International & Expat Tax Services

FBAR is the Foreign Bank Account Report (FinCEN Form 114). If you have foreign accounts totaling over $10,000 at any point during the year, you must file FBAR by April 15 (deadline is usually extended to October 15). This includes checking, savings, investment accounts, and retirement accounts. FBAR is not a tax return; it's a compliance report. Penalties for missing FBAR are severe ($10,000 per violation, or up to 50% of the account balance for willful violations). Many US expats and Naples retirees with offshore property forget FBAR until an audit surfaces it. Every client situation is different, so call (239) 441-2005 to review your specific facts before acting on this guidance.

FBAR reports foreign accounts over $10,000 to FinCEN. FATCA Form 8938 reports specified foreign assets to the IRS on your tax return if you exceed thresholds ($400,000 for individuals, $600,000 for married filing jointly). The thresholds are higher than FBAR, but there's overlap: most people filing 8938 also file FBAR. Some foreign accounts only trigger FBAR (like a checking account under the 8938 threshold). Penalties for both are severe. We file both if required and coordinate to avoid duplication. Every client situation is different, so call (239) 441-2005 to review your specific facts before acting on this guidance.

The Foreign Earned Income Exclusion (FEIE) lets US expats exclude up to $120,000 (2023) or roughly $130,000 (2024) of foreign earned income from US federal tax. You must be a bona fide resident of another country or physically present outside the US for at least 330 days in a 12-month period. FEIE only applies to earned income (wages, self-employment), not investment income. Many expats use FEIE to legally reduce US tax liability. However, you still file a US return and pay social security/Medicare tax on FEIE income. Every client situation is different, so call (239) 441-2005 to review your specific facts before acting on this guidance.

The Foreign Tax Credit (FTC) lets you claim a credit for taxes paid to other countries, reducing your US tax dollar-for-dollar. You can either take FTC or FEIE, not both. FTC makes sense if you're in a high-tax country like Canada or Germany where your local tax exceeds your US liability. FEIE makes sense in low-tax countries or if you have investment income. For expats in low-tax jurisdictions (Singapore, UAE, Cayman Islands), FEIE is usually better. We run both scenarios to see which saves more. Every client situation is different, so call (239) 441-2005 to review your specific facts before acting on this guidance.

Yes, absolutely. The US taxes worldwide income for citizens regardless of where you live. If you live in Singapore, you still owe US tax on global income. FEIE and FTC reduce that liability, but you're not exempt. Many expats don't realize this until they're audited. The IRS publishes guidance for expats, and penalties for non-compliance are steep. Even if you owe zero US tax after credits and exclusions, you must file a US return. This applies to Naples retirees with foreign income just as much as digital nomads. Every client situation is different, so call (239) 441-2005 to review your specific facts before acting on this guidance.

SFCP is an IRS program for US expats who've missed FBAR, FATCA, or tax filing requirements. Instead of facing penalties, you file back returns (typically 3 to 6 years), report foreign accounts on amended returns, and pay a one-time 'miscellaneous offshore penalty' (generally 5% of foreign assets). You must be non-willful (didn't intentionally hide income). SFCP is a safe harbor if you've missed requirements due to confusion. We use SFCP heavily for late-filing expats and retirees who moved abroad without realizing US filing obligations. Every client situation is different, so call (239) 441-2005 to review your specific facts before acting on this guidance.

Yes, the US assesses an exit tax on expatriating Americans. If you've been a citizen for at least 8 of the last 15 years and your net worth exceeds $2 million (or you have average income tax of $180,000 over the past 5 years), you're subject to mark-to-market tax on worldwide assets at expatriation. Essentially, the US treats you as if you sold all assets on the date of expatriation and taxes the gain. This is substantial for high-net-worth individuals. We model the exit tax before clients renounce to understand the bill. Every client situation is different, so call (239) 441-2005 to review your specific facts before acting on this guidance.

Foreign pensions and retirement accounts must be reported on Form 8938 (if they exceed thresholds) and Form 3520-A (for trusts and certain foreign accounts). Some foreign retirement accounts are treaty-protected and excluded from US taxation. UK pensions, for example, get special treatment. We review your foreign retirement accounts to determine reporting and tax treatment. Many expats overpay US tax on foreign retirement income due to confusion over tax treaties. Every client situation is different, so call (239) 441-2005 to review your specific facts before acting on this guidance.

If you're a US citizen, you report foreign real estate at its fair market value on Form 3520-A or Form 8938 (depending on the structure). If the property generates rental income, you report it on Schedule E and pay US tax. You may qualify for the Foreign Tax Credit if you paid property tax or income tax abroad. If you sold the property, you report the gain on Form 8949. We help Naples retirees clarify whether they're a US resident or non-resident for tax purposes; that affects filing status and deductions. Every client situation is different, so call (239) 441-2005 to review your specific facts before acting on this guidance.

Yes, California taxes worldwide income for residents, including foreign source income. There's no Foreign Earned Income Exclusion for California (unlike federal). You get a credit for taxes paid to other countries. This is why many high-income earners leave California for Florida: California effectively taxes foreign income without exclusion. If you're a California resident with a foreign business, expect your state tax bill to be substantial. Proper residency planning before moving is critical. Every client situation is different, so call (239) 441-2005 to review your specific facts before acting on this guidance.