Business & Financial Solutions
Business & Financial Solutions
TAX HELP SERVICE AND PREPARATION
(855) 557-2222
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Tax Preparation for Foreign Pension

TAXATION ON FOREIGN PENSIONS & ANNUITIES

According to the IRS, pensions and annuities from foreign countries may not be taxable in the United States. Well this is largely dependent upon the tax treaty that the United States has with the country in question. So is foreign pension tax preparation required for you? You should consult with an experienced tax preparer in that area.

The IRS Code

The IRS Code says that as a general rule, yes. The country of residence can tax the pension and/or annuity. However this is based on the articles of most tax treaties with other countries. But there are some countries where we do not have a tax treaty. Still, there are others where the tax treaties don’t allow the country of residence to tax the pension or annuity under its domestic laws. This is true unless a treaty provision specifically amends that treatment. Some treaties, for example, provide that the country of residence may not tax amounts that would not have been taxable by the other country if you were a resident of that country.

In some cases, government pensions/annuities or social security payments may be taxable by the government making the payments. There also may be special rules for lump-sum distributions. You can read more about this in IRS Publication 525. If you received a foreign pension, you first must determine whether the foreign pension is taxable by examining the treaty between that company and the U.S. Business & Financial Solutions can help you with this. Our firm offers experienced tax preparers for foreign pensions and annuities.

Reporting Requirements

Additionally, As a result of IRS offshore compliance initiatives, recently enacted legislation, and new informational reporting requirements, tax preparers and U.S. participants in foreign pension plans must carefully evaluate how a foreign-based retirement plan is structured.

Many U.S. citizens who have repatriated or who currently reside and work in foreign countries need help in this area.  They may have retirement assets in the country for which they are stationed, or participate in a foreign plan of some sort. These taxpayers should evaluate income tax reporting requirements, and use a tax preparation firm with experience in information requirements and strive to minimize income taxes and penalties.

Office Locations In Maryland

5100 Buckeystown Pike Ste 250, Frederick, MD 21704

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17 W Jefferson St Ste 007, Rockville, MD 20850

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Office Location In Virginia

7918 Jones Branch Drive, Ste 405, Tysons VA 22102

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Office Location In Texas

101 E. Park Blvd, Suite 600 Plano TX 75074

About BFS

Visit us in McLean Virginia, Frederick or Rockville, Maryland (Washington DC Metro Area)or Plano Texas

Phone toll free: (855) 557-2222
Fax: (240) 297-1054
E-mail: info@bfswebsite.com

Business & Financial Solutions is a tax and accounting CPA firm. Our offices are located in Fairfax County, VA, Collin County and Denton County, TX, Montgomery and Frederick Counties, MD. Our company is highly motivated in helping individuals and companies (private and non-profit) become successful in start-ups. BFS offers assistance with ongoing small to mid-size business management, consulting, accounting and a variety of tax services.

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