The FBAR – Foreign Bank Account Report
In addition to tax reporting and payment obligations, U.S. citizens and permanent residents have an additional reporting requirement: the FBAR (Foreign Bank Account Report). There is significant confusion regarding this requirement. Is it an independent obligation? Are those who file tax returns exempt from submitting an FBAR? Who must submit it, and how should it […]
The FATCA – Foreign Accounts Tax Compliance Act
U.S. tax legislation is primarily contained within the Internal Revenue Code, which consists of tens of thousands of sections. For those outside the fields of accounting and tax consulting, keeping up with the numerous rules, regulations, and reporting requirements can be overwhelming. While mastering all tax laws is impractical for non-professionals, one law that is […]
GILTI provisions: The new tax liability you may not have known about
The 2018 tax reform brought significant changes, including a reduction in corporate tax rates, a lower maximum marginal tax rate, and tax exemptions on foreign company dividend distributions. However, despite these benefits, the reform also introduced new tax obligations—one of which is the GILTI provision. In this article, we will examine the key aspects of […]
EBITDA: Limiting tax deductions on interest expenses
On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act (TCJA) into law, significantly altering the U.S. tax landscape. The reform brought about the most substantial changes in corporate, international, and individual taxation in over 30 years. This article focuses on one of the key corporate tax changes: the limitation on tax […]
Tax Return Filing For U.S Citizens Living Abroad
Anyone holding U.S. citizenship is obligated to file a U.S tax report to the U.S. tax authorities using Form 1040. On the form, the applicant reports his income from every source in the world and his marital status. Depending on these two factors, his annual tax obligations will be determined. In addition to this report, […]
The U.S. Tax Reform (BDO)
At the end of 2017, the U.S. tax reform was approved. The main goal of this reform is to strengthen the activities of American companies and encourage companies from abroad to operate throughout the United States. The reform includes a long line of benefits designed to improve competition, such as an effective reduction of U.S. […]
Article Of Organization
Articles of organization are a set of documents that regulate and authorize the status of a limited liability company (LLC). Limited liability companies are not considered corporations. These documents are submitted directly to the regulator and since they are not federal documents, they differ slightly between the county or state in which they were filed. […]
The Services We Offer
Annual Tax Returns: We file comprehensive tax returns for individuals, families, and businesses, including those requiring specialized tax planning for elderly individuals and retirees meeting Federal (IRS) and state tax authority requirements. Post-Filing Support: We provide follow-up assistance after return submission. Foreign Financial Account Reporting: We handle FBAR forms for annual foreign financial account reporting. […]
American Accountant
An American accountant also referred to as a CPA, mediates between citizens who hold a green card and the complex tax system. The United States Tax Authority, or the IRS, imposes substantial fines for inaccuracies or late reporting. Also, the IRS system requires any citizen who holds a green card to pay tax. Regardless of […]
Are you filing a U.S. corporate tax return? You should read this
Are you filing a U.S. corporate tax return? On this page you will learn about income tax filing obligations, types of forms, and more. Keep read the following article to fully understand the subject. Expanding business activity to the international level is no longer reserved for tycoons and has long since become a matter of […]
The differences between Israel and United States tax rates
The taxation systems of the United States and Israel are distinct, each with unique structures and regulations. Understanding these differences is essential for individuals with dual citizenship, those investing across borders, or anyone navigating the tax landscapes of both countries. Below is an updated comparison of key tax aspects as of 2025. Key Differences Income […]
IRS fines and penalties
The IRS reporting obligation and the obligation to pay tax, are a very heavy burden on every citizen. These burdens become even heavier in cases where the person in question holds dual U.S. citizenship or in a case where Israeli citizens invest in the United States. The number of intricate reporting forms that need to […]
Advance US income tax: How to make sure you pay your tax liability on time
Do you have to report it to the U.S. Tax Authority? Did you think the tax liability payment would be made in the following year and only after the tax report was filed? Well, think again. The obligation to pay advances to the U.S. Internal Revenue Administration sets very different payment dates. Keep reading the […]
Real Estate Investment in the US and the FIRPTA
