International Tax Advisors

Americans living abroad must file tax returns with the IRS regardless of where they live and work. But if you also pay taxes in your host country, you’re at risk of double taxation on the same earnings unless relief is claimed through tax treaties, the foreign tax credit, or available exclusions.

Foreign nationals who receive U.S. wages, rental income, or investment returns may also face similar filing requirements. Miss a required form like the FBAR, and the penalty starts at $10,000 per violation. At the same time, the Foreign Account Tax Compliance Act (FATCA) requires banks worldwide to report accounts held by U.S. persons. Fail to comply, and you’ll lose 30% of your U.S.-sourced payments to withholding.

USA Tax Gurus serves clients in more than 30 states and 25 countries. We know how to review multiple tax jurisdictions at once and identify treaty benefits, foreign tax credits, and exclusions that can reduce your liability. Expats and foreign nationals who work with us have saved an average of $5,000 per year by applying the Foreign Earned Income Exclusion and other credits, so schedule a free consultation today and see what we can do for you.

Why Choose USA Tax Gurus for International Taxes?

When you’re affected by cross-border taxation, you need an advisor who’s familiar with tax codes from multiple countries and can apply the correct rules to your own return. At USA Tax Gurus, we’re known and trusted for our international tax advisory services. We’ve earned many five-star reviews from clients who’ve saved thousands of dollars through foreign tax credits, treaty exemptions, and income exclusions.

Feature	Benefit
Licensed CPAs and Enrolled Agents	Our team includes experienced CPAs who handle domestic and international business tax challenges. We review bilateral tax treaties, apply foreign tax credits, and file FBAR and FATCA reports for clients with foreign financial accounts above IRS thresholds.
Easy Remote Access	Our cloud-based system lets you upload documents, message your advisor, and review your return from anywhere. You don’t need to visit an office or mail paper files. Clients in Tokyo, London, and Sydney get the same turnaround time as those in New York because we monitor the platform around the clock.
Expert Tax Analysis	Our system flags deductions and credits you may qualify for based on your residency status, income sources, and filing history. For example, if you paid income tax in Germany on consulting fees, we can identify the foreign tax credit you may be able to claim on your U.S. return, preventing double taxation on that amount.
We Save You Money	Clients can reduce their U.S. tax liability by applying strategies like the Foreign Earned Income Exclusion, which shelters a specific amount of foreign-earned income, and foreign housing deductions that cover rent and utilities abroad. High-net-worth clients with offshore investments can save more by structuring their portfolios to minimize GILTI and subpart F income.
Verified Five-Star Reviews	More than 250 clients have rated us at 5.0 stars across Google, Trustpilot, and industry platforms. These reviews highlight our fast response times, accurate filings, and successful IRS audit defense for clients with foreign accounts.

When you’re filing across borders, small mistakes can trigger stressful audits and penalties. We apply international tax rules correctly the first time, so you pay what you owe and keep the rest.

Our International Tax Services

We handle tax returns and compliance for Americans living abroad and foreign nationals earning U.S. income. Our services cover filing requirements, treaty-based claims, and reporting obligations that span multiple countries.

Service	How It Works
Expat Tax Returns and Compliance	We file Form 1040 for U.S. citizens and residents living abroad, applying the Foreign Earned Income Exclusion (Form 2555) and foreign tax credits to eliminate double taxation. We also prepare FBAR reports and Form 8938 for clients with foreign financial accounts above IRS thresholds. Our clients include expats working on employment visas, digital nomads, and retirees who’ve relocated overseas.
Non-Resident Tax Filings	We prepare Form 1040-NR for foreign nationals who earn U.S.-sourced income from wages, rental properties, or investments. We obtain Individual Taxpayer Identification Numbers (ITIN) through Form W-7 for clients who don’t have a Social Security number. We also respond to IRS and state notices for incorrectly filed returns and wrongly claimed credits.
Business Tax Services	We file returns for sole proprietors, LLCs, S corporations, and partnerships with cross-border operations. This includes bookkeeping, payroll, and sales tax compliance for businesses operating in multiple countries. We help foreign nationals set up U.S. entities and advise on the tax implications of different business structures.
High-Net-Worth International Planning:	We work with high-net-worth individuals who have income and assets in multiple countries. This includes addressing Global Intangible Low-Taxed Income (GILTI) and Subpart F income rules for clients with controlled foreign corporations.

Common International Tax Challenges & Solutions

Americans living abroad and foreign nationals earning U.S. income face reporting requirements that can trigger penalties far exceeding any tax owed. Miss a required form, ignore a treaty benefit, or misclassify your income, and you may have to pay thousands in fines before the IRS calculates what you actually owe. We identify these risks early and apply the correct rules to keep you compliant.

