Companies with US assets (principally real estate) are often unaware of the importance of coordinating and closely monitoring their US compliance matters. Frequently three or four different professional service providers are involved, and the lack of complete information, coordination and communication results in:
- Financial statements inconsistent with the company documents (operating agreements, capitalizations, etc.);
- 5472 reports (part of the US tax reporting) are incorrect;
- US tax reporting inconsistent with corporate documents and financial statements;
- Company expenses related to the real estate: property tax payments, and other association or building fees are not recorded in the company;
- Company expenses are paid by the ultimate beneficial owner directly or a foreign holding company.
The consequences of these errors could mean:
- The IRS looks through the company for tax purposes, which may have an adverse tax consequence, or inheritance tax consequence.;
- Penalties for incorrect or late reporting;
- Company may be not taking advantage of certain expenses which could lessen the current or future US tax burden.
Dartmouth provides seamless and high quality service for company´s US compliance, administration, tax and accounting services needs.
