Philadelphia FBAR Attorney | Foreign Accounts Lawyers

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Are you looking for a highly-skilled Philadelphia FBAR Attorney? Then, you are among many Philadelphians who need to report their foreign accounts, but do not know how to find appropriate legal help. Often, they find the attorney that they like lives outside of Philadelphia and they are not sure if they should prefer him over local Philadelphia FBAR Attorneys. In this short article, I would like to address the issue of who is considered to be a Philadelphia FBAR Attorney and why you should retain the services of my firm, Sherayzen Law Office, Ltd. (Sherayzen Law Office).

Philadelphia FBAR Attorney: Geographical Location

From the outset, it is important to understand that the geographical location of a Philadelphia FBAR Attorney does not have any impact on the attorney’s ability to conduct your FBAR case. The reason for this statement lies in the fact that FBAR is federal law. The state of Pennsylvania and the city of Philadelphia have no influence whatsoever over the implementation and enforcement of FBAR. This means that the physical location of your Philadelphia FBAR Attorney does not affect the effectiveness of his legal representation of his clients in Philadelphia.

Furthermore, the development of modern communications technology has eliminated almost the entire advantage of retaining a local Philadelphia FBAR Attorney. Even if your attorney resides in Philadelphia, almost all of your entire communication with him is going to be through email, telephone and regular mail – i.e. the same as if your attorney resides in Minneapolis. The person-to-person meetings are now easily replaced by a video Skype conference.

All of this analysis leads us to two important conclusions. First, a Philadelphia FBAR Attorney is any attorney, irrespective of his residence, who offers his FBAR services in Philadelphia. Second, the geographical location should not have any impact on your decision to retain a Philadelphia FBAR Attorney.

Philadelphia FBAR Attorney: Knowledge of International Tax Law and FBARs is the Key

The conclusions from the first part of this essay point us now to the key consideration that you should have in retaining a Philadelphia FBAR Attorney: his knowledge of the subject matter.

What is this “subject matter”? Is it only limited to knowing the FBARs or is there something else a Philadelphia FBAR Attorney should know? Indeed, the subject matter that your attorney must know should not be limited to just how to file an FBAR. Rather, he should know about FBAR, the place this form occupies within the US international tax system and how FBAR interacts with other US international tax compliance requirements, such as foreign income reporting, Form 8938, Form 8621, foreign business ownership reporting returns (5471, 8865 and 8858), et cetera.

It is also important to understand that the FBAR issues are often highly intertwined with the rest of the US tax laws and this interaction is what will make the real impact on your tax position in the United States. This is why your Philadelphia FBAR Attorney should be highly knowledgeable in other areas of international tax law in addition to FBARs.

Philadelphia FBAR Attorney: Contact Sherayzen Law Office

We can now revert to the question we already posed at the beginning of the essay: who should you retain if you are looking for a highly-skilled Philadelphia FBAR Attorney. While the actual choice is ultimately personal, based on the objective criteria, Sherayzen Law Office should definitely occupy a top spot in your search.

Sherayzen Law Office holds a leading position in the world on FBAR compliance due to its highly-experienced international tax team, headed by its founder Attorney Eugene Sherayzen, that has been helping its clients throughout the world with FBAR and related international tax issues including foreign income reporting, FATCA compliance (Form 8938), PFIC compliance (Form 8621), Subpart F rules, all types of US tax information returns (3520, 3520-A, 5471, 8865, 8858, 926, et cetera), US income tax returns (individual, partnership and corporate) for domestic and foreign persons and other issues.

Furthermore, Sherayzen Law Office has helped hundreds of clients who are delinquent with respect to their FBAR and other US tax obligations. In fact, Sherayzen Law Office is one of the leading international tax law firms in the world with experience in all major IRS voluntary disclosure programs, including 2009 OVDP, 2011 OVDI, 2012 OVDP and 2014 OVDP now closed.

This is why, if you are looking for a Philadelphia FBAR Attorney, you should contact Sherayzen Law Office, Ltd. today to schedule Your Confidential Consultation!

Boston FATCA Lawyer

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Often, people are searching for a Boston FATCA lawyer without a clear definition of who a Boston FATCA lawyer is. Indeed, who is a Boston FATCA Lawyer? Just a lawyer who resides in Boston or can a lawyer who resides outside of Boston qualify as a Boston FATCA lawyer? Is it any lawyer or only an international tax lawyer? Do all international tax lawyers qualify as a Boston FATCA lawyer?

