Boulder FBAR Tax Attorney | International Tax Lawyer Colorado

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If you reside in Boulder, Colorado, and have unreported foreign bank and financial accounts, you may be looking for a Boulder FBAR Tax Attorney.  Sherayzen Law Office, Ltd. is a leader in FBAR compliance, including offshore voluntary disclosures concerning delinquent FBARs, and you should consider us in your search. Let’s understand why this is the case.

Boulder FBAR Tax Attorney: International Tax Lawyer

First of all, it is very important to understand that, by looking for Boulder FBAR Tax Attorney, in reality, you are searching for an international tax lawyer who specializes in FBAR compliance.

The reason for this conclusion is the fact that FBAR enforcement belongs to a very special field of US tax law – US international tax law. FBAR is an information return concerning foreign assets, which necessarily involves US international tax compliance concerning foreign assets/foreign income. Moreover, ever since the FBAR enforcement was turned over to the IRS in 2001, the term FBAR attorney applies almost exclusively to tax attorneys.

Hence, when you look for an FBAR attorney, you are looking for an international tax attorney with a specialty in FBAR compliance.

Boulder FBAR Tax Attorney: Broad Scope of Compliance and Offshore Voluntary Disclosures

When retaining a Boulder FBAR Tax Attorney, consider the fact that such an attorney’s work is not limited to the preparation and filing of FBARs. Rather, the attorney should be able to deliver a variety of tax services and freely operate with experience and knowledge in all relevant areas of US international tax law, including the various offshore voluntary disclosure options concerning delinquent FBARs.

Moreover, as part of an offshore voluntary disclosure, an FBAR Attorney often needs to amend US tax returns, properly prepare foreign financial statements according to US GAAP, correctly calculate PFICs, and complete an innumerable number of other tasks.

Mr. Sherayzen and his team of motivated experienced tax professionals of Sherayzen Law Office have helped hundreds of US taxpayers worldwide to bring their tax affairs into full compliance with US tax laws. This work included the preparation and filing of offshore voluntary disclosures concerning delinquent FBARs. Sherayzen Law Office offers help with all kinds of offshore voluntary disclosure options, including: SDOP (Streamlined Domestic Offshore Procedures), SFOP (Streamlined Foreign Offshore Procedures), DFSP (Delinquent FBAR Submission Procedures), DIIRSP (Delinquent International Information Return Submission Procedures), IRS VDP (IRS Voluntary Disclosure Practice) and Reasonable Cause disclosures.

Boulder FBAR Tax Attorney: Out-Of-State International Tax Lawyer

Whenever you are looking for an attorney who specializes in US international tax law (which is a federal area of law, not a state one), you do not need to limit yourself to lawyers who reside in Boulder, Colorado. On the contrary, consider international tax attorneys who reside in other states and help Boulder residents with their FBAR compliance.

Contact Sherayzen Law Office for Professional FBAR Help

Sherayzen Law Office is an international tax law firm that specializes in US international tax compliance, including FBARs. While our office is in Minneapolis, Minnesota, we help taxpayers who reside throughout the United States, including Boulder, Colorado.

Thus, if you are looking for a Boulder FBAR Tax Attorney, contact Mr. Sherayzen as soon as possible to schedule Your Confidential Consultation!

PFIC Compliance: Introduction | International Tax Lawyer & Attorney

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In the intricate realm of US international tax law, few areas are as challenging and potentially costly as PFIC compliance. Understanding the nuances of Passive Foreign Investment Companies (PFICs) is crucial for US taxpayers with foreign investments. This article provides an introduction to PFIC compliance, outlining key concepts and reporting requirements.

What is PFIC Compliance?

PFIC compliance refers to adhering to the US tax rules and reporting requirements for Passive Foreign Investment Companies. A PFIC is a foreign corporation that meets one of the following tests:

  1. Income Test: 75% or more of its gross income is passive income
  2. Asset Test: 50% or more of its assets generate passive income or are held for the production of passive income

Passive income typically includes dividends, interest, royalties, rental income (unless renting is the active business of the corporation) and capital gains.

