International Tax Preparation Services
One challenge that companies face when expanding internationally is understanding all the potential tax ramifications. And if you’re a private citizen who relocates to another country, your tax situation can get complicated quickly.
Whether you’re a business owner or multinational individual or family, you need a reliable tax strategy that limits your financial liability and reduces the risk of costly mistakes. As experienced tax professionals, SD Mayer offers international tax planning services in the San Francisco Bay Area, Silicon Valley and beyond. We’ll serve as a trustworthy international tax consultant, no matter where you live or work.
Frequently Asked Questions and Answers for International Taxes
If you believe you may need to complete international tax filing, you’ll likely want to know about tax breaks and relevant tax codes. At SD Mayer, we want to help you understand how your foreign bank account or foreign financial assets may affect your tax liability. Here are some of the most frequently asked questions we receive regarding international taxes.
1. Who Needs to File International Taxes?
Both individuals and businesses may need to file international taxes. If the following applies to you, you may need to file these taxes:
- You are an international student.
- You are a dual citizen in the U.S. and another country.
- You own a business outside of the U.S.
- You own property outside of the U.S.
- You have a foreign bank account.
- You have investments outside of the U.S.
Both American citizens and U.S. resident aliens may have to pay international taxes if they receive earned income abroad. If you travel abroad frequently and manage your finances and business between countries, you may want to hire a tax preparer who can handle your taxes for you.
2. What Tax Forms Are Usually Needed to Remain Compliant?
Here are some of the forms most commonly needed to stay compliant with international taxes.
- Form 72, Quarterly Federal Excise Tax Return
- Form 56, Notice Concerning Creation of Termination of a Fiduciary Relationship
- TDF 90-22.1, Report of Foreign Bank and Financial Accounts
- Form 926, Return by U.S. Transfer of Property to a Foreign Corporation
- Form 1040-B Part III, Information Regarding Foreign Accounts or Trusts
- Form 673, Statement for Claiming Exemption From Withholding on Foreign Earned Income
- Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return
- Form 1116, Foreign Tax Credit (Individual, Estate, or Trust)
- Form 1118, Foreign Tax Credit — Corporations
3. Can I Claim the Foreign Tax Credit?
The foreign tax credit offsets the income tax you paid abroad, so if you are a U.S. citizen or resident alien, you may be able to claim this credit if you paid income taxes imposed by another country. When you claim this credit, you can avoid paying taxes twice on the same taxable income. For foreign taxes to qualify for this credit, you typically must have paid them on:
4. What Does an International Tax Consulting Group Do?
At SD Mayer, we have extensive international tax planning experience. Our team has unrivaled expertise to keep you compliant with all applicable U.S. and foreign tax laws. We have connections with leading international tax preparation firms to coordinate the planning and compliance steps. Our efforts can help you achieve the ultimate goal of minimizing your business or personal tax burden.
Areas where we can assist you include:
- Business consulting: The confusing nature of taxes can leave you with lots of questions. As your international tax consultant, we’ll provide all the answers you need to navigate these often turbulent waters.
- U.S and state tax return preparation: We’ll help you prepare and file your federal returns, and state returns if required, including any applicable schedules and tax forms.
- Small business returns: SD Mayer specializes in working with businesses with 1,000 employees or less, as well as self-employed individuals or people with various business interests.
- Report of Foreign Bank and Financial Accounts (FBAR): The Bank Secrecy Act stipulates that you must report certain foreign accounts to the IRS and maintain transaction records. We can assist you in managing this process.
- Compliance: U.S. citizens living outside the U.S. sometimes fall behind on their taxes or experience complications when filing. As your international tax accountant, we’ll untangle the red tape and help you stay compliant.
- Business accounting: We can handle your business accounting needs, including payroll services like payroll taxes and long-term financial planning. Outsourcing your business accounting can save you time and money and improve your company’s efficiency.
- Auditing: We also offer tax audit services for individuals and small and medium-sized businesses. Even with today’s strict regulatory requirements, we can help you prepare for or execute an audit. We can help resolve business issues or tax issues and provide the tax advice you need.