Looking for a tax professional

Hello everyone,

Like most of the posts from a new user on any forum, this one is also from a person who waited till the very last moment and now is in a real hurry to get some help. And I apologize for that. Although I don't promise to never do it again

I am in a pretty specific tax situation and I'm looking for a tax professional familiar with both US and UK taxes to give me a tax advice. The reason for the time crunch is because I need to make a correct decision whether to make an estimated tax payment for the IV quarter and that should be done before January 17th this year.

So if anyone could recommend a good tax specialist, I would really appreciate it!

I'm located in London.

http://britishamericantax.com

Remember whoever you deal with to ask the exact qualifications in both countries of the person giving you advice as there are still numerous unqualified advisers about.

Here is a list of UK based tax preparers provided by the US Embassy:

http://photos.state.gov/libraries/unitedkingdom/164203/cons-acs/tax_preparation_services.pdf

I use Frank Hirth and so does my American neighbor.  I've used them for 14 years and my neighbor even longer. 

However, they are relatively expensive and not really geared up for last-minute type of situations, IMO.   If your tax situation is simple and you want a firm that is a bit more flexible than I suggest you call a few of the smaller firms and see which one suits you best.

On the other hand, if you can afford to why don't you go ahead and make the estimated payment?  Resolve to find an accountant ASAP and get everything you need to get your U.S. taxes done A.S.A.P.  That way if you've overpaid you'll get a refund back ASAP as well.

I've been using taxesforexpats.com and very happy with results. Anybody in London charges exorbitant amounts for US tax preparation - 1,000 GBP and up + VAT.

I pay $450 for top-notch service.

There are some amazingly good US tax advisers based in the United States. However, hiring a tax adviser outside of the United Kingdom presents unique issues:

1. Someone in the States is unlikely to be dual US/UK qualified, so may overlook important UK tax planning opportunities, possibly costing more tax than necessary.

2. If something goes wrong, you'd have to sue in the State where the business is based, this could be expensive when it would be simpler and cheaper to sue in the British Courts

3. If something goes wrong there is no local UK professional body you could complain to.

4. Someone in the US would not be subject to UK anti-money laundering rules, which exist to protect the consumer. This adds risk because advisers in the US are not required to undertake the same levels of due diligence as advisers throughout the EU.

5. Time zones and paying in non-Sterling currencies may add difficulty for some folks.

Overall my experience is that using a dual US/UK qualified adviser is most prudent, but as I said above may well not suit everyone.

Someone in the States is unlikely to be dual US/UK qualified, so may overlook important UK tax planning opportunities, possibly costing more tax than necessary.

Can you please elaborate on this? If someone owes no tax to the IRS, what planning opportunity is there?

Someone in the US would not be subject to UK anti-money laundering rules, which exist to protect the consumer. This adds risk because advisers in the US are not required to undertake the same levels of due diligence as advisers throughout the EU.

What anti-money laundering rules would a tax preparer follow? Please elaborate

 

Planning opportunities that can be important include the UK rules relating to the 7 of 9 year, 12 of 14 year or 17 of 20 years of UK.

Even more commonly the UK rules on offshore income gains and personal portfolio bonds can often be overlooked.

In terms of anti-Money Laundering, the rules that need to be observed by all tax advisers doing business in the UK are contained in the Money Laundering Regulations 2007.

Planning opportunities that can be important include the UK rules relating to the 7 of 9 year, 12 of 14 year or 17 of 20 years of UK.

Even more commonly the UK rules on offshore income gains and personal portfolio bonds can often be overlooked.

Thank you - these are in fact relevant matters. However, there is nothing specific to the US is there? Ie any competent UK accountant should be able to render appropriate advice on residence rules for non-domiciles?

Your original point made it sound like being an American the rules are somehow different - whereas they are the same regardless of where the domicile is claimed

In terms of anti-Money Laundering, the rules that need to be observed by all tax advisers doing business in the UK are contained in the Money Laundering Regulations 2007.

So the point of these rules is to disclose the client to the government if anything looks suspicious. So how exactly is using an accountant that has to ring up the government and report his client beneficial again?

So the point of these rules is to disclose the client to the government if anything looks suspicious. So how exactly is using an accountant that has to ring up the government and report his client beneficial again?

If you're not doing anything you shouldn't be, you don't have to worry about it.

If you're not doing anything you shouldn't be, you don't have to worry about it.

When the issue of government-issued identity papers or CCTV comes up, I take the same stance. However - if I am hiring a tax professional, why would I prefer one that is obligated to report me to the government?

All else being equal, I'd prefer an accountant that works for me first (and not the government).

I've been using taxesforexpats.com [nofollow] and very happy with results. Anybody in London charges exorbitant amounts for US tax preparation - 1,000 GBP and up + VAT.

I pay $450 for top-notch service.

nyclon, is this the price for the US return only or does it also include the UK return? It seems to me that they only file US returns, don't they?

On the other hand, if you can afford to why don't you go ahead and make the estimated payment?  Resolve to find an accountant ASAP and get everything you need to get your U.S. taxes done A.S.A.P.  That way if you've overpaid you'll get a refund back ASAP as well.

This is exactly what I ended up doing. Due to the difference in the tax year, my UK situation is not clear until April and could potentially change in the way affecting my US taxes. In this scenario I would end up underpaying and would be subject to fines back in the US. Considering today's interest rates it certainly makes sense to remain on the safe side.

All else being equal, I'd prefer an accountant that works for me first (and not the government).

That's where you're wrong, though. They do work for you. Complying with law and regulations isn't working for the government, it's being a responsible professional.

That's where you're wrong, though. They do work for you. Complying with law and regulations isn't working for the government, it's being a responsible professional.

I guess we live in different universes. In mine - an accountant that is is required by law to report anything suspicious to the government is really working for the government, but being paid by me.

Lets just not go down the 'only bad people have to be afraid of laws' argumentation route. I am not raising this issue because I run a small cocaine import business and am afraid that my tax preparer will report it to the government. It's more a philosophical issue.