Cross-Border Tax Compliance

Rigorous guidance for U.S. taxpayers with foreign financial interests — navigating FBAR, FATCA, foreign entity reporting, and voluntary disclosure with accuracy and strategic foresight.

"FBAR penalties for willful non-compliance can reach the greater of $100,000 or 50% of the account balance per violation. The IRS's international enforcement programs remain active and expanding."

Services Include

  • FBAR Preparation & Filing

  • FATCA / Form 8938 Compliance

  • Foreign Corporation Reporting

  • Foreign Trust Compliance

  • PFIC Analysis & Elections

  • Voluntary Disclosure Programs

  • Streamlined Offshore Procedures

  • Foreign Gift & Inheritance Reporting

  • Ongoing Compliance Counseling

  • Pre-Residency & Exit Planning

Frequently Asked Questions

  • FBAR (FinCEN Form 114) is filed separately from a tax return and requires reporting of foreign financial accounts exceeding $10,000 at any point during the year. FATCA (Form 8938, filed with the tax return) requires disclosure of specified foreign financial assets above higher thresholds. Both may apply simultaneously, and the forms are not duplicative.

  • Inheriting a foreign account triggers both FBAR and potentially FATCA reporting requirements once the balance threshold is met. Additionally, if you inherited from a foreign person above certain amounts, you may need to file Form 3520. We help clients understand and meet all applicable obligations following cross-border inheritances.

  • U.S. residents may use the Streamlined Domestic Offshore Procedures (SDOP), which imposes a 5% miscellaneous offshore penalty. Non-residents may qualify for the Streamlined Foreign Offshore Procedures (SFOP), which carries no offshore penalty. Eligibility depends on meeting specific criteria, including that the non-compliance was non-willful.

  • A Passive Foreign Investment Company (PFIC) is a foreign corporation that derives most of its income from passive sources (such as a foreign mutual fund). PFICs are subject to harsh U.S. tax rules — including punitive tax rates and interest charges on undistributed earnings — unless a timely election is made. Many U.S. persons holding foreign funds are unaware that PFIC rules apply to them.

Foreign Reporting Questions?

Whether you need help with current obligations or remediating past non-compliance, our team can help.

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U.S. Tax Compliance for Global Citizens

The United States taxes its citizens and permanent residents on their worldwide income — regardless of where they live or where their assets are held. For Americans with foreign bank accounts, investments, businesses, or trusts, this creates a web of annual reporting and disclosure obligations that carry severe penalties for non-compliance.

Our cross-border tax compliance practice helps individuals and families understand, meet, and — where appropriate — remediate their U.S. international tax obligations. We work with expats, foreign nationals, returning Americans, and investors navigating the full spectrum of international reporting requirements.

Key Reporting Obligations

U.S. persons with foreign financial interests may be subject to a number of distinct reporting requirements, including:

  • FBAR (FinCEN Form 114): Annual reporting of foreign bank and financial accounts exceeding $10,000

  • FATCA (Form 8938): Disclosure of specified foreign financial assets above applicable thresholds

  • Foreign Corporation Reporting (Forms 5471 & 8865): Required for U.S. shareholders of foreign corporations and partnerships

  • Foreign Trust Reporting (Forms 3520 & 3520-A): For U.S. grantors, owners, or beneficiaries of foreign trusts

  • PFIC Reporting (Form 8621): For holders of passive foreign investment companies

  • Foreign Gift & Inheritance Reporting (Form 3520): For receipt of large foreign gifts or bequests

Voluntary Disclosure & Penalty Mitigation

Clients who have failed to meet their foreign reporting obligations in prior years are not without options. The IRS offers several programs designed to bring taxpayers into compliance with reduced or eliminated penalties:

  • Streamlined Domestic Offshore Procedures (SDOP)

  • Streamlined Foreign Offshore Procedures (SFOP)

  • Voluntary Disclosure Program (VDP)

  • Delinquent FBAR and international information return procedures

Selecting the right program requires a careful analysis of the taxpayer's facts, the nature of the non-compliance, and the risk of detection. Our attorneys guide clients through this process with discretion and strategic precision.

Ongoing Compliance Strategy

Beyond one-time remediation, we help clients develop sustainable compliance frameworks for managing their international tax obligations year over year. This includes coordinating with foreign accountants and advisors, structuring foreign investments to minimize U.S. reporting burdens, and planning for changes in residency or citizenship status.