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News – 08.01.24
US Supreme Court clarifies Foreign Bank Account Report (FBAR) penalty application
In 2023, the Supreme Court confirmed that the $10,000 penalty for non-wilful failure to file an FBAR will apply per form and not per account … Read more
Insight
2024/25 UK tax rates and allowances guide
Download our 2024/25 UK tax rates and allowances guide, to stay on top of the key tax rates and allowance updates amid day-to-day living. … Read more
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enquiries@buzzacott.hk T +852 2531 7000
When you’re in an unfamiliar environment, the need to be tax compliant is more important than ever. Our experts have an intricate understanding of the US tax system so tell us your story and together we’ll assess your liabilities and tackle any issues before they become a problem. We can bring your US income tax filings up to date and provide you with bespoke US tax advice designed around your specific circumstances.
It is not always the tax return itself that is the most important form to file. If you are a US citizen or Green Card Holder who lives outside the US or owns non-US financial accounts/other overseas assets, you may be required to report those assets to the IRS or the Treasury Department on separately filed ‘Information Reporting’ forms.
If you have moved outside the US and retained your US advisor, you should check that your advisor is aware of this requirement. In our experience, many US advisors fail to file these forms because they do not know about them or they forget to consider assets outside of the US. If this applies to you, then you will need to regularise your tax affairs as soon as possible, and Buzzacott has much experience in this area.
The penalties for non-compliance can be very severe. If you fail to file the necessary forms, you could face minimum ‘per-failure’ penalties or even a penalty based on the value of your assets. The risk is very real, not least because the IRS may have access to information relating to your overseas assets through its exchanges of information with financial institutions in other jurisdictions.
The concepts of domicile and residence can be daunting, and with US States varying how adhesively their particular domicile rules are applied, we can advise you on these issues and prepare the correct US Federal and State forms as appropriate to your circumstances. Also, given the varying domestic tax regimes across Southeast Asia, we can use our expertise in both high-tax and low-tax jurisdictions to ensure that the US tax forms are prepared correctly and in accordance with the jurisdiction where you are resident.
If you are not a US citizen but you own US assets, such as real estate or equity in a US Limited Liability Company or partnership, you may need to report your income on a non-resident US tax return. This may be an annual compliance obligation if you have a regular ongoing source of income, or it may be a one-off filing if you are selling an asset in the US. Either way, Buzzacott can help.
If you also need local tax return preparation or accounting services in the jurisdiction where you live or where you have sources of income, please let us know. We have access to an extensive network of service providers so if we can’t provide all of the services you need, we will likely be able to connect you with others who can assist.
For professional advice tailored to your unique circumstances, please fill out the form below and one of our experts will be in touch to discuss your requirements and how we can help. Please note that our advisory services are charged at our hourly rates and a formal engagement will need to be in place before any advice is provided.