In 1980, an act called FIRPTA was enacted in the United States, this act is also known as the Foreign Investment in Real Estate Tax Act. This act taxes foreign Investors seeking to sell their real estate. In order to ensure tax payment to the American tax authorities by foreign investors, in the United States, […]
Estate tax – The Full Guide for the US Investing
Investing in U.S. assets can be a lucrative endeavor. However, it’s crucial to be aware of the estate tax, a levy that can significantly reduce the value of your investment upon your passing. This tax applies not only to U.S. citizens but also to foreign investors holding assets within the United States. Understanding the nuances […]
Tax refund for students with U.S. citizenship
Most students would be happy to receive a scholarship or any other financial aid to support them while studying. If you are a student with U.S. citizenship, you may be eligible for a scholarship that is a component of the tax refund for students with U.S. citizenship. Keep readin the following article to fully understand […]
U.S. Tax Authority and Israeli Bank Accounts
Before Big Brother was a high-rated TV show, it was a term coined by George Orwell to describe a situation in which individuals live under strict supervision and monitoring. Orwell coined the phrase in a novel he wrote, but did his prophecy come true? We’ll leave you to answer this question. Nonetheless, you should know […]
American Tax Returns – You Might Be Required to Them Without Knowing About It
The scope of the American taxing system, including American tax returns, is a very wide one, and it exceeds the scope that is customary in other countries. As a result, it is possible that as you are reading these lines you might come to discover that you are required to submit tax returns to the […]
US Gift Tax
So, you have decided to give your relatives a gift, you spent many hours choosing the perfect one, and now the tax authorities are demanding tax for this gift you bought them. What is a US Gift tax and When does the tax apply? keep reading. Could it be legit? If you are a U.S. citizen, […]
The U.S. tax audit: When the U.S. Tax Authority comes knocking on your door
One of the most unwanted visits is a visit by a representative of the Israel Tax Authority. The thought of the assessing officer knocking on the doors in a demand to carry out an interrogation is certainly enough to send chills down one’s spine. This is fact is true for any of the tax authorities, […]
Self-Employment Tax
Many self-employed individuals report that income tax takes a significant portion of their earnings. In some cases, this burden is so substantial that they struggle to make ends meet. This issue is particularly relevant for U.S. citizens living in Israel, where tax rates for the self-employed are relatively high. Beyond income tax, self-employed individuals in […]
Reporting withholding tax for foreigners using 1042 and 1042S Forms
As the boundaries between countries blur and the whole world turn into one global village, especially in the aspect of trade and the economy, the creation of international trade ties was encouraged. Indeed, for the last decade, the United States has been saturated with real estate investors, but also by people from the tech industry, […]
The United States Israel Tax Treaty
The process of globalization, the expansion of international trade, and the high mobility of people, capital, and services have raised many issues in taxation as well. If until now a person’s source of income originated from his place of residence, and all transactions have been done in the same political territory. In this new era, […]
Tax aspects of renting residential apartments in Israel and abroad
Does the instability in the stock market lead you to search for a safer and more stable investment channel? Like many others, you probably think that real estate investments are a safe and stable investment channel. And so, investing in real estate is a common practice both in Israel and abroad. Furthermore, with the expected […]
4 things to know about buying real estate using L.L.C
Using a L.L.C to acquire real estate in the United States has become a common practice in recent years. This popularity can be attributed to the preferred tax rate that the use of such companies often enables, the low cost of establishing and managing such companies and the protection the investor can enjoy by purchasing […]
Types of Real Estate Holding Associations in the United States: A Guide for the Wise Investor
In this article, we will discuss the types of real estate holding associations facing investors, while addressing the main differences between them. Professional tax planning will take into consideration all of those differences alongside the specific circumstances of the investor, in order to choose the option that will minimize the tax burden. So if you […]
U.S. Real Estate – The investors’ Full Guide
The rise in real estate prices in Israel, coupled with the decline in U.S. real estate prices and high growth expectations, has sparked the interest of many Israeli investors. As a result, many Israelis—both experienced and inexperienced in real estate—have begun diverting their resources into this investment avenue. However, to ensure the viability of such […]
Real Estate Investing in the United States: Is It Worth It and What Should You Be Careful About?
