Comprehensive Services
Explore our wide array of accounting and tax advisory services
We will consult with you regarding your businesses needs for reporting and design an accounting system that ensures that you have full visibility over your business operations, are fully compliant with regulatory and legal requirements, and this system will support the production of accurate and reliable tax returns and financial reporting.
New ventures require financial projections and modeling to map out their future success. For your plan to appeal to potential partners and investors it must be thorough and vetted. In the iterative process of creating a financial model for your new business, we will work with you to determine all the materially relevant variables that will affect the business’ first few years and develop a model that will let you adjust those factors and see the effects on financial results. We can also consult with you about your plans for the business, and either edit or write your business plan for you.
The starting place for establishing your business will be your choice of the appropriate legal entity. This is critical to your ability to engage in business transactions, protect yourself against liability, and minimize taxation. Other key U.S. tax issues that you should consider in advance of establishing your business here include how to capitalize the company; U.S. federal, state and local taxation; repatriation of earnings; transfer pricing; exit strategies; employee vs independent contractor classifications, to sales and use taxes. We regularly advise clients regarding all tax and accounting aspects of their new ventures, and we provide clients from around the globe with tax consultation, tax department outsourcing, and comprehensive accounting & bookkeeping support for their businesses. Our clients are both large and small, and span many industries. Whatever level of assistance you require, we are happy to customize a solution that fully supports your needs.
Many businesses do not have the resources to hire a full-time CFO and for them fractional or interim outsourced CFO services may be an excellent option. We can assist with financial reporting, budget analysis, profitability enhancement, planning, business strategy, board reporting, cash management, fundraising planning and support, exit strategy and M&A.
The starting place for establishing your new venture will be your choice of the appropriate legal entity. This is critical to your ability to engage in business transactions, protect yourself against liability, and minimize taxation. The most favored legal entities are the corporation, partnership, and limited liability company (LLC); however, other options do exist and you may also elect to do business as an individual sole proprietor or have a trust own your business. Each entity has its unique set of tax aspects and planning flexibility. We will help you select the right one to achieve your goals.
Beacon’s management consulting services draw from deep experience with the Entrepreneurial Operating System (“EOS”), Dan Sullivan’s Strategic Coach, and the FranklinCovey solutions. We focus on our clients’ most critical issue- the ability to be clear about their vision and align to that vision at all levels of the company. From there we move to their strengths, weaknesses, opportunities and threats in areas of strategy, marketing, organization, operations, technology, transformation, digital platforms, advanced analytics, corporate finance, mergers & acquisitions and sustainability across all industries and geographies.
A controlled foreign corporation (“CFC”) is any foreign corporation of which more than 50% of the vote or value is owned by U.S. shareholders that own at least 10% of the corporation. U.S. shareholders of CFCs are subject to certain anti-deferral rules under the U.S. federal tax laws. The anti-deferral rules may require a U.S. shareholder of a CFC to report and pay U.S. tax on undistributed earnings of the foreign corporation. There is special planning and U.S. tax reporting for the ownership of a CFC. We will review the facts, help you plan, and prepare the required tax returns.
When a business has employees, it must withhold certain payroll taxes from their paychecks and remit the funds to the federal and state governments. The employer business must also make contributions to the United States retirement and health system, collectively known as social security. There are significant penalties for the failure to file timely and accurate returns in this area. The business also needs to carry certain basic employment related insurances in most states. We will make sure that all your payroll tax filings are done expertly and timely.
Businesses, trusts and high net worth individuals are generally required to pay estimated taxes to the IRS and state taxing authorities throughout the year. Our professionals will optimize your payments through the use of income projections and safe harbors so that you pay the minimum allowed during the year without incurring underpayment penalties.
Clear, accurate financial reporting is essential for any business manager to understand his/her businesses’ financial position and profitability. Financial statements typically include a balance sheet and an income statement, along with footnotes describing materially important aspects of the business. Our accounting team has in-depth knowledge of financial accounting standards and will prepare your non-attest compilations, projected financial statements or personal financial statements on a monthly, quarterly or annual basis.
The Foreign Account Tax Compliance Act (“FATCA”) is a complex reporting and withholding regime enacted to force U.S. persons to disclose their offshore accounts, investments, and income. U.S. citizens, Green Card holders, certain non-resident aliens, and certain businesses now must annually report to the Internal Revenue Service their foreign financial assets and the related income. The United States has entered into information sharing agreements with foreign financial institutions (banks and brokerage houses) that requires them to report directly to the IRS certain information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. A direct concern for many non-compliant U.S. taxpayers is that the IRS will independently obtain specific information about their unreported foreign assets and income and will assess onerous financial penalties and even prosecute them criminally. Our team of U.S. International tax professionals will prepare your annual FATCA reporting and, if you have unreported foreign assets, we will advise you on the best course of action to become compliant.
The first thing to realize is that you are not alone and that facing your problem now is better than ignoring it. Thousands of U.S. taxpayers have situations where they have either just learned that a foreign asset needs to be reported or have ignored their reporting requirements in the past. Assets that require reporting include foreign bank accounts, foreign investment accounts, and foreign mutual funds; interests in foreign partnerships, foreign trusts, and foreign corporations; foreign retirement accounts; and foreign life insurance policies. Provided that you are not currently under investigation by the IRS, have not received a notice, and your non-compliance is non-willful, the penalties related to your non-reporting can usually be mitigated. Our team of U.S. international tax experts are well versed in the various IRS programs designed to let you correct your past errors. We will advise you of your options, help you choose the solution that is the best fit, and prepare all your returns.
U.S. persons are required to report information regarding foreign partnerships that they control, in which they are a 10% partner and when the partnership is controlled by U.S. persons. These entities are known as “controlled foreign partnerships” and the reporting rules are complex. Control is typically defined as an interest of more than 50% in the capital, deductions, profits or losses of the foreign partnership or a partnership interest to which more than 50% of the deductions or losses of the foreign partnership are allocated. Reporting must be done on an annually filed Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships.
Business entities are organized at the state level. For businesses operating in multiple states, often non-resident state registrations for business, privilege and sales tax are required. Our team of tax professionals will guide you through the process and can form corporations, partnerships & LLCs in all 50 states – generally within 48-72 hours.
Businesses and other payors are often required to withhold taxes on various types of income payable to their foreign (non-U.S.) or out-of-state owners. If you are the withholding agent, you are personally liable for any tax required to be withheld and if you fail to withhold and the foreign payee fails to satisfy its U.S. or state tax liability, then both you and the foreign or non-resident person may be liable for tax, as well as interest and any applicable penalties. Our team will help you determine your withholding obligations and make sure you are fully compliant. If you are a taxpayer that has been subject to withholding, we can often file a tax return for you that can reclaim some or all the tax.
Our outsourced controller services are specifically designed to suit the needs of growing service businesses, management companies and closely-held investment partnerships. Our controllers are responsible for overseeing all client accounts, providing timely insights and financial advice, and carrying out proactive account management. We will maintain or oversee your books, close your financials on a monthly or quarterly basis and provide consultations on a wide variety of matters such as forecasting, cash flow management, accounting documentation, key metric benchmarking and audit preparation.
A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. A financial account includes, but is not limited to, a brokerage account, savings, demand, checking, deposit, time deposit, or other account maintained with a financial institution. Cash value of life insurance and annuities count as well. A “foreign financial account” is simply an account maintained at a financial institution outside of the U.S., even at a branch of a U.S. bank that is physically located outside of the United States. United States taxpayers, including individuals, corporations, partnerships and trusts, all must file this informational form, and the form must be filed also for offshore accounts constructively owned through offshore entities. The failure to file an FBAR may subject you to a civil penalty up to $10,000 per violation even if you did not know about this form. If the failure to file was willful, then penalties may equal the greater of $100,000 or 50% of the highest account balance for that year and there may be criminal penalties as well. We are skilled in the rules governing the preparation of the FBAR, and our team has counseled many U.S. taxpayers on how to deal with the past non-filing of the FBAR in a way that minimizes or avoids the penalties.
Retirement plans fit broadly into two categories: defined contribution plans and defined benefit plans. Most employer sponsored plans today are defined contribution plans, where the employees make contributions, up to annual pre-tax limits, and employers often make a matching contribution. The funds are deposited into separate accounts for each employee, and the employees make their investment decisions from a limited selection of options provided by the plan sponsor. The most well-known of the employer sponsored defined contribution plans is the 401k, and with all such plans, investment performance will determine what the fund grows to over time. Defined benefit plans (otherwise known as “pensions”) by contrast are funded by employers to provide specific retirement benefits, often a percentage of average earnings or a set amount of income in retirement. For many business owners, especially those soon reaching retirement age and who have a relatively young employee base, these custom designed plans can often allow business owners to contribute significantly more pre-tax dollars year over year and invest the funds in a much broader variety of vehicles. Defined benefit plans are designed by pension specialists and actuaries, and while they have more compliance requirements, they can be powerful tools to fund retirement. Let our team of experts help you select the plan that is right for your business and then help you implement it.
When your business is selling tangible personal property, or providing certain enumerated services, it is required to collect sales tax from its customers and remit it to the state taxing authority, generally on a quarterly or monthly basis. Based upon where your customers reside, you may need to comply with these laws even where your business has no physical presence. Use tax is the corollary of sales tax. To the extent that your business buys property for its own consumption and does not pay sales tax to the vendor, it is required to volunteer a tax on the “use” of the property to your home state at an equivalent rate to that state’s sale tax. In this evolving area, we will review your business operations, determine where you need to be filing, register your business and make sure that your returns are filed timely.