The Importance of PFIC Compliance

PFIC compliance is a critical issue for US taxpayers, because the tax consequences of owning PFICs can be severe. The US tax code imposes punitive tax rates and interest charges on certain PFIC distributions and gains, making this area of US tax compliance a high-stakes area of tax law.

Key Aspects of PFIC Compliance

1. Identification: The first step is to identify whether you own any PFICs. This is not an easy process, but, generally speaking, all foreign mutual funds and ETFs are almost automatically PFICs.
2. Annual Reporting: A taxpayer must disclose the ownership and income from PFICs annually on Form 8621 for each PFIC owned. Actually, each block of each PFIC will require a separate Form 8621.
3. Tax Calculations: Depending on the chosen PFIC regime, complex calculations may be necessary to determine the tax owed on PFIC income.
4. Record Keeping: Meticulous record-keeping of all PFIC transactions and values is an absolute must for proper PFIC reporting.

PFIC Compliance Regimes

There are three main tax PFIC reporting regimes (there are other regimes, but we will not deal with them in this article, because these regimes come into effect only in special cases):

1. IRC Section 1291 Fund (Default Method): This is the default PFIC calculation regime which may result in a high tax burden with distributions and gains taxed at the highest ordinary income rate plus an interest charge (called “PFIC interest”).

2. Qualified Electing Fund (QEF): This PFIC regime requires an election and cooperation from the foreign corporation but can result in more favorable tax treatment. Unfortunately, the cooperation from the foreign corporation is going to be the most difficult part.
3. Mark-to-Market (MTM): This is another PFIC regime that requires an election. It is available for marketable PFIC stock only and involves annual recognition of gains or losses, even in situations where a PFIC is not sold.

Common Challenges in PFIC Compliance

US tax reporting concerning PFICs presents several challenges:
1. Identification: Many taxpayers are unaware of the fact that they own PFICs, leading to inadvertent noncompliance. A failure to properly identify PFICs often forms the basis for a subsequence offshore voluntary disclosure.
2. Complexity: PFIC rules are highly complex and often require professional assistance from an international tax law firm, such as Sherayzen Law Office.
3. Information Gathering: Obtaining the necessary information for proper PFIC reporting can be difficult, especially in cases where PFICs have been held for many years.
4. Retroactive Compliance: Addressing past noncompliance can be particularly complex and costly. This point is especially important in a context of an IRS offshore voluntary disclosure, such as Streamlined Domestic Offshore Procedures or Streamlined Foreign Offshore Procedures.

PFIC Compliance Penalties

A failure to properly report PFICs can result in significant penalties:
1. Failure to file Form 8621 can result in the extension of the statute of limitations.
2. Substantial understatement penalties may apply if PFIC income is not properly reported.
3. In severe cases, criminal penalties could be imposed for willful noncompliance.

PFIC Compliance for Specific Situations

Taxpayers should be aware that different scenarios may require unique approaches to PFIC compliance. Here are a few common examples:
1. Inherited PFICs: Special rules apply when PFICs are acquired through inheritance.
2. PFICs Held in Foreign Pensions: The interaction between PFIC rules and foreign pension regulations can be complex.
3. PFICs Owned Through Partnerships: Additional reporting may be required for PFICs owned indirectly through partnerships.

Contact Sherayzen Law Office for Professional Help with PFICs

Navigating the complexities of PFIC compliance can be daunting for any taxpayer. This is why you need to contact Sherayzen Law Office for help. We are a leading firm in PFIC compliance in the United States. Our deep understanding of international tax law and extensive experience in PFIC matters allows us to help ensure your PFIC compliance is accurate and up-to-date.

Whether you’re dealing with PFIC identification, annual reporting, or addressing past noncompliance, Sherayzen Law Office provides tailored solutions to meet your specific needs. Our team of specialists can guide you through the intricacies of PFIC tax regimes, help you choose the most advantageous compliance method and assist with complex calculations and reporting requirements.

