Miraflores tax lawyer
US citizens and lawful permanent residents living in Miraflores, Lima, Peru, remain subject to US federal income tax on their worldwide income, regardless of where they reside. The US is one of the few countries that taxes based on citizenship rather than residence, which means a US person in Miraflores must generally file a US tax return each year, report foreign bank accounts that meet the reporting threshold, and navigate the interaction between US tax obligations and any taxes paid in Peru. Law Offices of SRIS, P.C., a US law firm founded in 1997, assists US persons abroad with these cross-border tax compliance matters. Mr. Sris, the firm’s founder and managing attorney, is admitted to practice in Virginia, Maryland, the District of Columbia, New Jersey, and New York. For Peru-law aspects of a cross-border tax matter, the firm collaborates with Martín Mayandía, Of Counsel, who is admitted to practice law in Peru (2009) and is not admitted in any US state bar; his role is limited to Peru-law matters in coordination with the firm’s US-admitted attorneys. Reach the firm at (888) 437-7747.
US tax obligations for individuals in Miraflores, Peru
US persons residing in Miraflores must generally file a US federal income tax return reporting worldwide income, and may also have foreign account reporting obligations under the Bank Secrecy Act (31 U.S.C. § 5314). The US tax system reaches US citizens and green card holders wherever they live. A US person earning income in Peru — whether from employment, a business, rental property, or investments — reports that income to the IRS. Several provisions may reduce or offset US tax liability, including the Foreign Earned Income Exclusion under IRC § 911 and the Foreign Tax Credit under IRC § 901. These provisions have specific eligibility requirements, including the bona fide residence test or the physical presence test for the exclusion, and the requirement that the foreign tax be a compulsory levy that is substantially equivalent to an income tax under US principles.
In addition to income tax filing, US persons with financial accounts in Peru may need to file a FinCEN Form 114 (FBAR) if the aggregate value of their foreign financial accounts exceeds $10,000 at any point during the calendar year. The Foreign Account Tax Compliance Act (FATCA, 26 U.S.C. § 1471) may also impose reporting requirements through Form 8938 for specified foreign financial assets above certain thresholds. These reporting obligations are separate from the income tax return and carry their own penalty structures for noncompliance. Law Offices of SRIS, P.C. advises US persons in Peru on these overlapping compliance duties. Mr. Sris and the firm’s US-admitted attorneys handle the US-law side of the matter. For any Peru-law questions — such as the characterization of a Peruvian entity or the local tax treatment of a transaction — the firm engages Martín Mayandía, Of Counsel, admitted to practice law in Peru (2009) and not admitted in any US state bar, whose role is limited to Peru-law matters in collaboration with the firm’s US-admitted attorneys.
Frequently Asked Questions
Do I need to file a US tax return if I live in Miraflores full-time?
Yes, if you are a US citizen or lawful permanent resident, you must generally file a US federal income tax return regardless of where you live, including full-time residence in Miraflores, Peru. The US taxes worldwide income. The filing requirement depends on your gross income exceeding the applicable standard deduction and exemption thresholds, which are the same for overseas filers as for domestic filers. Even if you owe no US tax after applying the Foreign Earned Income Exclusion or Foreign Tax Credit, you may still need to file to claim those benefits. The filing deadline is generally April 15, with an automatic two-month extension to June 15 for taxpayers living abroad, and a further extension to October 15 available by request. For guidance on your specific filing obligations, reach Law Offices of SRIS, P.C. at (888) 437-7747.
What is the Foreign Earned Income Exclusion and do I qualify?
The Foreign Earned Income Exclusion under IRC § 911 allows qualifying US persons to exclude a portion of their foreign earned income from US federal income tax. To qualify, you must meet either the bona fide residence test — showing you are a bona fide resident of a foreign country for an uninterrupted period that includes an entire tax year — or the physical presence test, which requires being physically present in a foreign country for at least 330 full days during any consecutive 12-month period. The exclusion is claimed on Form 2555 and applies only to earned income such as wages, salaries, and self-employment income; it does not apply to investment income, rental income, or pension distributions. The exclusion amount is adjusted annually for inflation. For a consultation on whether you qualify, contact Law Offices of SRIS, P.C. at (888) 437-7747.
Do I need to report my Peruvian bank accounts to the US government?
Yes, if the aggregate value of your foreign financial accounts — including Peruvian bank accounts, brokerage accounts, and certain other financial accounts — exceeds $10,000 at any time during the calendar year, you must file a FinCEN Form 114 (FBAR). The FBAR is filed electronically with the Financial Crimes Enforcement Network and is due April 15, with an automatic extension to October 15. The reporting threshold is based on the aggregate maximum value of all foreign accounts, not each account individually. The penalty for willful failure to file can be substantial. This obligation is separate from the FATCA reporting on Form 8938, which has higher thresholds and is filed with your income tax return. For guidance on your FBAR and FATCA obligations, reach Law Offices of SRIS, P.C. at (888) 437-7747.
How does the Foreign Tax Credit work for taxes I pay in Peru?