The best defense is to begin with a strong offense. Many taxpayers do not realize that they have the right to be represented by professionals who are specialists in handling tax audits from the inception of notification. It is not necessary for you to personally appear before taxing authorities. Most audits are limited to a review of your tax returns to ensure information is reported in accordance with the tax laws and to verify that the tax reported is correct. Audits such as these are relatively commonplace and our approach is grounded in extensive preparation and research throughout every stage of the audit process, enabling us to achieve the best results possible. The IRS will also conduct an “eggshell audit”, which is a civil exam with underlying criminal issues. Our main objective here is to prevent the audit from turning into a criminal investigation. Secondary considerations are mitigation of monetary penalties and tax. For these audits we will recommend you engage our vetted tax controversy attorneys to join us as a member of your audit defense team.
It is common for taxpayers to procrastinate or even ignore dealing with their unresolved tax issues However, ignoring these issues will not alleviate them, and is likely to compound them further. In fact, delaying your response might sacrifice your rights as a taxpayer. There are a host of ways to resolve your tax problems, from simply preparing and filing the required forms and paying the taxes, to offers-in-compromise, deferred payment plans, voluntary disclosures, penalty abatement requests and innocent spouse relief. We employ our extensive experience in helping you select the strategies that are essential in obtaining the most favorable results.
Most of our clients with complex tax matters can expect to receive tax notices. Some of them will be simple and routine to address, others may involve much more work to effectively resolve complex matters. A professional response will often make the decisive difference between paying additional tax, interest and penalties or paying nothing at all. Whenever you get a tax notice, we are available to respond on your behalf.
Tax planning is the discipline of viewing your financial situation through the lens of minimizing your taxes to maximize your wealth. The area is broad and it may take the form of how to structure a new investment, what legal and tax form a new business venture should select, or devising the best strategy to preserve your wealth for the next generation. Our clients are also often confronted with situations that are not black and white, and good tax planning will guide you through the rules and the grey areas to arrive at a position that you are comfortable with and which saves you the most in taxes. Tax planning is generally a foundational component of all our client relationships.
For the sophisticated business manager, trust fiduciaries, or domestic and international investors, it has become increasingly common to have U.S. international tax considerations. You might be a U.S. person investing in a private equity partnership that makes investments in foreign corporations or partnerships; you may be a U.S. citizen with direct ownership of foreign financial assets; or perhaps you seek to establish a U.S. business subsidiary for your international company or invest in U.S. real property. In all these cases, the U.S. has a complex and demanding tax reporting regime that carries with it severe penalties for non-compliance. Our clients are local, national and international, and we are experts in this area of taxation as it applies to closely-held businesses, individuals, trusts & estates.
The starting place for establishing your business presence in the U.S. will be your choice of the appropriate legal entity. This is critical to your ability to engage in business transactions, protect yourself against liability, and minimize taxation. Other key U.S. tax issues that you should consider in advance of establishing your business here include how to capitalize the company; U.S. federal, state and local taxation; repatriation of earnings; transfer pricing; exit strategies; employee vs independent contractor classifications, and sales and use taxes. We provide clients from around the globe with tax consultation, tax department outsourcing, and comprehensive accounting & bookkeeping support for your U.S. operations. Our clients are both large and small, and span many industries. Whatever level of assistance you require from a United States accounting firm, we are happy to customize a solution that fully supports your needs.
Voluntary Disclosure Agreements (“VDA”) are specific procedures established by the IRS to allow taxpayers who may have committed tax crimes to seek protection from criminal penalties. A voluntary disclosure will not automatically guarantee immunity from prosecution; however, a voluntary disclosure may result in prosecution not being recommended. Voluntary Disclosures must be truthful and complete and can only be made if the IRS has not already commenced a tax exam or received information about your actions. Clients need to be prepared to cooperate with the IRS in determining their tax liability and be willing to pay tax, interest and penalties. When your non-filing or under-reporting was not willful, then there may be methods of correcting your mistakes other than making a voluntary disclosure. If you were willful, there is a possibility of criminal prosecution. In such cases, our firm collaborates with some of the top criminal tax attorneys in the country to defend you.
Many states have voluntary disclosure programs that are designed to allow individual and business taxpayers to come forth and pay income and sales taxes. A VDA will typically shorten the look-back period, offer reduced or no penalties, and prevent a state from pressing criminal tax charges against you. VDA programs are beneficial to the states both for the revenue they generate and for ensuring future compliance. There are specific procedures to follow when making a VDA submission. To be eligible, you cannot be under audit by the State, cannot have received a tax bill for past due taxes; and cannot be under criminal investigation. For these programs, you will need to submit your unfiled or amended returns and pay the taxes you owe. You will also have to make a disclosure about why you previously failed to report your taxes.
New ventures require financial projections and modeling to map out their future success. For your plan to appeal to potential partners and investors it must be thorough and vetted. In the iterative process of creating a financial model for your new business, we will work with you to determine all the materially relevant variables that will affect the business’ first few years and develop a model that will let you adjust those factors and see the effects on financial results. We can also consult with you about your plans for the business, and either edit or write your business plan for you.
The starting place for establishing your business will be your choice of the appropriate legal entity. This is critical to your ability to engage in business transactions, protect yourself against liability, and minimize taxation. Other key U.S. tax issues that you should consider in advance of establishing your business here include how to capitalize the company; U.S. federal, state and local taxation; repatriation of earnings; transfer pricing; exit strategies; employee vs independent contractor classifications, to sales and use taxes. We regularly advise clients regarding all tax and accounting aspects of their new ventures, and we provide clients from around the globe with tax consultation, tax department outsourcing, and comprehensive accounting & bookkeeping support for their businesses. Our clients are both large and small, and span many industries. Whatever level of assistance you require, we are happy to customize a solution that fully supports your needs.
Charitable trusts are often referred to as “split-interest” charitable trusts, because they allow the grantor to retain an interest in the trust property. There are two main types: charitable remainder and charitable lead trusts. Charitable remainder trusts enable the grantor to receive payments during a specified period of time, after which the remaining trust property is given to charity. Charitable lead trusts permit set payments to charity from the income and principal for a specified period, after which the remaining trust principal is distributed to the remaindermen, often reverting to the grantor or his/her children. There are many tax benefits to a properly chosen and well-designed charitable trust that can enhance the philanthropic intent. We will help you choose the right type of trust for your intent, keep its records and prepare its annual tax returns.
The starting place for establishing your new venture will be your choice of the appropriate legal entity. This is critical to your ability to engage in business transactions, protect yourself against liability, and minimize taxation. The most favored legal entities are the corporation, partnership, and limited liability company (LLC); however, other options do exist and you may also elect to do business as an individual sole proprietor or have a trust own your business. Each entity has its unique set of tax aspects and planning flexibility. We will help you select the right one to achieve your goals.
A controlled foreign corporation (“CFC”) is any foreign corporation of which more than 50% of the vote or value is owned by U.S. shareholders that own at least 10% of the corporation. U.S. shareholders of CFCs are subject to certain anti-deferral rules under the U.S. federal tax laws. The anti-deferral rules may require a U.S. shareholder of a CFC to report and pay U.S. tax on undistributed earnings of the foreign corporation. There is special planning and U.S. tax reporting for the ownership of a CFC. We will review the facts, help you plan, and prepare the required tax returns.
The cost of a four-year undergraduate degree can easily amount to $250,000. Education planning will help ensure that your children or grandchildren will have the funds available to pay for higher education expenses while reducing your taxable estate. There are several options when considering education plans, including 529 Plans, Coverdell Education Savings Account, and inter-generational gifting that can be employed. Let us guide you through the options available and help you select the ones that suit you best.
Businesses, trusts and high net worth individuals are generally required to pay estimated taxes to the IRS and state taxing authorities throughout the year. Our professionals will optimize your payments through the use of income projections and safe harbors so that you pay the minimum allowed during the year without incurring underpayment penalties.
Financial planning is a process of establishing your goals, taking inventory of your assets, debt, income, future earnings potential and insurances and developing a plan that will provide you with the asset and earnings protection, savings, and growth that you will need to meet those goals. Your plan then needs to be monitored and modified both to meet your changing needs, and to negotiate the financial barriers that inevitably arise in every stage of life. Sound plans therefore will focus on your short, mid and long-term financial needs, and encompass budgeting, monitoring of insurance, investments, tax management, and retirement plans – providing for the next generation and charitable giving.
Non-residents receiving certain types of earned or investment income from U.S. sources, such as commissions, dividends, interest, and pensions are subject to tax at 30%, which may be lowered by a tax treaty. Other types of income, such as gains from the sale of real estate or effectively connected income (ECI) are subject to a different mode of taxation. Our experts will advise and help structure your U.S. investments and prepare all the necessary tax filings.
