Cross border tax preparation can be overwhelming, stressful and complicated. If not done correctly, it can be costly too. Getting assistancein cross border tax service is the best way to do to avoid headache in preparing your own tax return. For Canadian-based company doing business in the U.S., for example, “it’s important to obtain the advice of a cross border tax specialist not only on business structure and international banking considerations, but on legal and taxation issues,” notes Jana Henderson, director of Global Solutions, RBC. There are pre-tax and post-tax questions into their business case discussions that a cross border tax specialist can answer.
Here are a few things you should expect from cross border tax specialist:
- Your tax preparer specializes in cross border tax returns. There is a difference between a U.S. tax return and a U.S. Cross border tax return. It is quite understandable that the same goes for a U.S. tax preparer and a U.S. cross border expert. Federal and state return are filed by a U.S. tax preparer, while a U.S. Cross Border tax specialist has the expertise to prepare your U.S. return including preparations of any mandatory cross border information forms that are required for the Internal Revenue Service (IRS) and the Department of Treasury if you are living overseas. Cross border tax services need to done correctly, and your cross border tax specialist assures that it can be done.
- Filing of correct return. Cross border tax specialist finds out which forms apply to your particular situation. If your tax preparer does not accommodate vital forms and return types, you are at risk at filing incorrectly. Errors in these returns or not filing proper forms can result in tax costs and penalties. Keep in mind that some tax forms may or may not apply to you. The forms your neighbor used may not be useful to you. Make sure that your cross border tax specialist knows your case so he can identify the correct form for you.
- Continued learning. It is important for a cross border tax specialist continuously improve their knowledge and skills through continued education. Continued education provider must be approved by the IRS. The IRS Continued Education program consists of in-depth training and exams which take place every year. This program ensures that the tax preparer is fully equipped and can keep with the changes in tax laws.
- Professional and can meet deadlines. Aside from meeting the deadline, a cross border specialist makes sure you’re in compliance in preparing your cross border return correctly. A cross border specialist must be able to claim the treaty exemptions and benefits applicable to your tax situation.