Financial Document Translation Services for Tax Attorneys
We’ve blogged about international financial translations in the context of international tax sheltering. The US Treasury Department recently released the latest listing of names of individuals who renounced their US citizenship or terminated their long-term US residency (expatriated). Overall, the trend continues to show an increasing number of individuals taking this route in order to better shelter their income and capital from the US taxes. This is particularly true as the US is the only country besides North Korea that requires non-residents to file US tax returns on income earned outside the US.
According to IRS figures, five to seven million US citizens reside abroad – many of them have never lived in or expect to live in the US. For example, a Canadian born to two US citizen parents in Canada is a US citizen and, although never living in the US, still must file tax returns in the US for his entire working life. Failing to file can lead to huge penalties.
Yet because of the complexity of the US tax system, even just filing can be quite costly – particularly when reporting foreign income which requires a foreign language translation. And to make things even more complicated, because of the IRS’s focus on offshore accounts, US expatriates are finding it increasingly difficult to open a foreign bank account.
In light of all this, what these latest figures are showing is that US citizens living abroad are simply renouncing their US citizenship and avoiding the hassle and costs of the US tax system – a trend that is likely to continue in the coming years.
Contact our financial document translation service to obtain certified translations of legal and financial documents from and into Russian, Spanish, Portuguese, Chinese, Italian, Japanese, Czech, Norwegian, and other languages for use in Denver, CO, nationwide and worldwide.