U.S. taxpayers who conduct foreign transactions may find it challenging to not only navigate international tax laws, but to do so to their advantage. Harold “Hap” May Attorneys at Law offer clients expertise in limiting the effects of international taxation on investments.
It is crucial for a company’s legal representation to be well versed in domestic tax laws, foreign tax laws, and multilateral tax treaties. Your legal advisers should be able to navigate and draw up crucial tax provisions in common business transactions such as financing, acquisitions, projects, and ventures that will help you maximize your returns in consideration of international tax laws.
Who Benefits From International Tax Planning?
- U.S. Persons who earn income abroad
- U.S. businesses seeking to transfer profits overseas
- Individuals doing business in the U.S.
- Businesses with headquarters outside the U.S. who have operations in the U.S.
International Tax Services
Our international tax attorneys are familiar with international tax laws that affect Houston businesses and individuals. Some of the more common legal services we offer businesses to help navigate international tax can include:
- Tax Compliance
- International Tax Planning
Tax Compliance Services
We offer tax compliance services to businesses and individuals to help them better understand and abide by international tax laws. Some of the areas of tax compliance services we can assist with are:
Sometimes referred to as Report of Foreign Bank and Financial Accounts or FinCEN 114, FBAR is a legal form typically filed by U.S. persons with an interest in, or signatory authority over foreign financial accounts. The completion of this form is critical in staying compliant with the Internal Revenue Service. The penalties for non-compliance with FBAR can be onerous.
This acronym stands for the Foreign Account Tax Compliance Act as designated by the IRS. The act requires foreign financial institutions to report on foreign assets held by U.S. account holders and for U.S. persons to report foreign assets and foreign financial accounts. Failure to follow the guidelines set forth by FATCA may be grounds for financial penalties.
Foreign Entity Ownership
This return must be filed with a business’ or individuals’ taxes if they have ownership interests in foreign entities such as partnerships or corporations. This generally includes a foreign balance sheet and income.
A U.S. person that receives a substantial gift or bequest from a foreign person may be required to file, at least in part, the Form 3520 Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts with the Internal Revenue Service.
The rules regarding a U.S. person receiving an inheritance from a non-U.S. person abroad with assets based outside the U.S. can be a little fuzzy. Our attorneys can help you determine which forms, if any, need to be completed to document a foreign inheritance.
Foreign Trust Ownership
Most individuals find the rules and guidelines surrounding a foreign trust ownership somewhat vague, and that can be an invitation for international tax headaches if not handled by an experienced attorney.
International Tax Planning
International tax planning is essential for compliance with U.S. law and minimizing financial penalties. Not abiding by international tax guidelines can result in costly penalties. Some of the areas of international tax planning our attorneys can help clients with include:
- Tax reporting on sources and allocations of income
- Determining deductions
- Tax withholding
- Transfer pricing issues
How To Choose An International Tax Attorney In Houston
A reputable international tax attorney in Houston should be well versed in handling international tax transactions for businesses and individuals. One should enlist the help of a reputable international tax attorney before tax disputes arise, however, our attorneys can also help a client navigate a tax controversy after one arises.
Some considerations to keep in mind when selecting a tax attorney are:
- Reputation. Choose an attorney or firm who is recommended by a client or an industry leader. Be sure to consult online reviews as well.
- Experience. Select legal representation that has several years or more of experience in representing clients in international tax matters.
- Success. Look for an attorney who has been successful over the years in navigating international taxes in a way that adds to their clients’ bottom lines.
- International Tax Law Knowledge. An international tax attorney should have an Intimate understanding of relevant tax transactions, laws, and treaties as they relate to both businesses and individuals.