Real estate investments in the United States have become an investment hit among many Israelis. Despite its increasing popularity, many investors face doubts and raise questions – is it in fact worthwhile? Does it pay off? Is somebody trying to trick us? We will discuss all these matters in the article before you. Real […]
The tax benefit you should know about: Qualified Business Income Deduction
Investing in American real estate? Want to increase profits? You should pay attention to the tax benefit known as QBI (an acronym for Qualified Business Income Deduction), which guarantees you a tax deduction of up to 20% of your income from the investment. What is the benefit, who is entitled to it and how can it be claimed? All this and more in […]
Issuing an EIN number
Have you decided to invest in real estate in the United States through a company? Does your Israeli company want to establish an American subsidiary? One of the first steps you’ll need to take is obtaining an EIN. What is an EIN? When is it required, and how can it be used? How do you […]
Taxes of partnerships in the united states – Partnership Form 1065
Using partnerships to make real estate investments in the United States has become extremely popular among many Israelis. The use of partnerships has many advantages, but in order to use them in an optimal manner, close familiarity with the tax burden that applies to them is required, including the annual income tax report. Understanding the […]
Taxations on U.S. CFC’s (Controlled Foreign Corporation)
The tax reform that took place in the United States in 2018 has created extensive changes in the aspect of taxation that applies to individuals, the taxation that applies to companies, and in the aspect of international taxation. In the article before you, we will review the new tax regime applied to shareholders in foreign […]
Foreign corporate tax
The hope of increasing their market and plenty of possible collaborations encourage many Israeli companies to move or expand their operations to the United States. Operating using an Israeli company, as opposed to a local subsidiary, may have many advantages, but also quite a few disadvantages. In the following article, we will elaborate more about […]
Creating an LLC
When investing in the United States, the first step is to decide how to carry out the investment – directly as an individual or indirectly by one of the associations recognized by U.S. law. For the most part, Israelis seeking to make real estate investments in the United States prefer to make their investment indirectly […]
The process of establishing a C-Corporation in the United States
In this article, we will describe the process of establishing a C-Corporation in the United States, as many Israeli companies, including Israeli start-ups, seek to expand markets through operations in the United States. For the most part, Israeli companies prefer not to operate through the existing Israeli company but to establish a local American company and […]
Starting fresh with the IRS – all there is to know about the IRS’s voluntary disclosure plan
In today’s global financial landscape, private financial information is being shared among tax authorities worldwide. This exchange happens under the framework of international tax agreements such as the OECD’s Common Reporting Standard (CRS) and the U.S. Foreign Account Tax Compliance Act (FATCA), to which countries like Israel are signatories. As a result, the U.S. Internal […]
American Tax And Forms
January 5, 2025 The mere mention of income tax often triggers anxiety and apprehension. Preparing a detailed, legally binding tax report can feel like a daunting challenge for most individuals. This complexity becomes even more pronounced when dealing with U.S. tax authorities. The American tax system stands out for its unique characteristics: intricate procedures, numerous […]
Establishing an investment company in the U.S.