The Foreign Account Tax Compliance Act (“FATCA”) is a complex reporting and withholding regime enacted to force U.S. persons to disclose their offshore accounts, investments, and income. U.S. citizens, Green Card holders, certain non-resident aliens, and certain businesses now must annually report to the Internal Revenue Service their foreign financial assets and the related income. The United States has entered into information sharing agreements with foreign financial institutions (banks and brokerage houses) that requires them to report directly to the IRS certain information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. A direct concern for many non-compliant U.S. taxpayers is that the IRS will independently obtain specific information about their unreported foreign assets and income and will assess onerous financial penalties and even prosecute them criminally. Our team of U.S. International tax professionals will prepare your annual FATCA reporting and, if you have unreported foreign assets, we will advise you on the best course of action to become compliant.
The first thing to realize is that you are not alone and that facing your problem now is better than ignoring it. Thousands of U.S. taxpayers have situations where they have either just learned that a foreign asset needs to be reported or have ignored their reporting requirements in the past. Assets that require reporting include foreign bank accounts, foreign investment accounts, and foreign mutual funds; interests in foreign partnerships, foreign trusts, and foreign corporations; foreign retirement accounts; and foreign life insurance policies. Provided that you are not currently under investigation by the IRS, have not received a notice, and your non-compliance is non-willful, the penalties related to your non-reporting can usually be mitigated. Our team of U.S. international tax experts are well versed in the various IRS programs designed to let you correct your past errors. We will advise you of your options, help you choose the solution that is the best fit, and prepare all your returns.
U.S. persons are required to report information regarding foreign partnerships that they control, in which they are a 10% partner and when the partnership is controlled by U.S. persons. These entities are known as “controlled foreign partnerships” and the reporting rules are complex. Control is typically defined as an interest of more than 50% in the capital, deductions, profits or losses of the foreign partnership or a partnership interest to which more than 50% of the deductions or losses of the foreign partnership are allocated. Reporting must be done on an annually filed Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships.
U.S. persons are required to report information regarding foreign partnerships that they control, in which they are a 10% partner and when the partnership is controlled by U.S. persons. These entities are known as “controlled foreign partnerships” and the reporting rules are complex. Control is typically defined as an interest of more than 50% in the capital, deductions, profits or losses of the foreign partnership or a partnership interest to which more than 50% of the deductions or losses of the foreign partnership are allocated. Reporting must be done on an annually filed Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships.
U.S. persons who create a foreign trust, or have transactions with a foreign trust, can have both U.S. income and transfer tax consequences, as well as information reporting requirements. Failure to satisfy the information reporting requirements can result in significant penalties, as well as an extended time to assess any tax imposed with respect to the period to which the information relates. U.S. persons include citizens, domestic partnerships, domestic corporations, U.S. estates, and U.S. resident trusts. A foreign trust may at times be considered a grantor trust, the U.S. person is currently taxed on their proportionate share of trust income. In such a case, the trust should issue a Foreign Grantor Trust Owner Statement, which includes information about the foreign trust income they must report. Complex foreign trusts generally will not incur U.S. tax consequences absent distributions to their U.S. beneficiaries, but the throwback rules require a complex calculation of DNI and UNI to assess if there is an accumulation distribution that may cause tax equal to 100% of the value of the distribution itself. Our team is well equipped to assist clients in the complex and arcane world of foreign trusts.
Business entities are organized at the state level. For businesses operating in multiple states, often non-resident state registrations for business, privilege and sales tax are required. Our team of tax professionals will guide you through the process and can form corporations, partnerships & LLCs in all 50 states – generally within 48-72 hours.
Businesses and other payors are often required to withhold taxes on various types of income payable to their foreign (non-U.S.) or out-of-state owners. If you are the withholding agent, you are personally liable for any tax required to be withheld and if you fail to withhold and the foreign payee fails to satisfy its U.S. or state tax liability, then both you and the foreign or non-resident person may be liable for tax, as well as interest and any applicable penalties. Our team will help you determine your withholding obligations and make sure you are fully compliant. If you are a taxpayer that has been subject to withholding, we can often file a tax return for you that can reclaim some or all the tax.
U.S. taxpayers owning shares in foreign corporations, either directly or through partnerships, have to consider the PFIC rules, which comprise a volume of complex tax anti-avoidance legislation designed to prevent U.S persons from moving their investment assets offshore to create a tax deferral. To be classified as a PFIC, a foreign company must meet either the income or asset test: either 75% of its income is passive (dividends, interest, rent, royalties and capital gains from the disposition of securities) or 50% of its assets are investments, which will produce passive income. Typical examples of PFICs include foreign-based mutual funds and ETFs, and foreign holding companies and trusts. If you own a PFIC, you need to file form 8621. If you do so in the first year of your holding, you may make certain tax elections which will avoid the draconian taxes typically associated with PFICs. If you have missed the first year’s filing, there are still ways to mitigate the damage. If you fail to make any elections, when you receive distributions or sell your PFIC investments, you will be required to make complex calculations of tax and interest that will typically make the investment economically unattractive. Our firm will analyze your investments to determine if you own PFICs, advise on the best course of action, and prepare Form 8621 to accompany your income tax returns.
A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. A financial account includes, but is not limited to, a brokerage account, savings, demand, checking, deposit, time deposit, or other account maintained with a financial institution. Cash value of life insurance and annuities count as well. A “foreign financial account” is simply an account maintained at a financial institution outside of the U.S., even at a branch of a U.S. bank that is physically located outside of the United States. United States taxpayers, including individuals, corporations, partnerships and trusts, all must file this informational form, and the form must be filed also for offshore accounts constructively owned through offshore entities. The failure to file an FBAR may subject you to a civil penalty up to $10,000 per violation even if you did not know about this form. If the failure to file was willful, then penalties may equal the greater of $100,000 or 50% of the highest account balance for that year and there may be criminal penalties as well. We are skilled in the rules governing the preparation of the FBAR, and our team has counseled many U.S. taxpayers on how to deal with the past non-filing of the FBAR in a way that minimizes or avoids the penalties.
Many clients have come to us with unreported foreign assets and income. While the IRS Offshore Voluntary Disclosure Program (OVDP) is no longer active, the IRS Streamlined Filing Compliance Procedures may be an alternative for some. The Streamlined Filing Compliance procedures are designed to let individual taxpayers who were not willfully concealing their foreign holdings and foreign income to file or amend returns and pay a 5% penalty or, if you are a non-resident, no penalty at all. Entities, such as corporations and partnerships cannot participate in the program. Non-willful conduct is conduct that is due to negligence, inadvertence, or mistake or conduct that is the result of a good faith misunderstanding of the requirements of the law. If the IRS has initiated an exam of any of your tax returns, you will be barred from participating in this program. The program requires that you file (or amend) 3 years of tax returns, 6 years of FBARs, and certify that your lapse was non-willful. You will need to pay the tax, interest and, if you are a U.S. resident, a 5% penalty.
The best defense is to begin with a strong offense. Many taxpayers do not realize that they have the right to be represented by professionals who are specialists in handling tax audits from the inception of notification. It is not necessary for you to personally appear before taxing authorities. Most audits are limited to a review of your tax returns to ensure information is reported in accordance with the tax laws and to verify that the tax reported is correct. Audits such as these are relatively commonplace and our approach is grounded in extensive preparation and research throughout every stage of the audit process, enabling us to achieve the best results possible. The IRS will also conduct an “eggshell audit”, which is a civil exam with underlying criminal issues. Our main objective here is to prevent the audit from turning into a criminal investigation. Secondary considerations are mitigation of monetary penalties and tax. For these audits we will recommend you engage our vetted tax controversy attorneys to join us as a member of your audit defense team.
It is common for taxpayers to procrastinate or even ignore dealing with their unresolved tax issues However, ignoring these issues will not alleviate them, and is likely to compound them further. In fact, delaying your response might sacrifice your rights as a taxpayer. There are a host of ways to resolve your tax problems, from simply preparing and filing the required forms and paying the taxes, to offers-in-compromise, deferred payment plans, voluntary disclosures, penalty abatement requests and innocent spouse relief. We employ our extensive experience in helping you select the strategies that are essential in obtaining the most favorable results.
Most of our clients with complex tax matters can expect to receive tax notices. Some of them will be simple and routine to address, others may involve much more work to effectively resolve complex matters. A professional response will often make the decisive difference between paying additional tax, interest and penalties or paying nothing at all. Whenever you get a tax notice, we are available to respond on your behalf.
Tax planning is the discipline of viewing your financial situation through the lens of minimizing your taxes to maximize your wealth. The area is broad and it may take the form of how to structure a new investment, what legal and tax form a new business venture should select, or devising the best strategy to preserve your wealth for the next generation. Our clients are also often confronted with situations that are not black and white, and good tax planning will guide you through the rules and the grey areas to arrive at a position that you are comfortable with and which saves you the most in taxes. Tax planning is generally a foundational component of all our client relationships.
Tax treaties are bilateral agreements made by two countries to resolve issues involving double taxation of passive and active income of each of their respective citizens. Income tax treaties generally determine the amount of tax that a country can apply to a taxpayer’s income or estate. The United States has entered into income tax treaties with more than 60 countries to avoid double taxation of income and to prevent tax evasion. Under U.S. domestic tax laws, a foreign person (including entities) generally is subject to 30% U.S. tax on a gross basis of certain types of U.S.-source income. U.S. persons making payments to foreign persons generally must withhold 30% of payments, such as dividends, interest, and royalties, made to foreign persons. However, this amount may be reduced by a tax treaty. Tax treaties will also govern which country will have primary taxation over certain types of income. They will address when a business is considered to be a resident of another country through a “permanent establishment”; and inform about the taxation of income from real property; business profits; dividends; interest; royalties, capital gains and income from employment and personal services and more. Tax treaty analysis forms an integral part of most cross-border arrangements where our foreign clients are operating businesses or investing in the U.S., and where our U.S. clients are planning for business operations or investments abroad.
