MillerMusmar CPAs is staffed with professionals who specialize in the delivery of international tax planning and compliance services. We understand the complex tax provisions that apply to inbound and outbound investments as well as the importance of the right business structure. Knowledge like this prepares us to meet your international taxation needs.
Foreign Investment Real Property Tax Act (F.I.R.P.T.A.)
We have in-house experts that specialize in advising non-resident tax individuals and companies on FIRPTA covered real property sales and treatment of real property rental income reporting. We work with tax attorneys, real estate agents, and settlement companies to address the non-resident taxpayers’ FIRPTA compliance requirements for you. If possible, contact us as your FIRPTA tax specialist team before a real estate disposition or sale takes place. This prior contact allows us to plan for and implement the facilitation of proper withholding for the property transfer and expedite the subsequent tax return filing process to report the transaction to the Internal Revenue Service and local tax authorities. However, whether we are brought in before or after a FIRPTA real property is sold, our team is prepared to address your withholding tax and related issues involved in the transaction.
Streamlined Filing Compliance Procedures for Nonresident, Non-Filer U.S. Taxpayers
If you utilize the streamlined procedure enacted in 2012, you are required to file delinquent tax returns, with appropriate related information returns (e.g. Form 3520 or 5471) for the past three years, and to file delinquent FBARs (Form Fin Cen 114) for the past six years. Payment for the tax and interest, if applicable, must also be remitted along with delinquent tax returns.
In addition, retroactive relief for failure to timely elect income deferral on certain retirement and savings plans where deferral is permitted by relevant treaty is available through this process. The proper deferral elections with respect to such arrangements must be made with the submission.
Let us ease this burden and navigate you through these requirements.
Domestic Offshore Procedures
Additionally, there are streamlined procedures called Domestic Off-Shore Procedures (SDOP). The SDOP rewards taxpayers that disclose their offshore assets with a lower penalty. The SDOP applies to U.S. taxpayers who reside in the United States: U.S. citizens, lawful permanent residents and those meeting the substantial presence test under IRC § 7701(b)(3). To apply for these procedures, certain steps are required. First, the “covered tax return period” must be calculated. Here, the covered tax return period is equal to the most recent 3 years for which the tax return due date has passed. In addition, amended tax returns as well as all required informational returns, such as Forms 3520, 3520-A, 5471, 5472, 8938, 926, and 8621 should also be filed. Next, the “covered FBAR period” is calculated which is equal to each of the most recent six years for which the Foreign Bank Accounting Reporting (FBAR) due date has passed. For this period, any delinquent FBAR reports must also be filed. Finally, a Title 26 miscellaneous offshore penalty must be paid. However, let us reassure you and give you peace of mind. We can handle this process for you.