Tax return preparation
We have years of experience in preparing a wide range of tax returns. Our specialty is tax returns for U.S. individuals living and working outside the United States, as well as foreign individuals who spend varying amounts of time living and working in the United States. Since U.S. tax residents are taxed on their worldwide income, it is critical to be able to identify and analyze the key factors determining whether or not an individual is a U.S. tax resident or not. We have extensive experience with these issues, and in optimizing a client’s tax liability.
For clients who need to set up a corporation, we coordinate our tax planning to take into account the client’s individual and corporate tax liabilities. We set up partnerships and prepare partnership tax returns, for those clients who are better served by the partnership structure, and these are typically real estate ventures.
Tax dispute resolution / Audits
We work closely with clients for whom we prepare tax returns to obtain and maintain documentation to have on file in the event of a federal or state income tax audit. Clients who come to us with tax returns which were prepared by another accounting firm, and which have been selected for audit benefit from our outstanding track record in compiling relevant documentation and presenting information to authorities to achieve favorable results.
Complex tax issues & tax research
A key factor to consider when moving to the U.S. is timely tax planning. Excellent tax planning can eliminate a number of potentially serious problems related to taxation of income earned and assets held prior to becoming a U.S tax resident. An appropriate tax planning strategy will make the transition to becoming a U.S. resident smooth and most of all, tax effective. Protax has unique expertise in dealing with problems related to the difficult process of changing tax status.
The amount of time spent in the U.S. can have a substantial impact on your tax status. Generally speaking an alien will be considered a tax resident if he or she is present in the U.S. for at least 31 days during the current calendar year, as well as 183 weighted average days for the current and two proceeding calendar years. Being a U.S tax resident will automatically subject your world wide income to U.S. taxes. The good news is that there are exceptions to this rule that relate to visa status and various other conditions which we are knowledgeable about.
Protax’s experts can analyze your past and present connection to the United States, amount of time spent in the United States in order to prepare a tax memorandum regarding your tax residency status and advise you on further steps to take.
The purpose of a tax memorandum is to determine whether or not your particular case has unique circumstances which may qualify you to file a Non-Resident Tax Return even after the change of your immigration status to that of a U.S. permanent resident. Based on your personal information and existing tax treaties and regulations we will be able to prove if you can qualify for a Non-Resident tax return. In addition, having a tax memo prepared in advance helps us establish the clients desire to conform with all legal requirements.
IRS voluntary tax disclosure
Recent changes in law impose severe penalties for non compliance with U.S. tax regulations. There is a number of partial or complete amnesty programs enforced by the IRS for individuals who voluntarily disclose required information regarding their foreign account or assets.
We determine whether there is unreported income earned by our client. We gather information of potential penalties and help choosing the right amnesty program if it is necessary. After preparing all needed documentation we submit all files to the IRS for our clients.