Andrew Mitchel is an international tax attorney 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.
Unless special elections are made, in 2017 U.S. owners of specified foreign corporations will be taxed in full on their share of the foreign corporation’s deferred earnings. This deemed repatriation of foreign earnings is required by Code §965. In certain narrow circumstances, we may be able to significantly reduce the U.S. tax cost of the deemed repatriation.
GILTI (global intangible low-taxed income) is a new type of income inclusion that applies to U.S. shareholders of controlled foreign corporations. We analyze planning opportunities, calculate GILTI, and help our clients understand Code §951A.
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 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.
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.
Special rules and filing requirements apply to foreign corporations controlled by U.S. persons. These rules include annually filing Form 5471, computing Subpart F income, and computing 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. C corporations (and individuals electing under Code §962 to be taxed at corporate rates) can claim deemed paid foreign tax credits. We can assist with the computing the amount of deemed paid foreign tax credits that can be claimed on the U.S. tax return.
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 submit requests for private letter rulings from the IRS in many different areas, including 9100 relief for late elections, such as late check-the-box elections, late foreign earned income exclusion elections, etc.
If a U.S. person has any involvement whatsoever with a foreign trust, complex and potentially punitive rules apply. Transfers to foreign trusts, distributions from foreign trusts, and treatment of U.S. persons as grantors of foreign trusts are all subject to special rules.
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.
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.
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.