Boston FATCA Lawyer Definition: Physical Residence Does Not Matter

Let’s first resolve the issue of physical residence. Here, we find that there are two types of lawyers who can qualify as a Boston FATCA Lawyer. First, a lawyer who resides and works in the city of Boston; this is logical and does not need further explanation.

Second, a Boston FATCA lawyer can also be a lawyer who resides outside of Boston, but who has clients in Boston. There are two reasons for this statement. First, the enormous improvements in modern communication technologies eliminated for all practical purposes the difference between a Boston FATCA lawyer who resides in Boston and a Boston FATCA lawyer who resides outside of Boston. The logistical ability of lawyers who reside outside of Boston to advise (with respect to FATCA) and prepare documents for their clients who live in Boston is virtually the same.

The second reason for why a lawyer who resides outside of Boston can still be considered as a Boston FATCA lawyer is the fact that FATCA is a federal law that concerns US international tax compliance; there is no special relationship between Boston and FATCA.  FATCA applies to all US taxpayers equally, not just US taxpayers who reside in Boston.  The logical extension of this statement is that the lawyers who practice in this area of law are able to provide their services with respect to FATCA irrespective of their residence.  This means that a lawyer in Boston has no inherent advantage over a lawyer who resides outside of Boston, because there is simply no local legal Bostonian addition to FATCA.

Boston FATCA Lawyer Definition: a FATCA Lawyer is an International Tax Lawyer

Not every lawyer qualifies as a Boston FATCA lawyer; in fact, very few lawyers qualify for this title because this is a very narrow specialty. A Boston FATCA lawyer is an international tax lawyer who is knowledgeable about FATCA, foreign accounts voluntary disclosure and the US international tax system in general.

The knowledge of US international tax requirements is highly important for a FATCA Lawyer. Many clients do not initially understand that FATCA is merely a part of a much larger network of international tax laws of the United States. The interaction of these laws with FATCA is what has an actual impact on the tax position of a US taxpayer. This is why it is highly important for a FATCA Lawyer to know not only FATCA itself, but also the entire US international tax law system.

Contact Sherayzen Law Office If You Are Looking for a FATCA Lawyer

If you are looking for a Boston FATCA Lawyer, you should contact Sherayzen Law Office, Ltd. – an international tax law firm that specializes in FATCA compliance, offshore voluntary disclosures of foreign accounts (and other foreign assets) and US international tax issues in general.  While based in Minneapolis, Sherayzen Law Office has provided its services to hundreds of clients throughout the world with respect to their FBAR and FATCA compliance, including correcting past US tax compliance through Streamlined Domestic Offshore Procedures, Streamlined Foreign Offshore Procedures, Delinquent FBAR Submission Procedures, Delinquent International Information Return Submission Procedures and Reasonable Cause (Noisy) Disclosures.

Contact Us Today to Schedule Your Confidential Consultation!

FBAR PFIC Reporting | FBAR Tax Attorney

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FBAR PFIC Reporting is an important issue for U.S. shareholders of passive foreign investment companies (“PFICs”). I will now briefly explore the FBAR PFIC Reporting requirement and when it applies to U.S. shareholders of a PFIC.

FBAR PFIC Reporting: FBAR Background

FinCEN Form 114, the Report of Foreign Bank and Financial Accounts, commonly known as FBAR, originally came into existence as a result of the 1970 Bank Secrecy Act. FBAR is one of the main and arguably the most important international tax requirement in the IRS. The form must be filed by every U.S. tax resident who has foreign financial accounts the aggregate value of which exceeds $10,000 at any time during the calendar year. The aggregate value should be calculated based on all foreign bank and financial accounts in which this U.S. tax resident has financial interest or over which he has signatory or other authority.

Failure to file an FBAR may result in the imposition of draconian FBAR penalties, including criminal penalties in grave cases of willful noncompliance.

FBAR PFIC Reporting: PFIC Definition

PFIC (Passive Foreign Investment Company) is one of the most complex tax requirements of the U.S. tax system. In addition to the potentially tremendously burdensome tax compliance required for PFICs, PFICs may result in the imposition of a much higher income tax with PFIC interest on the PFIC tax.

The basic definition of a PFIC is any foreign corporation in which: “(1) 75 percent or more of the gross income of such corporation for the taxable year is passive income, or (2) the average percentage of assets (as determined in accordance with subsection (e)) held by such corporation during the taxable year which produce passive income or which are held for the production of passive income is at least 50 percent.” IRC Section 1297(a). While many types of companies may unexpectedly be classified as PFICs by the IRS, foreign mutual funds seem to be the most common trap for the unwary U.S. taxpayers.