We have helped hundreds of US taxpayers around the world to resolve past PFIC noncompliance in the context of an IRS offshore voluntary disclosure option, such Streamlined Domestic Offshore Procedures, Streamlined Foreign Offshore Procedures, Delinquent International Information Return Submission Procedures, et cetera. We can help you!

Contact Us Today to Schedule Your Confidential Consultation!

McKinney Foreign Inheritance Lawyer | International Tax Attorney Texas

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Retaining a McKinney foreign inheritance lawyer to deal with the IRS is very likely to be necessary if you reside in McKinney, Texas and have received an inheritance from a non-resident alien (i.e. foreign inheritance).  Sherayzen Law Office, Ltd. is a leader in US international tax compliance concerning foreign inheritance, including offshore voluntary disclosures concerning late disclosure of a foreign inheritance, and may be your McKinney foreign inheritance lawyer.

McKinney Foreign Inheritance Lawyer: Why Foreign Inheritance is Important to Your US international Tax Compliance

Receiving a foreign inheritance requires proper US international tax compliance in five areas: disclosure of foreign inheritance to the IRS, information reporting requirements that are linked to foreign inheritance, classification and recognition of income linked to foreign inheritance (including special requirements concerning inheritance of foreign real estate), inheritance of US-situs property and transfers of cash/assets to the United States.

Each of these areas of foreign inheritance has its own complications, traps and important reporting reporting requirements. These reporting requirements may have important tax implications with potentially high noncompliance IRS penalties.

This is precisely why it is highly recommended to consult a tax lawyer if you received or about to receive foreign inheritance. However, not every tax attorney would be the right fit for your foreign inheritance case.  In order to be properly classified as a McKinney foreign inheritance lawyer, the lawyer must be an international tax attorney with extensive experience in various US international tax reporting requirements related to foreign inheritance.

McKinney Foreign Inheritance Lawyer: International Tax Attorney

A foreign inheritance lawyer is first and foremost an international tax attorney – i.e. a lawyer with profound knowledge of and extensive experience in US international tax law, particularly in the area of US international tax compliance. This means that a lawyer must be familiar with such common US international tax forms as: Form 3520 (critically important for foreign inheritance reporting) and Form 8938.  He must also understand related US international tax compliance forms such as Forms 3520-A, 5471, 8865, 8858, et cetera.  Of course, every US international tax lawyer must be very familiar with FinCEN Form 114 commonly known as FBAR.

In addition to information returns, an international tax lawyer must be familiar with all types of foreign income reporting.  This requirement includes the knowledge of such distinct areas of international income tax reporting sub-areas as foreign rental income, PFIC compliance, GILTI income, capital gains concerning foreign real estate, et cetera.

Sherayzen Law Office is a highly-experienced and highly-knowledgeable international tax law firm with respect to all of the aforementioned income tax and information return requirements, including all of the aforementioned forms.

McKinney Foreign Inheritance Lawyer: Tax Planning

In cases where it is possible, it is highly prudent to engage in tax planning concerning a foreign inheritance. This is important not only for the purpose of limiting future tax burdens, but also to control future US tax compliance costs.  Hence, when you look for a McKinney foreign inheritance attorney, you should retain a law firm which has experience with foreign inheritance US tax planning.

Sherayzen Law Office has an extensive experience in foreign inheritance US tax planning for its clients in McKinney and all over the world.  We also have a highly valuable experience of combining income tax planning with offshore voluntary disclosures.

McKinney Foreign Inheritance Lawyer: Offshore Voluntary Disclosures

When retaining a McKinney Foreign Inheritance Lawyer, consider the fact that such an attorney’s work may not limited only to the current or future US international tax compliance. In my experience, a discussion of a foreign inheritance often involves identification and remedying of past US international tax noncompliance. In other words, foreign inheritance issues often lead to engaging in an IRS offshore voluntary disclosure option.

This means that a McKinney Foreign Inheritance Lawyer should be very familiar with all offshore voluntary disclosure options.

