Taxation

Learn the impact of what the changes in your immigration status have on your income reporting requirement here in the U.S. and abroad before deciding on making the transition.

If your U.S. entity made payments to a foreign person your entity may be subject to withholding rules on the income paid. If so, the U.S. entity would be required to submit payment to the IRS and file the appropriate informational returns with IRS.

The IRS requires filing of compliance/informational returns for U.S. Corporations with foreign ownership and certain “reportable transactions” between the foreign shareholder and U.S. Corporation. Civil penalties of $10,000 can apply in certain instances, so it’s important you understand if the rules apply to your situation.

If you’ve received U.S. Source Income you will more than likely have to report that income on Form 1040NR. You’ll also have to apply for an ITIN (Individual Taxpayer Identification Number) which will be assigned to you by the Internal Revenue Service. Our Certified Acceptance Agent is approved and authorized by the IRS to certify your foreign identification documents and process your ITIN application.

Knowing how your entity is classified for tax purposes, absent or due to any elections that may have been made, is the first step in determining which is the correct form to be filed with IRS. When required, we also prepare and file the appropriate entity returns for all states.

If you provide compensation to individuals that aren’t classified as wages then you may be required to file form 1099 Misc to individuals who provided services to you or your entity during the year. Other common forms include Forms 1042-S, 1098 and 1099 Div.

Many states employ a state franchise tax that is separate from an income tax. In those states having a registered entity is enough to create sufficient nexus and therefore a franchise tax filing requirement.

Depending on the activity your business is conducting you may be required to register for various tax accounts with the State of Florida Department of Revenue. Common tax accounts include Sales Tax (required when selling tangible items at retail or wholesale) and Re employment Tax (required when employing individuals who receive wages in the State of Florida). Other tax accounts specific to your business may also apply.

No matter in which state you reside, we can assist you with the preparation of your individual income tax return. Our tax preparation software is equipped with the required forms for all states and, when permitted by the individual state, can be filed electronically. This allows us to service many clients that reside in states outside of Florida.

If you haven’t filed tax returns in several years it’s important you do so since it is the law. If you were due a refund in a prior year and failed to file timely that refund may no longer be available if you wait. If you know there was a likelihood you had a tax liability then waiting will only increase penalties and interest. It’s important you know what you’re facing, so you can act sooner than later.

If you filed a return and later realize something was omitted, it’s important you correct it right away. The IRS will allow you to amend your return three years from the date you filed the original return.