Washington DC International Tax Lawyer

Tax compliance can be a challenge if you live in the U.S. but transact business (or hold financial assets) oversees, or vice versa. The Internal Revenue Service (IRS) combats tax fraud and evasion by stepping up audits of U.S. taxpayers with foreign financial accounts and those who work with offshore entities. The IRS and U.S. Treasury Department enlist information and cooperation from other nations and their banking institutions.

You will need to comply with certain reporting laws and correct any errors that might draw the attention of the federal government. For those with a sizable amount of money at issue, a tax attorney may be necessary.

Whether you need guidance to remain compliant or require help with an existing problem, a Washington DC international tax lawyer adds value with dedicated advice and extensive knowledge of the law.

The Importance of Filing the FBAR and FATCA

Taxpayers with financial accounts that exceed a certain threshold will be required to file an FBAR tax form to the U.S. Treasury Department and a FATCA form to the IRS. The thresholds for those forms are noted on our respective pages. Although they have a similar purpose, taxpayers who meet the thresholds for both must still file both.

It is incredibly important that these forms are filed promptly and accurately. Anyone who needs to get their filing duties in order should work with an international tax lawyer in DC to minimize the risk of errors.

Disclosing Offshore Bank Accounts

Individuals who file U.S. tax returns must report income from any international accounts when they file their federal income tax returns. If they have signatory powers for any offshore accounts, they must report that also, even if they do not earn income from them.

The failure to report this information by the filing deadline may require a taxpayer to take important action in carefully disclosing it after the fact. Offshore asset and income disclosure requires precision. A Washington DC lawyer who practices global tax controversy resolution could guide a taxpayer through the disclosure process so their penalties are minimized and confirm whether they might have criminal exposure.

Income Tax on Foreign Persons Selling U.S. Real Property

The U.S. government imposes an income tax on foreign nationals disposing of real property interests they hold in America. The Foreign Investment in Real Property Tax Act (FIRPTA) requires buyers of any foreign interests in real property withhold a percentage of the sales price and instead remit it to the IRS.

Buyers do not have to withhold the FIRPTA tax if the residence is worth $300,000 or less, or the seller confirms they are not a foreign person. No tax is required if the acquisition of property is for shares in a public company or for an interest in a nonpublic company if the company produces the requisite affidavit.

Sellers can apply to the IRS for reduced withholding by filing Form 8288-B by the closing date of the sale. The IRS will certify the proper withholding based on the closing price attendant to the sale. Purchasers who fail to withhold and remit taxes can be penalized, so it is important to talk to a DC international tax attorney to navigate these requirements.

When Global Reporting is Involved, Contact Our Washington DC International Tax Attorney

Many Americans use overseas financial accounts, earn income in other countries, or buy U.S. property from foreign nationals. With these significant transactions, it is important to be in compliance with IRS global tax reporting rules.

Whether reporting your financial assets with your annual returns, or disclosing after the deadline, it is valuable to have a Washington DC international tax lawyer working with you to correct errors, file everything properly, and be open and honest about your financial situation. Pontius Tax Law is available for a case evaluation.