U.S. citizens living abroad – commonly known as “expats” – are required to file U.S. tax returns to report their worldwide income. This introduces a complicated process through which they are required disclose ownership of non-U.S. assets. Though this process is daunting, Lodder CPA has the knowledge and technical expertise to help you navigate these complexities.
Our tax preparation services include, but are not limited to:
- Individual income tax return (Form 1040), including preparation of foreign earned income exclusion (Form 2555) and foreign tax credits (Form 1116)
- State income tax return preparation
- Non-U.S. bank and financial accounts reporting (Fin CEN Form 114), commonly referred to as the “FBAR”
- Reporting an ownership interest in a non-U.S. corporation (Form 5471) and Subpart F income calculation
- Reporting minority interest ownership in a non-U.S. passive corporation (Form 8621)
- Reporting ownership interest or beneficiary of non-U.S. trusts or receipt of a foreign inheritance or gift (Form 3520/3520-A)
- Foreign financial asset reporting (Form 8938)
- Reporting ownership interest in foreign partnerships (Form 8865) or foreign disregarded entities (Form 8858)
- Expatriation tax form (Form 8854)
- Withholding reporting on cross-border payments such as interest, dividends, rents, royalties and more. (Form 1042)
- Claiming reduced withholding rates pursuant to tax treaties (Forms W-8BEN, W-8ECI)
- Global Intangible Low-Taxed Income (GILTI) computations, tax reporting and planning
Lodder CPA’s international tax consultation services include:
- Tax planning with U.S. citizens who plan to renounce citizenship and may face an expatriation tax
- Analysis, calculation and planning of income held in foreign corporations subject to the punitive Subpart F or Passive Foreign Investment Company (“PFIC”) anti-deferral tax rules
- Analysis and planning to utilize U.S. income tax treaties to reduce or eliminate U.S. income tax liability
- Analysis and planning related to foreign corporate reorganizations and restructuring to mitigate U.S. income tax liability
- Analysis of U.S. tax implications associated with foreign stock options or pensions
- Planning with investment advisor on foreign holdings that are U.S. tax efficient vehicles, or foreign investments that are tax inefficient and cause burdensome reporting obligations (i.e. foreign mutual funds)
- Consultation and assistance with preparing necessary paperwork to comply with Foreign Account Tax Compliance Act (FATCA)