Santa Marta tax lawyer
US citizens and resident aliens living in Santa Marta, Colombia, remain subject to US federal income tax on their worldwide income under 26 U.S.C. § 61. Law Offices of SRIS, P.C., a US law firm founded in 1997, assists international clients with US tax compliance, including FBAR and FATCA reporting, streamlined filing procedures, and cross-border tax planning. Mr. Sris, the firm’s Owner and Founder, is admitted to practice law in Virginia, Maryland, the District of Columbia, New Jersey, and New York, and leads the firm’s US tax practice. For matters involving Colombian law, the firm collaborates with Eric Duport Jaramillo, Of Counsel, who is admitted to practice law in Colombia and is not admitted in any US state bar. All US tax advice is provided by the firm’s US-admitted attorneys. Reach Law Offices of SRIS, P.C. at (888) 437-7747.
US Tax Obligations for Individuals in Santa Marta, Colombia
The United States taxes its citizens and resident aliens on worldwide income regardless of where they reside, making US tax compliance essential for anyone living in Santa Marta. Under 26 U.S.C. § 61, gross income includes wages, self-employment earnings, investment income, rental income, and most other forms of economic gain, even when earned entirely outside the United States. A US person residing in Santa Marta who operates a business, owns rental property, or maintains Colombian bank accounts may have filing obligations with both the IRS and the Financial Crimes Enforcement Network (FinCEN). The foreign earned income exclusion under 26 U.S.C. § 911 may reduce or eliminate US tax on certain earned income, but it does not eliminate the requirement to file a return, nor does it apply to self-employment tax or unearned income such as dividends and interest.
Beyond income tax returns, US persons with foreign financial accounts must consider FBAR and FATCA reporting. The FBAR requirement, authorized by 31 U.S.C. § 5314 and administered by FinCEN, applies when the aggregate value of foreign financial accounts exceeds $10,000 at any point during the calendar year. Separately, 26 U.S.C. § 6038D (FATCA) requires specified foreign financial assets to be reported on Form 8938 when their value exceeds certain thresholds. These obligations are independent of one another; a taxpayer may need to file both FBAR and Form 8938. Law Offices of SRIS, P.C. advises clients on these requirements and assists with preparation of the necessary disclosures.
Frequently Asked Questions
Do US citizens living in Santa Marta need to file US tax returns?
Yes, US citizens and resident aliens must file US federal income tax returns regardless of where they live, including Santa Marta, Colombia. The US is one of the few countries that taxes based on citizenship rather than residence. Under 26 U.S.C. § 61, worldwide income is subject to US tax. Filing thresholds depend on filing status, age, and gross income. Even if no tax is owed after applying the foreign earned income exclusion or foreign tax credit, a return may still be required. The firm assists clients in determining their filing obligations and preparing compliant returns.
What is FBAR and who must file it?
The FBAR (Foreign Bank and Financial Accounts Report), FinCEN Form 114, is required when a US person holds foreign financial accounts with an aggregate value exceeding $10,000 at any time during the calendar year. Authorized by 31 U.S.C. § 5314, the FBAR is filed electronically with FinCEN, not with the IRS. Accounts include bank accounts, brokerage accounts, and certain foreign-commingled funds. The $10,000 threshold is an aggregate test across all foreign accounts; a US person with two Colombian bank accounts of $6,000 each meets the threshold. The filing deadline is April 15, with an automatic extension to October 15.
What is FATCA and how does it affect US persons in Colombia?
FATCA (Foreign Account Tax Compliance Act), codified at 26 U.S.C. § 6038D, requires US persons to report specified foreign financial assets on Form 8938 when their value exceeds applicable thresholds. FATCA reporting is separate from FBAR and is filed with the IRS as part of the income tax return. The thresholds vary by filing status and residence; for US persons living abroad, the threshold is generally higher than for those residing in the US. Colombian financial institutions may also have FATCA obligations to report accounts held by US persons to the IRS or to Colombian tax authorities under intergovernmental agreements.
What are the penalties for failing to file FBARs?
