International Tax Issues for Individuals
Our world has become a lot smaller. From the comfort of our offices we can transact business with major financial centers located on other continents.
Taxpayers want to reduce their tax liability as much as possible. If they have to pay foreign taxes, they want to maximize any foreign tax credits that they are entitled to receive. The United States tax law allows exclusions for certain types of income earned abroad. The criteria, however, is very strict, and mistakes can wreak havoc on a client’s tax bill. Because the Internal Revenue Service wants to ensure that voluntary compliance is maintained, it has instituted a significant amount of investigation and information reporting of foreign activities by individuals.
This short course will provide an introduction to the major tax issues affecting U.S. citizens living or transacting business abroad. It will include recent changes relating to international tax issues.
The following topics will be discussed.
- Although income from abroad is taxable, certain items may be excluded.
- Taxation of nonresident aliens
- Introduction to tax treaties
- Filing requirements
- Withholding and Social Security tax issues
- Foreign earned income and housing exclusions
- Foreign tax credit computations
- Obtaining international tax assistance
- Impact of bank secrecy laws and currency transaction requirements
- Contributions to foreign charitable organizations
- Taxation of dual-status aliens
- New developments in international taxation
Upon successful completion of this course, participants will be able to:
- Compute a foreign income exclusion
- Understand the significance of a tax treaty
- Recognize the differences between a U.S. citizen, resident alien, non-resident alien, and dual-status alien
- Explain tax planning tools to clients who are moving or residing abroad
- Identify recent tax changes impacting U.S. taxpayers involved with international activities
NASBA & IRS Field of Study: Taxes