Transcript Document

Immigration Tax Issues –
The New Dynamic Environment
Spring 2005
Robert W. Alcorn, MBA, CPA
14881 Quorum Drive
Suite 410, LB #9
Dallas, TX 75254-7014
Ph: 972/724-0325, Fax: 972/539-6226
[email protected]
1
Introduction
Creating an Awareness of Common Tax
Problems and Resolutions
Pay Particular Attention to Significant
Recent & Ongoing Changes
2
General Overview
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General Application of U.S. Tax Laws to
Non-Citizens
Non-Resident Alien, Dual-Status Alien,
& Resident Alien
IRS vs. USCIS – Inter-Agency
Communication
3
Working Your Way Through the
Income Tax Return – Common
Problems and Resolutions
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Name
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Pick One and Stick With It
Agreement between Documents (Green Card,
Birth Certificate, Driver’s License, Social
Security Card, etc.)
Social Security Numbers
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(Real and Imagined)
Get an ITIN
Refunds can be claimed
4
Working Your Way Through the
Income Tax Return – Common
Problems and Resolutions (cont.)
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ITIN’s – Individual Taxpayer
Identification Numbers
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Identity vs. Alien Status
Documentation Requirements
Time Requirements
Acceptance Agent vs. Certifying Acceptance
Agent
Include Original Tax Return with Filing
5
Working Your Way Through the
Income Tax Return – Common
Problems and Resolutions (cont.)
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Filing Status Categories
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Single
Married Filing Jointly
Married Filing Separately
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Community Property Issues
Head of Household/Married but Living Apart
Union Libre, Common Law Marriage (and the
Unfortunate Case of Juan Doe)
6
Working Your Way Through the
Income Tax Return – Common
Problems and Resolutions (cont.)
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Dependents
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Wages vs. Self-Employment
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U.S., Canada, & Mexico
The SE Tax Trap
Tax Credits
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Deductions vs. Credits
Refundable vs. Non-Refundable
Earned Income Credit (Need SS#)
Child Tax Credit (Don’t Need SS#)
7
Statutes of Limitation & Other
Restrictions of Time
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Original Returns
Amended Returns (and the Fraud
Clause)
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Claims for Refunds
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Obtaining Copies from IRS
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Transcripts – Allow 30 days
Requests for Copies – Allow 2 to 4 months
8
Payment Options
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Monthly Installment Plan
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Offers In Compromise
9
Attorney-Tax Preparer Communications:
Doing Your Client a Service and Making
Your Job Less Difficult
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Competent in Immigration Tax
Knowledgeable About the Immigration
Process (Presents Options)
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Communicates with the Attorney
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Responsive – Sees the Bigger Picture
10
Recent and Unresolved Developments
in Immigration Tax Matters
Interagency Communications
ITIN Applications
President Bush’s Proposals Regarding Workers
Tax Return Transcripts and Copies
$150 Filing Fee for Offers in Compromise
Proposal to Apply Non-Resident Alien Tax
Status to ITIN Holders
 Proposed Changes for Acceptance Agents/
Certifying Acceptance Agents
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11
Final Words
At this moment, this entire area of tax
and immigration law is in the process of
going through significant changes and
we can only watch as these issues work
their way through the process. Anyone
involved in this area needs to stay alert
for ongoing developments.
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