How Does International Tax Planning Differ from Domestic Tax Planning?

There are firms that specialize in domestic tax planning, there are firms that specialize in international tax planning and then there are those rare accounting firms that can handle both flawlessly. Some individuals, organizations and corporations require complex tax planning for both domestic and international accounts. These clients require more than your run-of-the-mill tax preparation or accounting services because their needs are so complex. There are many distinct differences between taxes in this country and in other countries, and it’s important to understand these differences if you have accounts that span international borders.

International vs. Domestic Tax Services

Tax law and accounting firms like Allen Barron, Inc. can handle both international and domestic accounts due to a wide breadth of knowledge and experience. Domestic taxes are already very complex to begin with, and firms that specialize in this field by no means have it easy. Domestic tax accounts may include prominent individuals, estates, multiple businesses, nonprofit organizations and many other entities. But for individuals and organizations that have multiple residences and/or businesses, and companies with complex corporate structures spanning many borders, matters become even more complex. Individuals from the United States who are temporarily sent abroad for work also have difficult tax issues to be concerned about, which the average accountant may not be prepared to deal with.  

What to Look for in an International Accountant

The best international tax experts are motivated to reduce the amount of taxes their clients pay in the United States and equipped with the ability to develop complex strategies to meet that goal. Of course, domestic tax experts also want to minimize their clients’ tax debts stateside, but their sphere of concern does not extend past our national borders. Domestic tax planners only have national laws and regulations to be concerned about, rather than international tax laws and codes for every country concerned. An international specialist working in the field of tax law is best prepared to minimize outstanding balances for clients with complex tax structures, all while ensuring compliance with all associated rules and regulations.

Hiring a firm to handle your international and domestic taxes is an important task. The firm you choose should have years of experience, with successful accounts to prove it. Most importantly, their tax specialists should be honest about whether they can reduce or eliminate your tax obligations in the United States while complying with all laws and codes.

For assistance with your international and domestic tax preparation and tax planning, please give us a call at (866) 493-5400 and schedule a complimentary, initial consultation with one of our tax professionals.