U.S. Taxation of Foreign Individuals and Businesses: IRS Compliance and Enforcement

This CLE/CPE course will provide tax counsel and compliance professionals guidance on U.S. tax rules, reporting requirements, and available tax planning mechanisms for foreign individuals and businesses. The panel will offer approaches for determining taxpayer classification and engaging in U.S. trade or business under current tax law, identifying and reporting income subject to U.S. income tax, and understanding the impact of tax treaties, available exemptions, and deductions. The panel will also offer U.S. tax planning tips for foreign individuals and businesses with activities within the United States.

Foreign individuals and businesses engaging in transactions or having assets and activities in the U.S. create tax presence and residency issues for such businesses and individuals. Tax professionals and advisers must have a solid understanding of U.S. tax treaties and applicable rules for foreign individuals and businesses and their interplay with current U.S. tax law.

Generally, noncitizens or non-U.S. enterprises with U.S. investments or business activities are subject to U.S. income tax only on their U.S.-sourced income, requiring tax advisers to conduct a careful analysis to determine their taxpayer status, connection to the U.S., eligibility for tax treaty benefits, and approaches to reduce their tax liability and U.S. reporting obligations.

For foreign businesses, the critical issue is whether nonresident employees currently present in the U.S. give rise to a U.S. trade or business or a permanent establishment for the foreign employer. Similarly, foreign individuals can be treated as U.S. residents for tax purposes if they meet the "substantial presence test."

Listen as our panel guides tax professionals and advisers in determining taxpayer status for non-U.S. citizens and businesses, reporting requirements and available mechanisms under current U.S. tax law, and best practices for taxpayers.