U.S. entrepreneurs have long recognized that a world of opportunities is available to them if they are willing to expand beyond domestic borders. Information technology has allowed the global economy to become considerably larger and has rendered lucrative markets abroad more accessible than ever.
While the U.S. government certainly does not want to stand in the way of global opportunities, recent efforts by the Treasury Department and IRS indicate that the government is more serious than ever about preventing U.S. business people from utilizing foreign activities to avoid or defer paying federal taxes. These efforts are reflected in the promulgation of new tax reporting rules and the strengthening of older ones. Following are five tax tips for doing business overseas and staying in compliance with recent tax reporting rules and reforms affecting U.S. entrepreneurs.