If a U.S. taxpayer has PFICs, he/she is required to file a separate Form 8621 “Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund” for each PFIC.

FBAR PFIC Reporting: Three Potential FBAR Requirements

There are three most common situations when an FBAR should be filed for a PFIC, assuming the statutory aggregate threshold of $10,000 is satisfied. First, FBAR PFIC reporting is required if a PFIC is held in a financial account; in this case, FBAR PFIC reporting will occur for the account itself (which, in India especially, may correspond to the folio number of a PFIC in any case). For example, if a U.S. person has an Assurance Vie account in France that contains PFICs, he would have to report the Assurance Vie account on the FBAR, including the value of the PFICs.

Second, FBAR PFIC reporting is required if a PFIC shareholder has signature authority over foreign financial accounts owned by a PFIC. In this case, FBAR PFIC reporting will occur for these foreign financial accounts in Section IV of the FBAR.

Finally, the third most common situation where FBAR PFIC reporting is required is a scenario where a U.S. person owns more than 50% of a PFIC and this PFIC has foreign financial accounts. In such case, the U.S. person is assumed to have a financial interest in the foreign financial accounts of this PFIC and he needs to disclose these accounts on his FBAR.

FBAR PFIC Reporting: Filing Form 8621 does NOT Satisfy the FBAR Filing Requirement

It is important to emphasize that filing form 8621 for a PFIC does not relieve the filer from his FBAR obligations. Even if Form 8621 is filed, the filer must also file the FBAR.

Contact Sherayzen Law Office for Professional Help with FBAR PFIC Reporting

FBAR PFIC reporting can be extremely complex and it is very easy to make mistakes with respect to what needs to be disclosed and how. These mistakes, however, can be expensive to remedy and may result in imposition of various large penalties.

This is why, if you have PFICs that require FBAR and Form 8621 disclosure, you need to contact Sherayzen Law Office for professional help. Our team of experienced tax professionals will help you properly disclose your PFICs on your FBAR and report your PFIC income on your personal or business tax returns. If you have not complied with your FBAR PFIC reporting requirement in the past and wish to remedy this situation, Sherayzen Law Office will also help you with the voluntary disclosure of your FBARs and PFICs, including the preparation of all necessary tax forms and legal documents.

Contact Us Today to Schedule Your Confidential Consultation!

Seattle FATCA Lawyers

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There are two definitions of who qualifies to be Seattle FATCA lawyers. First, Seattle FATCA lawyers are lawyers who are work in Seattle and who specialize in helping U.S. taxpayers and/or foreign financial institutions with FATCA compliance.

The second type of international tax attorneys who can qualify as Seattle FATCA lawyers became possible as a result of the development of modern communication technologies. These are the lawyers who reside outside of Seattle (e.g. in Minneapolis) and help clients who live and work in Seattle, Washington. Sherayzen Law Office is a good example of such Seattle FATCA lawyers – the firm’s founder, Mr. Sherayzen resides in Minneapolis but provides FATCA-related services to his clients in Seattle.

The residence of Seattle FATCA lawyers does not matter due to the fact that FATCA is federal law and any international tax lawyer who is licensed to practice in any of the fifty states of the United States can help his clients wherever they reside. Modern technologies (such as Internet, email, video Skype conference, et cetera) allow a Minneapolis lawyer to provide at least the same quality of service in Seattle as other Seattle FATCA lawyers. The necessary documents are usually supplied via email, flash drives (or other similar digital storage devices) and regular mail.  If a document needs to contain an original signature (e.g. amended tax return), then it is sent to client either by email or mail, the client signs the document at his home without the need of going to the lawyer’s office then mails it back to his lawyer.

The quality that should really matter to clients who are looking for Seattle FATCA lawyers is that their lawyers have deep knowledge of FATCA, foreign accounts disclosure and the U.S. international tax law in general. The knowledge of U.S. international tax compliance obligations is especially important for Seattle FATCA lawyers, because FATCA is merely a part (though, a very important part) of a much larger set of U.S. international tax laws. All of these laws are related to each other and their interaction creates real tax consequences for U.S. taxpayers, including those who reside in Seattle. This is why it is important for Seattle FATCA lawyers to know the entire U.S. tax structure, not just FATCA itself.