Offshore Voluntary Disclosures is a core area of the our international tax practice at Sherayzen Law Office. We have helped hundreds of US taxpayers worldwide, including in McKinney, to bring their tax affairs into full compliance with US tax laws. This work included the preparation and filing of all kinds of offshore voluntary disclosures including: SDOP (Streamlined Domestic Offshore Procedures), SFOP (Streamlined Foreign Offshore Procedures), DFSP (Delinquent FBAR Submission Procedures), DIIRSP (Delinquent International Information Return Submission Procedures), et cetera.

McKinney Foreign Inheritance Lawyer: Out-Of-State International Tax Lawyer

Whenever you are looking for an attorney who specializes in US international tax law (which is a federal area of law, not a state one), you do not need to limit yourself to lawyers who reside in McKinney, Texas. On the contrary, consider international tax attorneys who reside in other states and help McKinney residents with their FBAR compliance.

Sherayzen Law Office is based in Minneapolis, Minnesota, but we have a large number of clients in Texas, including the McKinney area. Hence, McKinney residents can contact us and retain us to resolve their foreign inheritance issues related to US international tax compliance.

Contact Sherayzen Law Office for Professional Foreign Inheritance Tax Help

Sherayzen Law Office is an international tax law firm that specializes in US international tax compliance, including foreign inheritance reporting.  We have helped numerous clients in Texas with their foreign inheritance. We can help you!

Hence, if you are looking for a McKinney Foreign Inheritance Lawyer, contact Mr. Sherayzen now to schedule Your Confidential Consultation!

Dallas Foreign Inheritance Lawyer | International Tax Attorney Texas

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Retaining a Dallas foreign inheritance lawyer to deal with the IRS is very likely to be necessary if you reside in Dallas, Texas and have received an inheritance from a non-resident alien (i.e. foreign inheritance).  Sherayzen Law Office, Ltd. is a leader in US international tax compliance concerning foreign inheritance, including offshore voluntary disclosures concerning late disclosure of a foreign inheritance, and may be your Dallas foreign inheritance lawyer.

Dallas Foreign Inheritance Lawyer: Why Foreign Inheritance is Important to Your US international Tax Compliance

Receiving a foreign inheritance requires proper US international tax compliance in five areas: disclosure of foreign inheritance to the IRS, information reporting requirements that are linked to foreign inheritance, classification and recognition of income linked to foreign inheritance (including special requirements concerning inheritance of foreign real estate), inheritance of US-situs property and transfers of cash/assets to the United States.

Each of these areas of foreign inheritance has its own complications, traps and important reporting reporting requirements. These reporting requirements may have important tax implications with potentially high noncompliance IRS penalties.

This is precisely why it is highly recommended to consult a tax lawyer if you received or about to receive foreign inheritance. However, not every tax attorney would be the right fit for your foreign inheritance case.  In order to be properly classified as a Dallas foreign inheritance lawyer, the lawyer must be an international tax attorney with extensive experience in various US international tax reporting requirements related to foreign inheritance.

Dallas Foreign Inheritance Lawyer: International Tax Attorney

A foreign inheritance lawyer is first and foremost an international tax attorney – i.e. a lawyer with profound knowledge of and extensive experience in US international tax law, particularly in the area of US international tax compliance. This means that a lawyer must be familiar with such common US international tax forms as: Form 3520 (critically important for foreign inheritance reporting) and Form 8938.  He must also understand related US international tax compliance forms such as Forms 3520-A, 5471, 8865, 8858, et cetera.  Of course, every US international tax lawyer must be very familiar with FinCEN Form 114 commonly known as FBAR.

In addition to information returns, an international tax lawyer must be familiar with all types of foreign income reporting.  This requirement includes the knowledge of such distinct areas of international income tax reporting sub-areas as foreign rental income, PFIC compliance, GILTI income, capital gains concerning foreign real estate, et cetera.

Sherayzen Law Office is a highly-experienced and highly-knowledgeable international tax law firm with respect to all of the aforementioned income tax and information return requirements, including all of the aforementioned forms.

