Are you considering a life abroad or looking to establish roots in American soil and pursue the American Dream? Is your international business trying to open an entity in the United States? It might be in your best interest to partner with an international tax consultant to help navigate the financial realm of your international adventures. In this blog post, we explore their primary roles and the benefits of utilizing their services.
What is an International Tax Consultant?
Every country has its own taxation protocols and legislation, making it difficult to master if you just moved from abroad. However, an international tax consultant can help by operating as a dedicated accountant. After their training and certification, they can specialize in specific tax procedures for American citizens living abroad, transnational citizens moving to the United States, and even international organizations with business entities on American soil.
Below, we will explore the unique roles and responsibilities an international tax consultant can take on.
What Does an International Tax Consultant Do?
#1. Apply for and Obtain Your U.S. Tax Identification Number
A U.S. Tax Identification Number (TIN) is a unique number assigned to you by the United States IRS that facilitates in identifying you as a taxpayer. If you are earning an income or conducting any business in the country, you must obtain a TIN for the business (and sometimes for you as an individual) and include it on any tax statements, certificates, returns, or any applicable forms.
A TIN most commonly functions as one of the following:
- Individual Taxpayer Identification Number (ITIN)
- Employer Identification Number (EIN)
- Social Security Number (SSN)
Sometimes, completing all the required forms and submitting them to the correct offices may be a hassle. However, an international tax consultant can help you navigate the application process and obtain your tax IDs quickly and efficiently.
#2. Fulfill Non-Resident Tax Obligations
With new legislation regularly circulating, navigating the United States’ tax system can be a complex feat even for native residents. For example, if you are not born in the United States or classified as a resident alien, your current tax filing status is then “non-resident alien.”
As such, the country may require that you remit U.S. taxes and file the tax return form 1040-NR if either of the scenarios applies to you:
- You are actively involved in a U.S. trade or business entity
- You earned a U.S. sourced income
Furthermore, with the help of an international tax consultant, you can compliantly fulfill all your U.S. tax obligations without feeling inundated by complex forms and filing procedures.
#3. Complete U.S. Expat Tax Return Requirements
If you are a natural-born United States citizen but live abroad, you are then classified as an expat. As such, you are still required to file U.S. taxes despite living abroad, which can create challenging tax return reporting requirements.
If you need help navigating U.S. expat tax returns, an international tax consultant can efficiently cater to all U.S. Citizens and Green Card Holders living abroad and verify that your tax documents are compliant with current federal regulations.
For example, they can assist expats with the following filings:
- Form 1040: Required if you earned U.S.-based income while living abroad
- FBAR (FinCen Form 114): Required for those with foreign financial accounts exceeding $10,000
- Form 5471: Required for officers, directors, or shareholders in certain corporations to file in tandem with an expat tax return
How Do Their Services Benefit You?
#1. Staying Compliant While Enjoying Your Life Abroad
As an expat, you might be enjoying a life of wanderlust or business development. Regardless of why you live abroad, it’s nice to have an international tax consultant who actively monitors your tax forms and filings to ensure you remain compliant. Furthermore, when you have any tax-related questions, they are ready to help you navigate any new changes or challenges.
#2. Filing Correctly While Adjusting to A New Country and Culture
When settling down in a new country, you must endure the initial culture shock, perhaps a new language and dialect, and adjust to a new job. With all that in mind, it might feel difficult to add new tax forms to file and satisfy U.S. regulations. By providing accurate and relevant information to your international tax consultant, they can take it from there and make sure everything is filed as it should be.
#3. Taking Away the Complexity so You can Focus on Your Financial Future
Handling business expenditures can be a cumbersome task before adding in taxes for the United States and beyond. An international tax consultant’s services can benefit you by allowing you to focus on building your financial future as they handle your international tax forms.
Partner with a Trusted International Tax Consultant at Eco-Tax
Learning new tax protocols can feel intimidating while navigating a life abroad. That’s why at Eco-Tax, we mastered international tax and accounting, so you don’t have to!
We serve individuals living both in and outside of the United States. Our clients include foreigners with U.S. business entities, Americans who live abroad, and those who have recently arrived in the U.S.
To offer the best client satisfaction, our experts at Eco-Tax remain:
- Economical: We offer affordable, transparent pricing. Gain access to key services, industry experts & the technology you need to keep your business thriving.
- Experienced: Our CPAs, EAs, bookkeeping, payroll, and financial specialists have the education, training, and experience to help your business grow.
- Eco-Friendly: Working virtually allows us to go paperless. All documents can be quickly shared through our secure portal, and you can meet your accountant online anytime.
To learn more about how our international tax consultant services could help you, contact us today to book a free consultation with one of our trusted advisors. We look forward to partnering with you!