Trusts are legal entities where the trustee conducts business and investments on behalf of the trust’s beneficiaries, who are typically either the settlor or grantor (the creator of the trust), or his/her children, grandchildren or other family members. Trusts can hold any type of property, from cash and publicly traded investments to interests in family businesses and real estate. The income tax consequences of forming a trust, or being the beneficiary of one, are understandably varied and will depend upon myriad factors. Also, trusts may be created during your lifetime (inter-vivos) or through your will. Our team of trust experts will discuss your financial goals and help determine which type of trust structures may be appropriate.
For the sophisticated business manager, trust fiduciaries, or domestic and international investors, it has become increasingly common to have U.S. international tax considerations. You might be a U.S. person investing in a private equity partnership that makes investments in foreign corporations or partnerships; you may be a U.S. citizen with direct ownership of foreign financial assets; or perhaps you seek to establish a U.S. business subsidiary for your international company or invest in U.S. real property. In all these cases, the U.S. has a complex and demanding tax reporting regime that carries with it severe penalties for non-compliance. Our clients are local, national and international, and we are experts in this area of taxation as it applies to closely-held businesses, individuals, trusts & estates.
Voluntary Disclosure Agreements (“VDA”) are specific procedures established by the IRS to allow taxpayers who may have committed tax crimes to seek protection from criminal penalties. A voluntary disclosure will not automatically guarantee immunity from prosecution; however, a voluntary disclosure may result in prosecution not being recommended. Voluntary Disclosures must be truthful and complete and can only be made if the IRS has not already commenced a tax exam or received information about your actions. Clients need to be prepared to cooperate with the IRS in determining their tax liability and be willing to pay tax, interest and penalties. When your non-filing or under-reporting was not willful, then there may be methods of correcting your mistakes other than making a voluntary disclosure. If you were willful, there is a possibility of criminal prosecution. In such cases, our firm collaborates with some of the top criminal tax attorneys in the country to defend you.
Many states have voluntary disclosure programs that are designed to allow individual and business taxpayers to come forth and pay income and sales taxes. A VDA will typically shorten the look-back period, offer reduced or no penalties, and prevent a state from pressing criminal tax charges against you. VDA programs are beneficial to the states both for the revenue they generate and for ensuring future compliance. There are specific procedures to follow when making a VDA submission. To be eligible, you cannot be under audit by the State, cannot have received a tax bill for past due taxes; and cannot be under criminal investigation. For these programs, you will need to submit your unfiled or amended returns and pay the taxes you owe. You will also have to make a disclosure about why you previously failed to report your taxes.
Charitable trusts are often referred to as “split-interest” charitable trusts, because they allow the grantor to retain an interest in the trust property. There are two main types: charitable remainder and charitable lead trusts. Charitable remainder trusts enable the grantor to receive payments during a specified period of time, after which the remaining trust property is given to charity. Charitable lead trusts permit set payments to charity from the income and principal for a specified period, after which the remaining trust principal is distributed to the remaindermen, often reverting to the grantor or his/her children. There are many tax benefits to a properly chosen and well-designed charitable trust that can enhance the philanthropic intent. We will help you choose the right type of trust for your intent, keep its records and prepare its annual tax returns.
A controlled foreign corporation (“CFC”) is any foreign corporation of which more than 50% of the vote or value is owned by U.S. shareholders that own at least 10% of the corporation. U.S. shareholders of CFCs are subject to certain anti-deferral rules under the U.S. federal tax laws. The anti-deferral rules may require a U.S. shareholder of a CFC to report and pay U.S. tax on undistributed earnings of the foreign corporation. There is special planning and U.S. tax reporting for the ownership of a CFC. We will review the facts, help you plan, and prepare the required tax returns.
If a trust is a taxpayer, it will pay tax on undistributed net income at the individual tax rates, but with greatly compressed brackets. The result is often that the trust will pay income tax at 35%, whereas if the income had been earned by the beneficiaries, they would have paid income tax at a much reduced rate. When we manage your trust, we undertake an ongoing analysis of how to calibrate and time trust distributions so that the beneficiaries will pay tax on a lower portion of the trust’s income so that we minimize overall income taxation and enable you to preserve more of your family’s wealth.
Businesses, trusts and high net worth individuals are generally required to pay estimated taxes to the IRS and state taxing authorities throughout the year. Our professionals will optimize your payments through the use of income projections and safe harbors so that you pay the minimum allowed during the year without incurring underpayment penalties.
The Foreign Account Tax Compliance Act (“FATCA”) is a complex reporting and withholding regime enacted to force U.S. persons to disclose their offshore accounts, investments, and income. U.S. citizens, Green Card holders, certain non-resident aliens, and certain businesses now must annually report to the Internal Revenue Service their foreign financial assets and the related income. The United States has entered into information sharing agreements with foreign financial institutions (banks and brokerage houses) that requires them to report directly to the IRS certain information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. A direct concern for many non-compliant U.S. taxpayers is that the IRS will independently obtain specific information about their unreported foreign assets and income and will assess onerous financial penalties and even prosecute them criminally. Our team of U.S. International tax professionals will prepare your annual FATCA reporting and, if you have unreported foreign assets, we will advise you on the best course of action to become compliant.
The first thing to realize is that you are not alone and that facing your problem now is better than ignoring it. Thousands of U.S. taxpayers have situations where they have either just learned that a foreign asset needs to be reported or have ignored their reporting requirements in the past. Assets that require reporting include foreign bank accounts, foreign investment accounts, and foreign mutual funds; interests in foreign partnerships, foreign trusts, and foreign corporations; foreign retirement accounts; and foreign life insurance policies. Provided that you are not currently under investigation by the IRS, have not received a notice, and your non-compliance is non-willful, the penalties related to your non-reporting can usually be mitigated. Our team of U.S. international tax experts are well versed in the various IRS programs designed to let you correct your past errors. We will advise you of your options, help you choose the solution that is the best fit, and prepare all your returns.
U.S. persons are required to report information regarding foreign partnerships that they control, in which they are a 10% partner and when the partnership is controlled by U.S. persons. These entities are known as “controlled foreign partnerships” and the reporting rules are complex. Control is typically defined as an interest of more than 50% in the capital, deductions, profits or losses of the foreign partnership or a partnership interest to which more than 50% of the deductions or losses of the foreign partnership are allocated. Reporting must be done on an annually filed Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships.
U.S. persons who create a foreign trust, or have transactions with a foreign trust, can have both U.S. income and transfer tax consequences, as well as information reporting requirements. Failure to satisfy the information reporting requirements can result in significant penalties, as well as an extended time to assess any tax imposed with respect to the period to which the information relates. U.S. persons include citizens, domestic partnerships, domestic corporations, U.S. estates, and U.S. resident trusts. A foreign trust may at times be considered a grantor trust, the U.S. person is currently taxed on their proportionate share of trust income. In such a case, the trust should issue a Foreign Grantor Trust Owner Statement, which includes information about the foreign trust income they must report. Complex foreign trusts generally will not incur U.S. tax consequences absent distributions to their U.S. beneficiaries, but the throwback rules require a complex calculation of DNI and UNI to assess if there is an accumulation distribution that may cause tax equal to 100% of the value of the distribution itself. Our team is well equipped to assist clients in the complex and arcane world of foreign trusts.
U.S. taxpayers owning shares in foreign corporations, either directly or through partnerships, have to consider the PFIC rules, which comprise a volume of complex tax anti-avoidance legislation designed to prevent U.S persons from moving their investment assets offshore to create a tax deferral. To be classified as a PFIC, a foreign company must meet either the income or asset test: either 75% of its income is passive (dividends, interest, rent, royalties and capital gains from the disposition of securities) or 50% of its assets are investments, which will produce passive income. Typical examples of PFICs include foreign-based mutual funds and ETFs, and foreign holding companies and trusts. If you own a PFIC, you need to file form 8621. If you do so in the first year of your holding, you may make certain tax elections which will avoid the draconian taxes typically associated with PFICs. If you have missed the first year’s filing, there are still ways to mitigate the damage. If you fail to make any elections, when you receive distributions or sell your PFIC investments, you will be required to make complex calculations of tax and interest that will typically make the investment economically unattractive. Our firm will analyze your investments to determine if you own PFICs, advise on the best course of action, and prepare Form 8621 to accompany your income tax returns.
A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. A financial account includes, but is not limited to, a brokerage account, savings, demand, checking, deposit, time deposit, or other account maintained with a financial institution. Cash value of life insurance and annuities count as well. A “foreign financial account” is simply an account maintained at a financial institution outside of the U.S., even at a branch of a U.S. bank that is physically located outside of the United States. United States taxpayers, including individuals, corporations, partnerships and trusts, all must file this informational form, and the form must be filed also for offshore accounts constructively owned through offshore entities. The failure to file an FBAR may subject you to a civil penalty up to $10,000 per violation even if you did not know about this form. If the failure to file was willful, then penalties may equal the greater of $100,000 or 50% of the highest account balance for that year and there may be criminal penalties as well. We are skilled in the rules governing the preparation of the FBAR, and our team has counseled many U.S. taxpayers on how to deal with the past non-filing of the FBAR in a way that minimizes or avoids the penalties.
