These are the 5 topics that I share with you in this publication:
1. What annual obligations do you have with your registered company in the USA?
2. Keep your finances in order and avoid unpleasant surprises!
3. Are you a non-resident foreigner in the USA and do you file taxes?
4. Are you afraid of the IRS auditing your tax return?
5. FATCA: What should you know if you have money outside the USA?
1 - What annual obligations do you have with your registered company in the USA?
Every registered company in the USA must keep up-to-date accounting records according to the accounting principles that govern in the United States in order to be able to file a tax return correctly.
You can keep your records personally; however, this process requires a high level of documentation work. That's why I recommend that you do it through trained professionals.
2 - Keep your finances in order and avoid unpleasant surprises!
State income taxes in the USA are tax obligations imposed by states on the income of residents and non-residents working within the state. Each state has its own tax rate, which is around 10%, and its own tax rules.
This means it's important to know the tax laws of the state where you work or live. Each state's income tax law is full of details, so the best option is to consult with a lawyer or an accountant if you have questions about your tax obligations in a particular state.
3 - Are you a non-resident foreigner in the U.S. and do you file taxes?
If you are a non-resident foreigner in the USA, you must file a federal tax return of type 1040NR or 1040NR-EZ.
These forms are specific to foreigners who do not reside in the United States but have income from US sources, such as rental properties, bank interest, stock dividends, etc. In any case, it is important to consult with a tax professional or a specialized lawyer to ensure that you are complying with all your tax obligations.
4 - Are you afraid of the IRS auditing your tax return?
An audit is a process in which the Internal Revenue Service (IRS) examines your tax return to verify its accuracy and ensure that you have paid the appropriate amount of taxes. Although the likelihood of being audited is low, I will give you some tips to avoid an audit:
Declare all your income.
Double-check your numbers and ensure that all the information on your return is accurate.
Be honest and reasonable. Do not invent or exaggerate deductions that you are not entitled to.
Keep your records. Retain all documents that support your tax return for at least three years.
Seek professional advice if necessary.
5 - FATCA: What should you know if you have money outside the U.S.?
The Foreign Account Tax Compliance Act (FATCA) is a regulation that aims to prevent tax evasion by U.S. taxpayers who have financial assets abroad. If you are a U.S. citizen or resident and have bank accounts, investments, insurance policies, trusts, or other financial assets outside the USA, you must comply with FATCA if the total value of your assets exceeds $50,000 at the end of the year or $75,000 at any point during the year (these thresholds may vary depending on your marital status and place of residence).
To comply with FATCA, you must file Form 8938 along with your annual tax return and report the type, value, and location of your foreign financial assets. Additionally, you must verify if the financial institution where you hold your assets is registered with the IRS and complies with the reporting and information exchange requirements established by FATCA. Otherwise, you could be subject to a 30% withholding on certain payments received from abroad.
Complying with FATCA will allow you to avoid penalties, sanctions, and interest from the IRS, and fulfill your tax responsibilities as a U.S. citizen or resident.
Did you know you can pay 0 taxes in the U.S. with 30 days of free accounting?
Let’s pay 0 taxes!
Antonio Coa, CPA
Tax Specialist &
Antonio Coa, LLC
Whatsapp: (561) 814-4558