Monocacy Wealth Management
International Tax Services
Opening your business or personal finances to a global market creates opportunities that typically can't be found at a national level. But operating at this stage also comes with complex tax regulations that can lead to penalties and fines if not properly addressed.
This is why we’re here—to keep you compliant, minimize your liability, avoid double taxation, and stay informed about ever-changing regulations.
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The U.S. government strictly enforces tax filing and reporting requirements for those conducting international affairs. This applies to U.S. citizens and companies operating abroad, as well as foreign citizens doing business in the U.S. Without proper tax planning and compliance, you may face extreme penalties that could ruin your financial standing.
U.S. taxpayers are subject to income tax on their global income and gains, as well as Estate and Gift Taxes when transferring assets during life or at death. However, there are certain areas where the tax system and the other foreign tax policies are mismatched in terms of timing, rates, and what is actually taxable. For example, inter-spousal transfers that are tax-free for married couples may, in fact, be subject to taxation in other countries.
Business entities are also treated differently from one jurisdiction to another. For instance, an entity treated as a corporation in one jurisdiction may be treated as a partnership in another, and the tax requirements may be different due to the classification. A foreign entity seeking to set up a subsidiary on U.S. soil faces an especially tricky tax terrain, and it must be meticulous about the details to register successfully without running into tax issues.
Our tax experts at Faragalla and Associates offer reliable asset and estate planning services to help you navigate the complex tax issues associated with foreign jurisdictions. We can help you make timely tax submissions and calculate the correct amounts taxed to settlors, trustees, and beneficiaries, which all require sophisticated planning.
Penalties for Inaccurate Tax Reporting
Failure to file or accurately disclose international income and gains can result in financial penalties imposed under both criminal and civil regulations. It's common for individuals who do not report foreign bank accounts to face harsh penalties and other fines. Moreover, if you don't disclose income from your foreign business operating in the U.S., you could face real problems with the IRS.
Additionally, if you neglect to file a required FBAR, you're likely to attract a large penalty for every non-willful failure to accurately disclose and expediently file international tax. Failing to file FBARs may also be a criminal offense with monetary penalties and possible jail time. Our tax experts at Faragalla and Associates can help you navigate the complex international tax laws and avoid these repercussions with swift and effective filing that ensures your finances are accurately reported.
Immigration Tax Planning Services in Frederick
There are two classifications of individuals regarding taxes—namely, tax residents and non-tax residents. If you're an immigrant in the U.S., you'll need to comply with the prevailing immigration and tax laws. Whether you'll need to file and pay taxes depends on how the government has categorized you as a tax resident. For instance, all permanent resident green card holders are considered as tax residents, but not all non-immigrant visa holders will need to pay taxes.
Generally, U.S. tax residents must report their income to the IRS and remit taxes. It doesn't matter whether you've earned money within the country or internationally. However, reporting all of your income to the IRS doesn't mean all of your income will be taxed. The tax experts at Faragalla and Associates can help you prepare and file the applicable taxes for green card holders, non-immigrant visas, and other immigration statuses.
Additionally, we offer international estate tax planning for dual nationality. And if you're a U.S. citizen working or doing business abroad, our tax experts will help you leverage the taxes you pay in other countries to offset your U.S. tax burden and minimize global effective tax rates.
Tax Services for Foreign Diplomats
Diplomats working within the U.S. enjoy many special privileges, but when it comes to taxation, they still need to know what to file with the government and when to ensure compliance and a positive working relationship. You may hold one of several different visa types, and the tax requirements you face will depend on what type of visa you are granted by the government.
Our Frederick international tax firm has worked with diplomats operating in the Washington, D.C. area. We help you understand your obligations and meet them efficiently, so you don't have to worry about an unexpected oversight leading to serious and stressful complications.
Avoiding Double Taxation
Understanding a country's taxing rights will help you better understand the situations that could lead to double taxation. In international tax law, conflicts among nations with unique taxation rights may arise and result in double taxation. If not addressed correctly, multiple jurisdictions may impose taxes on you or your business, resulting in an overall tax rate eating into and even exceeding your profits.
Our tax professionals will help evaluate your international tax situation and eliminate the chances of double taxation. Some of the areas where double taxation often arises include:
- Multiple countries asserting taxing rights over your startup
- Multiple countries asserting taxation rights over your transactions
- Split tax assertion over a party or transaction
We can help you take advantage of unilateral and bilateral methods to avoid double taxation and minimize your tax burden. For instance, you can get a tax credit for foreign taxes paid on income you earned abroad.
Financial Planning
Financial success demands hard work. But it also requires strategic planning and guidance from experts who understand your financial situation and goals. This is where our sister company Monocacy Wealth Management excels.
Whether you need help updating your tax strategies, rebalancing your portfolio, or anything in between, we’re here with you every step of the way.
Real Reviews, Real Success
Unique Solutions for Unique Industries
Government Contracting
From budgeting and forecasting to CFO services and data management, we ensure you're audit-ready and positioned for success. Our team offers specialized accounting services designed to meet the unique needs of government contractors.
Healthcare
Let us focus on the numbers so you can do what you do best: deliver exceptional patient care. From revenue cycle management and regulatory compliance to payroll processing and budget analysis, we provide comprehensive financial solutions tailored to the healthcare industry.
Real Estate
Your industry is as fast-paced as it is unpredictable. Let us give you the financial certainty you need to not only survive inflation, low inventory, and rising interest rates but thrive in any market condition.
Technology
Whether you need help with cash flow and equity dilution planning, require budget forecasting, or need data-driven insights to scale your business, we can help. With over 30 years of experience, we know what it takes to meet the tech industry's rapidly evolving needs.
Meet Your Financial Partners
We founded Faragalla and Associates in 1991 because we saw a major industry gap—too many accounting firms were leaving clients feeling overwhelmed and underserved.
We made a vow to change this by prioritizing personalized attention and clear communication at every step.
Learn more about our founding principles and the client-focused approach that has made us stand out for over 30 years.
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Transform Your Financial Uncertainty into Opportunity
Living in the financial dark means missed opportunities, unnecessary stress, and an uncertain future. Our team will give you the timely and actionable financial data you need to make informed decisions, drive business and personal growth, and secure your financial future. Contact us now for a free discovery call!