Many Israelis choose to make investments in the United States, whether it is investments in the field of finance, real estate, retail, etc. Some investors do not know that it is possible to save and facilitate the operation of the business, by opening an investment company. Which companies can be established and how to do […]
Taxation of PFIC investments in The United States
Due to the scope and complexity of taxation provisions, many Israelis with dual U.S. citizenship may find themselves submitting an incomplete or inaccurate tax report to the U.S. Internal Revenue Service thus exposing themselves to extremely heavy tax burdens. This is all the more true when it comes to investing in passive foreign investment companies […]
Taxation of capital gains and dividends in the United States
Every transaction in business involves numerous complex tax components. When examining the tax aspects related to a transaction, factors such as the nature of the entity, the structure of the activity, the type of activity, reporting obligations, and the taxation thresholds that may apply are just a few of the influencing factors. Each of these […]
Corporate tax
In today’s interconnected global economy, expanding business operations across borders has become increasingly common. Many Israeli entrepreneurs are exploring opportunities in the United States, drawn by its vast market and diverse business prospects. However, navigating the U.S. corporate tax landscape requires careful planning to optimize tax efficiency and ensure compliance with both federal and state […]
Federal Tax in the United States
Any American citizen or resident is required to file a U.S. federal tax return on their income from any source worldwide This obligation applies even if the person does not live within the U.S. The U.S. Constitution authorizes each federal government to collect different types of tax from him. What are the most common […]
The actions that can be taken through the IRS website
The IRS is the U.S. Tax Authority. The IRS website is used to manage and collect funds from all citizens working in the country. Using an advanced computer system, and an accessible and user-friendly website, the website manages to help many people exercise their rights and know the exact extent of their duties and their […]
U.S. IRS
In Israel, on a given day, the acronym “IRS” is entered thousands of times into various search engines. The extensive amount of these searches indicates that the IRS is one of the most significant (and somewhat intimidating) authorities, for American citizens and some Israeli citizens who invest in the United States or conduct any business […]
Form 1099
There is an infinite amount of forms intended for the various tax reports to the U.S. Tax Authority. Each form has a numbering and a unique purpose, intended for various matters. Many may find themselves completely helpless in light of the many different instructions and forms. One of the most common and frequently used forms […]
Form W-9 and Form W-8: What does the bank want from me?
In the article before you, we will discuss the main idea of Form W-9 and Form W-8, their actual meaning, and address the question of their relevance to your bank and the American citizenship that you have (or might not have). So, if you are reading this article, you probably recently received a request from […]
Annual Tax Reporting in the United States – Form 1040 & Form 1040NR
In a famous quote Benjamin Franklin said that there are only two things that are certain in life: taxes and death. Indeed, from our birth to our death (and sometimes even after), the tax provisions accompany us every step of the way. This is all the more true when it comes to the American taxation […]
How will you know if you need to submit Form 8938 – Statement of Specified Foreign Financial Assets?
If you hold dual U.S. citizenship, or hold permanent resident status in the United States (green card holders), you should be familiar with the Foreign Financial Assets Declaration Form – Form 8938. This form is part of the annual tax report and includes information regarding financial assets you hold – in Israel or anywhere else […]
Types Of Forms
If you’re a U.S. citizen or green card holder living in Israel, understanding which tax forms to file can be confusing. Should you submit Form 1040? Does Form 1120F apply to you? This guide will walk you through the most important U.S. tax forms required for compliance with the Internal Revenue Service (IRS). FATCA Reporting: […]
Who is Entitled to Get Social Security Benefits?
Like the National Insurance Institute in Israel, the American Social Security Administration (SSA) provides a variety of benefits to citizens, including those living overseas. This article will help determine whether you are entitled to retirement, disability, or survivor benefits. Understanding the United States Social Security Administration Despite its capitalist economic system, the United States has […]
Obama care – The US health insurance obligation
The American Health Care Reform, which came into effect in 2010, has succeeded in reducing the number of uninsured citizens. However, the insurance of temporary and permanent residents of the United States, who are not citizens of the United States, is not regulated by law. This means that such residents can be left uncovered, and […]
The services of the United States Embassy in Israel to American citizens
Part of an embassy’s role is to assist citizens of the country of origin when necessary. The U.S. Embassy in Israel is no different. And so, the U.S. Embassy in Israel provides many different services to American citizens, including assistance in times of trouble, issuing passports, handling naturalization procedures, and so on. In the following […]
The rights of an American citizen in Israel – The 6 rights
Across the globe, many people dream of possessing American citizenship. The fact that the United States of America holds immense amounts of power ensures that its citizens will enjoy political stability and economic and physical security. These are just some of the reasons why American citizenship is a sought-after commodity. Besides the stability of having […]
The Rights of American citizens
Unlike the rest of the world, the U.S. Tax Authority, the IRS, requires every citizen to report their income. While the conditions are strict, these come with a series of benefits, such as coronavirus grants, which are currently relevant, study grants, and even children’s grants, which are several times higher than those provided in Israel. […]
Renunciation of U.S. Citizenship – Taxation Aspects
Do you hold dual citizenship and are thinking of renouncing your U.S. citizenship to avoid the tax liabilities and reporting obligations that apply to American citizens? You should think again. Renouncing U.S. citizenship is serious and irreversible. Before starting this procedure, you must receive comprehensive professional advice that will ensure that you have seriously and […]
Real estate taxation in the United States
The repercussions of the subprime crisis on real estate prices in the United States, along with the ever-increasing real estate prices in Israel, have made the American market a hub for real estate investments by many Israelis. The Bank of Israel estimates that approximately 3 billion NIS was invested by Israelis in the United States […]
VAT Rate in the US
The US tax system is famously complex. Unlike countries with a uniform VAT, the US has no federal VAT, using a state-based sales tax system instead. Understanding the equivalent of a VAT rate in the US requires navigating this dual-layer structure. This guide breaks down the system and its impact on businesses. What is VAT? […]
Tax-Free States in the US
The US has a complex tax system, but some states offer a major advantage: no state income tax. These tax-free states in the US attract many for the financial benefits, but there are trade-offs to consider. We at MasAmerica are here to explain the pros and cons of living in these states and provides essential […]
Investing in the United States – Why Is It Worthwhile?
