U.S. Tax Compliance

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US tax issues are increasing and people having a Green Card or Citizenship remain tax eligible in US. Also, Companies doing business with US need an increased alert.

Here a summary of the most important US tax forms:

  • Form 1040 – Annual U.S. Individual Income Tax Return. U.S. citizens, Green Card holders and Resident Aliens are required to file U.S. tax returns on their world-wide income annually if they meet the gross income filing threshold applicable to their filing status for the year.
  • State Income Tax Return. In addition to the Federal income tax filing, one may also be required to file a state income tax return. This depends on certain factors i.e. situs of property or investment, state where one performs his services, state’s filing thresholds and other considerations.
  • FBAR Form FinCEN 114 – Foreign Bank Account Reporting. U.S. persons, both entity and individual, with financial interest in or signature authority over foreign bank or financial accounts having an aggregate value of more than $10,000 at any time during the year, are required to file this form.
  • Form 8854 – Initial and Annual Expatriation Statement. For U.S. citizens who have relinquished their citizenship, and long-term U.S. residents who have ended their residency (expatriated) are required to file this form.
  • Form 8938 – Statement of Specified Foreign Assets. Use Form 8938 to report your specified foreign financial assets if the total value of all the specified foreign financial assets in which you have an interest is more than the appropriate reporting threshold.
  • Form 709 – United States Gift (and Generation-Skipping Transfer) Tax Return. As a U.S. citizen, green card holder or resident alien of the U.S., you are required to file the Form 709, U.S. Gift Tax Return if: you gave a gift to someone (other than your spouse) during the year and the amount of gift was over the $14,000 annual exclusion; if you gave gifts to a non-U.S. spouse over the annual exclusion of $149,000. Transfers or gifts to a U.S. spouse is unlimited and therefore not subject to gift tax return filing.
  • Form 3520 – Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts.
  • Form 3520-A – Annual Information Return of Foreign Trust with a U.S. Owner.
  • Form 5471 – Information Return of U.S. Persons with Respect to Certain Foreign Corporations.
  • Form 8858 – Information Return of U.S. Persons with Respect to Foreign Disregarded Entities.
  • Form 8865 – Information Return of U.S. Persons with Respect to Certain Foreign Partnerships.
  • Form 706 – United States Estate (and Generation-Skipping Transfer) Tax Return.

With a continuous increase in expatriates to and from the United States, International HR Services Ltd is pleased to announce its new in house service offering, the U.S. tax advisory and tax compliance. We offer a wide range of U.S. tax and accounting services to help keep our clients stay tax compliant with the Internal Revenue Services (IRS). We also assist clients who have been delinquent in their U.S. tax filings to become compliant. We assist in the preparation in the income tax and informational return filings for U.S and non-U.S. persons.

We consult companies in how to apply the Double Tax agreement between Switzerland and the US, as well as how to apply the 183 days rule in order not to become tax eligible in the Host Country.

Please don’t hesitate to contact us for further questions.