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The United States' tax laws can be considered to be one of the most complicated tax systems among many countries. One of the branches of US tax law that have been known to have the highest penalties is foreign reporting. The requirement to report Foreign Bank and Financial Accounts (FBAR) was introduced in the 1970 Bank Secrecy Act which was amended in 2001. A more recent legislation which is the Foreign Account Tax compliance (FATCA) allowed the IRS (Internal Revenue Service) and the Treasury Department added authority to ensure that the international tax compliance is strictly implemented.

 

Many people often applaud steps taken by the government to ensure that people who have hidden wealth in offshore accounts are caught until they find out that they themselves have violated the law. The United States requires citizens to report earnings from outside of the country even if it has been taxed. This is often a surprise for people who just moved to the country especially if they still own a bank account or businesses in their home country.

 

The income from these businesses must be reported. They will have to still pay the corresponding taxes in the U.S. even if they have paid the taxes in their home country. The IRS have introduced a program in order minimize the high rate of non-compliance in relation to foreign tax reporting. Most often, people do not comply due to ignorance of the law. With the Offshore Voluntary Disclosure Program, taxpayers are allowed to correct their mistakes in the past and pay overdue taxes. Penalties may be required to be paid but in some cases, they are not required to pay any penalties.

 

But, the OVDP (Offshore Voluntary Disclosure Program) has been criticized by many citizens because it penalized innocent taxpayers the same rate with those who willfully failed to pay foreign asset taxes. This is why the IRS also created the Streamlined Filing Compliance. This program is made available to taxpayers who innocently failed to report foreign earnings and assets.

 

With the complicated tax systems of the United States despite diligently complying with their tax responsibilities, sometimes people find themselves in trouble with the IRS. In cases like these, contacting an international tax attorney is the prudent thing to do. They are well versed with international tax laws and will be able to help you sort through tax issues that you are having trouble with. They will be able to guide you through the procedures to access the OVDP or the Streamlined Filing Compliance to correct mistakes in paying taxes. With a lawyer to help you, you will be able to fully understand your rights as a taxpayer and how you can stay out of trouble with the IRS. They will be able to handle all legal issues and give you sound advice with regards to tax laws that you need to comply with. Also, an international tax lawyer will also be able to help you if you intend to put up a business outside the country or in possessing properties in other nations. Your attorney will be able to understand better how you can apply taxes based on the other country's laws. International tax lawyers can help draft out contracts for mergers or partnerships that is legally binding and acceptable.

 

Choosing the best international tax attorney should be based on experience and level of expertise. Always choose credible firms that have handled legal cases similar to yours. Often, you can use the internet to find a suitable international tax attorney. Law firms have their own websites where you can contact a tax lawyer that can help you. It is always best to get the assistance of international tax attorneys especially if you have businesses or assets abroad. Do not ignore problems regarding your taxes otherwise it will get much worse. Get the help of experts and make things easier for you.