I'm a non resident, owner of a U.S. based LLC company. I get distributions every month and the funds have accumulated in my U.S. accounts. I've appropriately filed taxes, but would like to avoid triggering an audit or investigation by my transfer. The sum is just over $1M and would be transferred to my overseas permanent residence bank.
There's virtually no chance that a transfer of that amount would not result in some scrutiny under the Patriot Act, etc. However, if you have properly handled the reporting associated with the funds along the way then you'll be fine. No need to fear any type of investigation of you've handled things properly. You may also want to consider providing details fo the transaction prior to the transfer.
Evan A. Nielsen is licensed to practice law in California and handles federal tax matters throughout the U.S. The information provided here is for educational purposes only and is not intended as legal advice for a particular matter. This response does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult an attorney.
11 lawyers agree
I defer to Mr. Neilsen as a tax practitioner.
My comment is that a company of your size really needs to have a minimum legal team of a CPA and attorney. Avvo questions are for analysis only, not advice. At the level of activiity and profitablity you are discussing, such a team is warranted.
The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.
9 lawyers agree
Divorce / Separation Lawyer
I agree with the prior responders. Set up an appointment with an experienced attorney and CPA to discuss the matter in private not on a public non-confidential forum.
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Lawsuit / Dispute Attorney
No attorney on this site is going to tell you how to avoid an audit on a transfer of that magnitude. Spend some of that money on a U.S. tax attorney and you might get an answer that you can live with and rely on.
If you'd like to discuss, please feel free to call. Jeff Gold Gold, Benes, LLP 1854 Bellmore Ave Bellmore, NY 11710 Telephone -516.512.6333 Email - Jgold@goldbenes.com
International Law Attorney
All my colleagues gave you proper advice. I would only add that here you do not only have a problem of audit. Analyzing wire transfer is a normal activity for banks. If your activity is legitimate and properly reported the second issue concenrs the distribution of dividends. With 1M distribution it is very risky not to have an international tax attorney assessing the overall tax planning and tax consequences in your jurisdiction. Tax administrations can exchange information as well. Best
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3 lawyers agree
International Law Attorney
I disagree with my colleagues to some extent; if the funds are not from an illicit source and you are engaged in a lawful business and you paid your taxes, the government has no business regarding your funds. All that will happen most likely is a routine report to FINCEN regarding the transfer which by itself would be unremarkable unless other circumstances are present. Are we all supposed to live in constant fear of the US government when engaging in lawful activities?
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If you are entirely tax compliant, I am not aware of a tax problem or any other legal: DEPENDING on where you are sending the money and how you are using the funds.
I do however agree with the others to the extent that--strictly speaking--an audit can be triggered.
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