Kulzer & DiPadova, P.A. offers full-service representation for clients in regards to international tax issues. International tax is a complex area with specific rules and requirements, necessitating experienced counsel to ensure that all requirements are fulfilled and all opportunities are explored.
Individual Reporting Requirements
We regularly assist individual taxpayers in assessment of their reporting requirements, whether independently or in conjunction with a client’s existing advisors. Complicated rules have been (and continue to be) implemented in the United States with regards to international holdings, whether these holdings are held by taxpayers residing in the United States or those living abroad. For the latter, requirements exist both for citizens of the United States and nonresident aliens maintaining United States assets. A number of forms exist in regards to international assets – these include the FBAR (FinCEN Report 114), Form 8938, Form 8621, Form 3520, Form 5471, and Form 8865. Our attorneys ensure that reporting requirements are timely met, and that ideal results in regards to United States reporting are achieved.
Where prior failures have occurred, our attorneys advise and assist in attaining retroactive compliance. Given the general layperson unfamiliarity with international reporting, the Internal Revenue Service has authorized a number of options to correct any past failures to properly report. Such options include the Offshore Voluntary Disclosure Program, the Streamlined Filing Compliance Procedures (with separate programs for individuals residing in the United States and those residing overseas), the Delinquent FBAR Submission Procedures, and the Delinquent International Information Return Submission Procedures. Choosing between these require both experience with the Programs and a thorough assessment of a client’s individual facts. Our firm customizes our disclosure approaches to best suit a client’s individual circumstances.
Assessments Related to International Assets
Where a retroactive disclosure is not made, the Internal Revenue Service will often discover retroactive failures by taxpayers and make assessments related to the same. Where this occurs, our attorneys use their knowledge of international requirements and penalty guidelines to either negate or minimize the impact of any assessments made. Depending on the penalties assessed, the United States can often face more limited collection options in regards to penalties assessed based on international holdings; counsel experienced with the rules and regulations in this area can assist in determining the best strategies for combatting any assessments made.
International Estate Planning
Families with international ties (whether through assets in other countries or through having family members residing overseas) require specialized knowledge in regards to their estate planning needs. Attorneys at our firm work regularly in this area and maintain significant knowledge and familiarity with rules for gifts and bequests in the international context. Rules regarding gifts and bequests made either to or by noncitizens are typically harsh, but can often be modified based on the facts involved (i.e. through use of an estate tax treaty). Our attorneys assess outcome options in this context, and implement plans to optimize client results.
International Business Matters
In an increasingly global marketplace, more and more businesses expand operations overseas, whether through sales to foreign parties, offshore operations, or international partnerships. We assist clients in properly structuring international operations and availing themselves of benefits available to increase business capital (while remaining fully compliant with all domestic and international rules and regulations).