Tax
We assist with filing individual and business US tax returns
All US businesses must file an annual federal income tax return. A business must file an annual state income tax return in all states where it is registered to do business. There are numerous different tax types which vary by type of business and which state the business is conducted in.
Most US persons (citizens and green card holders), regardless of where they reside, must file a federal individual income tax return and maybe a state income tax return. We assist many Danish domiciled/resident US taxpayers with their US tax filings and with streamlined filing procedures to become compliant for US tax purposes.
We have significant experience in assessing sales tax exposure in the US and filing sales tax returns.
As we are based in both Denmark and the US and have Dansih and US attorneys, we are unequily qualified to assist Danish domiciled/resident US taxpayers with their US tax filings and reporting. We understand the complexity of both countries and the differences in income, tax and tax filing requirements.
Please contact us for a free consultation to discuss how we may be able to assist. You can book a free consultation throught the booking calendar below.
FAQ
What are the costs?
Our services cost less than most people imagine when they contact us. Our prices are at a level where most individuals and businesses can easily participate. We have just made our work cost-effective, as we deliver an all-round solution. We have fixed prices for many of our services, and if we cannot provide a fix price, then we will provide an estimate.
What is the deadline for filing?
A U.S. corporation is required to file an annual return by the 15th day of the fourth month following the close of the tax year. For most corporations, this deadline is April 15th.
A U.S. individual tax payer must file an annual income tax return by April 15th. If you live outside of the U.S. on April 15th (e.g., if you live in Denmark at that day), you receive an automatic extension to June 15th.
If You Did Not File US Tax Returns: Tax Compliance and Streamlined Procedure
We assist many Danish based U.S. individual tax payers to become compliant with U.S. tax lawas and filings. This typoically happens when a U.S. individual tax payer (such as a U.S. citizen or green card holder) living in Denmark was unaware of the tax filing obligations to the U.S.
If you are a U.S. citizen or green card holder and did not file U.S. income tax returns, please reach out, and we can assess the best way for you to become compliant.
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Martin Dahlgaard
Attorney & CEO
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Chelsey Petersen
Attorney
Tax Return Types and Information
Click on the subjects below to read more
Business Tax
All U.S. businesses need to meet federal, state, and local tax obligations to stay in good legal standing. A business must file an annual federal income tax return. The form you use depends on how your business is organized. Generally, you must pay taxes on income, by making regular payments of estimated tax during the year.
If you have employees or contractors in the U.S., you also may be required to file 1099 or W-2 forms.
If a business has a foreign (non-US) bank account, the account, and its highest value, must be reported annually through a process called Foreign Bank Account Reporting (FBAR).
State and local taxes can include, income, employment, withholding, property, and franchise tax. Each category of business tax has specific qualifications, rules, or IRS forms you must file.
There is no national sales tax in the U.S., but most states have sales tax. It is the responsibility of a business to collect sales tax and remit payment to the state when the business has some form of connection to the jurisdiction. The requirements vary by state, and a product subject to sales tax in one state may not be subject to sales tax in another state.
Individual Tax
U.S. person, whose income is above the filing threshold, must file an annual tax return. A U.S. person includes: U.S. citizens, including “Accidental Americans”, regardless of what country they reside in; Permanent Resident Permit Holders (Commonly referred to as a Green Card); and resident or non-resident aliens of the U.S. who have U.S. income.
Although a U.S. person must file, most who have income they pay tax on to their country of residence, do not owe tax to the U.S. If you have taxes owed, you usually need to pay by April 15th.
Those living outside of the U.S., receive an automatic extension to June 15th. This automatic extension is only for filing, not for payment of taxes owed.
If you are non-compliant with your tax reporting obligations, you can use the IRS streamlined procedures to file past due returns.
If you have foreign (non-US) bank accounts, you may be required to report information related to the account through a process called Foreign Bank Account Reporting (FBAR.)
IRS Streamlined Procedure
We assist US citizens living in Denmark and abroad with becoming compliant on their US tax filing obligations. The IRS has a “streamlined procedure” for US citizens residing abroad., At USA DENMARK LAW we have significant experience in assisting US citizens under the streamlined filing procedure and foreign bank account reporting requirements.
Foreign Bank Account Reporting – FBAR
US citizens, green card holders and certain other US taxpayers may need to file foreign bank account reporting (FBAR). We prepare and file the FBAR returns for many US taxpayers and can guide you on the filing obligations for all specific accounts.
Sales Tax
Sales tax can be a complicated matter in the United States. Some refer to it as the Wild West among the different states.
We have significant experience in assessing US sales tax exposure and to make sure that Danish sellers are compliant on sales taxes in the United States.
Sales tax is a form of use tax which is generally levied on the sale of products to end-users in a state where the seller has a place of business (nexus). In reality, it is not only relevant for businesses selling products, but is also relevant for software companies, etc. A “nexus” can be established physically and economically.
We often conduct analysis and evaluations on sales tax exposure in all the different states. We frequently represent Danish companies becoming compliant on sales tax and on sales tax forgiveness procedures in the United States.