Mastering Form 1040NR U.S. Nonresident Alien Income Tax Returns

Form 1040NR, U.S. Nonresident Alien Income Tax Return, presents several daunting challenges for tax advisers and compliance professionals. Just deciding whether a foreign person needs to file a Form 1040NR is unclear.

The adviser’s determination of whether a person is a resident alien, nonresident alien, dual-status alien, or undocumented alien is critical in this evaluation. Immigration laws impact tax liability of nonresident aliens and individuals who are not citizens but reside in the United States.

Advisers must also know available elections, deductions and limitations; how to report income and claim refunds; treatment of spouse and dependents; and filing due dates and noncompliance penalties. As with other foreign-related filings, the IRS imposes penalties for failure to timely file Form 1040NR even if the taxpayer has no tax liability.

Listen as our experienced panel provides a thorough and practical guide to identifying and meeting the unique challenges of preparing Form 1040NR, U.S. Nonresident Alien Income Tax Return.

1. Resident alien, nonresident alien, dual-status alien and undocumented alien distinctions
2. Determining taxpayer status
3. Filing due dates, penalties and e-file availability
4. Spouse and dependent treatment
5. Elections
6. Reporting income and claiming deductions
7. Penalties for failing to file

The panel will tackle issues such as:

• What are the key challenges for tax advisers in determining classification and status of a taxpayer as a U.S. resident or nonresident alien?
• What income items and deductions should always be considered when preparing Form 1040NR?
• What is the difference between income effectively connected with a U.S. trade or business (ECI) and fixed, determinable, annual or periodic income (FDAP), and how is this income reported and taxed on the Form 1040NR?
• What special elections apply to a U.S. nonresident alien?
• Analysis of the source of Income Rules.
• The effect of Tax Treaties the U.S. has with more than 50& countries.

Learning Objectives

After completing this course, you will be able to:

• Determine the classification and status of a taxpayer as a U.S. resident or nonresident alien
• Identify items of income and deduction that require specific attention when preparing a Form 1040NR for a nonresident alien
• Discern the difference between ECI and FDAP
• Recognize special elections available to a U.S. nonresident alien

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules, supervising other preparers/accountants. Specific knowledge and understanding of Effectively-Connected Income (ECI) and FDAP rules; familiarity with taxpayer residence and presence tests

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).