IRS TAXATION ON NONRESIDENTS WORKING IN THE USA

IRS and immigration are working together.  If  a foreign executive visits the United States five times a year and works here and if eachh trip is for a week.  The visitor owes U.S. income tax on one-tenth (5/52) of his foreign salary.  The IRS tax scheme is outlined below:

• The Taxation of Nonresident Alien US Visitors
  
  • Who Must File an Income Tax Return 
  • What Income Is Taxed 
  • What Tax Forms You May Need 
  • Income Tax Withholding 
  • When and Where To File 
  • Departing Aliens and the Sailing or Departure Permit 
    • Aliens Not Required To Obtain Sailing or Departure Permits 
    • When To Get a Sailing or Departure Permit 
    • What Is Needed To Get a Sailing or Departure Permit 
• Index  
• Write us if you need help  US nonresident tax planning for or filing your US nonresident tax returns.

Enron Whistleblower Scores $1.1M Reward from IRS

The Internal Revenue Service has paid a $1.1 million reward to an anonymous whistleblower for information that exposed an alleged tax fraud scheme by Enron, Bankers Trust and others before the company collapsed. Many of these schemes involved use of offshore accounts and entities to avoid US taxation.

It is one of the few whistleblower rewards the new IRS Whistleblower Office has made since Congress created the IRS Whistleblower Office and a new tax whistleblower program in 2006. The IRS made the award under the previous whistleblower program (known as the IRS 211 program), which allowed the IRS to award whistleblowers nothing or up to 15 percent of the tax funds the IRS recovered as a result of the whistleblower’s information.

The whistleblower, a Wall Street banker who has chosen to remain anonymous to protect his job and career, received the maximum reward of 15 percent. 

This same program is being used to catch expatriates living and working abroad with unreported foreign income and assets.  Your foreign banker, investments advisor, friend, neighbor or accountant can decide it is more profitable to turn you in to the IRS, than to remain loyal to you. Be careful out there!