Moving to another country for a better job opportunity or expanding business across the border comes with a lot of challenges. It can be exciting to meet new people and experience a different culture but adapting to a new life while managing your finances could become stressful. While handling everything and setting up a new life, it can be daunting to learn about cross-border taxation. As you might already know, Americans working in Canada or Canadians having business in the U.S. may need to file taxes in both countries. Whether you’re investing across borders or the Internal Revenue Service is investigating you, you need to hire a qualified tax lawyer. Dealing with cross-border finances can be quite complex and failure to stay tax compliant could have serious consequences.
The major issue faced by people working abroad or having business across borders is paying taxes in both countries. So, to navigate the double taxation issue and avoid audits, hiring a cross-border tax professional is a wise decision. However, the professional you choose makes a lot of difference. If you’re looking to navigate cross-border taxation and avoid double taxation, a financial consultant may not help you much. You need to find a specialist experienced in international taxation. Failing to hire a tax lawyer or choosing the wrong professional could lead to IRS audits and penalties. So, to navigate cross-border tax planning, here are some tips to find the right tax lawyer.
Look at Their Credentials
If you have a business, possibly you have an in-house business accountant. However, this same professional may not help you much to avoid double taxation when you take operations across borders. You need to find a dedicated cross-border taxation lawyer with a law degree and a license to provide relevant services in the U.S. or Canada. When hiring a tax planner, checking licensing and certifications are of utmost importance. Look for credentials like a certified public accountant (CPA) and industry membership such as Chartered Financial Advisors Association (CFA), the American Bar Association (ABA), and the Florida Bar (International Division). Take a look at their website to find such information and specialization details. Proper credentials and industry affiliations ensure that the professional has obtained a proper degree and is credible to offer related services.
Experience & Specialization
The credentials will help you figure out what type of specialization the lawyer has. Many financial planning firms offer taxation services but not all have specialists to handle cross-border financial issues. Make sure you check the license or registration to ensure that the professional is regulated. It is also important to find out how many years of experience they have in international taxation. So, find out what type of services the firm offers, how many clients they have, and how they can help in avoiding double taxation. You don’t need auditors or financial consultants. Make sure the firm offers services to cross-border clientele and formulate tax strategies to prevent tax liabilities in both countries. You need a tax advisor who understands the local tax system of each country. The best firms offer a range of services such as international and domestic corporate planning, expatriation, estate planning, and more.
Schedule Initial Consultation
Before hiring a tax lawyer, make sure to have an in-person or a video conference meeting. A reliable professional will discuss your specific financial needs and help you get familiarized with cross-border taxation and related issues. During this meeting, you should also discuss the fee structure. This initial meeting should give you an idea of their knowledge of international taxation laws. The professional you hire should be updated with changing tax laws.
