International tax
International Tax Services
Expert guidance for U.S. expats, foreign nationals, and cross-border businesses.
What We Handle
Four core areas of international tax, each with significant penalty exposure if filed incorrectly.
Individuals
Expat Tax Services
U.S. citizens abroad still owe federal taxes, but the right strategy can exclude up to $132,900 in foreign earnings for 2026 ($130,000 for 2025) from U.S. tax.
- Foreign Earned Income Exclusion (FEIE)
- Foreign Tax Credit to avoid double taxation
- Tax treaty benefits analysis
- State tax obligations review
Business
International Business Tax
Cross-border operations trigger complex reporting rules. We structure your global tax position to minimize worldwide liability while keeping every entity compliant.
- GILTI planning & Subpart F analysis
- Transfer pricing documentation
- Cross-border transaction structuring
- Foreign subsidiary & branch reporting
Compliance
FBAR & Foreign Asset Reporting
Unreported foreign accounts carry penalties of $10,000+ per account, per year, even for unintentional non-compliance.
- FBAR (FinCEN 114): accounts over $10K
- Form 8938 (FATCA): foreign financial assets
- Form 3520: foreign trusts & gifts
- Form 5471 / 8865: foreign entity ownership
Penalty Relief
IRS Penalty Relief & Voluntary Disclosure
Behind on foreign reporting? The IRS offers limited-window programs to reduce or eliminate penalties, but only if you come forward first.
- Streamlined Filing Compliance Procedures
- Delinquent FBAR / information return submission
- Reasonable cause penalty abatement
- Audit defense & taxpayer representation
International tax
Not sure which of these applies to you?
Most international questions are settled in one call: what you must file, what you can exclude, and what the exposure is if you are behind.
Expat & Relocation Tax Services
Location-specific tax guidance for U.S. citizens relocating or living abroad.
United Kingdom
U.S.-UK tax treaty optimization, Foreign Tax Credit coordination with HMRC, and full IRS compliance for Americans living in the UK.
Germany
U.S.-Germany tax treaty planning, FEIE vs. Foreign Tax Credit election strategy, and FBAR compliance for American expats in Germany.
Spain
Modelo 720 foreign asset reporting, U.S.-Spain treaty benefits, and coordinated IRS and Hacienda compliance for Americans in Spain.
Portugal
Non-Habitual Resident (NHR) regime coordination, U.S.-Portugal treaty planning, and FBAR filing for Portuguese bank accounts.
Puerto Rico
Act 60 decree planning, bona fide residency structuring, and IRS Form 8898 compliance for U.S. citizens pursuing the 4% corporate rate and 0% capital gains tax under §933.
Everywhere Else
Treaty analysis, FEIE against the foreign tax credit, and FBAR and FATCA reporting for Americans in any country, including those with no US tax treaty at all.
Why Clients Trust Us With International Tax
Specialized expertise, direct CPA access, and a compliance-first approach that protects you from costly IRS penalties.
International Tax Is Our Focus
Expats, foreign nationals and cross-border businesses are a core part of this practice, not an occasional return.
Direct Access to Your CPA
No call centers. You work directly with the CPA who prepares and signs your return and knows your residency status and income picture.
Compliance First
International information-return penalties often exceed the tax itself. We get the filings right first, then look for savings.
Remote-First, Worldwide
Clients can be anywhere in the U.S. or abroad. Secure portals, virtual consultations, timezone flexibility.
Compliance Coverage
International Tax Forms We Prepare
Individual & Expat Returns
- Form 1040: U.S. Expat Tax Return
- Form 1040-NR: Nonresident Alien Return
- Form 2555: Foreign Earned Income Exclusion
- Form 1116: Foreign Tax Credit
Foreign Asset & Account Reporting
- FBAR (FinCEN 114): Foreign Bank Accounts
- Form 8938: FATCA Reporting
- Form 3520 / 3520-A: Foreign Trusts & Gifts
International Business & Entity
- Form 5471: Foreign Corporation Ownership
- Form 8865: Foreign Partnership Reporting
- Form 8992: GILTI Calculation
How an engagement works
Three steps, with the fee agreed before work begins.
Discovery Call
We go through your residency status, income sources and any accounts or entities abroad.
Review and plan
We review prior filings, identify anything missing and set out what can be excluded or credited.
Prepare and file
We prepare and file the returns and information forms, and tell you what to expect next year.
International Tax FAQs
Do I still need to file U.S. taxes if I live abroad?
Yes. The U.S. taxes citizens and green card holders on worldwide income, regardless of where you live.
However, exclusions like the FEIE (up to $132,900 for 2026; $130,000 for 2025) and the Foreign Tax Credit can significantly reduce, or eliminate, your U.S. tax liability.
What is FBAR and do I need to file one?
If the combined value of your foreign financial accounts exceeds $10,000 at any point during the year, you must file an FBAR (FinCEN 114).
This includes bank accounts, investment accounts, and accounts where you have signature authority, even if you don’t own them.
What happens if I haven’t reported my foreign accounts?
Penalties can reach $10,000 per account per year (or more for willful violations).
The IRS offers programs like the Streamlined Filing Compliance Procedures that can reduce or waive penalties, but only if you come forward before the IRS contacts you.
What’s the difference between FBAR and FATCA?
Both involve foreign financial assets, but they go to different agencies with different thresholds.
FBAR goes to FinCEN (threshold: $10K).
Form 8938 goes to the IRS (threshold: $50K–$200K+ depending on residency).
Many taxpayers must file both.
I’m a foreign national in the U.S. What do I need to file?
It depends on your residency status under the Substantial Presence Test.
Resident aliens file like U.S. citizens (worldwide income). Nonresident aliens file Form 1040-NR and are generally taxed only on U.S.-source income.
We determine your status and optimize your filing position.
Can you help if I own a foreign business?
Yes. Foreign entity ownership triggers forms like 5471 (foreign corporation), 8865 (foreign partnership), and potentially GILTI or Subpart F income reporting. Non-filing penalties start at $10,000 per form.
We handle the full reporting chain.
Do I need to be in New York to work with you?
No. International clients work with us remotely, from across the U.S. and abroad.
We use secure document portals and virtual meetings, and we’re experienced with timezone differences.
Does moving to Puerto Rico eliminate my U.S. federal tax?
For most U.S.-source income, no, but Puerto Rico Act 60 can substantially reduce taxes on Puerto Rico-source income. Bona fide residents under §933 pay 0% federal tax on Puerto Rico-source income, plus a 4% corporate rate on qualifying export services and 0% on capital gains accrued after relocation. The trade-offs include strict residency tests, IRS Form 8898, real economic substance requirements, and a $5,000 annual filing fee plus $10,000 in charitable contributions. Because Hiltzik CPA is authorized to file Puerto Rico tax returns as well as federal, we handle both the federal and the Puerto Rico side of the move in-house. Learn more about our Puerto Rico Act 60 services.
Book a call
Book Your Free International Tax Consultation
Thirty minutes, no charge. We will tell you what you are required to file, what you can exclude, and what the exposure is if you are behind, and whether the work is worth doing at all.