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FEDERAL AND STATE TAXES
The United States has a multi-tiered income tax system under which taxes are imposed by federal, state, and sometimes local governments. Federal and state income taxes are similar in that they apply a percentage rate to taxable incomes, but they can differ considerably with respect to those rates and how they're applied, as well as to the type of income that is taxable and the deductions and tax credits that are allowed.
We handle everything from federal income taxes, excise taxes, state income taxes, sales taxes, payroll and unemployment taxes and more.
Federal Income Taxes
Income taxes in the United States are imposed by the federal, most states, and many local governments. The income taxes are determined by applying a tax rate, which may increase as income increases, to taxable income, which is the total income less allowable deductions.
Income is broadly defined. Individuals and corporations are directly taxable, and estates and trusts may be taxable on undistributed income. Partnerships are not taxed, but their partners are taxed on their shares of partnership income.
Residents and citizens are taxed on worldwide income, while nonresidents are taxed only on income within the jurisdiction. Several types of credits reduce tax, and some types of credits may exceed tax before credits. An alternative tax applies at the federal and some state levels.
State Income Taxes
Most individual U.S. states collect a state income tax in addition to federal income tax. The two are separate entities.
Some local governments also impose an income tax, often based on state income tax calculations. Forty-two states and many localities in the United States impose an income tax on individuals.
Eight states impose no state income tax, and a ninth, New Hampshire, imposes an individual income tax on dividends and interest income but not other forms of income. Forty-seven states and many localities impose a tax on the income of corporations
We provide US international tax consulting and planning services in connection with cross border income and cross-border transactions involving US citizens, US residents, green card holders, nonresident aliens, and high net worth individuals, as well as foreign corporations, foreign partnerships, and foreign trusts.
US and Canadian tax return preparation, and other US tax compliance requirements such US international reporting forms are also routine cross-border and international tax services provided. US tax amnesty submissions, such as the IRS Voluntary Disclosure Program, Streamlined Domestic and Foreign Offshore Procedures, Delinquent International Information Return and FBAR Procedures, and the new IRS Relief Procedures for Certain Former Citizens are a significant portion of our work.
Other customary services include FIRPTA compliance, US estate tax planning, preparation of US estate tax returns, and assistance in renouncing US citizenship, or abandoning a green card.
Formulating US business structures and structuring US real estate investments, together with providing any relevant guidance on US State Sales Tax and US State Income Tax for Canadian corporations and other non-US corporations contemplating US activities is a major segment of our work.
Whether you are in telecommunications, alcohol, oil and gas, financial institutions, insurance companies, and any other industries with special taxes, we can help. Our owner specialized in helping oil and gas and financial institution clients with their SALT (state and local tax) planning needs in a Big 4 accounting firm.
TAX AUDITS, NOTICES, AMNESTY, AND VDAS
Everybody knows that feeling of despair that you get when you receive a letter from a government revenue agency. You may be thinking why are they picking on you. Often notices and audits can be quickly and relatively painlessly resolved. In fact, we've resolved most audits with one or two communications with the state. This isn't to say though that all audits will be resolved this quickly.
If you have undisclosed income, sales or payroll tax liabilities, there are often programs that you can utilize to disclose and pay your liabilities and become compliant with the state. These programs often feature payment plans and waiver of penalties (in some cases the penalties can be 25%, 50%, or even 200% of the underlying taxes).
Whether its a simple notice or a full-blown audit, we will be there to help you.