• Double Taxation: The U.S. has tax treaties with over 60 countries that prevent you from paying tax twice on the same income. If you pay income tax in Canada on employment wages, you can often claim a dollar-for-dollar credit against your U.S. tax liability on that same income. We review each client’s treaty eligibility based on their residency status and the type of income they earn, ensuring you receive every credit you’re entitled to under bilateral agreements.
• Foreign Asset Reporting: The Foreign Bank Account Report (FBAR) requires disclosure if your foreign financial accounts exceeded $10,000 at any point during the year. Miss this filing, and the penalty starts at $10,000 per non-wilful violation, even if you owe no tax. Form 8938 adds another layer for taxpayers with foreign financial assets above certain thresholds. We track both requirements and file them before the deadlines to keep you compliant.
• Worldwide Income Taxation: U.S. citizens and green card holders must report their worldwide income regardless of where they live or work. This includes wages earned abroad, foreign rental income, and investment gains from overseas accounts. The Foreign Earned Income Exclusion shelters up to a certain amount of foreign wages, but you have to file Form 2555 and meet either the Physical Presence Test (330 days abroad in a 12-month period) or the Bona Fide Residence Test (full-year foreign residency). We calculate which test gives you the maximum exclusion and ensure you meet all documentation requirements.
• Tax-Efficient Structuring: An expat earning $110,000 in salary while living in Germany may be able to exclude the entire amount using the Foreign Earned Income Exclusion, resulting in zero U.S. federal tax owed. A non-resident setting up an LLC for consulting work can structure payments to avoid the 30% withholding tax by ensuring the income qualifies as effectively connected with a U.S. trade or business. We analyze each situation to identify the most tax-efficient structure before you file.
• Digital Nomads & Remote Work: With remote work booming, digital nomads and remote workers face multi-country tax residency risks. We help determine your tax home, optimize treaty benefits, and structure income to minimize exposure across jurisdictions.

When you’re managing income across borders, small filing errors create large problems. We apply the correct treaty provisions, exclusions, and reporting rules so you stay compliant and keep more of what you earn.

How Tax Treaties Avoid Double Taxation

Tax treaties avoid double taxation by setting rules between the United States and another country to determine: 

• Which country has the primary right to tax specific types of income and; 
• How the other country must provide relief. 

These treaties don’t eliminate U.S. worldwide taxation, but they coordinate taxing authority so the same income is not fully taxed twice. The relief usually comes through reduced withholding rates, exemptions, or credits rather than by removing the obligation to file a U.S. tax return.

One common treaty mechanism is assigning primary taxing rights. For example, employment income is often taxable only in the country where the work is physically performed, unless the stay is short and certain conditions are met. Pension income, business profits, royalties, dividends, and interest each have their own treaty rules that specify whether the source country, the residence country, or both may tax the income, and to what extent.

Another major way treaties prevent double taxation is by requiring one country to give a foreign tax credit or exemption when the other country taxes the income first. In practice, this means if you pay income tax to the foreign country under the treaty, the U.S. must generally allow a credit or exclusion so you are not taxed again on the same income. This works alongside U.S. tax law provisions such as the Foreign Tax Credit and the Foreign Earned Income Exclusion.

Tax treaties also include tie-breaker rules for individuals who could be considered residents of both countries under domestic law. These rules look at factors such as permanent home, center of vital interests, habitual abode, and nationality to determine a single country of residence for treaty purposes. This prevents two countries from simultaneously treating the same person as a full tax resident.

How We Work With You

Many expats and foreign nationals waste weeks gathering documents, filling out forms they don’t understand, and worrying about IRS penalties. When you work with USA Tax Gurus, you’ll know your exact tax liability before we start, receive a written plan that explains every deduction and credit, and have direct access to a CPA who can answer questions long after your return is filed. 

Here’s how each stage works:

• Free Discovery Call: Schedule a consultation to discuss your income sources, residency status, and filing obligations. We’ll determine which forms you need, if you qualify for treaty benefits or exclusions, and calculate your estimated tax liability. 
• Custom Tax Strategy: We build a written plan that shows exactly which deductions, credits, and exclusions apply to your case. For example, if you paid taxes in two countries on the same wages, we’ll show you the foreign tax credit calculation that eliminates double taxation. If you spent 340 days abroad, we’ll calculate your prorated Foreign Earned Income Exclusion amount.
• Filing and Year-Round Support: We prepare your federal and state returns, FBAR reports, and any additional IRS forms. After filing, you can contact us with questions about estimated tax payments, treaty updates, or new reporting requirements that affect your returns.

You don’t need to figure out international tax law on your own. Schedule a free consultation today and get a clear plan that reduces your liability while keeping you compliant with both U.S. and foreign tax authorities.