The best defense is to begin with a strong offense. Many taxpayers do not realize that they have the right to be represented by professionals who are specialists in handling tax audits from the inception of notification. It is not necessary for you to personally appear before taxing authorities. Most audits are limited to a review of your tax returns to ensure information is reported in accordance with the tax laws and to verify that the tax reported is correct. Audits such as these are relatively commonplace and our approach is grounded in extensive preparation and research throughout every stage of the audit process, enabling us to achieve the best results possible. The IRS will also conduct an “eggshell audit”, which is a civil exam with underlying criminal issues. Our main objective here is to prevent the audit from turning into a criminal investigation. Secondary considerations are mitigation of monetary penalties and tax. For these audits we will recommend you engage our vetted tax controversy attorneys to join us as a member of your audit defense team.
It is common for taxpayers to procrastinate or even ignore dealing with their unresolved tax issues However, ignoring these issues will not alleviate them, and is likely to compound them further. In fact, delaying your response might sacrifice your rights as a taxpayer. There are a host of ways to resolve your tax problems, from simply preparing and filing the required forms and paying the taxes, to offers-in-compromise, deferred payment plans, voluntary disclosures, penalty abatement requests and innocent spouse relief. We employ our extensive experience in helping you select the strategies that are essential in obtaining the most favorable results.
Most of our clients with complex tax matters can expect to receive tax notices. Some of them will be simple and routine to address, others may involve much more work to effectively resolve complex matters. A professional response will often make the decisive difference between paying additional tax, interest and penalties or paying nothing at all. Whenever you get a tax notice, we are available to respond on your behalf.
Tax planning is the discipline of viewing your financial situation through the lens of minimizing your taxes to maximize your wealth. The area is broad and it may take the form of how to structure a new investment, what legal and tax form a new business venture should select, or devising the best strategy to preserve your wealth for the next generation. Our clients are also often confronted with situations that are not black and white, and good tax planning will guide you through the rules and the grey areas to arrive at a position that you are comfortable with and which saves you the most in taxes. Tax planning is generally a foundational component of all our client relationships.
Trust accounting income (“TAI”) and distributable net income (“DNI”) are concepts unique to trusts, and they differ significantly from taxable income and financial accounting income. Together, they are used to determine the distribution deduction of a simple trust, and DNI sets the maximum amount of taxable income that can be passed through to a complex trust beneficiary. Trust accounting requires a trustee to prepare an annual report of the cash receipts and disbursements made throughout the year. In preparing the trust accounting (sometimes known as a fiduciary accounting) the trustee is guided by the terms of the document as established by the settlor upon the trust’s creation. The settlor may have specified how the trustee allocates receipts and disbursements between income and principal or may have granted the trustee broad discretionary powers to be the ultimate decision-maker concerning those allocations. The trust document also might be silent when it comes to allocations for accounting purposes, in which case state law will govern. Distributable Net Income, by contrast, is calculated uniformly by starting with taxable income and making certain adjustments for capital gains and losses and tax-exempt income.
Trusts are legal entities where the trustee conducts business and investments on behalf of the trust’s beneficiaries, who are typically either the settlor or grantor (the creator of the trust), or his/her children, grandchildren or other family members. Trusts can hold any type of property, from cash and publicly traded investments to interests in family businesses and real estate. The income tax consequences of forming a trust, or being the beneficiary of one, are understandably varied and will depend upon myriad factors. Also, trusts may be created during your lifetime (inter-vivos) or through your will. Our team of trust experts will discuss your financial goals and help determine which type of trust structures may be appropriate.
For the sophisticated business manager, trust fiduciaries, or domestic and international investors, it has become increasingly common to have U.S. international tax considerations. You might be a U.S. person investing in a private equity partnership that makes investments in foreign corporations or partnerships; you may be a U.S. citizen with direct ownership of foreign financial assets; or perhaps you seek to establish a U.S. business subsidiary for your international company or invest in U.S. real property. In all these cases, the U.S. has a complex and demanding tax reporting regime that carries with it severe penalties for non-compliance. Our clients are local, national and international, and we are experts in this area of taxation as it applies to closely-held businesses, individuals, trusts & estates.
The starting place for establishing your business presence in the U.S. will be your choice of the appropriate legal entity. This is critical to your ability to engage in business transactions, protect yourself against liability, and minimize taxation. Today, the most favored legal entities are the corporation and the limited liability company (LLC); however, others do exist and you may also elect to do business here as a foreign individual or foreign corporation, partnership or trust. Your personal objectives, desire for privacy, and home country tax situation should inform this choice. You should always make your decisions in tandem with accounting and legal professionals who have a focused practice specialization in these matters. We will help you select the right business entity from a tax perspective and work with counsel to ensure the proper overall fit.
Clear, accurate financial reporting is essential for any business manager to understand his/her businesses’ financial position and profitability. Financial statements typically include a balance sheet and an income statement, along with footnotes describing materially important aspects of the business. Our accounting team has in-depth knowledge of financial accounting standards and will prepare your non-attest compilations, projected financial statements or personal financial statements on a monthly, quarterly or annual basis.
Non-residents receiving certain types of earned or investment income from U.S. sources, such as commissions, dividends, interest, and pensions are subject to tax at 30%, which may be lowered by a tax treaty. Other types of income, such as gains from the sale of real estate or effectively connected income (ECI) are subject to a different mode of taxation. Our experts will advise and help structure your U.S. investments and prepare all the necessary tax filings.
The Foreign Account Tax Compliance Act (“FATCA”) is a complex reporting and withholding regime enacted to force U.S. persons to disclose their offshore accounts, investments, and income. U.S. citizens, Green Card holders, certain non-resident aliens, and certain businesses now must annually report to the Internal Revenue Service their foreign financial assets and the related income. The United States has entered into information sharing agreements with foreign financial institutions (banks and brokerage houses) that requires them to report directly to the IRS certain information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. A direct concern for many non-compliant U.S. taxpayers is that the IRS will independently obtain specific information about their unreported foreign assets and income and will assess onerous financial penalties and even prosecute them criminally. Our team of U.S. International tax professionals will prepare your annual FATCA reporting and, if you have unreported foreign assets, we will advise you on the best course of action to become compliant.
The first thing to realize is that you are not alone and that facing your problem now is better than ignoring it. Thousands of U.S. taxpayers have situations where they have either just learned that a foreign asset needs to be reported or have ignored their reporting requirements in the past. Assets that require reporting include foreign bank accounts, foreign investment accounts, and foreign mutual funds; interests in foreign partnerships, foreign trusts, and foreign corporations; foreign retirement accounts; and foreign life insurance policies. Provided that you are not currently under investigation by the IRS, have not received a notice, and your non-compliance is non-willful, the penalties related to your non-reporting can usually be mitigated. Our team of U.S. international tax experts are well versed in the various IRS programs designed to let you correct your past errors. We will advise you of your options, help you choose the solution that is the best fit, and prepare all your returns.
U.S. persons are required to report information regarding foreign partnerships that they control, in which they are a 10% partner and when the partnership is controlled by U.S. persons. These entities are known as “controlled foreign partnerships” and the reporting rules are complex. Control is typically defined as an interest of more than 50% in the capital, deductions, profits or losses of the foreign partnership or a partnership interest to which more than 50% of the deductions or losses of the foreign partnership are allocated. Reporting must be done on an annually filed Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships.
Businesses and other payors are often required to withhold taxes on various types of income payable to their foreign (non-U.S.) or out-of-state owners. If you are the withholding agent, you are personally liable for any tax required to be withheld and if you fail to withhold and the foreign payee fails to satisfy its U.S. or state tax liability, then both you and the foreign or non-resident person may be liable for tax, as well as interest and any applicable penalties. Our team will help you determine your withholding obligations and make sure you are fully compliant. If you are a taxpayer that has been subject to withholding, we can often file a tax return for you that can reclaim some or all the tax.
U.S. taxpayers owning shares in foreign corporations, either directly or through partnerships, have to consider the PFIC rules, which comprise a volume of complex tax anti-avoidance legislation designed to prevent U.S persons from moving their investment assets offshore to create a tax deferral. To be classified as a PFIC, a foreign company must meet either the income or asset test: either 75% of its income is passive (dividends, interest, rent, royalties and capital gains from the disposition of securities) or 50% of its assets are investments, which will produce passive income. Typical examples of PFICs include foreign-based mutual funds and ETFs, and foreign holding companies and trusts. If you own a PFIC, you need to file form 8621. If you do so in the first year of your holding, you may make certain tax elections which will avoid the draconian taxes typically associated with PFICs. If you have missed the first year’s filing, there are still ways to mitigate the damage. If you fail to make any elections, when you receive distributions or sell your PFIC investments, you will be required to make complex calculations of tax and interest that will typically make the investment economically unattractive. Our firm will analyze your investments to determine if you own PFICs, advise on the best course of action, and prepare Form 8621 to accompany your income tax returns.
