Unveiling US Tax Reporting: Essential Insights for Individuals and Businesses
Book an appointment to navigate the complexities of US tax reporting, ensuring compliance and optimizing financial efficiency for both individuals and businesses.
US Tax Reporting for Individuals and Businesses is a crucial aspect of the American tax system. For individuals, tax reporting involves filing annual tax returns, disclosing income from various sources such as wages, investments, and self-employment, and claiming deductions and credits to minimize tax liability. Additionally, individuals with foreign financial assets may need to report those holdings under the Foreign Account Tax Compliance Act (FATCA) and Report of Foreign Bank and Financial Accounts (FBAR) requirements.
For businesses, tax reporting entails a more complex process, varying based on the entity's structure, such as sole proprietorships, partnerships, corporations, or LLCs. Entities must report income, expenses, and deductions accurately, adhering to specific guidelines and deadlines. Depending on the size and nature of the business, additional forms and disclosures, such as payroll taxes, sales taxes, and excise taxes, may also be necessary.
Both individuals and businesses are subject to rigorous IRS scrutiny, necessitating precise record-keeping and documentation. Non-compliance can lead to penalties, interest, and potentially legal consequences. Engaging tax professionals and utilising modern tax software can streamline the reporting process and help ensure accurate and timely submission, easing the burden for taxpayers and businesses while remaining compliant with US tax laws.
The 2022 US Inflation Reduction Act stands as a landmark legislation that has had a profound impact during the Biden Presidency. Representing one of the most comprehensive and far-reaching pieces of legislation, this act has been designed to address the pressing issue of inflation in the country.
Central to this act is the allocation of nearly $80 billion in new funding for the Internal Revenue Service (IRS). This substantial boost in funding signifies a commitment to enhancing the agency's capabilities and bolstering its efforts in various areas. Most notably, the IRS has outlined its intention to channel a significant portion of this funding towards increasing audit and enforcement programs. With a stronger focus on enforcement, the IRS aims to tackle tax evasion, fraud, and non-compliance more rigorously. This move is expected to enhance overall tax collection efforts, potentially narrowing the tax gap and generating additional revenue for the government.
If you are a US citizen who is not compliant with US tax laws, have significant US investments, or your Canadian business has US operations or customers, seeking advice from US tax lawyers is crucial. US tax laws are complex and subject to frequent changes, making it challenging for individuals and businesses to navigate without professional guidance. Here’s how we can help:
Our client engagement mirrors our core principles: discretion, proficiency, and transparent fees. Instead, our onboarding process simply ensures that we are the professionals best suited for your situation.
Providing us your individual and, if applicable, business name(s) is all that we need to start this process.
Choose Bordera to access a team with 25+ years of cross-border tax experience, offering big firm knowledge tailored to your needs without the associated bureaucracy. Benefit from cross-border tax and immigration solutions that transcend national perspectives, ensuring efficient and effective resolutions from day one.
The IRS offers several programs for individuals to get compliant, and we’ve helped hundreds of clients use them. Likewise, we have assisted businesses that discover unfulfilled filing requirements use similar state and local government programs. We help choose which program to use; oversee return preparation to ensure that all requirements are met while minimizing cost and inconvenience; and follow up with the IRS or state tax authority if necessary on your behalf. Everything is done with the protection of attorney-client privilege.
Yes. A US citizen’s unfulfilled tax obligations do not go away at death. Instead, the liability transfers to the executor. We’ve handled many similar cases on behalf of the estate of a US person.
Bordera Tax and Immigration Law is a premier firm with a sound focus on cross-border tax issues for individuals, corporations, partnerships, and trusts. With offices in Calgary and Vancouver, our US lawyers and accountants assist clients worldwide in renouncing US citizenship, obtaining US visas, and expanding Canadian businesses into new US markets. We excel in voluntary disclosures, tax compliance, and dispute resolution with US and Canadian tax authorities. Our extensive knowledge in cross-border estates, trusts, and real estate investments enables us to optimise tax efficiency and safeguard clients' assets. We also offer guidance in Canadian departure tax planning. Trusted for our insight and experience, we have presented on cross-border tax topics to accounting firms, private wealth managers, and banks. Count on Bordera Tax and Immigration Law for top-tier advice and exceptional service.
