United States income tax treaty benefits can be reported and claimed on Tax Form 8833. Taxpayers should take a treaty position on their tax returns and submit a Form 8833 with a tax return. Taxpayers use the Form 8833 for relying on a treaty that involves the tax laws appropriately. Importantly, the Form 8833 needs ..read more

The decision to move abroad is generally a complicated choice for a person to make. Once an expatriate moves abroad, deciding how to resolve their foreign tax obligations is sometimes another unexpected decision. The Internal Revenue Service (IRS) has two very specific foreign tax options for U.S. citizens living and working abroad to choose; to ..read more

As part of filing their annual tax return, certain U.S. citizens are required to attach the Form 8938, Statement of Specified Foreign Financial Assets to report their offshore financial assets ..read more

The IRS has very specific requirements for reporting foreign trusts and how to use IRS form 3520 and IRS form 3520-A. This article will explain the IRS’ definition of what makes up a domestic and foreign trust; the requirements for reporting foreign trusts and paying taxes on foreign trusts; as well as the IRS’ penalties for not reporting foreign trusts correctly ..read more

The IRS has developed streamlined foreign procedures to help expatriate taxpayers file amended or delinquent tax returns ..read more

American taxpayers in the United States, as well as expatriates abroad, are challenged enough complying with Internal Revenue Service (IRS) regulations. Adding to the annual tax time confusion, U.S. taxpayers who have foreign financial accounts are required to annually provide Foreign Bank Account Reporting (FBAR), generally called the FinCEN form 114, to the U.S. Treasury ..read more

Categories of United States Taxpayers There are several categories to determine how a person living in the United States is taxed. First, we need to parse out the different circumstances that determine these categories. “Citizenship” is defined by an individual’s country of origin to whom they owe duties and allegiance and are, in return, protected ..read more

It is usually in the expatriate’s advantage to take foreign income taxes as a tax credit ..read more

A foreign trust is defined as a non-domestic trust that reflects the laws of where the trust was created, whereby a U.S. court cannot exercise primary supervision. Because the foreign trusts have been used as a way for U.S. taxpayers to attempt to hide income and assets, Congress has imposed special reporting obligations for U.S. taxpayers holding interests in foreign trusts or receiving distributions from foreign trusts ..read more

People from other countries travel to the United States (U.S.), hoping to experience this country’s culture and earn competitive wages. Foreigners working in the U.S. are required to pay U.S. taxes and file a return with the Internal Revenue Service (IRS). Understanding the tax system in one’s own country is tough enough. For foreigners earning ..read more