General Information about U.S. Tax System

The United States has separate federal, state, and local governments with taxes imposed at each of these levels. Beginning from the tax year 2018, the Tax Cuts and Jobs Act (TCJA) is implemented to make tax reform. This major tax legislation will affect individuals, businesses, and non-for-profit organizations.

C Corporation Income Tax - The TCJA reduced the federal corporate income tax rate from 35% to 21%, improving the global competitiveness of the United States in attracting new investment. All businesses incorporated in the U.S. must file an annual income tax return.

Individual Income Tax - Most individuals are required to file income tax return. It is a type of income tax return filed by an individual to a federal, state or local taxing agency to report income, calculate and pay taxes. U.S. citizens and tax residents’ worldwide income are subject to U.S. income tax, while nonresident aliens need to file income tax return if they have income from the U.S. source.

Foreign Assets Filing - U.S. citizens and resident aliens must report any worldwide income, including income from foreign trusts and foreign bank and securities accounts. FBAR must be filed if the aggregate value of the foreign financial accounts exceeds USD 10,000 at any time during the calendar year. You may have to file FATCA Form if your foreign assets reach certain amounts.

Sales Tax - A sales tax is a tax paid to a state tax authority for the sales of certain goods and services. Merchant holds sales taxes collected before remitting it to state and local taxing authorities at a set time (usually either monthly, quarterly or annually.) States that levy a sales tax have different rules and laws when it comes to sales tax. Sales tax rates can vary by state and locality, too.

Kaizen Taxation Services

We have an experienced team of tax professionals who can assist you with a full range of tax matters, including:

• Preparation and filing of income tax return
• Preparation and paying estimated tax
• Preparation and filing self-employment tax
• Preparation and filing employment tax return
• Preparation and filing annual report and franchise tax
• Preparation and filing sales tax return
• Preparation and filing foreign assets
• Advice on cross-broader tax matters
• IRS representation
• Preparation and filing non-profit organization’s tax
• Global transfer pricing services
• Global compliance management services
• Deal advisory, mergers and acquisitions tax services
• Distribute resolution and controversy services
• Estate and trust planning and tax preparation

The above listed items are the basic tax services provided by Kaizen. Kaizen could also provide diversified and comprehensive taxation services based on clients’ special and specific needs. Kaizen is well-equipped with professional CPAs and is capable of providing constructive suggestions on your business development in USA to minimize tax risks and tax burdens.