International Tax Services
for
Global Businesses and Individuals
Whether you are a U.S. person with foreign income, a foreign national with U.S. tax obligations, or a business operating across borders, international tax compliance is complex, consequential, and heavily penalized when mismanaged. Manay CPA’s International Tax Services cover every cross-border obligation you carry.
- International Tax Compliance for U.S. and Non-U.S. Clients
- FBAR, FATCA, and Foreign Income Reporting Included
- CPA Licensed Service
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Navigating Cross-Border Tax Compliance
For us, international tax is one of the most technically demanding areas of U.S. tax practice — and one of the most consequential for clients who get it wrong. The penalties for missed international filings are among the most severe in the entire tax code, applying to every year of non-compliance regardless of whether any additional tax was owed.
Managing Global Tax Compliance
U.S. citizens and permanent residents are taxed on their worldwide income — regardless of where they live or where the income was earned. A U.S. person who owns a foreign bank account above $10,000 must file an FBAR. A U.S. person who owns shares in a foreign corporation above certain thresholds must file Form 5471. A U.S. person who receives gifts from foreign persons above the reporting threshold must file Form 3520. Each of these obligations exists independently of whether any additional U.S. tax is owed — and each carries its own penalty structure for failure to file. Because the IRS increasingly utilizes international data-sharing agreements to identify undisclosed offshore assets, maintaining proactive and precise reporting is the only reliable way to mitigate the risk of life-altering financial penalties.
Manay CPA manages the complete U.S. international tax compliance profile for every client with cross-border exposure — including foreign income reporting, foreign tax credit claims, FBAR filings, FATCA reporting, controlled foreign corporation reporting, passive foreign investment company analysis, and streamlined filing procedures for clients with previously unreported foreign assets or income.
For foreign nationals with U.S. tax obligations — whether through U.S. employment, U.S. investment income, U.S. real property ownership, or U.S. business activity — we manage every required U.S. filing, every applicable withholding obligation, and every treaty position available to reduce the U.S. tax burden on income that is also subject to tax in the home country.
High Stakes of International Tax Penalties
The penalties for missing international information returns are intentionally severe. A willfully unfiled FBAR carries a penalty of the greater of $100,000 or 50 percent of the account balance per violation. A non-willful failure carries $10,000 per unfiled form per year. Form 5471 failures carry $10,000 per form per year. Form 3520 failures carry 25 to 35 percent of the transaction value. These penalties apply whether or not any additional tax is owed — and they compound annually for each year of non-compliance. The IRS has robust international information exchange programs that increasingly identify non-filers without relying on voluntary disclosure. Manay CPA identifies every international filing obligation you carry and manages compliance proactively so these penalties never arise.
Complete International Tax Compliance Across Every Jurisdiction
From FBAR and FATCA reporting to foreign tax credit optimization and treaty-based filing positions, Manay CPA manages every international tax obligation for U.S. persons with global exposure and foreign nationals with U.S. tax responsibilities.
Our trilingual team — English, Spanish, and Turkish — serves international clients across three time zones with the cultural and jurisdictional familiarity that cross-border tax compliance requires.
We manage streamlined filing procedures for clients with unreported foreign assets, coordinate with foreign tax advisors on treaty positions, and advise on every foreign account and entity reporting obligation your situation creates.
File Your Return the Right Way
The U.S. tax code is far more complex than a basic W-2 and standard deduction. Self-employment, rentals, capital gains, and foreign assets each carry unique reporting rules. A single oversight or misclassified item costs you real money—either in overpaid tax or in penalties assessed later.
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Table of Contents
U.S. Persons Are Taxed on Worldwide Income Regardless of Where They Live
Every U.S. citizen and permanent resident is subject to U.S. income tax on all income earned anywhere in the world — including wages, investment income, business income, and rental income from foreign sources.
Foreign income that was never reported to the IRS creates compounding liability that grows with interest and penalties for every year it remains unreported. Manay CPA identifies every source of foreign income in your financial profile and reports it correctly on your U.S. return — applying every available exclusion, deduction, and credit to minimize the U.S. tax on income that may already have been taxed abroad.
