Our Fees For Tax Services
About Our Fees
You are given a detailed, fixed fee written quote, based upon the schedule below and the information you have provided to us, before our work begins. If, after work is begun, if it is determined that additional forms are required, we will notify you and obtain your approval for any fee adjustments. Our engagement letter is a secure, web based form that describes each form we will prepare for you, and contains options to exclude the form if you wish, or to include multiple forms. The fee will automatically adjust for changes you make. You can also ask questions through the quote software, or make clarifications, before you accept.
|Expat, Resident, Nonresident Alien and Dual Status Tax Services
|Form 1040: Resident Return
|$400 to $700 (With Low Income Discounts)
|Unlimited Consultations! We are in touch regularly throughout the process to answer your questions. All supplemental forms and schedules required for proper reporting are included, except for the ones listed separately.
|Form 1040NR: Nonresident Return
|$400 to $700 (With Low Income Discounts)
|We are in touch regularly throughout the process to answer your questions. All supplemental forms and schedules required for proper reporting are included, except for the ones listed separately.
|Form 1040/1040NR & Form 1040NR/1040: Dual Status Returns
|$400 to $700 (With Low Income Discounts)
|When you arrive in the United States as a nonresident during the tax year and either become a permanent resident or pass the substantial presence test, your residency starting date is the date of your arrival. This requires a dual status return unless a joint resident return is elected. Also, when you leave the United States permanently, you have the option to file a dual status return.
|Choice Between Dual Status and Joint Return
|When a dual status client qualifies for the joint resident election, it is often difficult to determine which filing strategy is the best choice. We will prepare a joint federal income tax return, and a separate dual status return. All options will be presented and the advantages of each will be discussed.
|State Income Tax Returns
|All but seven states in the United States impose income taxes on individuals similar to the federal income tax (but with lower rates). The states that do not impose an income tax on individuals are: 1) Alaska (you actually get paid for living there); 2) Florida; 3) Nevada; 4) South Dakota; 5) Texas; 6) Washington; and 7) Wyoming. States that do not impose an income tax on wages are New Hampshire and Tennessee. Federal treaty exemptions are allowed by most states. However, some states do not honor federal treaty exemptions. The states that tax treaty exempt income include Alabama, Arkansas, California, Connecticut, Hawaii, Kansas, Kentucky, Maryland, Mississippi, Montana, New Jersey, North Dakota, and Pennsylvania. We have the experience to properly prepare state income tax returns for nonresidents when treaty exempt income is included on the federal return.
|Local Tax Returns
|Many city and County governments throughout the United States impose income taxes. Other states, like Minnesota, provide a separate return for property tax refunds or rent credits.
|Capital Gains and Losses
|$10 per Transaction or Maximum of $150
|Sales of stock, securities and other capital assets are reported on Schedule D. When trades exceed five, we ask that you request an Excel spreadsheet from your broker so we can import the trades into our software. Brokers typically provide this. If this is not available from your broker, we will report category totals and attach your PDF statements.
|Foreign Earned Income Exclusion and/or Foreign Tax Credit
|Working outside the US might qualify you, under the bona fide residence test or the physical presence test, to claim the foreign earned income exclusion (Form 2555). We will compute the best combined benefit of the foreign earned income exclusion and the foreign tax credit (Form 1116) to reduce or eliminate taxation on your foreign source income.
|First Year Choice and Joint Return Elections
|Although you may be classified as a nonresident, elections allow you to file either a dual status or a joint resident return, if you qualify. We will help you choose the best filing option.
|Form W-7 & W-7 COA: ITIN Application with Certificate of Accuracy by Certifying Acceptance Agent
|In addition to preparing and submitting your ITIN application(s), as a Certifying Acceptance Agent (CAA), we will prepare a Certificate of Accuracy (Form W-7 COA) to be attached to your ITIN application form that is submitted to the IRS. The CAA application process greatly enhances the probability of success.
