NECPA in NEBRASKA Posted December 12, 2016 Report Share Posted December 12, 2016 A long time client who is a sole proprietor service wants to expand his business to a European country. He just left a voice mail on my phone and I need to get back with him tomorrow. He is a dual citizen, but his income has always been US as long as I have known him. He is opening a bank account there. I have not had any clients with FATCA or any other foreign income or assets until now. I ask all of the questions regarding income and bank accounts every year in my questionnaire and organizer. He has not been subject to FATCA until now. I am torn as to whether I should just tell him to find a larger firm. I really have enough on my plate, that I don't know if I can take on more work that I am not current on. I would appreciate any thoughts from any of you that work with clients with foreign income. I am assuming that he gets a foreign tax credit on his income earned overseas. Thanks so much! Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted December 12, 2016 Report Share Posted December 12, 2016 NECPA: I Would keep it simple. Thanks, but no thanks, and refer the taxpayer to someone who can handle that work. Rich 2 Quote Link to comment Share on other sites More sharing options...
SaraEA Posted December 13, 2016 Report Share Posted December 13, 2016 Totally agree. There will be a lot more to this than FACTA reporting, e.g., foreign payroll taxes for employees. I have a couple of clients with foreign business income, but both have an accountant in the other country handle the accounting, compliance, and tax returns. All I get is the final return with the income and foreign taxes paid so it's not too bad. Well, then there's the bank statements and currency conversions. If you are not comfortable bow out gracefully. I would turn this one away too. 2 Quote Link to comment Share on other sites More sharing options...
JohnH Posted December 13, 2016 Report Share Posted December 13, 2016 An engagement filled with potential land mines. I had a similar situation many years ago with a long-time client who was a trusted friend. After I spent a few hours researching it, I told him there was no way I'd be involved. He needed someone with vastly more experience and much deeper pockets. And even if you get it right on this end, you have to be sure and get it right on the other end. This was a fairly simple operation overall, but not worth the risk. 1 Quote Link to comment Share on other sites More sharing options...
NECPA in NEBRASKA Posted December 13, 2016 Author Report Share Posted December 13, 2016 Thanks to all of you. I have been telling him for years that I would be uncomfortable with handling any changes with income out of the country, so it should not be a total shock to him that I don't want to take this on. Just handling all of the ongoing changes in this country gives me more than enough to do. 6 Quote Link to comment Share on other sites More sharing options...
Catherine Posted December 13, 2016 Report Share Posted December 13, 2016 I have one family that owns a hotel out of the country. FACTA and FinCen and 5471 and more. However, the hotel's books are taken care of by a high-end firm in that country, and they have a currency pegged to the US Dollar so no conversion issues. I get audited financials for the 5471 (that I double-check but do not prepare), I warn all members to file their FBAR/FinCen forms. The one member who has most responsibility has his own tax guy but I do provide the 5471. Other than the 5471 the whole set of returns is pretty straightforward. That's as far as I go. Another client had some joint ventures out of the country and I told him flat-out to get someone else. Foreign operations, foreign employees, currency conversions, foreign taxes, foreign assets (including possibly buildings and land as well as equipment), treaties with multiple nations -- nope. There isn't enough hair dye in the world for me to get involved. 2 Quote Link to comment Share on other sites More sharing options...
NECPA in NEBRASKA Posted December 13, 2016 Author Report Share Posted December 13, 2016 Thanks, again.I will get more information when he calls me back on Friday. He says that he is just getting an account open to move back there in the future. So far, it is under $10,000. He is still using his US bank account for his income. Everything is subject to tax here, because he is not in the other country enough to owe taxes there. I will have a lot of questions ready for him. Quote Link to comment Share on other sites More sharing options...
Medlin Software, Dennis Posted December 13, 2016 Report Share Posted December 13, 2016 I get asked to create Apple compatible software. Same deal. If your client wants to pay for your time and materials to become competent in that area, great, but I bet your time is worth too much with the income generation you already do, and your leisure time value. I have yet to get any takers for even .001 of what it would cost to develop an Apple version of our software... 2 Quote Link to comment Share on other sites More sharing options...
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