Are you looking to navigate the complexities of cross-border taxation? If you’re a Canadian working in the U.S., or an American living in Canada, you may need to file taxes in both countries. But with the help of an experienced cross-border tax attorney, it is possible to avoid double taxation issues. Unlike auditors or financial consultants, you should consider hiring a cross-border tax specialist who has comprehensive knowledge of the U.S.-Canadian tax system. It is important to find a specialist because not all financial advisors are capable of reducing your tax burden. Only the right cross-border taxation professionals can help you avoid error penalties, as well as ensure that you get the benefit of every available deduction opportunity.
Not hiring a tax attorney could lead to issues that the Internal Revenue Service (IRS) may miscomprehend as tax evasion and you might get punished by the law. Hiring a tax attorney will not only help you navigate the cross-border tax planning but can also assist in several other aspects such as estate planning, resolve domestic tax compliance complications, and more. Hiring a cross-border tax attorney is crucial but finding the right professional can be tricky. You can find several financial firms in the United States and Canada offering tax planning services. However, it is important to do some research before choosing a firm that will handle your cross-border financial matters. Not all firms have the experience to help you deal with the tax issues or represent you before the IRS if you are being audited by the IRS. So, here are some factors to consider when choosing a cross-border tax planning firm.
Look at Their Credentials
When it comes to cross-border tax planning, your in-house business accountant may not provide you the best solution to avoid double taxation. Also, any accounting firm can claim to handle your taxes but you need to check their licensing and certifications. The professional should have a civil law degree (LL.L.) and a license to provide relevant services in the U.S. or Canada. Ideally, you should look for an accredited tax adviser (ATA), certified public accountant (CPA), or Personal Financial Specialist (PFS). The best professionals have industry membership such as the American Bar Association (ABA), The Florida Bar (International Division), and Chartered Financial Advisors Association (CFA).
Check Experience
The next important consideration is how long the firm or attorney has been in practice. Even if the tax attorney has the relevant qualifications and license, you should consider someone who has been preparing returns for several years. Experience is important because with practice these professionals become proficient in anticipating problems or IRS challenges. It is also important that the firm you choose specializes in cross-border tax and financial planning. Don’t hire a firm unless their tax planning attorneys have experience in cross-border tax planning. You may even speak to some attorneys to make sure they handled tax planning for Canadian and American citizens in the past. Ask about their past and present clients to get a better understanding of their level of experience.
Services Offered
It makes sense to hire a firm that offers comprehensive services to handle your financial and tax planning needs. Instead of hiring multiple professionals for different services, look for a financial firm that offers a variety of services such as cross-border tax, estate planning, and real estate for high net-worth individuals. Hiring a cross-border tax planning firm will make your transition from Canada to the US or from the US to Canada hassle-free. The tax planning attorney will carefully evaluate your specific financial situation and execute a customized financial plan to minimize your tax burden. So, make sure the tax planning firm offers all the services needed for the cross-border or expat financial and tax needs.
