California is home to a large number of immigrants and individuals with international financial ties — foreign bank accounts, overseas income, foreign inheritance, or dual citizenship. These situations carry federal reporting obligations that are separate from and in addition to standard tax filing requirements. Finding a tax professional with international tax experience in California is critical if any of these apply to you.
Key Federal Reporting Requirements
- FBAR (FinCEN Form 114): If you have financial accounts outside the United States with an aggregate value exceeding $10,000 at any point during the calendar year, you must file an FBAR with the Financial Crimes Enforcement Network. This is a separate filing from your tax return.
- FATCA (Form 8938): U.S. taxpayers with specified foreign financial assets above certain thresholds must file IRS Form 8938 with their federal return.
- Foreign income reporting: U.S. citizens and residents generally must report worldwide income to the IRS, regardless of where it was earned.
California-Specific International Considerations
California does not conform to all federal international tax provisions. For example, California taxes income that may be deferred at the federal level under certain foreign income rules. California also does not recognize the federal foreign earned income exclusion for state purposes — income excluded from federal tax under the foreign earned income exclusion may still be subject to California tax if you are a California resident.
What to Look for in a Professional
- Experience preparing FBAR and Form 8938 filings
- Familiarity with California’s non-conformity to federal foreign income rules
- Experience with IRS streamlined procedures or voluntary disclosure programs (if you have unfiled international returns)
- Knowledge of tax treaties and how they interact with California residency
Where to Find International Tax Help
The American Citizens Abroad organization maintains resources for finding tax professionals who work with international clients. The IRS Directory of Federal Tax Return Preparers and the CalCPA referral service are also useful starting points. When contacting potential professionals, ask specifically about international experience — not all CPAs or EAs have this specialty.
Verifying Credentials
Verify CPAs at dca.ca.gov/cba and Enrolled Agents at irs.gov. For complex matters involving foreign financial accounts and potential penalties, consider a tax attorney verifiable through calbar.ca.gov.
Official sources referenced: IRS.gov, California Board of Accountancy (dca.ca.gov/cba), California Franchise Tax Board (ftb.ca.gov). Not reviewed by a credentialed tax professional.