US Tax Obligations for Italians Resident in the USA

An Italian who becomes US tax resident faces a stack of US filings — and each interlocks with Italian reporting in ways most US-only CPAs miss.

Comprehensive cross-border compliance: Form 1040, FBAR, Form 8938, 5471, 8865, 8621, 3520, 8854 — coordinated with Italian filings.

What problem we solve: Filings most Italian-US residents face

  • Form 1040 — annual income tax return for worldwide income
  • FinCEN 114 (FBAR) — non-US accounts above $10K
  • Form 8938 (FATCA) — foreign assets above threshold
  • Form 5471 — ≥10% interest in foreign corporation (Italian SRL/SpA)
  • Form 8865 — interest in foreign partnership
  • Form 8621 — every PFIC interest (Italian funds)
  • Form 3520 — foreign gifts/inheritance >$100K
  • Form 8854 — at expatriation

What you receive: Annual cross-border compliance package

  • Full Form 1040 + state return preparation
  • All required information returns (5471, 8865, 8621, 8938)
  • FBAR filing
  • Italian Quadro RW + IVAFE coordination with your commercialista
  • Foreign Tax Credit optimization (Form 1116)
  • Treaty election filings (Form 8833) where applicable

Who this is for: Who it's for

  • Italian US tax residents with Italian assets
  • Green Card holders abroad
  • Italian-American dual nationals

Investment: Pricing

Fixed fee defined case-by-case after a preliminary consultation, based on the number of foreign entities and PFICs, the perimeter of the annual compliance package and the need for single-issue advisory or Streamlined catch-up filings. The preliminary consultation is a 45-minute paid online session ($250); the engagement letter with the agreed fee is signed before any chargeable work begins.

Frequently asked questions

Why can't my US CPA handle all this?

Many can — but the failure mode is the Italian side. A US CPA optimizes the Form 1040 in isolation and rarely coordinates with Quadro RW, IVAFE timing, Italian foreign-tax-credit limits, or the Italian classification of LLCs and US trusts. We sit in between.

What's the most-overlooked filing?

Form 5471 for any Italian SRL/SpA the client owns ≥10% of. Most newly-arrived Italian residents don't realize the form is required, even with zero income. Penalty: $10K per form per year, automatically assessed.

I'm just here for 18 months on E-2 — do I really file all this?

Once you cross the Substantial Presence Test threshold, yes. Closer Connection (Form 8840) or treaty tie-breaker (Form 8833) may relieve full filings, but the analysis must be done annually. Don't assume; document.

What is Form 3520 and when do I file?

You file Form 3520 if you receive a foreign gift or inheritance from a non-US person aggregating >$100K in a year (or >$18,567 from a foreign corporation/trust in 2024). Penalty for non-filing: 35% of the gift value. Common trigger: an Italian parent's gift to a US-resident child.

Can I just keep using my Italian commercialista?

He or she remains essential for the Italian side. We complement on the US side and coordinate the two so filings reconcile. Pure 'Italian-only' coverage misses the FBAR, 8938, 5471, 8621 universe.

I haven't filed for years — am I in trouble?

Likely yes, but typically fixable. Streamlined Foreign or Domestic Offshore Procedures cover non-willful failures: 3 years of 1040 amendments, 6 years of FBAR, no penalty other than tax + interest. Pre-emptive disclosure beats reactive. We assess and execute.

Related services

  • PFIC: Italian Funds for US Residents — PFIC analysis, election strategy and Form 8621 filing for Italians with mutual funds, ETFs and SICAVs who become US tax residents.
  • FBAR Compliance for Italians with US Assets — FBAR (FinCEN 114) preparation, Quadro RW coordination and voluntary disclosure advisory for Italian residents with US accounts.

Next step — book a 45-minute online consultation

Book a consultation (USD 250 · 45 minutes) · Send a contact request

About the firm

IIILEX International Consulting LLC is the Florida-based practice of Avv. Dott. Massimo Leonardi — Italian Attorney (Avvocato), Certified Public Accountant (Dottore Commercialista) and Statutory Auditor (Revisore Legale) with 30+ years of Italian practice. We work exclusively on cross-border matters between Italy and the United States.

IIILEX International Consulting LLC · 7901 4th St N STE 300, St. Petersburg, FL 33702 · us@3lex.us · +1 (786) 604-8764 · +39 335 344 9660

Versione italiana