A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. A financial account includes, but is not limited to, a brokerage account, savings, demand, checking, deposit, time deposit, or other account maintained with a financial institution. Cash value of life insurance and annuities count as well. A “foreign financial account” is simply an account maintained at a financial institution outside of the U.S., even at a branch of a U.S. bank that is physically located outside of the United States. United States taxpayers, including individuals, corporations, partnerships and trusts, all must file this informational form, and the form must be filed also for offshore accounts constructively owned through offshore entities. The failure to file an FBAR may subject you to a civil penalty up to $10,000 per violation even if you did not know about this form. If the failure to file was willful, then penalties may equal the greater of $100,000 or 50% of the highest account balance for that year and there may be criminal penalties as well. We are skilled in the rules governing the preparation of the FBAR, and our team has counseled many U.S. taxpayers on how to deal with the past non-filing of the FBAR in a way that minimizes or avoids the penalties.
Many clients have come to us with unreported foreign assets and income. While the IRS Offshore Voluntary Disclosure Program (OVDP) is no longer active, the IRS Streamlined Filing Compliance Procedures may be an alternative for some. The Streamlined Filing Compliance procedures are designed to let individual taxpayers who were not willfully concealing their foreign holdings and foreign income to file or amend returns and pay a 5% penalty or, if you are a non-resident, no penalty at all. Entities, such as corporations and partnerships cannot participate in the program. Non-willful conduct is conduct that is due to negligence, inadvertence, or mistake or conduct that is the result of a good faith misunderstanding of the requirements of the law. If the IRS has initiated an exam of any of your tax returns, you will be barred from participating in this program. The program requires that you file (or amend) 3 years of tax returns, 6 years of FBARs, and certify that your lapse was non-willful. You will need to pay the tax, interest and, if you are a U.S. resident, a 5% penalty.
Tax treaties are bilateral agreements made by two countries to resolve issues involving double taxation of passive and active income of each of their respective citizens. Income tax treaties generally determine the amount of tax that a country can apply to a taxpayer’s income or estate. The United States has entered into income tax treaties with more than 60 countries to avoid double taxation of income and to prevent tax evasion. Under U.S. domestic tax laws, a foreign person (including entities) generally is subject to 30% U.S. tax on a gross basis of certain types of U.S.-source income. U.S. persons making payments to foreign persons generally must withhold 30% of payments, such as dividends, interest, and royalties, made to foreign persons. However, this amount may be reduced by a tax treaty. Tax treaties will also govern which country will have primary taxation over certain types of income. They will address when a business is considered to be a resident of another country through a “permanent establishment”; and inform about the taxation of income from real property; business profits; dividends; interest; royalties, capital gains and income from employment and personal services and more. Tax treaty analysis forms an integral part of most cross-border arrangements where our foreign clients are operating businesses or investing in the U.S., and where our U.S. clients are planning for business operations or investments abroad.
Transfer pricing refers to the rules and methods governing pricing transactions that occur between businesses that have shared ownership or control. Whenever different companies in a related group transact with each other, the costs they charge each other is supposed to be arm’s length, or the same cost that the companies would charge to an independent, unrelated company for the goods or services. However, when companies operate in multiple countries that have different rules and rates of tax, to achieve global tax efficiency a related group of companies will seek to charge high costs to the high tax jurisdictions they operate in, thereby lowering that company’s profits, and to source profits to low tax jurisdictions. The higher tax jurisdictions, who would otherwise suffer a loss of tax, introduce transfer price adjustments, which typically carry with them significant penalties. We have consulted with many international companies operating in the U.S. about transfer pricing, and we work with our clients to develop a plan to manage their international operations so that they pay the minimum global tax burden while steering clear of potential penalties and other consequences related to intercompany transactions.
For the sophisticated business manager, trust fiduciaries, or domestic and international investors, it has become increasingly common to have U.S. international tax considerations. You might be a U.S. person investing in a private equity partnership that makes investments in foreign corporations or partnerships; you may be a U.S. citizen with direct ownership of foreign financial assets; or perhaps you seek to establish a U.S. business subsidiary for your international company or invest in U.S. real property. In all these cases, the U.S. has a complex and demanding tax reporting regime that carries with it severe penalties for non-compliance. Our clients are local, national and international, and we are experts in this area of taxation as it applies to closely-held businesses, individuals, trusts & estates.
The starting place for establishing your business presence in the U.S. will be your choice of the appropriate legal entity. This is critical to your ability to engage in business transactions, protect yourself against liability, and minimize taxation. Other key U.S. tax issues that you should consider in advance of establishing your business here include how to capitalize the company; U.S. federal, state and local taxation; repatriation of earnings; transfer pricing; exit strategies; employee vs independent contractor classifications, and sales and use taxes. We provide clients from around the globe with tax consultation, tax department outsourcing, and comprehensive accounting & bookkeeping support for your U.S. operations. Our clients are both large and small, and span many industries. Whatever level of assistance you require from a United States accounting firm, we are happy to customize a solution that fully supports your needs.
We will consult with you regarding your businesses needs for reporting and design an accounting system that ensures that you have full visibility over your business operations, are fully compliant with regulatory and legal requirements, and this system will support the production of accurate and reliable tax returns and financial reporting.
New ventures require financial projections and modeling to map out their future success. For your plan to appeal to potential partners and investors it must be thorough and vetted. In the iterative process of creating a financial model for your new business, we will work with you to determine all the materially relevant variables that will affect the business’ first few years and develop a model that will let you adjust those factors and see the effects on financial results. We can also consult with you about your plans for the business, and either edit or write your business plan for you.
The starting place for establishing your business will be your choice of the appropriate legal entity. This is critical to your ability to engage in business transactions, protect yourself against liability, and minimize taxation. Other key U.S. tax issues that you should consider in advance of establishing your business here include how to capitalize the company; U.S. federal, state and local taxation; repatriation of earnings; transfer pricing; exit strategies; employee vs independent contractor classifications, to sales and use taxes. We regularly advise clients regarding all tax and accounting aspects of their new ventures, and we provide clients from around the globe with tax consultation, tax department outsourcing, and comprehensive accounting & bookkeeping support for their businesses. Our clients are both large and small, and span many industries. Whatever level of assistance you require, we are happy to customize a solution that fully supports your needs.
Many businesses do not have the resources to hire a full-time CFO and for them fractional or interim outsourced CFO services may be an excellent option. We can assist with financial reporting, budget analysis, profitability enhancement, planning, business strategy, board reporting, cash management, fundraising planning and support, exit strategy and M&A.
Charitable trusts are often referred to as “split-interest” charitable trusts, because they allow the grantor to retain an interest in the trust property. There are two main types: charitable remainder and charitable lead trusts. Charitable remainder trusts enable the grantor to receive payments during a specified period of time, after which the remaining trust property is given to charity. Charitable lead trusts permit set payments to charity from the income and principal for a specified period, after which the remaining trust principal is distributed to the remaindermen, often reverting to the grantor or his/her children. There are many tax benefits to a properly chosen and well-designed charitable trust that can enhance the philanthropic intent. We will help you choose the right type of trust for your intent, keep its records and prepare its annual tax returns.
The starting place for establishing your new venture will be your choice of the appropriate legal entity. This is critical to your ability to engage in business transactions, protect yourself against liability, and minimize taxation. The most favored legal entities are the corporation, partnership, and limited liability company (LLC); however, other options do exist and you may also elect to do business as an individual sole proprietor or have a trust own your business. Each entity has its unique set of tax aspects and planning flexibility. We will help you select the right one to achieve your goals.
The starting place for establishing your business presence in the U.S. will be your choice of the appropriate legal entity. This is critical to your ability to engage in business transactions, protect yourself against liability, and minimize taxation. Today, the most favored legal entities are the corporation and the limited liability company (LLC); however, others do exist and you may also elect to do business here as a foreign individual or foreign corporation, partnership or trust. Your personal objectives, desire for privacy, and home country tax situation should inform this choice. You should always make your decisions in tandem with accounting and legal professionals who have a focused practice specialization in these matters. We will help you select the right business entity from a tax perspective and work with counsel to ensure the proper overall fit.
Beacon’s management consulting services draw from deep experience with the Entrepreneurial Operating System (“EOS”), Dan Sullivan’s Strategic Coach, and the FranklinCovey solutions. We focus on our clients’ most critical issue- the ability to be clear about their vision and align to that vision at all levels of the company. From there we move to their strengths, weaknesses, opportunities and threats in areas of strategy, marketing, organization, operations, technology, transformation, digital platforms, advanced analytics, corporate finance, mergers & acquisitions and sustainability across all industries and geographies.
A controlled foreign corporation (“CFC”) is any foreign corporation of which more than 50% of the vote or value is owned by U.S. shareholders that own at least 10% of the corporation. U.S. shareholders of CFCs are subject to certain anti-deferral rules under the U.S. federal tax laws. The anti-deferral rules may require a U.S. shareholder of a CFC to report and pay U.S. tax on undistributed earnings of the foreign corporation. There is special planning and U.S. tax reporting for the ownership of a CFC. We will review the facts, help you plan, and prepare the required tax returns.
If a trust is a taxpayer, it will pay tax on undistributed net income at the individual tax rates, but with greatly compressed brackets. The result is often that the trust will pay income tax at 35%, whereas if the income had been earned by the beneficiaries, they would have paid income tax at a much reduced rate. When we manage your trust, we undertake an ongoing analysis of how to calibrate and time trust distributions so that the beneficiaries will pay tax on a lower portion of the trust’s income so that we minimize overall income taxation and enable you to preserve more of your family’s wealth.
