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726 Exchange Street, Suite 822
Buffalo, NY 14210
Phone: 716-854-5034
Fax: 716-854-7195
 

International Tax Services

Staying tax compliant in an ever changing and global environment.

We are living in an increasingly dynamic and global environment. Businesses and individuals are investing and earning income across multiple borders more than ever before. With the increase in cross border commerce comes an increase in regulation and tax compliance.

For over 20 years BS&P has been helping clients residing in Canada and various other countrieswith international tax planning. We work to ensure you are achieving the best tax-favored position, reduce the impact of double taxation and ensure you are current on all required filings. Three activities that typically trigger cross border tax considerations:

1. Foreign Bank accounts.
If you or your business establish bank accounts that operate in other countries for the sake of operational efficiencies; you could be required to report them with the Treasury Department under the Foreign Bank and Financial Accounts Report (a.k.a FBAR). Certain thresholds apply to the rule but the treasury reported that FBAR filing have grown on average by 17% per year during the last 5 years. Ensuring compliance with this reporting requirement has been a major initiative by the Treasury Department.

2. Transactions with Foreign or Domestic Related Parties 
In the US, the IRS requires corporations and businesses to disclose relationships with related parties. They define a related “as a U.S. corporation that is 25% foreign owned or a foreign corporation engaged in trade or business within the United States.” In other words, if your business purchased or sold inventory, purchased or sold property, collected or paid rents, interest, royalties, premiums and commissions with a foreign corporation; IRS Form 5472 needs to be filed. This list is not exhaustive so if you are unsure if you meet the requirements, our tax professionals at BS&P can help point you in the right direction.

3. Your Business is Multinational
Global trade has increased substantially over the years and corporations who elect to offer products or services across multiple countries have to comply with each tax structure in which they operate from. Sometimes corporations can experience double taxation if they are not filing appropriately or utilizing all the options available; such as tax treaty positions.

 

Above all, awareness of filing deadlines is essential. If you know your business is engaged in the activities above, but you aren’t considerate of the necessary forms to file or deadlines imposed, you or your business will be subject to significant fines- $10,000 per form per year.

The following are situations that require international tax compliance and the services offered:

U.S. Citizens Living Abroad:

  • Personal tax compliance, including Streamlined Filing Procedures.
  • Information reporting requirements related to non-U.S. financial holdings.
  • Potential income tax treaty benefits.
  • Expatriate tax planning and compliance.
  • Estate and trust tax considerations.

Non-U.S. Citizens Living In the U.S:

  • Compliance with tax withholding requirements including FIRPTA and FATCA
  • Tax compliance.
  • Potential income tax treaty benefits.
  • Reporting of income generated by U.S. property holdings.
  • Estate and trust tax considerations.

U.S. Businesses Operating Overseas:

  • Business structure.
  • Information reporting requirements related to non-U.S. financial holdings.
  • Potential income tax treaty benefits.
  • Tax compliance.

Non–U.S. Businesses Operating in the U.S.

  • Potential income tax treaty benefits.
  • Expansion of an existing business into the U.S.
  • Business structuring.
  • Compliance with tax withholding requirements including FIRPTA and FATCA
  • Tax compliance.
  • Reporting of income generated by U.S. property holdings.

Meet the experts

Robert Sommer
Robert Sommer
Jennifer Insalaco
Jennifer Insalaco