is our company taxable
Hello, and thanks for the help.
Ill try to be brief and detailed about the situation.
-Is an internet based bussines
-The Company is registered in Panama.
-Owners leave in the US
-All transactions made, deposit money in an account in Panama.
-Then earnings are wired monthly to each partner to banks in the US.
-Money is mostly spent in the US.
Here are the two scenarios..
1)Money is made from transactions that originate in the US..
2)Money is made for transactions that originate outside the US..
The 2 questions:
Is any of this taxable income just because the owners leave here?
Are those wire transfers taxable at the end of the year?
Thanks in advance for your help
2 Answers from Attorneys
Re: is our company taxable
Income is taxable wherever earned. The key is what are the tax arrangements with the Country you are doing business with? If you have income and pay foreign tax, the Federal Government will give an allowance for the foreign tax.
If in your current situation, you are paying no foreign tax, receiving money in the U.S. this is totally a situation that tax should be paid on, otherwise you will need me to defend you on tax evasion charges, i.e. Wesley Snipes. The key in these cases is report the income and make the proper deductions, this will make your life much simpler.
Jeff Moffatt, Esq.
Re: is our company taxable
Hello,
It is imperative that all this is correctly documented -the irs has passed several new things-one is a $10,000 penalty for failure to file an form disclosing a us citizens foreign income. If you need assistance send me an e-mail with your phone # to discuss this complex matter further.
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