Top 3 Reasons Why You Need a US and Canada Cross-Border Tax Accountant

Businesses and business owners operating in foreign countries should hire cross-border accountants because they have knowledge of various tax systems, can help them avoid tax errors and risks, and help you reduce your tax burdens.

For many cross-border businesses and business owners, taxation is usually the most complex and frustrating thing when doing business. This is true especially with the new internet-based cross-border selling, buying, and remote collaborations brought about by the digital economy.  For every entrepreneur or business that has a cross-border presence, taxation has become a crucial issue. Here are reasons why you should hire a cross-border tax accountant.

In-depth Knowledge of Different Tax Systems

Having a cross-border tax accountant is necessary because what works in the United States may not yield the best results in Canada. You need to have an in-depth understanding of the relevant tax implications of a foreigner setting business in any of these two countries. US Canadian tax accountants have the licensing requirements and qualifications to offer accounting and tax advice in both countries. They will help you meet your legal tax obligations and avoid any audits or fines in the future.

Mitigate Risk

Cross-border businesses in both the US and Canada have extensive and specific tax compliance and data reporting requirements. Furthermore, non-compliance to these regulations can lead to hefty penalties of up to USD $25,000 if some US foreign reporting forms are not duly filed. In Canada, omission of some reporting forms can lead to CAD $2,500 penalties per filing. These tax penalties can add up pretty quickly and may affect your business cash flow and also have a negative impact on your business especially when dealing with investors and lenders. With a qualified accountant Windsor trusts, you can rest assured that you’re your international reporting and tax compliance forms will be filed in a timely manner to avoid substantial penalties.

Ease Your Tax Burden

For most people, tax filing obligations in both the US and Canada can be quite complicated. For instance, business owners running small organizations may have specific deductions and credits available on the US income tax returns. This may require additional forms or filings that people may not be familiar with, especially for cross-border taxes. When you choose to handle these tax returns yourself, there is a high risk of errors with every additional form required for submission. A seasoned corporate tax accountant Windsor loves will help you avoid any risks and they know the applicable tax credits and tax positions that can lower your cross-border tax burden.

As you can see, working with US Canadian tax accountants is important for any foreign organization and business owner. Having a professional who understands everything to do with tax comes in handy, especially for those who lack information on tax compliance. To get the best services in the region, ensure that you choose a reputable and reliable cross-border tax accountant.

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