Andrew Mitchel LLC is a law firm of international tax attorneys with over 30 years of experience in international tax planning and associated U.S. tax return preparation. We have clients in the United States and all around the world. We advise most of our clients over the phone, email, video conference, Skype, etc. Clients are also welcome to visit our Connecticut office.
Our clients typically include:
When dealing with cross-border transactions, the tax laws of multiple countries may need to be considered. We have relationships with tax advisors in many countries.
In December of 2017, the Tax Cuts and Jobs Act made significant changes to the U.S. international tax rules. We help taxpayers and their advisors understand the implications of the new rules. The new law includes: a participation exemption (via a dividends received deduction), a deemed repatriation transition tax, global intangible low-taxed income (GILTI), and foreign-derived intangible income (FDII).
We prepare or review U.S. international tax forms for clients or their tax preparers such as Forms 5471, 8865, 8858, 8621, 8938, 8833, 1116, 2555, 1120-F, 1040NR, 1042, 3520, 3520-A, FBAR (FinCEN 114), etc. Failure to file complete and accurate forms can result in substantial IRS penalties.
We determine whether foreign businesses have U.S. effectively connected income and whether there are profits attributable to a permanent establishment in the U.S.
We have significant experience analyzing U.S. tax treaties with many countries. Tax treaty analysis often includes limitation on benefits (LOB) provisions, residency tie-breaker rules, disclosures of treaty positions, reduced withholding tax rates, permanent establishments, relief from double taxation, nondiscrimination, etc.
We assist foreign persons with entity structure planning for investing into U.S. real estate. The structure plannning considers FIRPTA rules, income taxes, withholding taxes, estate taxation, etc.
Special rules and filing requirements apply to foreign corporations controlled by U.S. persons. These rules include Subpart F income and global intangible low-taxed income (GILTI).
PFICs are foreign corporations that have significant passive income or assets. PFIC excess distributions are subject to special rules, and U.S. shareholders of PFICs can make certain elections regarding PFICs, such as qualified electing fund (QEF) elections, mark-to-market elections, and purging elections. We help clients navigate through these complex rules.
The U.S. generally avoids double taxation by allowing a tax credit for foreign taxes paid, subject to a limitation. The foreign tax credit limitation is generally applied separately for income in different categories (referred to as “baskets”), passive basket income, general basket income, income resourced under a treaty, and GILTI. We can assist with computing foreign tax credits and the foreign tax credit limitation.
U.S. individuals owning foreign corporations generally cannot claim foreign tax credits for foreign income taxes paid by the foreign corporations. It is often possible to elect to treat the foreign corporations as pass-through entiities to allow the U.S. individuals to claim foreign tax credits and avoid double taxation.
If you are planning to move to the U.S., there are often steps you can take to minimize your U.S. taxes. It is critical that this type of planning be done prior to becoming a U.S. resident.
If you are considering giving up your green card or your U.S. citizenship, it is important to determine whether you will be subject to the exit tax. Steps may be taken to avoid the exit tax or minimize the impact of the exit tax. It is critical that the planning be done prior giving up your green card or your U.S. citizenship.
We advise clients who are in the process of forming, acquiring, reorganizing, or selling U.S. or foreign entities. It is often possible to restructure U.S. and foreign entities in a manner that qualifies the transactions as non-taxable under the U.S. tax code.
U.S. individuals are subject to U.S. tax on their worldwide income, regardless of where they reside. However, U.S. individuals living outside the U.S. may be able to exclude approximately $100,000 of earned income from their U.S. taxable income.
If you have any other question relating to the U.S. taxation of cross-border activities, we have probably seen it before. Contact us today to find out how we can help.