For many U.S. Citizens, working in a foreign country can be an exciting opportunity to be exposed in a new environment. Yet with new opportunities, however, also comes with new risks, as many expats do not recognize that they have U.S. tax filing obligations. There are many nuances and complexities for U.S. tax laws, of [...]
At American Pacific Tax, our vision is to be the best service provider for Individual Taxpayers located in Hong Kong and Asia. Prospects and clients have asked us why they should choose American Pacific Tax as a service provider and here 5 reasons!!!!! 1. Expertise and Helpfulness Our firm has been established in Hong [...]
Beneficial ownership information reporting is a key initiative introduced by the Financial Crimes Enforcement Network (FinCEN) under the Corporate Transparency Act (CTA), aimed at increasing transparency in corporate ownership and combating illicit financial activities. Background The Corporate Transparency Act, enacted in 2021, mandates that many entities doing business in the United States disclose information about [...]
If you are a freelancer, self-employed, or have income from sources that do not withhold taxes or your withholding is insufficient, you may be required to pay estimated tax to the US government. Here's what you need to know about estimated tax: What is estimated tax? It is very common for someone working in the [...]
If you have a foreign bank account(s), it is likely you’ll have FBAR and Form 8938 (Statement of Specified Foreign Financial Assets) filing requirement. Below are answers to a few basic questions related to those forms. What is FBAR and 8938? FBAR: The FBAR (Foreign Bank Account Reporting) formerly called the Report of Foreign Bank [...]
Do you need an Employer Identification Number (EIN)? Businesses generally need an employer identification number (EIN) if any one of the following is true: Started a new business Hired (or will hire) employees Operating as a corporation or partnership Created a trust Withholding agent for taxes on nonwage income paid to a non-resident alien Change [...]
Do I need file US individual income tax? In order to determine if you need to file US individual income tax return, you may refer to the following online tool on the Internal Revenue Service (IRS) website HERE. What different filing statuses are available on Form 1040 Individual Income Tax Return? There are 5 main [...]
We have assisted many clients earning share awards as employee compensation for the services performed. These awards may have vesting conditions on grant date. As an overly simplified explanation, grant date is when an employee receives property such as a share award from the company. The vesting date is when an employee has received the [...]
As an investor it is common to have worthless securities and, in such cases, a taxpayer would prefer to claim a loss to reduce the amount of taxes due. Here are a few general questions and two examples on investments in worthless securities: What is a worthless security as defined by IRS? Worthless security is [...]
Need a transcript from the IRS regarding your prior year US tax return as a proof of tax compliance? Or as a supporting document to reply to an IRS letter? We have seen times where either the IRS or taxpayer’s records were not updated, making a transcript critical to determine the next steps to assist [...]