International business ownership, investments, and personal connections can create U.S. tax obligations that extend well beyond an annual tax return. Whether you’re expanding a business overseas, investing across borders, or moving to or from the United States, the decisions you make today can have lasting tax consequences.
YHB helps individuals, business owners, and companies understand their international tax obligations and plan for what comes next. We look beyond individual filing requirements to consider how international activities affect your broader financial and business goals, helping you make informed decisions and avoid costly surprises.
International Tax Services
International tax rules can be complicated, particularly when multiple countries, businesses, or investments are involved. Our team provides U.S. international tax guidance in six key areas.
Foreign Business Ownership & Operations
Owning or investing in a foreign business brings additional tax and reporting considerations. We help evaluate entity structures, foreign earnings, and U.S. reporting obligations, including Forms 5471, 8858, and 8865.
Foreign-Owned U.S. Businesses
Foreign ownership of a U.S. company can create additional tax obligations. We help businesses understand applicable reporting requirements, including Form 5472, and evaluate the tax implications of ownership structures and related-party transactions.
Foreign Accounts & Investments
International bank accounts, investments, and financial assets may require specialized reporting. We help assess FBAR, Form 8938, and other applicable requirements while considering the U.S. tax implications of foreign investments.
U.S. Citizens & Residents Abroad
Living or working overseas doesn’t necessarily eliminate U.S. tax obligations. We help individuals navigate foreign income reporting, tax credits, exclusions, and other U.S. tax considerations associated with living abroad.
Foreign Nationals with U.S. Interests
Moving to the United States, earning U.S. income, or investing in a U.S. business can introduce unfamiliar tax requirements. We provide guidance on tax residency, filing obligations, and applicable treaty provisions. Our on-staff Certifying Acceptance Agent can also assist with ITIN applications without requiring applicants to mail their original passports to the IRS.
International Tax Planning & Transactions
Cross-border transactions require careful planning. We help evaluate the U.S. tax implications of international business structures, acquisitions, sales, financing, and distributions, including entity classification elections and cash repatriation planning. We coordinate with other specialists when needed.
International Tax Planning Starts Before the Transaction
Some of the most important international tax decisions happen long before a return is filed. Forming a foreign company, purchasing an overseas investment, transferring money between related businesses, or changing your country of residence can create tax consequences that aren’t immediately obvious.
For example, a business may be treated differently for tax purposes in the United States than in the country where it operates. An investment may trigger reporting requirements even when it hasn’t generated income. And a change in ownership could affect how future earnings are taxed. Understanding these implications before moving forward gives you more options.
YHB helps you evaluate the potential consequences, identify reporting obligations, and consider the best approach for your circumstances. If you already have international interests, we can also help review existing arrangements and identify areas that may need attention.
International Tax Compliance and Specialized Planning
Beyond ongoing tax planning and reporting, certain international activities require additional analysis or specialized expertise. Our team can assist with:
- International Tax Compliance: Foreign business reporting, foreign financial accounts, offshore investments, and related U.S. filing requirements.
- Cross-Border Business Planning: Entity classification and elections, foreign earnings, distributions, cash repatriation, and the U.S. tax implications of international financing arrangements.
- Transfer Pricing & Related-Party Transactions: Intercompany pricing considerations, related-party transactions, and coordination of specialized transfer pricing studies and policies when appropriate.
- International Transactions: U.S. tax considerations involving cross-border acquisitions, business sales, reorganizations, and international tax due diligence.
- Export Tax Incentives: Evaluating applicable U.S. export tax incentives, including IC-DISC planning and related compliance requirements.
- Individual & Family Tax Matters: Foreign income, international real estate, trusts, gifts, inheritances, and investments with U.S. tax or reporting implications.
- Reporting Corrections & Tax Controversy: Reviewing prior-year international filings, addressing missed reporting requirements and amended returns, and assisting with international tax notices, penalty-relief requests, examinations, and appeals.
International tax matters often involve more than one area of expertise. We help determine what needs attention and bring the appropriate professionals into the conversation.
International Tax Guidance That Connects the Bigger Picture
International tax decisions rarely exist in isolation. They can affect your business operations, personal finances, investments, and long-term plans.
YHB’s International Tax team works alongside our broader Tax and Advisory teams to help you understand how these considerations fit together. When additional expertise is needed, we coordinate with legal counsel, foreign-country tax advisors, and other specialists to make sure the right issues are addressed.
Our goal is to provide clear guidance, help you make informed decisions, and maintain continuity as your international interests evolve.
Common International Tax Questions
Do I have to pay U.S. taxes if I own a business in another country?
U.S. citizens and residents who own foreign businesses may have U.S. tax and reporting obligations even when the business operates entirely overseas. The requirements depend on factors such as ownership percentage, entity classification, and how the business earns and distributes income. Certain foreign business interests may also require additional IRS filings.
Does a foreign-owned U.S. company have special tax reporting requirements?
Yes, certain U.S. businesses with foreign owners must meet additional reporting requirements, particularly when transactions occur between the U.S. company and related foreign parties. For example, Form 5472 may be required for certain reportable transactions. Understanding these obligations early can help businesses avoid missed filings and potential penalties.
Do I need to report foreign bank accounts or investments?
U.S. taxpayers may need to report foreign financial accounts and assets, even when those accounts do not generate taxable income. Depending on the circumstances, requirements may include an FBAR, Form 8938, or other international information returns. Reporting thresholds and filing requirements vary.
When should I speak with an international tax advisor?
Ideally, before making a significant cross-border financial or business decision. Forming or acquiring a foreign business, investing internationally, relocating, or changing ownership structures can create tax consequences that are difficult to address after the fact. Early planning helps identify obligations and evaluate available options.
Let’s Talk About Your International Tax Needs
You don’t need to have every international tax question figured out before reaching out.
Whether you’re considering a new investment, managing an existing international business, or trying to understand your reporting obligations, YHB can help you identify what matters and determine the right next steps.