The cost of a four-year undergraduate degree can easily amount to $250,000. Education planning will help ensure that your children or grandchildren will have the funds available to pay for higher education expenses while reducing your taxable estate. There are several options when considering education plans, including 529 Plans, Coverdell Education Savings Account, and inter-generational gifting that can be employed. Let us guide you through the options available and help you select the ones that suit you best.
When a business has employees, it must withhold certain payroll taxes from their paychecks and remit the funds to the federal and state governments. The employer business must also make contributions to the United States retirement and health system, collectively known as social security. There are significant penalties for the failure to file timely and accurate returns in this area. The business also needs to carry certain basic employment related insurances in most states. We will make sure that all your payroll tax filings are done expertly and timely.
A comprehensive estate plan can help transfer wealth, fulfill philanthropic goals, minimize wealth transfer taxes, maintain privacy, protect assets and provide ongoing management of your affairs. Our team based approach will ensure that you have the suite of basic estate planning documents in place in the event of death or incapacity, and will provide a broad and deep discussion of many estate (freeze) and advanced planning (technics) to help you secure your legacy.
Businesses, trusts and high net worth individuals are generally required to pay estimated taxes to the IRS and state taxing authorities throughout the year. Our professionals will optimize your payments through the use of income projections and safe harbors so that you pay the minimum allowed during the year without incurring underpayment penalties.
Financial planning is a process of establishing your goals, taking inventory of your assets, debt, income, future earnings potential and insurances and developing a plan that will provide you with the asset and earnings protection, savings, and growth that you will need to meet those goals. Your plan then needs to be monitored and modified both to meet your changing needs, and to negotiate the financial barriers that inevitably arise in every stage of life. Sound plans therefore will focus on your short, mid and long-term financial needs, and encompass budgeting, monitoring of insurance, investments, tax management, and retirement plans – providing for the next generation and charitable giving.
Clear, accurate financial reporting is essential for any business manager to understand his/her businesses’ financial position and profitability. Financial statements typically include a balance sheet and an income statement, along with footnotes describing materially important aspects of the business. Our accounting team has in-depth knowledge of financial accounting standards and will prepare your non-attest compilations, projected financial statements or personal financial statements on a monthly, quarterly or annual basis.
Non-residents receiving certain types of earned or investment income from U.S. sources, such as commissions, dividends, interest, and pensions are subject to tax at 30%, which may be lowered by a tax treaty. Other types of income, such as gains from the sale of real estate or effectively connected income (ECI) are subject to a different mode of taxation. Our experts will advise and help structure your U.S. investments and prepare all the necessary tax filings.
The Foreign Account Tax Compliance Act (“FATCA”) is a complex reporting and withholding regime enacted to force U.S. persons to disclose their offshore accounts, investments, and income. U.S. citizens, Green Card holders, certain non-resident aliens, and certain businesses now must annually report to the Internal Revenue Service their foreign financial assets and the related income. The United States has entered into information sharing agreements with foreign financial institutions (banks and brokerage houses) that requires them to report directly to the IRS certain information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. A direct concern for many non-compliant U.S. taxpayers is that the IRS will independently obtain specific information about their unreported foreign assets and income and will assess onerous financial penalties and even prosecute them criminally. Our team of U.S. International tax professionals will prepare your annual FATCA reporting and, if you have unreported foreign assets, we will advise you on the best course of action to become compliant.
The first thing to realize is that you are not alone and that facing your problem now is better than ignoring it. Thousands of U.S. taxpayers have situations where they have either just learned that a foreign asset needs to be reported or have ignored their reporting requirements in the past. Assets that require reporting include foreign bank accounts, foreign investment accounts, and foreign mutual funds; interests in foreign partnerships, foreign trusts, and foreign corporations; foreign retirement accounts; and foreign life insurance policies. Provided that you are not currently under investigation by the IRS, have not received a notice, and your non-compliance is non-willful, the penalties related to your non-reporting can usually be mitigated. Our team of U.S. international tax experts are well versed in the various IRS programs designed to let you correct your past errors. We will advise you of your options, help you choose the solution that is the best fit, and prepare all your returns.
U.S. persons are required to report information regarding foreign partnerships that they control, in which they are a 10% partner and when the partnership is controlled by U.S. persons. These entities are known as “controlled foreign partnerships” and the reporting rules are complex. Control is typically defined as an interest of more than 50% in the capital, deductions, profits or losses of the foreign partnership or a partnership interest to which more than 50% of the deductions or losses of the foreign partnership are allocated. Reporting must be done on an annually filed Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships.
U.S. persons who create a foreign trust, or have transactions with a foreign trust, can have both U.S. income and transfer tax consequences, as well as information reporting requirements. Failure to satisfy the information reporting requirements can result in significant penalties, as well as an extended time to assess any tax imposed with respect to the period to which the information relates. U.S. persons include citizens, domestic partnerships, domestic corporations, U.S. estates, and U.S. resident trusts. A foreign trust may at times be considered a grantor trust, the U.S. person is currently taxed on their proportionate share of trust income. In such a case, the trust should issue a Foreign Grantor Trust Owner Statement, which includes information about the foreign trust income they must report. Complex foreign trusts generally will not incur U.S. tax consequences absent distributions to their U.S. beneficiaries, but the throwback rules require a complex calculation of DNI and UNI to assess if there is an accumulation distribution that may cause tax equal to 100% of the value of the distribution itself. Our team is well equipped to assist clients in the complex and arcane world of foreign trusts.
Business entities are organized at the state level. For businesses operating in multiple states, often non-resident state registrations for business, privilege and sales tax are required. Our team of tax professionals will guide you through the process and can form corporations, partnerships & LLCs in all 50 states – generally within 48-72 hours.
Businesses and other payors are often required to withhold taxes on various types of income payable to their foreign (non-U.S.) or out-of-state owners. If you are the withholding agent, you are personally liable for any tax required to be withheld and if you fail to withhold and the foreign payee fails to satisfy its U.S. or state tax liability, then both you and the foreign or non-resident person may be liable for tax, as well as interest and any applicable penalties. Our team will help you determine your withholding obligations and make sure you are fully compliant. If you are a taxpayer that has been subject to withholding, we can often file a tax return for you that can reclaim some or all the tax.
U.S. taxpayers owning shares in foreign corporations, either directly or through partnerships, have to consider the PFIC rules, which comprise a volume of complex tax anti-avoidance legislation designed to prevent U.S persons from moving their investment assets offshore to create a tax deferral. To be classified as a PFIC, a foreign company must meet either the income or asset test: either 75% of its income is passive (dividends, interest, rent, royalties and capital gains from the disposition of securities) or 50% of its assets are investments, which will produce passive income. Typical examples of PFICs include foreign-based mutual funds and ETFs, and foreign holding companies and trusts. If you own a PFIC, you need to file form 8621. If you do so in the first year of your holding, you may make certain tax elections which will avoid the draconian taxes typically associated with PFICs. If you have missed the first year’s filing, there are still ways to mitigate the damage. If you fail to make any elections, when you receive distributions or sell your PFIC investments, you will be required to make complex calculations of tax and interest that will typically make the investment economically unattractive. Our firm will analyze your investments to determine if you own PFICs, advise on the best course of action, and prepare Form 8621 to accompany your income tax returns.
A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. A financial account includes, but is not limited to, a brokerage account, savings, demand, checking, deposit, time deposit, or other account maintained with a financial institution. Cash value of life insurance and annuities count as well. A “foreign financial account” is simply an account maintained at a financial institution outside of the U.S., even at a branch of a U.S. bank that is physically located outside of the United States. United States taxpayers, including individuals, corporations, partnerships and trusts, all must file this informational form, and the form must be filed also for offshore accounts constructively owned through offshore entities. The failure to file an FBAR may subject you to a civil penalty up to $10,000 per violation even if you did not know about this form. If the failure to file was willful, then penalties may equal the greater of $100,000 or 50% of the highest account balance for that year and there may be criminal penalties as well. We are skilled in the rules governing the preparation of the FBAR, and our team has counseled many U.S. taxpayers on how to deal with the past non-filing of the FBAR in a way that minimizes or avoids the penalties.
Retirement plans fit broadly into two categories: defined contribution plans and defined benefit plans. Most employer sponsored plans today are defined contribution plans, where the employees make contributions, up to annual pre-tax limits, and employers often make a matching contribution. The funds are deposited into separate accounts for each employee, and the employees make their investment decisions from a limited selection of options provided by the plan sponsor. The most well-known of the employer sponsored defined contribution plans is the 401k, and with all such plans, investment performance will determine what the fund grows to over time. Defined benefit plans (otherwise known as “pensions”) by contrast are funded by employers to provide specific retirement benefits, often a percentage of average earnings or a set amount of income in retirement. For many business owners, especially those soon reaching retirement age and who have a relatively young employee base, these custom designed plans can often allow business owners to contribute significantly more pre-tax dollars year over year and invest the funds in a much broader variety of vehicles. Defined benefit plans are designed by pension specialists and actuaries, and while they have more compliance requirements, they can be powerful tools to fund retirement. Let our team of experts help you select the plan that is right for your business and then help you implement it.