FBAR penalties can be substantial and vary depending on whether the failure to file is classified as non-willful or willful. Non-willful violations may result in civil penalties, while willful failures to file can carry significantly higher civil penalties and potential criminal exposure. The IRS and FinCEN consider factors such as the taxpayer’s history, the amounts involved, and whether the taxpayer voluntarily came forward. The IRS Streamlined Filing Compliance Procedure and other voluntary disclosure programs may provide a path to compliance with reduced or no penalties for eligible taxpayers who certify that their prior non-compliance was non-willful.
What is the IRS Streamlined Filing Compliance Procedure?
The Streamlined Filing Compliance Procedure is an IRS program that allows eligible US taxpayers residing abroad to catch up on unfiled tax returns and FBARs, often with reduced or no penalties. To qualify, the taxpayer must certify that their prior non-compliance was non-willful. The procedure generally requires filing three years of delinquent federal tax returns and six years of FBARs, along with a certification statement. The IRS reviews each submission and may assess penalties if it determines the non-compliance was willful. The firm assists clients in evaluating eligibility and preparing streamlined submissions.
Can the firm help with Colombian tax matters?
Colombian tax matters are handled by the firm’s Colombia Of Counsel, Eric Duport Jaramillo, who is admitted to practice law in Colombia and is not admitted in any US state bar. Mr. Duport Jaramillo’s role is limited to Colombian-law matters in collaboration with the US-admitted attorneys of the firm. All US tax advice and representation is provided by Mr. Sris, who is admitted in Virginia, Maryland, the District of Columbia, New Jersey, and New York. This division ensures that each aspect of a cross-border tax matter is addressed by an attorney licensed in the relevant jurisdiction.
How does the cross-border collaboration work?
Mr. Sris and the firm’s US-admitted attorneys handle all US tax matters, while Colombian-law matters are addressed by Eric Duport Jaramillo, the firm’s Colombia Of Counsel. Mr. Duport Jaramillo is admitted to practice law in Colombia and is not admitted in any US state bar; his practice with the firm is limited to Colombian-law matters and to serving as a liaison for international clients with the firm’s US-admitted attorneys. For a client in Santa Marta with both US and Colombian tax obligations, the US side and the Colombian side are handled by the respective licensed attorneys, with coordination as needed. This structure maintains strict jurisdictional separation in compliance with applicable bar rules.
What should I bring to a tax consultation?
Bring prior-year US tax returns, foreign account statements, and any correspondence from the IRS or Colombian tax authorities. If you have not filed US returns for several years, gather whatever financial records you have, including Colombian bank statements, brokerage account summaries, business records, and records of any Colombian taxes paid. For FBAR and FATCA analysis, a summary of all foreign financial accounts with their highest balances during each year is helpful. The firm uses this information to assess your filing obligations, determine eligibility for the Streamlined Filing Compliance Procedure or other voluntary disclosure programs, and develop a compliance strategy.
How do I get started?
Contact Law Offices of SRIS, P.C. at (888) 437-7747 to schedule a consultation regarding your US tax obligations while living in Santa Marta, Colombia. Consultations are by appointment only. The firm’s US-admitted attorneys will discuss your specific circumstances, including your filing history, foreign accounts, and any cross-border tax issues. For matters involving Colombian tax law, the firm can engage Eric Duport Jaramillo, Of Counsel, who is admitted to practice law in Colombia and is not admitted in any US state bar, to address the Colombian-law aspects in collaboration with the firm’s US-admitted attorneys.
About Mr. Sris and the Of Counsel Network
Mr. Sris, Owner and Founder of Law Offices of SRIS, P.C., founded the firm in 1997 and is admitted to practice law in Virginia, Maryland, the District of Columbia, New Jersey, and New York. He leads the firm’s US tax practice for international clients, including US persons residing in Colombia. For Colombian-law matters, the firm collaborates with Eric Duport Jaramillo, Of Counsel, who is admitted to practice law in Colombia and is not admitted in any US state bar. Mr. Duport Jaramillo’s role is limited to Colombian-law matters in collaboration with the US-admitted attorneys of the firm. All US tax advice and representation is provided by Mr. Sris and the firm’s US-admitted attorneys. The firm has locations in Virginia, Maryland, New Jersey, New York, and Pereira, Colombia, all by appointment only. Reach the firm at (888) 437-7747.