The international tax environment is an area of continued scrutiny and focus by the taxing authorities. From a tax compliance standpoint, there are many different forms that apply when doing business or investing abroad. These compliance requirements apply to both U.S. entities and U.S. individual taxpayers and failure to comply can result in substantial penalties. From a planning standpoint, there are different rules with regards to recognizing income from foreign activities. Care should be taken with structuring transactions to ensure such are done so in the most tax efficient manner and maximizing foreign tax credits. BeachFleischman CPAs has offices in Phoenix and Tucson, Arizona (AZ) ready to assist you in your international tax needs.
Foreigners doing business or investing in the U.S. are also exposed to income, estate and gift tax issues in the U.S. Our expertise allows us to advise on the most efficient way to structure foreign ownership in U.S. assets, to minimize withholding requirements, minimize U.S. income tax, address estate tax issues and maximize income tax treaty benefits. BeachFleischman also has a bilingual staff.
How we help
- Addressing the complexities with the different tax forms that are to be filed when doing business abroad or when certain assets are held abroad.
- Assisting clients with structuring cross-border transactions in the most tax efficient manner.
- Also assist foreigners that come to the U.S. to conduct business or invest in U.S. assets.
Inbound and Outbound Activities
Outbound international activities:
- U.S. corporations expanding operations overseas, via a foreign subsidiary or branch.
- U.S. individuals doing business or investing abroad
- Outbound cross-border transactions; income tax treaty interpretation.
Inbound international activities:
- Foreign corporations coming to the U.S. to expand operations, via U.S. subsidiary or branch to the foreign entity.
- Foreigners coming to the U.S. to invest in U.S. businesses, U.S. real estate or U.S. securities.
Our International Tax Services
International Tax Structuring
We team up with foreign attorneys and accountants to come up with the best possible structure considering tax issues in both countries. In Mexico, we have an extensive network of legal and accounting contacts in different parts of the country with different areas of expertise, aside from LEA.
Mexico/U.S. Cross-Border Tax
We work with many U.S. companies and individuals that do business overseas, primarily Mexico and other Latin American countries. We team up with advisors in the foreign countries to provide the best possible support. We represent many Mexican families doing business in the U.S., many which include family members that are dual citizens of the U.S. and Mexico, that are obligated to fully comply with tax obligations that apply to residents of both countries.
Passive Foreign Investment Company (PFIC)
A foreign corporation will fall under the Passive Foreign Investment Company rules if it meets either the Income test or the Asset Test. Due to these definitions, almost every foreign mutual fund will meet these requirements and will fall under the Passive Foreign Investment Company regime. When opening foreign securities accounts, it’s important to know what type of investments will be made and whether they may be considered PFICs.
Now that there is certainty as to the preferential taxation of qualified dividends, IC-DISC continues to be a great incentive for U.S. companies with significant export activity.
Voluntary Disclosure Initiative
We assist U.S. citizens that have not been in full compliance with reporting offshore activity and have experience in getting them through the VDI program.
Foreign Interest in Real Property Tax Act (FIRPTA)
We have extensive knowledge in navigating the requirements FIRPTA. Our international tax team has helped foreign investors with countless transactions subject to FIRPTA for sales of real estate both in Arizona and nationally.
Contact our International Tax Team
BeachFleischman CPAs provides international tax services in Phoenix and Tucson, Arizona (AZ) and throughout the United States. If you are interested in learning more about how BeachFleischman’s tax professionals can assist you, please fill out the submission form below and you will receive a prompt response.