|Schedule C: Business Income and Expenses
|$150 For Each
|Your self-employment income and deductions will be reported on this form, and your self-employment tax will be computed on schedule SE. Depreciation for any depreciable assets will be computed on Form 4562, and the sale of any business property will be shown on Form 4797. One Schedule C and supplemental schedules is included with the basic fee for Form 1040 or Form 1040NR.
|Schedule E: Rental Real Estate
|$150 For Each
|Rental income and deductions are reported on Schedule E. Depreciation for any depreciable assets is computed on Form 4562, and the sale of any rental property is shown on Form 4797. One Schedule E and supplemental schedules is included with the basic fee for Form 1040 or Form 1040NR.
|Form 4797: Sale of Real Estate
|Gains and losses from the sale or exchange of U.S. real property interests are taxed as if you are engaged in a trade or business in the United States. you must treat the gain or loss as effectively connected with a trade or business.
|Real Property Election
|A choice is available for nonresident aliens regarding income from real property in the United States. This income is generally considered income that is not effectively connected with a US trade or business, and is taxed at a flat rate of 30% of gross income. Alternatively, an election under IRC Section 871(d) allows the net income (after expenses) to be taxed as income effectively connected with a trade or business in the U.S. This is a much better option for most people.
|Form 5471: Stock Ownership in Foreign Corporation
|$1,000 to $1,200 with discounts for minor shareholders
|Generally, if you acquire a stock and a foreign corporation and meet the 10% stock ownership requirements while you are a resident of the US, or you become a US resident while meeting the 10% stock ownership requirement, or you dispose of sufficient stock to reduce your interest to less than 10%, you are required to file Form 5471 as a "Category 3 Filer" and provide an income statement of the foreign corporation. If you own more than 50% of the stock of the foreign Corporation for at least 30 days during the calendar year, you are a "Category 4 Filer" and must also provide a balance sheet for the Corporation. A substantial penalty applies for failure to file this form, if required.
|Form 5471: Stock Ownership in Dormant Foreign Corporation
|If the corporation meets the following conditions, summary filing procedures are available under Rev. Proc. 92-70, and penalties for late filing will be waived: 1) the foreign corporation conducted no business and owned no stock in any other corporation other than another dormant foreign corporation; 2) no shares of the foreign corporation (other than directors' qualifying shares) were sold, exchanged, redeemed, or otherwise transferred, nor was the foreign corporation a party to a reorganization; 3) no assets of the foreign corporation were sold, exchanged, or otherwise transferred, except for de minimis transfers described in (4) and (5) below; 4) the foreign corporation received or accrued no more than $5,000 of gross income or gross receipts; 5) the foreign corporation paid or accrued no more than $5,000 of expenses; 6) the value of the foreign corporation's assets as determined pursuant to U.S. generally accepted accounting principles (GAAP) (but not reduced by any mortgages or other liabilities) did not exceed $100,000; 7) no distributions were made by the foreign corporation; and 8) the foreign corporation either had no current or accumulated earnings and profits or had only de minimis changes in its beginning and ending accumulated earnings and profits balances by reason of income or expenses specified in (4) or (5) above.
|Form 5472/1120 for Single Member LLCs with Nonresident Alien Owners
|For most tax purposes a single member LLC is a disregarded entity, so a nonresident alien who owns an LLC is not required to file separate tax returns. The LLC activity is reported on Schedule C or Schedule E, attached to your individual Form 1040NR. However, beginning in 2017, Form 5472 is required to be separately filed by all single-member LLCs with nonresident alien owners. The form is required to be attached to Form 1120 and filed separately from Form 1040NR. Specific rules for the filing of Form 5472 to report LLC activities are now available. A substantial penalty applies for failure to properly file this form.
|Form 8833: Tax Treaty Exemption
|Foreign nationals working or investing in the United States are often able to benefit from tax treaty provisions between the United States and their home country. We analyze and advise you on your eligibility for a treaty exemption and include the proper information in your return to maximize acceptance by the IRS.
|Treasury Form 114: FBAR
|$120 ($20 per account if more than four)
|When you have financial accounts outside the US that total $10,000 or more, Treasury Form 114 is required to be filed annually with the US Treasury. A substantial penalty applies for failure to file this form if required.
