International Tax Compliance: What CPAs Often Overlook

International tax compliance is no longer just a concern for large multinational corporations. As businesses expand globally through foreign subsidiaries, overseas employees, international contractors, foreign investors, and cross-border transactions, even relatively small organizations can trigger complex U.S. reporting requirements.

In this episode of Let’s Talk Tax, Dave McGuire sits down with Greg Lambrecht, CPA, to discuss the international tax compliance issues CPAs often overlook and why proactive planning is essential. The conversation explores how the Tax Cuts and Jobs Act (TCJA) significantly increased the complexity of international reporting, including expanded Form 5471 requirements, GILTI calculations, and other foreign information reporting obligations.

Dave and Greg share real-world examples of businesses that unknowingly created international tax exposure, discuss common compliance triggers such as foreign entity formation and offshore operations, and explain the potential consequences of missed filings. They also cover FBAR reporting requirements, treaty-based positions, permanent establishment considerations, and the substantial penalties that can result from noncompliance.

Whether your clients are considering international expansion, hiring employees abroad, receiving foreign investment, or maintaining foreign bank accounts, this episode highlights the importance of understanding international tax reporting requirements before exposure occurs.

Topics discussed include:

• International tax compliance requirements for U.S. businesses
• How TCJA changed international reporting obligations
• Form 5471, Form 8938, and FBAR filing requirements
• GILTI and foreign income inclusion considerations
• Foreign employees, subsidiaries, and branch operations
• Treaty positions and permanent establishment risks
• International tax penalties and remediation options
• Planning opportunities for CPA firms and their clients

Listen to the full episode to learn how proactive international tax planning can help businesses avoid costly compliance mistakes and unexpected reporting obligations.