Tax & Accounting Blog

Foreign Nationals: Resident Alien or Nonresident Alien and Why It Matters: Part 5 – Resident or Nonresident Alien

Foreign Nationals: Resident Alien or Nonresident Alien and Why It Matters: Part 5 – Resident or Nonresident Alien

Foreign nationals are nonresident aliens for U.S. income tax purposes unless they meet one of two tests: 1) the U.S. lawful permanent resident test (also called the green card test) or 2) the substantial presence test. Foreign nationals who change immigration status during the calendar year, or who first enter the U.S. after January 1, … Read More

Foreign Nationals: Resident Alien or Nonresident Alien and Why It Matters: Part 4 – Tax Impact of Loss of Immigration Status

Foreign Nationals: Resident Alien or Nonresident Alien and Why It Matters: Part 4 – Tax Impact of Loss of Immigration Status

U.S. lawful permanent residents, also called immigrants or green card holders, who are long-term residents and who have lost their U.S. green card status by revocation or abandonment (whether intentionally or inadvertently) might be subject to a departure tax and/or special tax and reporting rules depending on the date that they lost their U.S. status … Read More

Foreign Nationals: Resident Alien or Nonresident Alien and Why It Matters: Part 3 – U.S. Tax Return Obligations for Nonresident Aliens

Foreign Nationals: Resident Alien or Nonresident Alien and Why It Matters: Part 3 – U.S. Tax Return Obligations for Nonresident Aliens

Tax return filing obligations for nonresident aliens depend on the type of income that they have during the tax year – ECI, FDAP income, or both.  Nonresidents with No ECI. Nonresident aliens whose only U.S.-source income is FDAP income on which the correct amount of tax has been withheld (including applicable tax treaty reductions or … Read More

FATCA Intergovernmental Agreements: Netherlands and New Zealand Pursuing Agreements with the U.S.

FATCA Intergovernmental Agreements: Netherlands and New Zealand Pursuing Agreements with the U.S.

New Zealand Revenue Minister Peter Dunne has announced that his government intends to negotiate a FATCA tax information agreement with the United States, under which New Zealand financial institutions will be able to report information on their United States clients, as sought under the U.S. Foreign Account Tax Compliance Act, to New Zealand Inland Revenue … Read More

Mississippi Introduces a Revised Annual Information Return Form

Mississippi Introduces a Revised Annual Information Return Form

The Mississippi Department of Revenue has announced that for 2012 tax reporting, a single Annual Information Return Form 89-140 will be used for both Form W-2 wage reports and Form 1099 or W-2G non-wage income reports.  The Form 89-142 used for 2011 and prior years to report 1099 information has been discontinued.  For tax … Read More

Foreign Nationals: Resident Alien or Nonresident Alien and Why It Matters: Part 2 – Tax Rules and Procedures for Nonresident Aliens

Foreign Nationals: Resident Alien or Nonresident Alien and Why It Matters: Part 2 – Tax Rules and Procedures for Nonresident Aliens

Foreign nationals who are nonresident aliens for U.S. income tax purposes are subject to the following tax rules and procedures: 1. Taxation of U.S.-Source Income. Nonresident aliens are subject U.S. federal income tax on their U.S.-source fixed or determinable annual or periodic (FDAP) gross income and on income that is effectively connected to the conduct … Read More