Over the past few decades, policy and technological developments have spurred increases in overseas activity, cross-border trade, and expansion into new territories outside the United States. At Newburg & Company, we have the resources and expertise to advise individual and business clients with their international tax needs. These can be exciting times for our clients with great opportunities, however, sorting through the new tax compliance they face may be complicated. We have the skills and expertise to guide our clients through these issues and assist with periodic planning to take advantage of tax opportunities.
Foreign Reporting – Individual and Corporate Tax – CPA Firm Compliance and Planning Services
- Filing U.S. income tax returns for foreign corporations (Form 1120-F)
- Filing requisite US individual Foreign Earned Income Forms (Form 2555), Foreign Tax Credit (Form 1116), and other related foreign forms depending on your situation (e.g. Forms 5471, 5472, Form 926, etc.
- Foreign Bank Account Reporting (FBAR TD F 90-22.1)
- Streamlined Filing Compliance Procedures and Consulting
- Analyzing Expatriate Tax Benefits to yield the most advantageous position:
- Foreign tax credits
- Foreign income exclusions
- Bona fide residence test
- Physical presence test
- Housing allowance benefits/exclusion
- Review and analysis of applicable tax treaties
- Reporting Disclosure Information for Foreign Company Activities
- Analyzing activities and planning to minimize Subpart F income reporting and taxation
- Foreign disclosure reporting of foreign owners
- Determining and assisting with U.S. withholding requirements of foreign owners
- Assisting with obtaining tax identification numbers for foreign persons
- Transfer pricing review and recommendations
- Incentive planning for export businesses / IC-DISC
Newburg & Company has expertise with foreign bank disclosure requirements and can assist you with foreign bank account reporting (FBAR Form TD F 90-22.1) and Form 8938- Statement of Foreign Financial Assets reporting. The foreign bank reporting landscape is continually evolving. Whether you would like to take advantage of potential Offshore Voluntary Disclosure Programs/Streamlined Reporting Options available or are unsure about your filing requirements, we can assist.
Our familiarity with the tax advantages for ex-patriates aids us in analyzing your situation to help you plan effectively for your U.S. taxes. We review your foreign income and benefits, including housing allowance and we review tax treaties relative to your location, foreign taxes to which you may be subject , and your length of stay. With this information, we can determine which, if any, foreign income exclusions apply to you through the Bona Fide Residence Test or the Physical Precence Test and housing exclusions. In addition, we analyze your situation to see if you can also take advantage of foreign tax credits for taxes you pay and if the credit is more advantageous than the income exclusion, or if you are eligible to receive both.
For our corporate and individual clients invested in foreign corporations, we will report applicable disclosures – whether it be disclosing a foreign owner on Form 5472, or information about a foreign company in which you are invested and its activities on Form 5471. We have experience in analyzing your transactions for disclosure between yourself and the foreign entities and also with respect to determining if the transactions qualify for Subpart F income reporting and taxation. We have helped our clients with tax planning regarding re-patriation of foreign earned income.
Choose Newburg as Your Foreign Corporate Tax CPA Firm
With respect to foreign owners, we have experience in assisting our clients with determining if U.S. withholding is required on partnership income or if an 1120-F is required to be filed to report U.S. income of a foreign corporation. For those US companies looking to expand overseas, we can help you navigate the complexities and work with your foreign based accountants to ensure proper US compliance. We have also assisted foreign corporations in obtaining tax identification numbers for the required reporting.
We also work with US companies that export goods to see if they qualify for the IC-DISC (Interest Charge Domestic International Sales Corp) tax treatment. Set-up of the IC-DISC could provide significant tax savings as the qualifying company can receive a large portion of its income at the lower 15% capital gains rate.
Contact us today for a complimentary initial tax consult or to learn more about our foreign corporate tax CPA firm.