U.S. Tax Services for Individuals
We provide a full suite of U.S. tax services for U.S. citizens, residents and non-residents. Read on for details of some of the many ways we can help you with your U.S. tax needs.
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Compliance for U.S. Citizens and Residents
The United States is the only developed country in the world that taxes on the basis of citizenship. This system of taxation has exposed U.S. citizens and permanent residents around the world to annual U.S. filing requirements.
Because they live worldwide, many of these U.S. citizens and residents have complex foreign reporting requirements associated with their income and assets from around the world.
Fortunately our team is well-versed in assisting with these complex filings. Here are a few of the ways we can help:
Preparation of U.S. 1040 - Personal Tax Return
Preparation of FBAR and Form 8938 to report foreign financial assets
Preparation of Form 5471 to report an interest in controlled foreign corporations and to calculate taxes under both the GILTI and Subpart F deemed income provisions.
Preparation of Form 8865 to report an interest in a foreign partnership.
Preparation of Form 8858 to report an interest in a disregarded entity.
Preparation of Form 8621 to report investment in passive foreign investment companies (PFICs). This form is typically required for Canadian mutual funds, ETFs, and REITS.
Preparation of Form 3520 and Form 3520A to report an interest in foreign trusts / ownership of foreign trusts. This form is typically required for Canadian trusts as well as Canadian TFSA accounts.
Preparation of 962 Elections to mitigate the income inclusion as a result of GILTI.
To determine what filings may be required for your situation, click below to request a consultation.
Compliance for Non-Residents
There are many situations where non-residents may have to file a U.S. tax return. They may work there, do business there or have a rental property. Sometimes it is something as innocent as spending too many days in the U.S. on vacation. Our team can help for all of these situations. Here are a few cases where our help may be needed:
Preparation of Form 1040NR to report U.S. sourced employment, rental or business income
Preparation of Form 1040NR to recover excess taxes withheld on U.S. pensions or investment income
Preparation of Form 8840 to report a closer connection to Canada (to avoid deemed U.S. residency)
Preparation of Form W8-BEN to report entitlement to benefits under a tax treaty
Preparation of Form 8288-B to request a reduction of withholding tax on the sale of U.S. real estate.
To determine what filings may be required for your situation, click below to request a consultation.
U.S. Estate Tax
In the U.S., instead of having a deemed disposition of assets on death, the IRS taxes citizens on the Value of their worldwide estate at the time of death. Fortunately, there are significant lifetime exemptions available to allow many to avoid paying any estate tax. This exemption is subject to change thereby requiring estate planning to be constantly re-examined and re-planned in connection with changes in laws and net worth.
Our team can help with some of the following aspects of estate tax:
Filing Form 706 or Form 706-NA to report the value of the estate and calculate any estate tax.
Planning for U.S. citizens to mitigate the estate tax
Establish bypass trusts to shelter assets from estate tax
Asset restructuring for non-residents to eliminate U.S. estate tax.
Contact us below to see how we can help plan your estate.
Immigration to the U.S.
Before moving to the U.S., planning is needed to ensure you don’t have any unexpected tax costs when you depart your country of residence and to ensure the tax efficiency of your business and investments while living in the U.S.
Some of the items to consider when planning your move are as follows:
How to appropriately sever your ties in the country from which you are emigrating
What date to pick for your move to the U.S.
Whether elections should be made to take advantage of the standard deduction in your year of immigration
Whether income can be managed in the year of immigration to have it taxed in one country versus the other
Whether your existing corporate holdings in the country from which you are emigrating should be maintained or restructured
Our tax professionals have helped many in developing a plan for immigration and are available to help you with your situation as well.
Emigration from the U.S.
U.S. citizens are required to formally renounce their citizenship to cease their tax filing requirements in the U.S. Similarly, U.S. green card holders are required to formally surrender their permanent resident card. In both cases, your net worth, tax liability from previous years, and annual income will determine if your U.S. tax obligations cease or if there will be some substantial tax resulting from your expatriation.
Our tax professionals can assist you in building a plan to depart the U.S. without needing to worry about the IRS following you home.
Getting Caught Up On Your Filings
Both U.S. citizens and green card holders are required to file annual personal income tax returns with the IRS. There are additional reporting requirements for taxpayers that own non-U.S. investments and non-U.S. companies and failure to file these forms carries significant financial penalties.
Many U.S. citizens residing abroad are not aware of the many complex filing requirements involved in their U.S. taxes and they may find out after the fact that their returns were not prepared correctly.
Fortunately, Taxpayers who do not have significant taxes outstanding can catch-up on their deficient filings under the streamlined tax filing program which will waive the penalties for qualifying taxpayers.
Our tax professionals have helped many clients determine their eligibility to use these programs and will assist you in completing the necessary submissions. No situation is too complex.
Avoiding Deemed U.S. Residency
You may have heard of the “183-day rule” and infer that if you spend less than 183 days in the U.S. you will avoid being deemed a U.S. resident. This is incorrect, the 183-day rule is a calculation based on the days spent in the U.S. over the last 3 years. Ultimately, you could create U.S. tax issues if you are consistently spending 120 days or more in a year.
Our tax professionals can help by reviewing your days to determine if there is a U.S. filing requirement and assist you in completing the necessary forms to prevent deemed residency if you go over the 120 day limit.