Many foreign taxpayers who need to apply for an Individual Taxpayer Identification Number (ITIN) have struggled to comply with strict new requirements set forth by the IRS. The new requirements insist applicants send in original documents, such as passports or … read more
U.S. taxpayers who have operations in, with, or related to certain countries participating in boycotts not sanctioned by the U.S. government may be required to report such operations to the IRS. Willful failure to file may result in large penalties, … read more
The IRS has made several recent changes to their offshore compliance programs in order to assist taxpayers who wish to come into compliance, as well as ease the resulting tax burden. These streamlined filing procedures are designed only for individual … read more
Businesses making certain payments to foreign individuals and entities are required to have on file certain types of documentation from the payee and may need to file 1042-S forms annually. U.S. sourced payments such as rent, dividends, interest, royalties, and … read more
The Foreign Account Tax Compliance Act (FATCA) was created to prevent offshore tax evasion of U.S. taxpayers. As part of the IRS initiative for international data exchange, certain payments made after June 30, 2014 to foreign financial institutions (FFIs) or … read more
Prior to March 18, 2010, U.S. shareholders of Passive Foreign Investment Companies (PFICs) were generally only required to report certain activities of the PFIC, such as a gain on sale, distribution, or reportable election. Effective March 18, 2010, the Internal … read more
Effective December 31, 2013, the IRS issued temporary regulations providing guidance on the reporting by U.S. officers, directors, and shareholders of foreign corporations. Generally, this information is required to be reported on Form 5471, Information Return of U.S. Persons with … read more
Once a foreign student has determined residency status, as discussed in Part I of this blog, the student and employer should be aware of the tax withholding requirements on wages. If the student is considered a resident alien, tax withholdings … read more
There are special tax rules for foreign students working in the United States. The student should first determine if he or she would be considered a U.S. resident alien or nonresident alien for income tax purposes. Generally, foreigners will be … read more
There is nothing more complex than the world of taxes. We know this and yet we chose careers where we face these issues everyday. We get questions day in and day out about new tax laws, forms and news items and how they affect everyday people and businesses. Well, here at Henry & Horne, LLP we have set out to do what we do best; help everyday people understand what is going on in the world of state, local, federal, estate and international taxation. We will provide these weekly posts and we encourage you to give us feedback on those posts as well as letting us know what else you would like to know more about. Welcome to "Tax Insights." We hope you find this blog informative and worthy of your time.
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