Did you know U.S. tax resident alien of the USA is subject to the foreign bank account reporting {FBAR} rules?
Specifically, a U.S. resident including a Green Card holder is required to timely file the annual foreign bank account form for the current year reporting offshore financial accounts:
i. in your individual name or joint names, or
ii. in certain instances, in the name of overseas companies you own a majority stake in, or
iii. offshore financial accounts over which you control deposits and withdrawals.,
where the total value of all the accounts on any day that year exceeded USD 10,000.
Offshore financial accounts include bank accounts, foreign mutual funds, and certain other financial assets.
The IRS penalty for noncompliance is USD 10,000 penalty per account for each year of noncompliance going back six years.
Prudence therefore dictates that diligent compliance with the FBAR and the related IRS Form 8938, Reporting of Specified Foreign Financial Assets, reporting rules is meticulously adhered to.
Clients who are delinquent may qualifying for the appropriate IRS amnesty program to mitigate the cost of correcting past errors.
Click here to learn more about US tax.
How do I get a Green Card?
A Green Card is another name for US Permanent Residency. There are multiple routes to a Green Card through either family or employment. The family-based Green Cards have the prefix FB and the employment based Green Cards have the prefix EB.
At Davies & Associates we specialize in employment-based Green Cards, especially EB-5, the immigrant investor visa program. You and your family could move to the US in exchange for a $900,000 investment that creates ten American jobs. Alternative US employment-based visas include the EB-3 for speciality professionals, the EB-1C for international managers & executives, and the EB1A for the extraordinarily talented. Contact us to discuss the full range of Green Card options.
Preparing my US Tax Position
US permanent residents are taxed on worldwide income. Anyone hoping to obtain US permanent residency should carefully consider their tax position at the very start of the process. Please consult with our tax attorneys to discuss your personal situation.
Non-immigrant visas, those that do not offer permanent residency, do not expose the holder to tax on their worldwide income. US income is, of course, subject to American taxes. Examples of non-immigrant visas are the E-2 Treaty Investor Visa and the L-1 Intracompany Visa.
This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.
