If you are a U.S. citizen or resident alien, you are probably wondering what areas of tax law international tax companies can help you with. Is it necessary to have a team of the best international tax attorneys Washington DC, New York or any other major city can offer? Or can one attorney be equipped to help you with a variety of tax issues? In case of Brunoro Law, for example, the latter holds true.
Whether you go for a team of attorneys or a law company managed by a single tax attorney, check out the most common practice areas of international tax companies. In the process, also discover the basics of international taxes for U.S. citizens and Green Card Holders.
International Tax Audits
With the increase in the number of cross-border transactions, the IRS has become more active in the revision and regulation of international tax issues. As a result, the number of tax audits is also on the rise. International tax companies can assist you if your international transaction has led to an audit.
Your tax audit can involve several aspects such as determination of tax residency, applicability of a tax treaty, foreign tax credit issues, to mention a few. All of these aspects require skilled legal representation provided by an international tax attorney. Reputable attorneys and international tax companies will have international partners that could help facilitate the logistics of your tax audit.
Transfer pricing is one of the aspects of an international tax audits that is especially scrutinized. Transfer pricing refers to the transactions between related entities, for example, a parent company and its subsidiary. If your parent company is headquartered in the U.S. with subsidiaries in a foreign country, you should be familiar with the applicable tax implications.
An international tax company, that is, an international tax lawyer, can help you determine the value created in the transfer, and decide on the best course of action to make sure you are compliant with the IRS regulations regarding transfer pricing.
You may have already engaged in cross-border transactions, as an individual or company. The experience you would be having now is bound to be different, as there are more rules and regulations than there used to be. As a legal layman, you can’t be expected to keep up to date with the amendments to the international tax law. This is where an international tax attorney firm can assist.
Well-established international tax companies such as Brunoro Law boast not only the experience, but also the jurisdictional familiarity and linguistic aptitude to represent a variety of clients engaging in cross-border transactions. As a client, you are consulted on your needs and goals, so that the transactions can be structured in such a way to meet these goals but also abide by all applicable legal requirements.
Offshore Voluntary Disclosure Program
Offshore Voluntary Disclosure Program (OVDP) has been used by U.S. expats and permanent residents as a means of precaution regarding their offshore accounts and foreign income. Taxpayers would employ the OVDP to avoid any possible dispute with the IRS, including hefty audits.
However, effective September 28, 2018, the IRS will terminate the OVDP. You can still apply for the OVDP before it’s terminated, but the window of opportunity is getting narrower and narrower. For this reason, hiring an international tax attorney is an excellent idea, as they are well-versed with the process, and are also informed about the ongoing changes and implications.
Foreign Tax Credit
As a U.S. company doing business with companies abroad, you run a risk of being “double taxed” for your foreign income. To avoid being taxed in the country where you generate income in addition to being taxed in the U.S., you can apply for a foreign tax credit (FTC). The United States has designed a foreign tax credit program to avoid double taxation, and also facilitate cross-border transactions.
While you may already be aware that such a program exists, you need a skilled international tax lawyer to guide your through the application and the subsequent process. If you are a foreign company doing business in the U.S., or a non-resident alien, you may also be eligible for FTC. Consult a tax attorney for personalized advice.
Brunoro Law is one of the most sought-after international tax companies in San Diego and beyond. Our principal attorney Paula Brunoro-Borokhov is a skilled and experienced tax attorney specializing in international tax. Fluent in English, Spanish, French and Portuguese, attorney Brunoro-Borokhov is fully-equipped to serve a variety of clients. Contact Brunoro Law today!
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