International tax may sound like a global aspect that affects large multinational corporations, but in reality, we are referring to the application of the U.S. tax system in an international environment. International tax encompasses the U.S. taxation of foreign persons doing business in the U.S. (“inbound” transactions), and the taxation of U.S. persons doing business abroad (“outbound” transactions).
The table below summarizes some of the required filings for U.S. Persons.
The IRS (Internal Revenue Service) imposes many reporting requirements for those who have assets abroad, and it heavily penalizes failures to file with high fines and even criminal prosecution. So, this is not something you want to take lightly.
Keep in mind that the new tax reform brought several changes to the international tax world, including the new repatriation tax and the new tax system that includes GILTI (Global Intangible Low Taxed Income). Don’t worry -we’ll save those details for the next blog.
Samanta Guerra is a licensed CPA and Tax Manager for ATKG, LLP. She has over 9 years of accounting expertise and specializes in International Tax. For further information regarding international tax and its impact on your finances, please contact Samanta Guerra at 210.293.5356 or via email at SGuerra@ATKGCPA.com