have the experience and knowledge necessary to guide taxpayers through their international tax issues.