6th January 2016
The United States has a markedly different tax regime for individuals, depending on whether or not they are considered “tax residents” of the US. The rules are particularly complicated in the first year an individual arrives in the US, when they are considered “dual-status aliens”.
Tax practitioners should take great care to plan with clients prior to their arrival in the US to ensure the most tax beneficial path is taken.
Tom Neff, International Tax expert at MGI member firm Rina accounting corporation based in California, provides a summary of definitions applicable to dual-status aliens and a discussion of some elections that may be available to them in their first year of US residence.
Given the many choices available to taxpayers who are moving to the US, and the differing tax consequences of each, it is of utmost importance to consult with clients about their specific situation. Having an understanding of the above rules will help member firms navigate the complexities in working with dual status alien taxpayers.
Join the MGI NA International Tax sub-groupo on LinkedIn
To join the new LinkedIn discussion group on this topic go to the MGI World LinkedIn Group. If you are not a member of this Group, join and you will have automatic access to the MGI NA International Tax sub-group.
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