OVDP (Offshore Voluntary Disclosure Program) and international taxes
In recent years, the IRS has placed a heightened scrutiny on foreign accounts, assets, and income issues. Some of the more common international tax and foreign account issues that arise include:
Foreign tax credits
Some taxpayers may be able eligible for a credit, or to take an itemized deduction, for those foreign taxes they paid or accrued to a foreign country on foreign source income.
Statements of specified foreign financial assets
Certain specified foreign financial assets, if the total value of those foreign financial assets, is more than an applicable threshold, must be reported to the IRS.
Passive foreign investment companies
A foreign corporation may be a Passive Foreign Investment Company (“PFIC”) if it meets certain tests, thereby requiring additional reporting to the IRS.
Foreign bank accounts (FBAR’s)
Certain foreign bank accounts must be reported to the IRS, depending on the account balance and other considerations.
Controlled foreign corporations
U.S. citizens and residents who are officers, directors, or shareholders in certain foreign corporations may have additional filing obligations with the IRS.
If you are interested in learning more about how McLaughlin Legal defends taxpayers and resolves foreign and international tax issues, please feel free to contact us today for a free consultation.