When your business is selling tangible personal property, or providing certain enumerated services, it is required to collect sales tax from its customers and remit it to the state taxing authority, generally on a quarterly or monthly basis. Based upon where your customers reside, you may need to comply with these laws even where your business has no physical presence. Use tax is the corollary of sales tax. To the extent that your business buys property for its own consumption and does not pay sales tax to the vendor, it is required to volunteer a tax on the “use” of the property to your home state at an equivalent rate to that state’s sale tax. In this evolving area, we will review your business operations, determine where you need to be filing, register your business and make sure that your returns are filed timely.
Many clients have come to us with unreported foreign assets and income. While the IRS Offshore Voluntary Disclosure Program (OVDP) is no longer active, the IRS Streamlined Filing Compliance Procedures may be an alternative for some. The Streamlined Filing Compliance procedures are designed to let individual taxpayers who were not willfully concealing their foreign holdings and foreign income to file or amend returns and pay a 5% penalty or, if you are a non-resident, no penalty at all. Entities, such as corporations and partnerships cannot participate in the program. Non-willful conduct is conduct that is due to negligence, inadvertence, or mistake or conduct that is the result of a good faith misunderstanding of the requirements of the law. If the IRS has initiated an exam of any of your tax returns, you will be barred from participating in this program. The program requires that you file (or amend) 3 years of tax returns, 6 years of FBARs, and certify that your lapse was non-willful. You will need to pay the tax, interest and, if you are a U.S. resident, a 5% penalty.
The best defense is to begin with a strong offense. Many taxpayers do not realize that they have the right to be represented by professionals who are specialists in handling tax audits from the inception of notification. It is not necessary for you to personally appear before taxing authorities. Most audits are limited to a review of your tax returns to ensure information is reported in accordance with the tax laws and to verify that the tax reported is correct. Audits such as these are relatively commonplace and our approach is grounded in extensive preparation and research throughout every stage of the audit process, enabling us to achieve the best results possible. The IRS will also conduct an “eggshell audit”, which is a civil exam with underlying criminal issues. Our main objective here is to prevent the audit from turning into a criminal investigation. Secondary considerations are mitigation of monetary penalties and tax. For these audits we will recommend you engage our vetted tax controversy attorneys to join us as a member of your audit defense team.
It is common for taxpayers to procrastinate or even ignore dealing with their unresolved tax issues However, ignoring these issues will not alleviate them, and is likely to compound them further. In fact, delaying your response might sacrifice your rights as a taxpayer. There are a host of ways to resolve your tax problems, from simply preparing and filing the required forms and paying the taxes, to offers-in-compromise, deferred payment plans, voluntary disclosures, penalty abatement requests and innocent spouse relief. We employ our extensive experience in helping you select the strategies that are essential in obtaining the most favorable results.
Most of our clients with complex tax matters can expect to receive tax notices. Some of them will be simple and routine to address, others may involve much more work to effectively resolve complex matters. A professional response will often make the decisive difference between paying additional tax, interest and penalties or paying nothing at all. Whenever you get a tax notice, we are available to respond on your behalf.
Tax planning is the discipline of viewing your financial situation through the lens of minimizing your taxes to maximize your wealth. The area is broad and it may take the form of how to structure a new investment, what legal and tax form a new business venture should select, or devising the best strategy to preserve your wealth for the next generation. Our clients are also often confronted with situations that are not black and white, and good tax planning will guide you through the rules and the grey areas to arrive at a position that you are comfortable with and which saves you the most in taxes. Tax planning is generally a foundational component of all our client relationships.
Tax treaties are bilateral agreements made by two countries to resolve issues involving double taxation of passive and active income of each of their respective citizens. Income tax treaties generally determine the amount of tax that a country can apply to a taxpayer’s income or estate. The United States has entered into income tax treaties with more than 60 countries to avoid double taxation of income and to prevent tax evasion. Under U.S. domestic tax laws, a foreign person (including entities) generally is subject to 30% U.S. tax on a gross basis of certain types of U.S.-source income. U.S. persons making payments to foreign persons generally must withhold 30% of payments, such as dividends, interest, and royalties, made to foreign persons. However, this amount may be reduced by a tax treaty. Tax treaties will also govern which country will have primary taxation over certain types of income. They will address when a business is considered to be a resident of another country through a “permanent establishment”; and inform about the taxation of income from real property; business profits; dividends; interest; royalties, capital gains and income from employment and personal services and more. Tax treaty analysis forms an integral part of most cross-border arrangements where our foreign clients are operating businesses or investing in the U.S., and where our U.S. clients are planning for business operations or investments abroad
Transfer pricing refers to the rules and methods governing pricing transactions that occur between businesses that have shared ownership or control. Whenever different companies in a related group transact with each other, the costs they charge each other is supposed to be arm’s length, or the same cost that the companies would charge to an independent, unrelated company for the goods or services. However, when companies operate in multiple countries that have different rules and rates of tax, to achieve global tax efficiency a related group of companies will seek to charge high costs to the high tax jurisdictions they operate in, thereby lowering that company’s profits, and to source profits to low tax jurisdictions. The higher tax jurisdictions, who would otherwise suffer a loss of tax, introduce transfer price adjustments, which typically carry with them significant penalties. We have consulted with many international companies operating in the U.S. about transfer pricing, and we work with our clients to develop a plan to manage their international operations so that they pay the minimum global tax burden while steering clear of potential penalties and other consequences related to intercompany transactions.
Trust accounting income (“TAI”) and distributable net income (“DNI”) are concepts unique to trusts, and they differ significantly from taxable income and financial accounting income. Together, they are used to determine the distribution deduction of a simple trust, and DNI sets the maximum amount of taxable income that can be passed through to a complex trust beneficiary. Trust accounting requires a trustee to prepare an annual report of the cash receipts and disbursements made throughout the year. In preparing the trust accounting (sometimes known as a fiduciary accounting) the trustee is guided by the terms of the document as established by the settlor upon the trust’s creation. The settlor may have specified how the trustee allocates receipts and disbursements between income and principal or may have granted the trustee broad discretionary powers to be the ultimate decision-maker concerning those allocations. The trust document also might be silent when it comes to allocations for accounting purposes, in which case state law will govern. Distributable Net Income, by contrast, is calculated uniformly by starting with taxable income and making certain adjustments for capital gains and losses and tax-exempt income.
Trusts are legal entities where the trustee conducts business and investments on behalf of the trust’s beneficiaries, who are typically either the settlor or grantor (the creator of the trust), or his/her children, grandchildren or other family members. Trusts can hold any type of property, from cash and publicly traded investments to interests in family businesses and real estate. The income tax consequences of forming a trust, or being the beneficiary of one, are understandably varied and will depend upon myriad factors. Also, trusts may be created during your lifetime (inter-vivos) or through your will. Our team of trust experts will discuss your financial goals and help determine which type of trust structures may be appropriate.
For the sophisticated business manager, trust fiduciaries, or domestic and international investors, it has become increasingly common to have U.S. international tax considerations. You might be a U.S. person investing in a private equity partnership that makes investments in foreign corporations or partnerships; you may be a U.S. citizen with direct ownership of foreign financial assets; or perhaps you seek to establish a U.S. business subsidiary for your international company or invest in U.S. real property. In all these cases, the U.S. has a complex and demanding tax reporting regime that carries with it severe penalties for non-compliance. Our clients are local, national and international, and we are experts in this area of taxation as it applies to closely-held businesses, individuals, trusts & estates.
The starting place for establishing your business presence in the U.S. will be your choice of the appropriate legal entity. This is critical to your ability to engage in business transactions, protect yourself against liability, and minimize taxation. Other key U.S. tax issues that you should consider in advance of establishing your business here include how to capitalize the company; U.S. federal, state and local taxation; repatriation of earnings; transfer pricing; exit strategies; employee vs independent contractor classifications, and sales and use taxes. We provide clients from around the globe with tax consultation, tax department outsourcing, and comprehensive accounting & bookkeeping support for your U.S. operations. Our clients are both large and small, and span many industries. Whatever level of assistance you require from a United States accounting firm, we are happy to customize a solution that fully supports your needs.
Voluntary Disclosure Agreements (“VDA”) are specific procedures established by the IRS to allow taxpayers who may have committed tax crimes to seek protection from criminal penalties. A voluntary disclosure will not automatically guarantee immunity from prosecution; however, a voluntary disclosure may result in prosecution not being recommended. Voluntary Disclosures must be truthful and complete and can only be made if the IRS has not already commenced a tax exam or received information about your actions. Clients need to be prepared to cooperate with the IRS in determining their tax liability and be willing to pay tax, interest and penalties. When your non-filing or under-reporting was not willful, then there may be methods of correcting your mistakes other than making a voluntary disclosure. If you were willful, there is a possibility of criminal prosecution. In such cases, our firm collaborates with some of the top criminal tax attorneys in the country to defend you.
Many states have voluntary disclosure programs that are designed to allow individual and business taxpayers to come forth and pay income and sales taxes. A VDA will typically shorten the look-back period, offer reduced or no penalties, and prevent a state from pressing criminal tax charges against you. VDA programs are beneficial to the states both for the revenue they generate and for ensuring future compliance. There are specific procedures to follow when making a VDA submission. To be eligible, you cannot be under audit by the State, cannot have received a tax bill for past due taxes; and cannot be under criminal investigation. For these programs, you will need to submit your unfiled or amended returns and pay the taxes you owe. You will also have to make a disclosure about why you previously failed to report your taxes.
