As a boutique international tax firm, we’re finding international tax issues arising for individuals and companies of all sizes. Many of them never thought they’d have any cross-border activities. As many of our clients are CPA and law firm across the US, we thought it might be helpful to do a series of discussions on International Tax for the Non-Specialist. They are overviews designed to assist practitioners and taxpayers identify issues. The overviews dive into some level of detail, but we envision separate sessions to more fully explain various technicalities.

This discussion is #4 in the series following:
#1 on tax residency and foreign financial account disclosures [FBAR / FinCen 114 / Form 8938];
#2 on earning foreign income and an employee being transferred to a foreign affiliate;
#3 on the anti-deferral rules of Subpart F and identifying a controlled foreign corporation).

The primary focus on this presentation is an overview of how the US taxes the income of Nonresidents. This includes, but is not limited to:

1. Taxation differences between Residents and Nonresidents.
2. How to identify whether an individual is a Resident versus Nonresident.
3. Identifying types of Nonresident income the US may tax.
4. Different filing status (e.g., Married Filing Jointly).
5. Tax calculation (e.g., gross versus net; what deductions are Nonresidents able to claim).
6. Overview of Resident taxation and how a non-US citizen may become a US tax resident.
7. FDAP versus Effectively Connected Income.
8. When there is withholding on gross income versus a return filed on net income.
9. Compliance factors.
10. Issues related to whether there is a US trade or business.
11. As relevant, state tax issues are embedded throughout.

Course key Concept: International tax, Individual income tax, Resident Alien, Substantial presence test, Nonresident Alien Green Card, US trade or business, Effectively connected income, W-8BEN, Information returns, FinCEN 114 / FBAR, 8938, 5471 8865, 8858, 3520, 8621, 926, FDAP.