Services / International
U.S. tax, when a border is involved.
Cross-border filing is where ordinary tax work turns into a set of separate, unforgiving reporting rules. The returns are often straightforward. The information forms that ride alongside them are not, and they carry penalties that start at five figures whether or not any tax was owed. Freedman CPA has served U.S. and international clients for decades from offices in New York and Florida. The pages below cover the situations that come up most often.
Foreign owners of U.S. entities
If you own a U.S. company from abroad
- Foreign-owned single-member LLCs and Form 5472A U.S. LLC with one foreign owner has a federal filing requirement even with no income and no U.S. activity. Missing it costs $25,000.
- U.S. tax exposure for foreign foundersChoosing between a C corporation and an LLC, what creates U.S. tax, and the filings that follow from either choice.
U.S. persons abroad
If you are a U.S. taxpayer with foreign accounts or income
Nonresidents and identification
If you are not a U.S. person but the U.S. taxes you
- Nonresident filing and treaty positionsForm 1040-NR, effectively connected income versus flat-rate withholding, and how a treaty position is actually claimed.
- ITIN applications handled through a CPAForm W-7, the documentation the IRS will accept, renewals for expired numbers, and how the application fits with the return it attaches to.
Why these filings are treated differently
Most tax penalties are a percentage of tax owed, so a return with no tax due carries little risk. International information returns do not work that way. They are penalized on the failure to file, at a fixed amount, regardless of income, tax, or profit. A dormant entity and a profitable one face the same $25,000 exposure.
- Penalties attach to the form, not to the tax
- Filing deadlines differ from the return deadline
- Some forms are filed outside the tax return entirely
- Late is fixable, but only through the right procedure
Tell us where the border sits.
Ownership, residence, income source, and account location each change the answer. Describe the situation and we will tell you which filings actually apply.