|Form 843 & Form 8316: Refund Claim for Social Security Withholding
|If you were working in the United States as an F, J, M or Q visa holder, you may have paid social security and Medicare tax for which you were not liable. Under IRC Sec. 3121(b)(19), services performed by a nonresident alien visiting the United States as an F, J, M or Q visa holder, which are carried out for the purpose of the visa, are not subject to social security or Medicare tax.
|Form 3520/3520-A: Foreign Trust
|$750/$300 for gifts
|If you are treated as the owner of any part of the assets of a foreign trust, including a foreign pension or retirement plan, you are required to file Form 3520. A foreign trust with a US owner is treated as a grantor trust. You must also file Form 3520-A if the trustee did not file this form.
|Form 8288-B: Application for Withholding Exemption on Sale of Real Estate
|The sale of real estate located in the United States by a nonresident alien generally requires withholding of federal income tax by the purchaser in the amount of 15% of the gross sales price. The IRS can issue a withholding certificate to reduce or eliminate withholding under IRC Section 1445 on the transfer of US real property by a nonresident alien. A certificate issued before closing notifies the transferee that reduced withholding or no withholding is required. A certificate issued after closing may authorize an early refund from the IRS. Form 8288-B must be completed and submitted to the IRS to apply for the certificate. This requires a computation of gain or loss on the disposition.
|Form 8621: Passive Foreign Investment Companies (FPICs)
|A passive foreign investment company (PFIC) is a foreign corporation with passive income of 75% or more of gross income, or with assets that produce passive income equal to 50% or more of total assets. A punitive (and very complex) tax is applied to these investments, to prevent deferral of tax that would not be deferred by owning US based funds. PFICs include foreign mutual funds, ETFs, bond funds, currency tracking funds, precious metal funds, investment trusts, hedge funds, private equity funds, startups anymore. A separate PFIC calculation is required for each distribution. The fee is based on one fund.
|If you are an "exempt individual" you are required to file this form showing the number of days exempt from the substantial presence test.
|Form 8854: Relinquishment of Citizenship or Green Card
|This form is fairly simple or highly complex, depending on your net worth. If you were a citizen or long-term resident of the United States, then relinquished your citizenship or permanent residency status, you are required to file Form 8854 with your US tax return for the year that includes your expatriation date. You are a long-term resident if you were a lawful permanent resident of the United States in at least eight of the last 15 tax years ending with the year your status as a resident ends. Regardless of your net worth at the time of expatriation, you must certify on Form 8854 that you have complied with all federal tax obligations for the five tax years preceding the date of your expatriation.
|Form 8858: Foreign Single-Member LLC
|A US citizen or resident alien who is a direct or indirect owner of a foreign disregarded entity (FDE) is required to file Form 8858. An FDE is an entity that is not created or organized in the United States and at his disregarded as an entity separate from its owners for US income tax purposes under Regulation Sections 301.7701-2 and 301. 7701-3.
|Form 8858: Dormant Foreign Single-Member LLC
|Announcement 2004-4, 2004-4 I.R.B. 357, provides for a summary filing procedure for filing Form 8858 for a dormant FDE.
|Form 8865: Foreign Partnership
|If are a US resident for tax purposes for any part of the year, and you own an interest in a foreign partnership, you are required to file Form 8865. A separate form is required for each foreign partnership. There are four categories of filers, which classify you according to your ownership and activities in the partnership.
|Form 8938: Statement of Specified Foreign Financial Assets
|$125 ($20 per account if more than four)
|This form is required to be filed with your tax return to report your interest in specified form financial accounts if the total value of all of your specified foreign financial assets exceed a threshold. Specified foreign financial assets include cash amounts in foreign accounts, foreign securities, financial interests in foreign entities and retirement accounts. A substantial penalty applies for failure to file this form if required.
|Offshore/Domestic Streamlined Procedures
|$1,500 Plus Additional Form Charges
|For information on this program see Streamlined Filing Compliance Procedures under our Expat Tax Guide. The fee varies depending on the complexity of your returns. The fee includes Form 14653 or Form 14654 and our help regarding your nonwillful statement.