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Foreign Nationals and citizens of countries other than the U.S. who reside in the U.S. face extremely complex tax issues during their first years in the U.S. While a non resident of the U.S., they are taxed only on their U.S. source income. Depending on the nature of the income, the tax rate differs as do the tax rules, and these rates and rules are directly influenced by any tax convention (i.e. Tax Treaty) that may exist between the U.S. and their country of residence. 

For example, someone from one country who is working in the U.S. on an assignment that is temporary in nature may find that their income is exempt from U.S. taxation pursuant to certain tax treaty provisions while another would be subject to taxation on income from U.S. sources. If services are performed in the U.S. in connection with a temporary assignment, the taxpayer may be entitled to deductions against U.S. source for travel, meals and lodging while in the U.S. Income from non U.S. sources would not be subject to U.S. tax. 

 

Alternatively someone may come to the U.S. on an assignment that is not considered to be temporary; however they may have arrived in the U.S. in September. In that case the individual may file as a non resident for the first nine months of the year and a resident for the remaining three (i.e. part year resident), provided that the individual does not decide to take advantage of one of the special tax elections to be treated as a resident for the entire year.

 

Non U.S. citizens who abandon their U.S. residency status are required to obtain tax clearance from the IRS (a/k/a a sailing permit). Failure to adequately comply with U.S. tax rules could complicate or prevent the this person from leaving the country if the IRS considers their ability to collect taxes to be in jeopardy.

 

Years of specialized training and experience ensure that our clients will receive only professional tax planning and return preparation, providing them with the comfort of knowing that they will pay the lowest possible tax while maintaining strict compliance with U.S. tax laws, rules and regulations.