US citizens and Green Card Holders have an on-going obligation to file US federal (and potentially US state) tax returns even if they are tax resident in another jurisdiction and even if they have been outside of the US for many years
With the introduction of worldwide taxation in the UK for non-domiciled longer term residents and with various additional reporting requirements recently introduced in the US, for those with non-US investments, individuals in the UK with US filing obligations are now facing the most complex regulatory implications in dealing with their personal tax affairs.
At Frontier we offer many years of experience in the area of dual handling when dealing with your UK and US tax affairs. The interaction of the UK/US Double Tax Treaty now has an even more prominent role in minimising exposure to double taxation in the UK and US. We would also always consider the interaction between the UK and US tax systems and US reporting requirements when reviewing any potential tax planning opportunities.
US TAX Services
US Services include... Read more >
- Preparation of US Federal Tax Returns
- Identifying your state tax obligations and preparing State Tax Returns
- Applying for extensions of time to file returns if required
- Identifying and advising upon the need for you to make Quarterly Estimated Tax Payments
- Preparation of additional US reporting forms where required, such as Forms 5471 (related to non-US companies), Forms 3520-A and 3520 (for non-US trusts), Form 8854 (US Expatriation) etc.
- Assistance with the completion of Foreign Bank Account Reporting Forms (90-22.1).
- Assistance in dealing with the process of Voluntary Disclosure
- Assistance in corresponding with the IRS in connection with your general tax compliance affairs or IRS Examination proceedings or notices.
- Keeping you up to date with developments in US tax legislation
- Ensuring that your UK tax affairs are dealt with in a manner that considers the interaction with your on-going US tax obligations and offers you solutions that are both appropriate to your circumstances and cost effective from a worldwide tax mitigation perspective.
Leaving the US
As a US citizen or Green Card holder you are likely to be well aware that the simple act of leaving the US does not put an end to your US tax compliance requirements. US expatriates must continue to file US federal returns regardless of how long they reside outside of the US.... Read more >
US state tax obligations vary significantly. Some states, which are known as “domicile states” require you to continue to file as a resident regardless of how long you have been absent from that state. Others may require a particular period of absence dependent upon your domicile status or pre-departure residency status in order to break residency. Even as a non-resident if you have state source income such as a US rental property or workdays conducted in a particular state you may have a requirement to file a state return.
We can offer assistance to ensure you are fully aware of your US filing obligations while you are residing or working abroad.
Going to the US
If you are a non US citizen and are intending to move to the US it is essential that you review your financial investments and affairs before you make the move... Read more >
The US Internal Revenue Service may treat your non-US assets/investments in a manner which is very inefficient from a tax and reporting perspective. It is therefore essential that you discuss your affairs with a UK/US tax expert before moving to the US to ensure that you are aware of the implications of having a US reporting obligation.
Such advice would also allow you the opportunity to consider restructuring your affairs before you become US tax resident in order to mitigate any adverse tax liability or reporting obligations.
IRS Examinations / Notices
Whether you have received a notice from the IRS or state tax authorities in relation to a particular item or items reported on your tax returns or whether you are the subject of a random audit.
At Frontier we would be more than happy to offer assistance in corresponding with the IRS on your behalf in order to reach the fastest and most beneficial conclusion.
We often hear from Americans who have been living in the UK for a number of years and although their UK tax affairs are kept up to date, they have fallen behind with their US filing and reporting obligations... Read more >
The IRS has powers to levy penalties for non-reporting even if no tax underpayment arises. The IRS has also entered into various exchange of information agreements with certain foreign countries and financial institutions which would mean the provision of personal details to the IRS where foreign investments are held by American citizens. It is therefore now more important than ever to ensure that you bring your US tax and information reporting affairs up to date as soon as possible, before the IRS contacts you.
At Frontier we would be very happy to assist you in bringing your affairs up to date and ensuring that you enter back into the US tax system in the most appropriate manner. This may involve taking part in one of the IRS’s Voluntary Disclosure programmes (detailed below) or it may simply involve filing any late tax returns or late information reporting forms outside of the programs (because either you do not meet the criteria to enter into them, or because the voluntary disclosure programs themselves are not appropriate for your situation).
Should the best solution be to enter into the Voluntary disclosure programme we can assist you to ensure that the appropriate programme is used and that the submission is made in a fast, efficient and appropriate manner. There are two programmes available:
1) 2012 Offshore Voluntary Disclosure Initiative (OVDI) and
2) The streamlined procedure for “low compliance risk” cases.
We are able to assist you in determining the best approach for you in entering back into the US tax system as soon as possible to provide you with the peace of mind of knowing your affairs are fully compliant and up to date.
If you are considering giving up your US citizenship or surrendering your Green Card we highly recommend that you seek advice from an immigration lawyer as there are more considerations to expatriation than just minimizing or eliminating your ongoing US tax obligations... Read more >
Should you decide to proceed with expatriation we can offer assistance in determining whether you will be regarded by the IRS as having expatriated for tax purposes (otherwise known as being a “covered expatriate”), what the tax implications are of meeting this definition. We can also suggest potential pre-expatriation planning which will minimize the cost of expatriation.
In addition we can also assist with any US filing obligations in relation to your expatriation, in particular assisting with the completion of Form 8854 and addressing the potential ongoing filing obligations of other members of your family.