Reporting that arrives with life events
Compliance obligations often begin with an ordinary event rather than a business decision. Receiving a large gift or inheritance from a relative abroad can require an information return even though no US tax is owed on it. Becoming a signer on a parent's foreign account, starting a company overseas, or moving to the United States can each create new filings. Green card holders are generally treated like citizens for these purposes, and moving away does not end that status on its own. Many of these filings carry penalties for missing them even when the underlying income was fully taxed.
Businesses with cross-border owners
Companies face their own layer of reporting. A US corporation, or an LLC with a foreign owner, generally must report transactions with that owner, and US persons who own or control foreign companies or partnerships generally must file returns describing them. Payments to foreign persons, such as dividends or royalties, can require withholding and information returns of their own. Treaties may reduce withholding or change how income is taxed, but claiming treaty benefits usually requires paperwork and sometimes a disclosure on the return. When a business grows across borders, these obligations tend to arrive before anyone has updated the accounting process.
Building a calendar you can keep
Bring prior returns, a list of foreign accounts and entities with ownership shares, and any foreign tax returns or statements from recent years. We look at whether past filings were complete, because fixing earlier gaps through an appropriate procedure is usually better done before the IRS asks. Foreign tax credits, foreign filing dates, and currency conversion need to be coordinated so that the US return matches what was reported abroad. The result of the first review is a list of each filing that applies to you or your company, who prepares it, and when it is due, with any year that needs to be revisited flagged.
