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International Tax Disclosure

International Tax Disclosure

The U.S. has onerous international tax disclosure requirements for U.S. citizens and residents, including:
  • Foreign income
  • Foreign bank accounts
  • Foreign financial assets
  • Passive foreign investment corporations
  • Ownership of foreign corporations
  • Contributions to, and distributions from, foreign trusts
  • Ownership in a foreign trust under the U.S. “grantor trust” rules
  • Receipts of large gifts and inheritances from foreign persons
There is no Statute of Limitations for unfiled tax returns and information returns.
Substantial civil penalties (and interest) can apply for negligent or non-willful failure to file certain international forms, or substantially comply with IRS filing requirements. Criminal penalties can apply for willful violations.

Beneficial Ownership Information Reporting

Following the introduction of the Corporate Transparency Act, from January 1, 2024, certain companies are also required to report beneficial ownership information to FinCEN (Financial Crimes Enforcement Network). These include domestic corporations, limited liability companies, and any other entities created within the United States, and foreign entities that are registered to do business in the United States.
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Reporting Requirements

These reporting requirements are especially relevant to Australians who live in the U.S., and to U.S. citizens who live in Australia. In addition to having foreign income and foreign bank accounts, they may also:
  • Hold Superannuation accounts in Australia.
  • Hold managed investments in Australia.
  • Be beneficiaries, trustees, or appointors, of Australian trusts.
  • Be members of self-managed superannuation funds.
  • Be directors and/or shareholders of Australian companies and corporate trustees.
  • Receive gifts and inheritances from family members in Australia, or operate businesses in, and between, both countries.
  • Receipts of large gifts and inheritances from foreign persons.
If you have not complied with your disclosure obligations, Tax Remediation may be appropriate for your circumstances.
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