U.S. TAXATION OF FOREIGN CITIZENS
If you have a foreign entity doing business in the U.S. or are an ex-patriate working in the U.S. it is very important you have the proper reporting of your U.S. activities for tax purposes. The U.S. is one the most aggressive taxing authorities in the world. Therefore, people working or conducting business in the U.S. may be surprised at the extent and reach of the IRS and California taxing authority. At Hone Maxwell LLP we can work with you to make sure you are in compliance with all of the necessary taxing laws and that your taxes are accurately reported.
TAXATION OF U.S. CITIZENS’ FOREIGN ACTIVITIES
The U.S., and in some cases California, taxes on a worldwide basis. Therefore, if you are a citizen of the U.S. your income is taxed regardless of where it is earned or where you are living when it is earned. Besides taxing worldwide income, extensive reporting is required on foreign activities, which may not be required for similar activities within the U.S. If you have assets, bank accounts, income, or business activities outside of the U.S. it is imperative to make sure you are properly reporting all the activities.
In recent years this has become one of the most important issues to the IRS as they are attempting to crack down on people improperly reporting foreign income and activities. This has included increased audits, increased scrutiny of international transactions, and strong penalties including possible criminal prosecution for not properly reporting your activities. At Hone Maxwell LLP we can make sure you are in compliance. Additionally, if you have not been in compliance in the past, you may be able to take advantage of the Offshore Voluntary Disclosure Program in order to avoid criminal prosecution in the future; however, this is only a temporary program so you must act immediately. As foreign banks outside of Switzerland begin sharing information with the IRS this will continue to be a major issue into the foreseeable future. Do not wait and risk criminal prosecution and large penalties, contact Hone Maxwell LLP for an assessment of your situation.
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Centro Corporativo Dayco
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