International Relocation Firm Disclaimer & Notice to US Persons


U.S. Taxpayers (citizens or residents of the United States of America) MUST Report Foreign Income and Disclose Foreign Financial Accounts and Entities. U.S. taxpayers with gross annual income above a threshold amount must file an income tax return with the IRS reporting the taxpayer’s income from all sources WORLD-WIDE. 26 U.S.C. §§ 61, 6012. U.S. taxpayers must also disclose certain foreign assets. For example, an individual U.S. taxpayer who has a financial interest in, or signature authority over, a foreign financial account must disclose the existence of the account on Schedule B of the taxpayer’s income tax return. See Schedule B (Form 1040 or 1040-SR), Interest and Ordinary Dividends, Part III. The taxpayer may also be required to report the account on a Report of Foreign Bank and Financial Accounts, FinCEN Form 114 (the “FBAR”). U.S. taxpayers are required to report certain transactions with foreign persons or trusts, see 26 U.S.C. §§ 6039F, 6048, and any ownership of or control over foreign corporations, see 26 U.S.C. § 6038; 26 C.F.R. § 1.6038-2(a).

International Relocation Firm is a law firm based in the Republic of Panama and regulated under Panamanian laws. International Relocation Firm does not offer US tax advice, investment advice, nor any US legal advice. All clients are required to sign a professional services agreement to International Relocation Firm, when contracting any legal services. Under no circumstances shall International Relocation Firm, or any of their subsidiaries, partners, associates, employees, directors or nominees, be held responsible for any client who contracts our legal services and fails to report their obligations to the US tax authorities, or to any other tax authority in any other country.

In regards to the recent US investigation on US persons who have formed entities or opened bank accounts through International Relocation Firm services, we are currently analyzing the case with US legal counsel to take the necessary measures to defend our firm from any allegations and we fully intend to cooperate with the US authorities. We have always maintained a strict policy of having our US clients sign a document called “Notice, Disclaimer, Waiver and Release for US Persons”, whereby we clearly inform our clients of their US fiscal reporting obligations, and the client releases our law firm from any responsibility or liability in connection to any US tax reporting obligations. In addition, all Panama banks (and other banks we deal with outside of Panama) automatically report all US owned accounts to the US tax authorities as per the FATCA laws that all these banks must comply with as Qualified Intermediaries to the IRS. Finally, our law firm currently does not offer services of corporation or foundation formation, nor bank introductions to US persons.

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