Tax Services

One of the biggest decisions facing anyone who owns or is planning to own a business is the selection of the appropriate type of business entity. There are significant legal and tax implications that differ from one type of entity to the next. The team of professionals at Anstiss & Co. can help you through the process and ensure that you select the type of entity that is the best fit for you and your objectives.

Based on a number of factors, including tax consequences, the sharing of profits among potential partners, and liability concerns, business owners have a number of options to choose from including a limited liability company (LLC), sole proprietorship, C corporation or S corporation.

At Anstiss & Co. we understand the full range of ramifications involved with the entity selection process. Since 1964, we have been successfully helping business owners make the most appropriate entity selection, given their particular set of circumstances.

LLC’s provide for a considerable amount of flexibility in determining how the net profits flow through to the ownership. LLC’s can distribute profits in whatever manner they see fit, can draw investment from foreign sources, and provide for increased operational ease and flexibility. If you select a limited liability company as a business entity, the owners are protected on a personal level form liability that might arise from the services that the business provides for its customers.

Sole proprietorships assume full liability for all services agreed upon, and the taxation is connected directly to the owner of the business.

C corporations pay shareholders or investors based on the company’s recognized profit or loss. However, the corporation is generally taxed when income is earned, and the income is then taxed again when the shareholders are given payment as dividends. To avoid this double taxation, your business may benefit from choosing to be an S Corporation, with taxes taken only after the income flows through to shareholders.

If you select an S Corporation, all of the net profits flow through to the ownership on a pro rata basis. An S corporation does not have the flexibility offered in limited liability companies. If there is a 50/50 partnership created in an S corporation, and one of the partners does all the work, the profits will still flow through to the owners on a 50/50 basis. An S corporation designation also offers the ownership personal liability protection in the event of a lawsuit.

What is the best entity selection for your business? How can tax burdens be minimized and liability appropriately managed based on this single major decision? Engaging the Anstiss & Co. for business consulting services can answer these questions, and put your business on the right track for a successful future.

It is very important to note that effective estate planning needs to be done in conjunction with a qualified estate planning attorney. Estate planning attorneys prepare your legal documents including wills, powers of attorney and trusts. Anstiss & Co. works closely with the estate planning attorney of your choice to minimize the tax implications of the plan that is ultimately adopted. We can assist you in selecting a qualified attorney if you do not have an existing relationship with an attorney in this field.

The Anstiss & Co. professionals that handle our estate planning cases possess advanced degrees in taxation and have been working in the estate planning field for many years. Preparing for the unexpected is an important piece of your estate plan, and our team of professionals can help provide you with an appropriate course of action to protect your assets.

Anstiss & Co. is a great choice for your estate planning consultation because we take the time to fully understand your family and financial needs, and will work closely with your estate planning attorney. We know how important this process is to you.

Allow Anstiss & Co., P.C. to assist with your reporting and disclosure requirements related to foreign activity. Anstiss & Co., P.C. has extensive experience in this area and assists our clients in maintaining compliance with the technical and extensive filings associated with foreign activity. The following is a sample of the reporting and disclosures that Anstiss & Co., P.C. can assist you with:

• Form 8938 – Statement of Foreign Financial Assets (also known as FATCA)
• Form 5471 – Information Return of U.S. Persons with Respect to Certain Foreign Corporations
• Form 5472 – Information Return of a 25% Foreign Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business
• Form 8865 – Return of U.S. Persons with Respect to Certain Foreign Partnerships
• FinCEN Form 114 – Report of Foreign Bank and Financial Accounts (FBAR)

Avoid significant penalties for non-filing and non-disclosure of these filings related to your foreign activity. Draw from our wealth of experience and talented team members to balance your needs in the ever expanding field of foreign activity reporting.

Do you have a financial interest in or signature authority over a foreign financial account? If so, you may need to file Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (the “FBAR”) by June 30th. There is no fee to file it, however noncompliance penalties start at $10,000 and can go up dramatically from there.

FinCEN Form 114 supersedes TD F 90-22.1 (the FBAR form that was used in prior years) and is only available online through the BSA E-Filing System website.  These filings have received heavy press over the last few years due to IRS amnesty programs regarding previously undisclosed foreign accounts and assets.

The FBAR must be filed on or before June 30th of the year immediately following the calendar year being reported. There is no extension beyond the June 30th due date.

If you answer “yes” any of the following questions, the filing of an FBAR by June 30th may be required:

• Have you ever lived or worked overseas?
• Do you have family living overseas?
• Do you hold an interest or signature authority over a foreign financial account or accounts?
• Did the value of the account or accounts at any point during the calendar year exceed $10,000 in the aggregate (not individually)?

What is a financial account?

Per IRS General Definitions, a financial account includes, but is not limited to, a securities, brokerage, savings, demand, checking, deposit, time deposit, or other account maintained with a financial institution (or other person performing the services of a financial institution). A financial account also includes a commodity futures or options account, an insurance policy with a cash value (such as a whole life insurance policy), an annuity policy with a cash value, and shares in a mutual fund or similar pooled fund (i.e., a fund that is available to the general public with a regular net asset value determination and regular redemptions). The definition also applies to some retirement accounts maintained in foreign countries, such as the Registered Retirement Savings Plan (RRSP) in Canada.

Foreign financial accounts that produce no taxable income may still need to be disclosed. This means that funds held in a non-interest bearing account or funds held in a foreign retirement account could require disclosure. If your parent or sibling lives in a foreign country and has listed you on their account “in case of an emergency,” you may have a disclosure requirement.

If your company (or Not-for-Profit) maintains a foreign financial account and you have check writing or transfer authority for the account, even though the funds are not your personal funds, you may have a disclosure requirement.

You should not panic if you are just now learning of the disclosure requirement. If you would like more information on the FBAR, the IRS has great information available on its website.

At Anstiss & Co., P.C., we have extensive experience with FBAR compliance as many of our clients hold a financial interest in or signature authority over a foreign financial account. We have also assisted taxpayers in their participation in the IRS Offshore Voluntary Disclosure Initiative. Currently available is the 2012 Offshore Voluntary Disclosure Program (OVDP) for taxpayers to bring their disclosure and reporting requirements into compliance.  This program can be discontinued by the IRS at any time. If you have FBAR questions or require assistance, we invite you to contact us at 978-452-2500.

Your tax return is never just a tax return to us. It is an important part of what we do.

When you turn to Anstiss & Co. for your personal tax services, you are dealing with a team that is dedicated to your needs throughout the year, not just during the tax filing period. The large tax return form-filling companies that promise quick processing rarely work well for their clients. If you would like that extra level of assurance that comes with having your tax return prepared by a highly trained and qualified accounting firm, then Anstiss & Co. is a great choice for you.

Our team consists of full-time, long-term employees; not seasonal staff members added to accommodate an increase in tax return preparation requests. We are available to answer your questions year-round. We take the time to get to know you personally, which allows us to better understand all of the issues that relate to your tax return. By developing a personal relationship with you and an understanding of your family’s financial situation, we give you a feeling of consistency from year to year that is difficult to find elsewhere.

Our personal tax services extend beyond tax planning and preparation. At Anstiss & Co., every tax return we process is reviewed by one of the firm’s partners, increasing the level of scrutiny applied to our services and your return, while strengthening our mutual relationship.

We also offer IRS and governmental representation for both existing clients and new clients who have had their tax returns prepared by other firms or organizations.