Practice Areas
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US Tax Compliance
Our US Tax Compliance Department provides US tax consulting and returns preparation services, execution of various reports and registrations that are required under US tax laws and represents clients with the US tax authorities.
Services of the US Tax Compliance Department:
• Preparation and filing of US tax returns for Corporations, Partnerships and Individuals.
• Accounting services for certain US companies.
• Establishment of US companies, including tax consulting and planning for the inception of business operations in the United States.
• Opening of files for foreign residents investing in the United States
• Ongoing consulting on taxation, tax planning and representation with the US tax authorities for individuals and corporations.
• Preparation of the reports that US citizens holding control in Israeli and foreign companies are required to submit under US tax laws as well as of various statutory reports, such as FBAR etc.
• Professional handling and guidance for individuals who had not filed tax returns in the United States in previous years.
• Professional guidance and representation in voluntary disclosure proceedings in the United States.
The Department makes available to its clients all of the solutions and services that facilitate an optimal work environment for the growth and development of the business, while reducing the dealings with the authorities to the necessary minimum. This is achieved by providing ‘one-stop-shop’ professional, reliable and effective services.
Foreign Investment in US Real Estate
If you are a foreign investor in the U.S. you are probably subject to tax in the U.S. on your U.S. source income. That is, while U.S. citizens and residents are subject to tax on their worldwide income, non-citizens and nonresidents of the U.S. are generally subject to tax in the U.S. on their U.S. source income.
The United States has always been a target for foreign investment in real estate and over the past four to five years the crisis in the U.S. economy has made U.S real estate even more attractive. Many investors from around the world investing in U.S. real estate.
The lifecycle of your investment in U.S. real estate may be broken into three phases: (1) Acquisition; (2) Operation; and (3) Disposition. Planning the investment in advance can translate into greater value of your investment. Each one of the phases invloves different tax issues.
Based on the investor's objectives, it is important to plan the investment in advance, taking into consideration the specific facts and circumstances of each investor.
As an investor in U.S. real estate you are probably required to file annual federal and possibly state income tax returns.
The due date for filing income tax returns by foreign investors is generally June 15th following the end of the tax year.
US Citizens Living Abroad
US Citizens, regardless of where they live, are required to file annual federal income tax returns reporting worldwide income.
Many U.S. citizens living abroad are still not aware of this requirement, or mistakenly presume that because they live outside the United States, they are not subject to this filing requirement. However, since the enactment of the Foreign Account Tax Compliance Act of 2009 (FATCA), demanding foreign banks to cooperate with the IRS, the world is undergoing a very dramatic change in the level of enforcement of tax laws.
FATCA is producing results, many banks around the world are in the process of implementing FATCA procedures, identifying their U.S. account holders, having them sign Form W-9, reaching agreements of cooperation with the IRS, and integrating into their systems procedures to keep track of their U.S. resident account holders, income, which will all ultimately be reported to the IRS. This is all consistent with the IRS objective of getting information to enable the enforcement of the U.S. Tax laws.
The requirement of U.S. citizens and residents to file annual tax returns reporting worldwide income is not new, it's been here for many years. What's new is the determination to enforce the laws, and the distance the U.S. is willing to go to make it happen. The fact is that globalization, and technology have made and still making our world a smaller and smaller place, making it easier for the tax authorities to implement such laws.
When the U.S. announced its intention to implement FATCA it seemed almost unbelievable, even to tax experts in the U.S., but today not only is FATCA being implemented but also more than 50 other countries are in the process of reaching agreements with the U.S. for mutual agreements of sharing information about their taxpayers banking information. This is probably one of the unique developments of the our world under the economic crises of this age. Governments around the world are catching up with the globalization of their taxpayers utilizing technology.
What does a U.S resident need to report?
A U.S. citizen is required to report worldwide income from all sources, including wages, business income, rent income, interest and dividend income, royalties, gains from sale of assets, and any other income from whatever source.
Also, there are numerous information reporting requirements related to foreign income and assets held by U.S. citizens, including reporting of foreign financial assets (e.g. bank accounts, securities accounts, pensions, etc.), holdings in foreign corporations, and partnerships and/or foreign businesses. The reporting requirements related to such foreign income and assets is very detail oriented. The penalties for failure to report such income are very significant.
What is the due date for filing the reports?
The due date for filing a federal income tax return in the U.S. is generally April 15th following the end of the tax years. For taxpayers living abroad, generally there is an automatic extension of the due date to June 15th. Additional extension may be requested.
The due date for filing Foreign Bank Account Reports (FBARs) is June 30th following the end of the reported tax year.
IRS Streamline
If you are a US citizen or a green card holder, and never submitted your taxes in the US before, this is the time to take this rare opportunity offered by the IRS to straighten your record.
FBAR
If you were paying attention to recent news headlines, as a US citizen or green card holder you are required to submit an annual Foreign Bank Account Reporting. We are here to help with this simple and important task.
ITIN Application
Every person who needs to report to US Tax authorities and is not eligible for American social security number must obtain an ITIN number, which serves as the ID Number for tax reporting. Paz Shoham is an ITIN Certified Acceptance Agent and can help you obtain your ITIN quickly and easily.
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OUR FIRM (We believe in...)
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Proffesionals - Your tax return is prepared and signed by a licensed USA CPA.