Americans are taxed on their worldwide income and generally have to file US tax return regardless of where they live. We are very experienced in preparation of Federal tax returns, from simple to complex, for people of different backgrounds and professions, living everywhere in the world, and especially in Switzerland.
State income tax return
State tax return may be required in a number of situations, even when a person lives outside the US. Examples include renting out a property in US, going on business trips to the US or moving in or out of the US during the year. We prepare state tax return for every state with income tax.
If you have more than $10,000 in all your foreign bank accounts, you have to file a foreign bank account report (FBAR) and possibly form 8938 to report these accounts and other foreign financial assets. We will prepare you current FBAR and form 8938 and will suggest the best strategy for filing late FBAR and form 8938.
If you failed to report your foreign financial assets and include income from these assets due to a “good” reason, we will prepare required tax returns, FBARs and other necessary forms using the streamlined compliance procedures that help Americans to get back on tax compliance track without penalties. Don’t wait too long, the IRS amnesty program can close any time!
You may have to file form 5471 if you own (or considered to own) at least 10% of the foreign corporation, or if your ownership changed during the year by a certain amount, or if you are an officer or director in a foreign corporation with certain US owners. Form 5471 is highly complex and technical, and its preparation requires experience and a deep understanding of concepts. We have that experience, and we are here to help you.
Relinquishing US nationality
Want to relinquish your US nationality or a green card and don’t know where to start? We will guide you through the process and will prepare your final US tax return to “unsubscribe” you from the IRS. Important: until the final tax return and expatriation form 8854 are filed, you still have to pay US taxes even if not a citizen any longer!
Gifts - giving or receiving
Forms 709 & 3520
If you gave to any person during a year more than $15,000 in gifts (amount varies by year), you generally have to file a gift tax return. If you received more than $100,000 in gifts or bequest from a foreign person, you have to disclose that event.
Foreign rental and self-employment
Since tax year 2018, renting out a property or running a self-employment business outside the US is considered a “qualified business unit” that requires preparation of form 8858 to report “business unit’s” financial transactions in accordance with US accounting and tax rules. We have a solid experience in form 8858 preparation and are happy to help you.
US owner of foreign disregarded entity
Are you a single owner of a foreign business entity and made an election to disregard your entity for US tax purposes? In that case, you have to report the business on your US tax return as self-employment activity, and to file form 8858 to report financial transactions of your disregarded entity in accordance with US accounting and tax rules.
Foreign owned US corporations & LLCs
Are you a non-US person that owns 100% of the US LLC or owns at least 25% of the US corporation? Then you may have to file form 5472 to disclose your ownership of the US entities and to report certain transactions of the entities with the related parties. We will help to determine filing requirements and prepare form 5472, as well as state tax returns, if applicable.
Nonresident income tax return
Some individuals who are not US citizens or green card holders may have to file US Nonresident income tax return if they receive certain income from US sources, for example from renting out a property in the US or investing in US companies that pay dividends. We will analyze your situation and prepare a nonresident tax return, if required.
Response to IRS notices
Did you receive a letter or a notice from the IRS and don’t know what to do? Don’t worry, we have a lot of experience in dealing with the IRS inquiries and can talk to them on your behalf to resolve the matter.
Advice and consulting
It is always a good idea to consult with a knowledgeable tax professional before making decisions that can significantly affect your personal or financial situation. US tax implications of many actions may be significant, especially if you live abroad. Call us for advice.