Tax Planning and Compliance for Foreign Assets

The Internal Revenue Service imposes steep penalties for failing to disclose foreign financial accounts and assets, which makes tax compliance even more critical. The disclosure requirement applies to all U.S. persons. When it comes to foreign financial accounts and assets, many individuals and businesses have misconceptions about when and what they must disclose.

Being proactively informed of the disclosure requirements is the first step toward avoiding those steep penalties. The Cendrowski Corporate Advisors team can guide you through the necessary disclosures related to your unique circumstances.

Professional Tax Return Preparation - International Tax Compliance

For professional tax return preparation involving international taxes, Cendrowski Corporate Advisors tax professionals tailor our work to your needs to help ensure your returns and disclosures comply with your obligations.

If you’re relocating to or from another country, being sent to another country for work, or obtaining a green card, you should know that the U.S. imposes tax on citizenship, not residency. U.S. persons earning income outside of the country still have U.S. tax return filing requirements. Often, those same people have foreign financial accounts and assets which require disclosure on their tax returns.

We develop tax strategies that are compliant with reporting agency requirements, including:

W-8 forms
Global Intangible Low-Taxed Income (GILTI)
Streamlined Disclosures
Controlled Foreign Corporations (CFC)
Financial Crimes Enforcement Network (FinCen) and Foreign Bank Account Report (FBAR)
Foreign Account Tax Compliance Act (FATCA)

Client Success: Professional Tax Preparation

We were engaged in helping a client meet foreign reporting requirements for their pass-through K-1 tax forms. During the engagement, our consultants discovered that footnotes on the K-1 statements from previous years had not been disclosed on their personal 1040. As a result, the client correctly disclosed indirect ownership in multiple foreign financial assets on form 8938. Failure to properly disclose interests in foreign financial assets on form 8938 may result in penalties of $10,000 per asset. Our analysis of their prior returns saved our client thousands of dollars in fines and ensured that their returns were compliant with the U.S. tax code and federal reporting requirements.