The US offers a diverse array of compelling investment opportunities, making it a premier destination for international investors. Its stable economy and developed capital market provide a secure environment for growth. We at MasAmerica are here to explain the advantages of investing in the United States and the critical factors every investor must consider before […]
Withdrawing a Keren Hishtalmut in the US
A Keren Hishtalmut is a popular Israeli financial tool with tax benefits for medium-term savings. However, for Israeli citizens who also hold US citizenship or a Green Card, the process of withdrawing a Keren Hishtalmut in the US is far more complex. We at MasAmerica are here to explain the unique tax challenges and offer […]
US Taxation for Israeli Investors
As a global economic powerhouse, the US attracts a multitude of investors from around the world, including Israel. While investment opportunities are abundant, ensuring their profitability hinges on a thorough understanding of key factors, particularly taxation. We at MasAmerica offer a comprehensive overview of US taxation for Israeli investors. Why Invest in the US? In […]
Income Tax Exemption for Disabled Individuals in the U.S.
In the U.S., individuals with disabilities may qualify for significant tax relief to ease financial burdens and enhance quality of life. The income tax exemption for disabled individuals is a key benefit, but eligibility depends on IRS criteria. Who Qualifies for an Income Tax Exemption? Eligibility for income tax exemption for disabled individuals in […]
Tax Withholding Adjustment
In the complex world of U.S. taxation, tax withholding adjustment is an essential tool for every U.S. citizen or resident. This process ensures accurate tax payments throughout the year, preventing overpayments or underpayments and simplifying compliance with the intricate U.S. tax system. This article explains what tax withholding adjustment is, how it works, and why […]
Returning Resident
Many Israelis who have lived in the U.S. and are returning to Israel – or those returning to the U.S. – face complex tax challenges. The returning resident status brings rights and benefits but also intricate tax obligations with U.S. tax authorities. Who Is a Returning Resident? A returning resident in Israel is defined […]
Tax Evasion in the United States
The U.S. tax system ranks among the most intricate in the world and is designed to ensure accurate tax collection from all income earners. However, some individuals and businesses engage in illegal practices to avoid taxes, known as tax evasion. Tax evasion in the United States carries severe consequences, including hefty fines and legal repercussions. […]
Crypto Investing
Crypto investing in the USA is booming, opening doors for global investors, including Israelis looking to grow their wealth. But with great opportunity comes the challenge of navigating complex US tax laws and regulations, especially for dual citizens reporting to the IRS. Understanding Crypto Investing in the USA Basics first – What is Crypto Investing? […]
Penalty Payment
Facing IRS tax debts as an Israeli with US citizenship or a foreign national can feel like navigating a maze. Unpaid taxes, missed filings, or errors can pile up penalties, interest, and stress. The good news? With the right approach and expert guidance, you can tackle penalty payments, stay compliant, and protect your financial future. […]
Offshore Investments
For Americans in Israel eyeing US real estate, a sophisticated strategy using foreign entities could unlock tax savings and asset protection. Yet, one misstep in this complex landscape might lead to costly penalties. What Are Offshore Investments? Offshore investments refer to holding US real estate through foreign entities, such as companies registered outside the USA, […]
What is Forex?