Start Saving on International Taxes Today

If you’re an American living abroad or a foreign national earning U.S. income, schedule a free consultation to review your situation. We’ll calculate your estimated tax liability, identify which deductions and credits you qualify for, and provide a written strategy that keeps you compliant while minimizing what you owe.  If you have questions or would like to get started, please fill out a contact form or call USA Tax Gurus at 213-212-8737 today.

International Tax FAQS

Do I Have to File Taxes If I Owe No Tax?

Yes, U.S. citizens must file Form 1040 even if no tax is owed (e.g., after applying the Foreign Earned Income Exclusion). Missing filings can trigger penalties or future issues (e.g., passport renewal restrictions, immigration complications, or delays in obtaining loans/visas).

What If I Can’t Afford to Pay Back Taxes?

We can help set up IRS installment agreements or, if eligible, an offer-in-compromise to reduce or spread the burden. Many clients resolve old balances affordably through structured plans with no immediate large payments required.

Can I Lose FEIE Due to Trips Back Home?

Yes, you can lose the Foreign Earned Income Exclusion (FEIE) because of trips back home, but only if those trips cause you to fail the test you are using to qualify. 

If you qualify under the Physical Presence Test, you must be physically outside the United States for at least 330 full days during any 12-month period. Every day you spend in the U.S. counts against this total, even short visits, and if your trips reduce your foreign days below 330, you lose eligibility for FEIE for that entire period. 

If you qualify under the Bona Fide Residence Test, home trips are generally less risky, as short or occasional visits to the U.S. are allowed. However, the IRS looks at your overall situation. You may lose FEIE if your trips are long or frequent enough to suggest that your real residence is still in the United States. Factors such as maintaining a permanent home, family base, employment ties, or spending extended time in the U.S. can weaken a bona fide residence claim. 

In short, brief and clearly temporary visits usually do not affect FEIE, but repeated or longer stays can put your exclusion at risk.

Are Foreign Pensions Taxable in the US?

Yes, foreign pensions are generally taxable in the United States, because the U.S. taxes its citizens and residents on worldwide income. This means pension payments you receive from a foreign employer, government, or retirement system are usually treated as taxable income and must be reported on your U.S. tax return, even if the pension is paid abroad or already taxed by another country. The default rule is that foreign pension income is taxed in the same way as a U.S. pension unless a specific exception applies.

However, tax treaties can change this outcome. Many U.S. tax treaties assign taxing rights over pension income to either the country of residence, the source country, or sometimes both. In some treaties, private pensions are taxable only in the country where you reside, while government pensions may be taxable only by the paying country. If a treaty applies, you may be able to exclude the pension from U.S. taxation or reduce the tax owed, but you must still report the income and properly claim the treaty benefit.

It is also important to distinguish contributions, growth, and distributions. Contributions to foreign pension plans are often not deductible for U.S. tax purposes unless a treaty explicitly allows it. Investment growth inside a foreign pension may be currently taxable in the U.S. in some cases, even before you receive distributions. When payments begin, distributions are usually taxable to the extent they represent previously untaxed income or earnings.

Even when no U.S. tax is ultimately owed, reporting obligations still apply. Foreign pensions can trigger additional disclosures, such as reporting foreign financial assets or accounts, depending on how the plan is structured. Failure to report these correctly can result in penalties, regardless of whether the pension income itself is taxable.

What Penalties Apply to Late FBAR Filings?

Late FBAR filings can trigger penalties, with the amount depending largely on whether the failure to file is considered non-willful or willful. The FBAR (Report of Foreign Bank and Financial Accounts) is filed with the Financial Crimes Enforcement Network (FinCEN), and enforcement and penalties are handled by the Internal Revenue Service.

For non-willful violations (meaning the failure to file was due to negligence, mistake, or lack of awareness), the penalty can be up to $10,000 per violation, per year. In practice, the IRS has discretion and may waive penalties entirely if you can show reasonable cause and that the accounts were properly reported on your tax return. Many late FBARs fall into this category, especially for taxpayers living abroad who were unaware of the requirement.

For willful violations, where the IRS believes you knowingly failed to file or intentionally ignored the requirement, penalties are much more severe. The penalty can be the greater of $100,000 or 50% of the highest balance in the foreign account for each year of violation. These penalties can quickly exceed the value of the account itself and may be applied across multiple years. In extreme cases, willful FBAR violations can also lead to criminal charges, including fines and possible imprisonment.

It is also important to understand that FBAR penalties are separate from tax penalties. You can face FBAR penalties even if the income from the account was properly taxed or even if no U.S. tax was owed. The obligation is purely a reporting requirement based on having foreign accounts with an aggregate balance over $10,000 at any point during the year.

The key takeaway is that filing late is usually far better than not filing at all. Voluntary correction programs and late filings with a clear explanation often result in reduced or no penalties for non-willful cases, while continued noncompliance greatly increases the risk of harsh penalties.