Foreign Account and Asset Reporting Obligations Carry Severe Failure Penalties
The FBAR, FATCA, and international information return filing obligations are independent of the income tax return and carry their own penalty structures.
A U.S. person with foreign financial accounts, foreign corporations, foreign partnerships, or foreign trust interests is subject to multiple overlapping reporting obligations — each with its own threshold, its own form, its own filing deadline, and its own penalty for non-compliance. Manay CPA identifies every reporting obligation your international financial profile creates and manages every filing before the applicable deadline.
Foreign Tax Credits Prevent Double Taxation on Cross-Border Income
Income earned in a foreign country is typically subject to tax in that country as well as on the U.S. return — creating the potential for double taxation that the foreign tax credit is specifically designed to prevent.
The foreign tax credit allows U.S. taxpayers to reduce their U.S. tax liability by the amount of qualifying taxes paid to foreign governments on the same income. Calculating the credit correctly — applying the income basket rules, the limitation calculations, and any applicable treaty provisions — requires technical expertise that Manay CPA brings to every client with foreign income subject to foreign taxation.
Frequently Asked Questions
What is an FBAR and who is required to file one?
The FBAR — FinCEN Form 114, Report of Foreign Bank and Financial Accounts — is required for every U.S. person who has a financial interest in or signature authority over one or more foreign financial accounts if the aggregate value of those accounts exceeded $10,000 at any point during the calendar year. The FBAR is filed separately from the income tax return, directly with FinCEN through the BSA E-Filing system, and is due April 15 with an automatic extension to October 15. The penalties for willful non-filing are among the most severe in the tax code.
What is FATCA and how does it affect individuals with foreign accounts?
FATCA — the Foreign Account Tax Compliance Act — requires U.S. taxpayers who hold specified foreign financial assets above certain thresholds to report those assets on Form 8938, which is filed with the income tax return. FATCA also requires foreign financial institutions to report account information for U.S. persons to the IRS, creating an information exchange mechanism that allows the IRS to identify U.S. taxpayers with foreign accounts who have not self-reported. The FATCA reporting threshold is higher than the FBAR threshold and varies based on filing status and residency. Both FBAR and FATCA reports may be required for the same accounts.
What are the streamlined filing procedures and who qualifies for them?
The IRS Streamlined Filing Compliance Procedures are programs designed to allow U.S. taxpayers who have non-willfully failed to report foreign income or file required foreign information returns to come into compliance with significantly reduced penalties. The domestic streamlined program applies to U.S. residents and imposes a 5 percent miscellaneous offshore penalty. The offshore streamlined program applies to U.S. taxpayers living outside the United States and imposes no penalty. Qualification requires a certification of non-willfulness and the filing of amended or original returns for the three most recent tax years and FBARs for the six most recent years. Manay CPA manages the complete streamlined filing process for qualifying clients.
Does Manay CPA advise on tax treaties between the U.S. and other countries?
Yes. The United States has income tax treaties with more than 60 countries that modify the default tax treatment of various types of income — reducing withholding rates on dividends, interest, and royalties, defining the conditions under which a permanent establishment exists, providing tie-breaker rules for dual residents, and allocating taxing rights over various income categories. Manay CPA identifies every applicable treaty provision for your specific situation and applies every treaty position available to minimize your cross-border tax burden in compliance with both U.S. law and the terms of the relevant treaty.
What U.S. tax obligations do foreign nationals with U.S. income have?
Foreign nationals who earn U.S.-source income — through employment, investment, real property rental, or business activity — are generally subject to U.S. tax on that income regardless of their residency status. Non-resident aliens are taxed on U.S.-source income at either graduated rates for effectively connected income or flat withholding rates for fixed and determinable income. Foreign nationals who become U.S. residents — through the green card test or the substantial presence test — are taxed as U.S. residents on their worldwide income. Manay CPA manages every U.S. tax obligation for foreign national clients — including ITIN applications, non-resident alien return preparation, and treaty-based filing positions.
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