Gurian CPA Firm is an excellent option if you have a complex tax situation; this includes reporting foreign income and assets. Not only will our firm ensure that the appropriate forms are filed, but we’ll also assist you with making financial moves that can lower your tax obligation.
We have experience handling the tax affairs of ex-pats, foreign investors, and overseas workers. Here are a few ways Gurian can assist if you have foreign accounts or foreign income.
Complete the Required Forms
If you have income from sources outside of the US, or if you hold assets in offshore accounts, there are specific forms you must complete to adhere to IRS foreign bank account reporting requirements. These are the most common forms required for taxpayers with foreign assets or income:
- The FBAR (Foreign Bank and Financial Accounts Reporting)
The FBAR is a form filed with the Financial Crimes and Enforcement Network; this is a department of the US Treasury Department. If you have foreign assets that exceed $10,000 at any point during the year, the FBAR is necessary. You should file the FBAR if you have foreign accounts, assets, or securities that when combined, exceed the $10,000 figure.
- Statement of Specified Foreign Financial Assets
Another necessary form to adhere to IRS foreign bank account reporting requirements is the Statement of Specified Foreign Financial Assets. This is IRS Form 8939.
It’s required for qualifying US citizens, residents, and businesses. Form 8939 is filed when your foreign assets exceed $75,000 at any time during the year or $50,000 on the last calendar day. These figures increase to $150,000 and $100,000 for married taxpayers.
- A US Tax Return
Every US citizen or resident has to file a US tax return. Your US tax return is where you report your foreign income and determine your tax obligation. You’ll also have a chance to see if you qualify for credits or deductions that lower your taxes.
Take Steps to Lower Your Tax Obligation
At Gurian, we thoroughly go over your finances to make sure you’re taking any allowed deductions, credits, or writeoffs. For example, if you pay taxes in another country on your income, you may qualify for the foreign tax credit.
The foreign tax credit decreases your US tax liability. We’ll also see if you’re eligible to exclude any of your foreign earned income.
File Late Forms
If you’ve neglected to file your FBAR in the past, let Gurian help you get your documents up-to-date. The sooner you file the applicable documents, the better. The longer you wait, the higher your potential penalties and interest.
Have more questions about reporting your foreign income or assets? Contact Gurian CPA Firm today to schedule a meeting!