Dallas Foreign Inheritance Lawyer: Tax Planning

In cases where it is possible, it is highly prudent to engage in tax planning concerning a foreign inheritance. This is important not only for the purpose of limiting future tax burdens, but also to control future US tax compliance costs.  Hence, when you look for a Dallas foreign inheritance attorney, you should retain a law firm which has experience with foreign inheritance US tax planning.

Sherayzen Law Office has an extensive experience in foreign inheritance US tax planning for its clients in Dallas and all over the world.  We also have a highly valuable experience of combining income tax planning with offshore voluntary disclosures.

Dallas Foreign Inheritance Lawyer: Offshore Voluntary Disclosures

When retaining a Dallas Foreign Inheritance Lawyer, consider the fact that such an attorney’s work may not limited only to the current or future US international tax compliance. In my experience, a discussion of a foreign inheritance often involves identification and remedying of past US international tax noncompliance. In other words, foreign inheritance issues often lead to engaging in an IRS offshore voluntary disclosure option.

This means that a Dallas Foreign Inheritance Lawyer should be very familiar with all offshore voluntary disclosure options.

Offshore Voluntary Disclosures is a core area of the our international tax practice at Sherayzen Law Office. We have helped hundreds of US taxpayers worldwide, including in Dallas, to bring their tax affairs into full compliance with US tax laws. This work included the preparation and filing of all kinds of offshore voluntary disclosures including: SDOP (Streamlined Domestic Offshore Procedures), SFOP (Streamlined Foreign Offshore Procedures), DFSP (Delinquent FBAR Submission Procedures), DIIRSP (Delinquent International Information Return Submission Procedures), et cetera.

Dallas Foreign Inheritance Lawyer: Out-Of-State International Tax Lawyer

Whenever you are looking for an attorney who specializes in US international tax law (which is a federal area of law, not a state one), you do not need to limit yourself to lawyers who reside in Dallas, Texas. On the contrary, consider international tax attorneys who reside in other states and help Dallas residents with their FBAR compliance.

Sherayzen Law Office is based in Minneapolis, Minnesota, but we have a large number of clients in Texas, including the Dallas area. Hence, Dallas residents can contact us and retain us to resolve their foreign inheritance issues related to US international tax compliance.

Contact Sherayzen Law Office for Professional Foreign Inheritance Tax Help

Sherayzen Law Office is an international tax law firm that specializes in US international tax compliance, including foreign inheritance reporting.  We have helped numerous clients in Texas with their foreign inheritance. We can help you!

Hence, if you are looking for a Dallas Foreign Inheritance Lawyer, contact Mr. Sherayzen now to schedule Your Confidential Consultation!

2024 Form 8938 Threshold | US International Tax Lawyers

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US taxpayers must file Form 8938 with their US tax returns if they hold foreign financial assets with an aggregate value exceeding a relevant balance threshold. This article discusses the 2024 Form 8938 threshold limits.

2024 Form 8938 Threshold: Form 8938 Background

Form 8938 burst onto the US international compliance scene in 2011 as a result of the famous Foreign Accounts Tax Compliance Act (FATCA). FATCA was enacted as part of the Hiring Incentives to Restore Employment Act of 2010 (“HIRE Act” or “Act”) which was signed into law by President Obama in 2010.

FATCA revolutionized international tax compliance of the world by forcing foreign banks to report their US-held accounts to the IRS. In essence, it created the third-party verification of foreign accounts that FBAR has always lacked. This third-party verification was supported on the other side by creation of a new requirement to report foreign assets by US taxpayers as part of their US tax returns – Form 8938.

Form 8938’s scope of disclosure is very broad. It generally includes two types of “specified foreign financial assets”: (a) any financial account (also defined very broadly) maintained by a foreign financial institution (again defined broadly); and (b) other specified foreign financial assets not held in an account maintained by a foreign institution.  Other Specified Foreign Financial Assets is a term with a reach far and beyond any other US international tax form, making Form 8938 a unique “catch-all” international tax reporting requirement.

