• Accountancy Saint Paul

    United States Tax and FATCA Compliance

  • FBAR and FATCA

    Implemented in 2014, FATCA requires that both Americans and their foreign banks update the US Treasury on their accounts each year. The penalties for non-compliance are high but staying current is easy. Foreign income and housing expenses can be excluded from taxable income and credits are available for foreign taxes.

  • Why FILE?

    Annual penalties for failing to disclose foreign bank accounts start at $10,000 and increase to 50% of foreign account values, plus fees. Owners of undeclared foreign limited liability entities face similar civil penalties. When the IRS believes you owe more than $62,000 in unpaid tax your passport will be revoked and you can be detained at customs on re-entry.

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    Who?

    American citizens and green card holders are required to file a tax return each year they receive the equivalent of $13,850 in regular income, or $400 in self-employment income.

     

    Additional reporting requirements must be met if one's foreign account balances exceeded $10,000 at any point during the year, if one owned 10% or more of a corporation based outside of the United States, or if one held more than $25,000 in funds organized outside of the US.

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    When?

    Citizens and Permanent Residents qualify for special deadlines if their tax residence is outside of the United States. (IR-2017-105)

     

    June 17, 2024. US citizens living overseas receive an automatic two month extension to file their taxes.

     

    Foreign account holders who cross the $10,000 FBAR reporting threshold are required to file a separate report with the US Treasury by October 15th, 2024.

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    What to do?

    The IRS will not impose penalties when the absence of liability is properly reported on a late return. Even if you have never filed, we can in most cases eliminate your US tax liability retroactively by claiming unused exclusions and foreign tax credits.

     

    If you haven't already been contacted by the IRS you may still qualify for tax amnesty programs such as the "Streamlined Foreign Offshore Procedure" which waives the accumulated penalties for eligible U.S. taxpayers.

  • All you have to do is file

    The majority of Americans living abroad will pay no US tax on foreign income. You just have to file.

  • The Accountancy

     

    We prepare US returns for taxpayers who are subject to two (or more) tax regimes. We seek the best overall result, informed by obligations to the other tax regimes our clients are subject to.

     

    Our workflow is entirely electronic. Regardless of your location everything can be completed online.

     

    We are accepting new clients on a case by case basis.  Please send an email or use the contact form below to set up a call. Communication will be protected by attorney-client privilege. Unsolicited calls will not be accepted.

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    Michael de Sarro, EA, CAA

    Principal

    Member: American Chamber of Commerce Working Committee in Taxation, National Association of Enrolled Agents, National Association of Tax Professionals

    Registered: US Dept of Treasury, Internal Revenue Service, NY Dept of Taxation and Finance, Financial Industry Regulatory Authority

    Alumnus: University of California at Berkeley

    France

    +33 1 87 65 01 00

    by appointment

    Palais Brongniart

    16 Place de la Bourse

    75002 Paris

    Italy

    +39 06 4754 2775

    by appointment

    via Olona, 7

    00198 Rome

    Netherlands

    +31 35 369 0059

    by appointment

    Olympia 1B

    1213 NS Hilversum

    Belgium

    +32 2 580 03 21

    by appointment

    Avenue Marnix 13-17

    1000 Brussels

  • Contact

    To discuss your case, outcomes, workflow, etc., please use the form below to send us a note. We will respond in 1 or 2 working days with available telephone appointment times.

     

    You can also email: clientservices@accountancysaintpaul.com

     

    We look forward to meeting you. Conversation will be protected by attorney-client privilege.

     

    English spoken.

  • Pricing

    Pricing is by form and use of forms is kept to a minimum. There is no minimum fee, you pay only for what you need.

    We employ additional forms beyond those required only when their use activates additional tax deductions or credits and there is a net financial benefit to the taxpayer.

     

    Clients of Accountancy Saint-Paul enjoy professional counsel throughout the year without additional fee. Representation before the IRS is billed hourly.

  • Questions & Answers

    The Internal Revenue Code is complicated and the answers below are written to be general enough to set basic expectations in common situations., but they reflect careful application of the law by proper choice of form and mothod. We describe the result not the process. If you believe you are subject to exceptional circumstances and/or want to learn more about the details and how they could apply to you, send us a message or contact your tax advisor.

    W-9,W-8BEN,W-8BEN-E
    W-9 is the form banks use to collect US citizen client social security numbers in order to satisfy the bank's FATCA reporting requirement. If you are current on your US filing obligations and want to keep your account open, there is no reason not to return the completed w-9. If you aren't...
    EXPAT,EDUCATION CREDIT,COVID STIMULUS,CHILD CREDIT
    Yes, for the reasons below. The federal governement issued COVID stimulus payments in 2020 and 2021 which all American citizens and Permenent Residents were entilted to. If you didn't receive these payments they can be recovered by filing a 2020 and 2021 tax return. Unless things change, the...
    SFOP,SDOP,RELIEF PROCEDURES,AMNESTY
    The Streamlined Foreign Offshore Procedure is a good deal. Failure to file penalties start in the five figures. But for those who qualify; after filing three years of returns and six years of FBAR, all accumulated penalties are forgiven. Expats have had fair warning. We recommend that those...
  • Services

    UNITED STATES TAX AND FATCA COMPLIANCE FOR ANY BUSINESS OR INDIVIDUAL SUBJECT TO THE US TAX SYSTEM

    INDIVIDUALS

    • US tax reporting of foreign income, foreign assets, foreign businesses, foreign pensions and tax-favored accounts, foreign inheritance & gifts, and foreign gains (IRS Form 1040)
    • FATCA/FinCEN reporting for individuals (W-9, W-8BEN, FBAR, FinCEN 114)
    • Exemption of income by treaty (8833)
    • American investors in passive foreign investment companies and mutual funds (PFIC 8621)
    • Dual-status returns and Nonresident returns (1040NR)
    • Nonresident alien spouse complications (NRA)
    • US tax ID issuance for foreign persons (ITIN W-7)
    • Streamlined foreign offshore procedures (14653)
    • Streamlined domestic offshore procedures (14654)
    • Accidental Americans (SFOP 14653)
    • US Citizenship renunciation (8854)
    • US Citizenship relinquishment (DS-4079)
    • Relief procedures for certain former citizens (8854)

    BUSINESSES

    • US corporate tax (1120-C, 1120-S)
    • American control of foreign corporations (CFC 5471)
    • American control of foreign passthrough entities, partnerships, and real estate companies (FPE 8858, 8865, 8832)
    • Foreign corporations with US source income (1120-F)
    • Nonresident control of US corporations (5472)
    • FATCA classification and reporting for foreign individuals and entities (W-8BEN, W-8BEN-E)
    • 401k plans abroad (5500)
    • US TIN issuance for foreign corporations (EIN SS-4)
    • Reconciliation of IFRS to US GAAP
    • Bureau of Economic Analysis - BEA benchmarks (BE-10A, BE-10B, BE-10C, BE-10D, BE-10 Exemptions)
    • Beneficial ownership reporting (BOI)
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    VIGILANTIBUS NON DORMIENTIBUS ÆQUITAS SUBVENIT.

    Equity favors the vigilant, not those who sleep on their rights.

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