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

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

Paula Singer Releases Four Whitepapers on Nonresident Alien Taxation

Paula Singer Releases Four Whitepapers on Nonresident Alien Taxation

Nonresident alien taxation, which encompasses the special payroll withholding and reporting rules for nonresident alien employees and the withholding of tax on U.S.-source income paid to nonresident aliens and foreign entities (traditionally referred to as NRA withholding) has become a critical issue for organizations that pay foreign individuals and entities. Upcoming implementation of FATCA rules and … Read More

FATCA: Switzerland and Japan sign statements for cooperation with the U.S. in FATCA implementation

FATCA: Switzerland and Japan sign statements for cooperation with the U.S. in FATCA implementation

The United States Treasury Department has issued a joint statement with Japan, and a joint statement with Switzerland, for intergovernmental cooperation in the implementation of the U.S. Foreign Account Tax Compliance Act (FATCA).   In both Japan and Switzerland, financial institutions may not be able to comply with all of the reporting, withholding and account closure … Read More

NEW W-8IMY FORM:  DRAFT RELEASED BY IRS

NEW W-8IMY FORM: DRAFT RELEASED BY IRS

The third in a series of revised Forms W-8 has been released, in draft form, by the IRS.  The draft Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding, is part of the process of making the W-8 series of forms serve for purposes of compliance … Read More

New French Law on the Taxation of Trusts

New French Law on the Taxation of Trusts

On July 29, 2011, France enacted a new law on the taxation of trusts. Under the new law, a trustee must disclose certain information about the trust if the trust has a French settlor, beneficiary or French assets. The trustee must file the disclosure by June 15. The government was to provide further details on how to … Read More