Contact Sherayzen Law Office If You Are Looking for Seattle FATCA lawyers

If you are looking for Seattle FATCA lawyers, contact Sherayzen Law Office, Ltd., an international tax law firm that specializes in FATCA compliance, offshore voluntary disclosures and U.S. international tax compliance in general.

Contact Us Today to Schedule Your Confidential Consultation!

H1B Holder FATCA Requirements

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There is a confusion in general public about the H1B holder FATCA requirements. The key concept that lies at the heart of the U.S. tax obligations of an H1B holder is tax residency (which is very different from the definition of a U.S. permanent resident in immigration law). In this article, I will discuss the concept of tax residency and the H1B Holder FATCA requirements.

H1B Holder FATCA Requirements: H1B Visa

H1B visa is a non-immigrant visa that allows U.S. companies to hire foreign workers to work in the United States. These workers have to be working in occupations that require theoretical or technical expertise in specialized fields such as in architecture, engineering, mathematics, science and medicine.

H1B Holder FATCA Requirements: FATCA

The Foreign Account Tax Compliance Act (FATCA) was signed into law in the year 2010. This law was passed by U.S. Congress with the specific purpose of combating tax noncompliance of U.S. taxpayers with undeclared offshore accounts. Today, FATCA is one of the most influential tax information exchange regimes in the world; through a huge network of bilateral treaties, the IRS managed to implement FATCA in the great majority of the countries.

FATCA consists of basically two parts. First, it obligates foreign financial institutions to turn over to the IRS certain information regarding foreign accounts owned by U.S. persons as well as certain information regarding the U.S. owners themselves. The H1B Holder FATCA information is also required to be turned over to the IRS.

The second part of FATCA imposes a new reporting requirement, IRS Form 8938, which must be filed with a U.S. tax return. Form 8938 requires U.S. taxpayers to disclose specified foreign assets to the IRS. “Specified Foreign Assets” includes various class assets, including foreign financial accounts.

H1B Holder FATCA Requirements: Tax Residency and FATCA Requirements

The key to understanding H1B holder FATCA requirements is the determination of whether an H1B holder is a tax resident of the United States. In order for an H1B holder to be classified as a U.S. tax resident, he must pass the “substantial presence test”. The substantial presence test determines the tax residency of a person based on the number of days this individual was physically in the United States.

If the substantial presence test is satisfied, the H1B holder is considered to be a tax resident of the United States. As a U.S. tax resident, the H1B holder FATCA requirements will be the same as those of any other U.S. tax resident, including U.S. citizens and U.S. permanent residents.

This means that, under FATCA, foreign banks should disclose to the IRS all of the foreign financial accounts owned directly, indirectly or constructively by the H1B holder. At the same time, the H1B holder FATCA obligations extend to filing Form 8938 for all of the required specified foreign assets, including foreign financial accounts, foreign stocks and other securities, foreign bonds, foreign derivatives and ownership of foreign businesses (unless such ownership is reported on another IRS form; in this case, Form 8938 should indicate the form on which such foreign business ownership is disclosed), and other assets.

H1B Holder FATCA Requirements: Late Disclosure

What if H1B holder FATCA obligations were not timely satisfied (i.e. Forms 8938 should have been filed, but they never were) and the H1B holder just found out about it? If an H1B holder did not file Forms 8938 timely, he may be subject to Form 8938 penalties. Moreover, in most such cases, such an H1B holder is likely to have failed to comply with other important U.S. international tax requirements such as FBAR and worldwide income reporting. The combination of FATCA, FBAR, income reporting and other penalties may create a huge tax liability that may even exceed the total value of the H1B holder’s foreign assets.

In such cases, the H1B holder should contact an international tax attorney experienced in offshore voluntary disclosures as soon as possible. Various offshore voluntary disclosure options offer varying rates of reduced penalties, sometimes even with the possibility of eliminating all penalties. However, time is of the essence – if foreign banks report the H1B holder’s foreign assets as part of their FATCA compliance and the IRS commences its investigation of the H1B holder FATCA noncompliance, then all of the voluntary disclosure options may automatically close.

Contact Sherayzen Law Office for Legal Help with H1B Holder FATCA Compliance

If you work in the United States on H1B visa, have foreign assets which are required to be disclosed under FATCA and have not done so, you should contact Sherayzen Law Office as soon as possible. Sherayzen Law Office is an experienced international tax law firm that specializes in FATCA compliance for U.S. taxpayers, including voluntary disclosures for H1B holders.

Contact Us Today to Schedule Your Confidential Consultation!