Curious about tapping into the world’s largest financial market from Israel? One dynamic trading arena promises vast potential yet demands sharp strategy to navigate its risks, and that is the Forex market First of all, what is Forex? Forex, short for Foreign Exchange, refers to the trading of currencies like USD, EUR, or JPY in […]
Is it possible to appeal a company’s classification as a CFC?
Classifying a company as a Controlled Foreign Corporation (CFC) is a complex issue that concerns many Israeli business owners operating in the United States. Numerous companies find themselves grappling with significant tax implications due to this classification, which can dramatically affect their U.S. tax liabilities. At MasAmerica, we frequently encounter clients seeking to understand the […]
How is the tax calculation for foreign companies in the US conducted?
Calculating the tax for foreign companies in the US is a complex issue that requires an in-depth understanding of American tax laws. For Israeli companies operating in the US or holding shares in an American company, it is crucial to be familiar with the rules and requirements of the US Internal Revenue Service (IRS) regarding […]
How Does PFIC Taxation Change in Cases of Inheritance or Gifts?
When it comes to PFIC (Passive Foreign Investment Company) taxation, the complexity significantly increases in intergenerational transfers such as inheritances and gifts. At MasAmerica, we frequently encounter cases where clients face complex U.S. tax issues related to PFICs received through inheritance or as gifts. Based on our experience, understanding the complexities and tax implications is […]
How do tax authorities supervise transactions between companies?
In the modern business world, tax oversight of transactions between companies is a complex and challenging topic that requires deep professional expertise. As a company specializing in American tax consulting, we at MasAmerica are well-versed in the complexities and challenges faced by Israeli companies operating in the United States. The experience we have gained from […]
How Does the FATCA Law Affect U.S. Citizens Living Abroad?
The Foreign Account Tax Compliance Act (FATCA) is a U.S. federal law enacted in 2010 to enhance tax enforcement for American citizens holding financial assets outside the United States. The law requires foreign financial institutions to report to U.S. tax authorities on accounts held by U.S. citizens. This significantly alters the reporting and taxation requirements […]
What is a 401(k)?
A 401(k) is one of the most common retirement savings tools in the United States. This plan allows employees to allocate a portion of their salary to a long-term savings account, often with employer contributions. Want to understand how this affects you, whether you’re in the U.S. or abroad? Here’s everything you need to know. […]
Eldercare Tax Guide for US Citizens Living in Israel
For American expats in Israel, caring for aging parents or elderly family members in the US comes with financial and legal challenges. From managing their medical expenses and long-term care to handling estate and inheritance tax matters, it’s essential to understand how US and Israeli tax laws apply. This guide by MasAmerica’s trusted US tax […]
Exits & Acquisitions: A Guide for US Citizens Living in Israel
Exits & Acquisitions: A Tax Guide for US Citizens Living in Israel For US citizens living in Israel, selling a business, merging with another company, or acquiring a new venture comes with complex tax implications in both countries. Understanding how US and Israeli tax laws apply to business exits and acquisitions is crucial for maximizing […]
LLC Taxation in the USA and Israel
LLCs in both Israel and the USA offer flexibility and advantages, but their tax structures differ significantly. In the USA, LLCs benefit from pass-through taxation, preventing double taxation at the corporate level. In Israel, LLCs are subject to corporate tax, with potential double taxation at the individual level when profits are distributed as dividends. LLCs […]
What is Form W-8BEN-E?
In recent years, more Israeli businesses have been required to complete Form W-8BEN-E when opening a bank account. This requirement arises from an IRS regulatory reform initiative, also adopted by Israeli tax and banking authorities. But what is this form, and why is it important? What is Form W-8BEN-E, and Why Does It Matter? The […]
Inheritance Tax in the United States
US Inheritance Tax Calculator Estate Value (USD): Tax Year: 2025202420232022 Married Couple (Double Exemption) Calculate Inheritance Tax The following calculator is for informational purposes only and does not constitute financial or legal advice. The results are based on tax data for the year 2025 and are not updated automatically. The calculator should not […]