The Foreign Tax Credit under IRC § 901 allows US taxpayers to claim a credit against their US tax liability for income taxes paid to a foreign country, reducing or eliminating double taxation. To qualify, the foreign tax must be a compulsory levy that is substantially equivalent to a US income tax. You can choose each year between claiming the Foreign Tax Credit on Form 1116 and claiming the Foreign Earned Income Exclusion on Form 2555, but you cannot claim both for the same income. The credit is generally limited to the US tax attributable to your foreign-source income. Properly characterizing which income is US-source and which is foreign-source requires careful analysis. For a consultation on cross-border tax matters, contact Law Offices of SRIS, P.C. at (888) 437-7747.
Can the firm help with both my US tax filing and any Peru tax issues?
Law Offices of SRIS, P.C. handles the US-law aspects of your cross-border tax matter, and for Peru-law questions the firm collaborates with Martín Mayandía, Of Counsel, who is admitted to practice law in Peru (2009) and is not admitted in any US state bar. Mr. Mayandía’s role is limited to Peru-law matters in coordination with the firm’s US-admitted attorneys. This division ensures that each side of your cross-border tax situation is addressed by an attorney licensed in the relevant jurisdiction. Mr. Sris, the firm’s founder, is admitted in Virginia, Maryland, the District of Columbia, New Jersey, and New York, and leads the US-law side of the engagement. The two attorneys collaborate as needed while maintaining strict jurisdictional separation. To discuss the details of your cross-border tax matter, reach the firm at (888) 437-7747.
What is FATCA and how does it affect me as a US person in Peru?
The Foreign Account Tax Compliance Act (FATCA, 26 U.S.C. § 1471) requires US persons with specified foreign financial assets above certain thresholds to report those assets on Form 8938, filed with their annual tax return. FATCA also imposes reporting requirements on foreign financial institutions, which may ask you to certify your US tax status. The reporting thresholds for Form 8938 are higher than the FBAR thresholds and vary depending on whether you live in the US or abroad and your filing status. FATCA reporting is in addition to — not a replacement for — FBAR reporting. The two regimes have different definitions, thresholds, and filing procedures. For guidance on your FATCA compliance obligations, contact Law Offices of SRIS, P.C. at (888) 437-7747.
What should I bring to a consultation about my cross-border tax situation?
For an initial consultation about your US tax obligations as a US person in Miraflores, it is helpful to bring your most recent US tax return, any IRS correspondence, information about your Peruvian income sources, and details of your Peruvian financial accounts. If you have not been filing US returns while living abroad, bring whatever income and account records you have for the years in question. The firm can assess your situation and explain the available compliance options, including the IRS streamlined filing compliance procedures for taxpayers whose failure to file was non-willful. The consultation addresses your US-law obligations; any Peru-law questions are referred to Martín Mayandía, Of Counsel, admitted to practice law in Peru (2009) and not admitted in any US state bar, for Peru-law guidance in coordination with the firm. To schedule a consultation, reach Law Offices of SRIS, P.C. at (888) 437-7747.
Does the firm handle IRS audits and collection matters for US persons in Peru?
Yes, Law Offices of SRIS, P.C. represents US persons abroad in IRS audits, appeals, and collection matters, including cases involving foreign income, foreign accounts, and cross-border compliance issues. An IRS audit of a taxpayer living in Peru may involve requests for foreign bank records, substantiation of the Foreign Earned Income Exclusion, verification of Foreign Tax Credit claims, and examination of FBAR and FATCA compliance. The firm’s US-admitted attorneys handle the representation before the IRS. If the audit raises questions about the characterization of Peruvian income or entities under Peru law, the firm consults with Martín Mayandía, Of Counsel, admitted to practice law in Peru (2009) and not admitted in any US state bar, on those discrete Peru-law issues. For a consultation on IRS audit representation, contact the firm at (888) 437-7747.
I have not filed US tax returns for several years while living in Peru. What are my options?
US persons who have not filed required tax returns while living abroad may be eligible for the IRS streamlined filing compliance procedures, which are designed for taxpayers whose failure to file was non-willful. The streamlined procedures generally require filing the most recent three years of delinquent tax returns and six years of delinquent FBARs, along with a certification of non-willful conduct. Eligibility depends on the specific facts of your situation, including the reason for the non-filing and whether you were aware of the filing obligation. The IRS may also consider other compliance options depending on the circumstances. Each case requires individual assessment. For a consultation on your specific situation, reach Law Offices of SRIS, P.C. at (888) 437-7747.
How do I get started with the firm for my cross-border tax matter?
To discuss your US tax obligations as a US person in Miraflores, Peru, contact Law Offices of SRIS, P.C. at (888) 437-7747 to schedule a consultation. The firm’s US-admitted attorneys, led by Mr. Sris, handle the US-law aspects of your matter. For any Peru-law questions that arise, the firm engages Martín Mayandía, Of Counsel, admitted to practice law in Peru (2009) and not admitted in any US state bar, whose role is limited to Peru-law matters in collaboration with the firm’s US-admitted attorneys. Consultations are by appointment. The firm’s Virginia principal location serves as the base for US-law representation, and all client matters involving Peru law are handled through the collaborative arrangement with Mr. Mayandía. For guidance on your specific cross-border tax situation, reach the firm at (888) 437-7747.