International Taxation
You have no duty to pay any more tax than legally required, yet even the most sophisticated taxpayers often forego opportunities to save money. Let us help you proactively arrange your affairs so as to minimize your tax liability. We regularly work with our clients’ accountants and other financial advisors as appropriate.
Our tax law practice is focused on:
- Inbound Planning for Potential or Temporary Tax Residents
- Foreign Trust Planning for U.S. Beneficiaries
- Foreign Investment in U.S. Businesses or Real Estate
- Estate Tax Planning for Non-Citizen Spouses and Multinational Families
- Domestic Estate & Gift Tax Planning
- Structuring Tax-Free Business Mergers, Acquisitions and Conversions
- IRS Disputes & Voluntary Disclosures
Inbound Planning for Potential or Temporary Tax Residents
Foreigners are normally subject to tax only on their U.S. income and assets, unless they are considered residents for tax purposes. A myriad of complex tax laws determine when a foreigner becomes a “tax resident” for income tax purposes, thus subjecting their worldwide income to U.S. income taxation. A separate but equally complex set of laws determines when a foreigner becomes a resident for estate, gift and generation skipping transfer tax purposes, thus subjecting their worldwide assets to taxation when transferred during life or upon death. A foreigner may become a tax resident for purposes of either tax, all these taxes, or none; whether or not they have established permanent residence for immigration purposes. Our methodology is used to navigate through these complex tax laws in order to help clients plan ahead and determine what can and should be done to maximize legal advantage, minimize tax and manage risk prior to establishing tax residency. Depending on how far along the client has come, we also assist in implementing those legal options we can identify that remain at that juncture. If we determine tax residency has already been established, we help them understand and resolve any non-compliance with minimal taxation, penalties and criminal exposure.
Of course, tax issues do not occur in a vacuum. We are often called upon to assist our inbound clients with other legal and business issues such as:
- Choosing and creating the optimal legal structures for LLCs and other business entities
- Making offers to purchase real estate that become legally binding purchase contracts
- Determining legal rights and obligations contained in Letters of Intent and Asset/Stock Purchase Agreements used in connection with buying an existing business
- Formalizing legal relationships with partners and joint venturers
- Updating Florida trust and estate planning to provide for an unexpected death or incapacity occurring while in the U.S. and subject to domestic jurisdiction
- Coordination with immigration counsel to avoid premature tax residency without jeopardizing the immigration process
- Domesticating or restructuring obsolete “offshore” legal structures
- Pitfalls of joint ownership of assets and bank accounts
- Estate planning for elder family members who are not immigrating to the U.S.
- Planning for U.S. beneficiaries of foreign trusts and foreign beneficiaries of U.S. trusts
- Asset protection planning for U.S. assets and income streams
Foreign Trust Planning for U.S. Beneficiaries
Whenever a foreign trust has or might have U.S. beneficiaries or assets, the trustee, the beneficiaries, and even in some cases the persons who create or contribute assets to the trust, may each be subject to U.S. tax and reporting obligations. We develop strategies for minimizing any U.S. exposure associated with a foreign trust while helping to accomplish the personal and business objectives of international families. Existing offshore trust structures are also evaluated to develop recommendations aimed at identifying and reducing any U.S. tax exposure.
Foreign Investment in U.S. Businesses or Real Estate
Owning U.S. real estate or businesses exposes foreigners to a variety of U.S. tax and legal issues during the acquisition, operation and ultimate disposition of the investment. The consequences of failing to plan ahead include being subject to U.S. estate taxes upon the foreigner’s death, costly probate or guardianship proceedings, withholding taxes being levied when funds are repatriated from the U.S., disqualification for preferential income tax rates, and inability to deduct expenses associated with the investment. Even vacation property ownership must be carefully structured to reduce tax and legal exposure. Our assistance goes beyond tax advice to cover issues of business and real property law, including the issuance title insurance and real estate closing services.
Estate Tax Planning for Non-Citizen Spouses and Multinational Families
Transfers from one spouse to another, whether upon death or during life, are subject to taxation when the other spouse is not a U.S. citizen. Families whose members reside in different countries are faced with additional challenges when planning for the proper administration of their assets as they are passed from one generation to the next. We work with foreign counsel to understand the family’s short and long term objectives and implement a legal structure that will function as desired in every applicable legal jurisdiction while minimizing the worldwide effective tax impact.
Servicio Completo en Español
Our clients come from all over the world, but we are especially equipped to serve closely-held businesses and high net worth individuals who prefer to communicate with their professional advisors entirely in Spanish. From the initial point of contact with the firm to our agreement for legal services and all our communications, our Latin American clients enjoy a completely bilingual and bicultural experience.
IRS Disputes & Voluntary Disclosures
When given the opportunity, we prefer to help you proactively arrange your affairs to avoid tax and legal exposure. For those who are not in compliance and are ready to come clean, we can establish attorney-client privilege and help you understand and resolve your non-compliance with minimal taxation, penalties and criminal exposure.
Our IRS controversy services include:
- Defending or Negotiating an IRS Examination or Collections Matter
- Appealing the Assessment or Proposed Assessment of Tax
- Petitioning the U.S. Tax Court Regarding an IRS Assessment
- Filing Suit Against the IRS for a Tax Refund in Federal Court
- Submitting an Offer in Compromise of a Tax Liability
- Abatement of Penalties
- Innocent Spouse Relief
- Removal of Federal Tax Liens
- Removal of Wage & Bank Levies
- Submitting Voluntary Disclosure Regarding Unreported Income or Offshore Bank Accounts
