Back to top

International Tax

International tax is one of the few areas most CPAs and lawyers don't practice. A survey once stated that only 3% of CPAs in the nation feel comfortable in the areas of international taxation. What is international tax?

International Tax... or not

When people think of international tax, they assume it means tax returns from foreign lands. While Beta can arrange for those taxes to be handled too (more on that below), international tax is really US taxes for those US citizens and tax residents, who have international tax consequences. Potential international tax issues for US tax residents are as follows: 

  •  Ownership of Foreign located companies (Forms 5471, 5472, 8865, etc...)
  •  Ownership of Foreign located trusts (Forms 3520, 3520-A, etc...)
  •  Ownership of Foreign located bank accounts (Form 8938, FinCEN 114, etc...)

How does one become a US Tax Resident? Very Carefully...

One of the common misconceptions people have is when people arrive in the country, they file a tax form, just like US citizens. This could not be further from the truth. There are certian situations where dual-status tax returns are needed, others when nonresident (Form 1040NR) tax returns are needed. Determining which form to file and the best position to take in the interest of the client, requires a CPA with skils and experience, which most tax preparers don't have. We have expertise in the preparation of the following tax returns for those arriving in the US: 

  • Nonresident Tax Returns (1040NR)
  • Dual-Status Tax Returns (1040/1040NR)
  • Residency Termination Tax Returns
  • 6013g/6013h Elections
  • Tax Treaty Based Tax Returns

US Citizen living aborad?

For those who are US Citizens or Permenant Residents, going and working aborad can be a very rewarding experience. What happens when you go to pay taxes, while living in a foreign country? Well, you might have a legal obligation to file tax returns in a foreign country, but here in the US, you still have the obligation to file and in many cases, pay taxes on the income you earn in a foreign country. In otherwords, you face "double taxation." Does that sound fair? Not really, but there are tax rules to reduce or eliminate the effects of double taxation. We can help with the following forms to assist: 

  • Foreign Tax Credit (Forms 1116/1118)
  • Foreign Earned Income Exclusion (Form 2555)
  • Treaty Based Tax Return Positions (Form 8833)
  • Application for United States Residency (Form 8802)