2024 Form 8938 Threshold: Form 8938 is a Dangerous Form

This enormously-grand scope of Form 8938 presents a grave danger to US taxpayers, because US Congress armed the form with a wide range of penalties, including a $10,000 failure-to-file fee.  For these reasons, it is highly important to understand when a particular situation triggers the Form 8938 filing requirement. One of the most important filing criteria is the subject of this article — the 2024 Form 8938 filing threshold limits.

2024 Form 8938 Threshold: Filing Threshold Factors

When considering the Form 8938 threshold requirements, there are two most important factors that influence which filing threshold will apply in a particular situation. First, the filing status of the taxpayer(s): married filing jointly, married filing separately, single, et cetera.

The second factor is whether the taxpayer lives in the United States or lives abroad.  

2024 Form 8938 Threshold: Legal Test for Living Abroad

The IRS will agree that a taxpayer lives abroad if he meets one of the two “presence abroad” tests.

The first presence abroad test is satisfied if the taxpayer is a US citizen who has been a bona fide resident of a foreign country or countries for an uninterrupted period of an entire tax year.

The second presence abroad test is satisfied if the taxpayer is a US citizen or resident who is present in a foreign country or countries at least 330 full days during any period of twelve consecutive months in the relevant tax year.

Of course, these tests are almost exact replicas of the test for Foreign Earned Income Exclusion.

2024 Form 8938 Threshold: Taxpayers Living in the United States

Let’s first discuss the Form 8938 filing thresholds for taxpayers who live in the United States category by category:

1. Unmarried Taxpayers Living in the United States. The taxpayer is required to file Form 8938 if the total value of his specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during that tax year.

2. Married Taxpayers Filing a Joint Income Tax Return and Living in the United States. If the taxpayer is married and files joint income tax return with his spouse, Form 8938 must be filed if the spouses’ specified foreign financial assets are either more than $100,000 on the last day of the tax year, or more than $150,000 at any time during the tax year.

3. Married Taxpayers Filing Separate Income Tax Returns and Living in the United States. If the taxpayer is married and lives in the United States, but files a separate income tax return from his spouse, then the reporting threshold is satisfied if the total value of his specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year. Therefore, this category is very similar to that of the unmarried taxpayer who resides in the United States.

2024 Form 8938 Threshold: Taxpayers Living Abroad

Here are the Form 8938 filing thresholds for taxpayers who live abroad:

1. Married Taxpayers Filing a Joint Income Tax Return and Living Abroad. If the taxpayer lives abroad (as described above) and files a joint tax return with his spouse, then the reporting threshold is satisfied if the value of all specified foreign financial assets that the spouses own is either more than $400,000 on the last day of the tax year or more than $600,000 at any time during the tax year.

2. Taxpayers Filing Any Return Other Than A Joint Tax Return and Living Abroad. If that taxpayer lives abroad and does not file a joint income tax return (instead he files a different type of tax return such as married filing separately, head of household or unmarried), then the reporting threshold is satisfied if the value of all specified foreign financial assets is either more than $200,000 on the last day of the tax year, or more than $300,000 at any time during the tax year.

2024 Form 8938 Threshold: Specified Domestic Entity

Specified Domestic Entities are also required to file Form 8938. The filing threshold for a specified domestic entity is satisfied if the total value of such an entity’s specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year.

Contact Sherayzen Law Office For Help With IRS Form 8938

The reporting requirements under Form 8938 can be very complex. Moreover, Form 8938 noncompliance often occurs in conjunction with noncompliance with FBAR and other reporting requirements (such as Forms 5471, 8621, 8865 et cetera).  In such cases, filing of a late Form 8938 is often should be done through an IRS offshore voluntary disclosure option in order to reduce additional IRS tax penalties.

Sherayzen Law Office is an international tax law firm that specializes in US international tax compliance, including Form 8938. We are highly experienced with Form 8938 issues, including offshore voluntary disclosures involving Form 8938.  We can help you!

Contact us today to schedule your confidential consultation!