With the Coronavirus pandemic, many citizens of other countries have remained stuck on US soil for long periods of time due to the flight restrictions and closing of some borders. However, these travel restrictions could result in an individual becoming a US tax resident.
In view of this situation, in April, the Internal Revenue Service – IRS issued some administrative rules to prevent citizens trapped in the USA from running the risk of becoming unplanned tax residents as a result of the pandemic.
The Revenue Procedure 2020-20 allowed an individual to exclude up to 60 consecutive days from their substantial presence test. Eligible for this exception are individuals who (1) were not permanent US residents at the end of fiscal year 2019, (2) who are not legal permanent residents at any time in 2020, (3) who were present in the United States in each of the days of the COVID-19 emergency period, and (4) who did not become a US resident in 2020 as a result of their days of presence in the United States outside of the COVID-19 emergency period.
How to request a travel exemption
Eligible individuals that need to fill out form 1040-NR for the 2020 fiscal year must request their exemption by attaching form 8843 “Statement for Exempt Individuals and Individuals With a Medical Condition” together with their tax return. For those who do not need to submit a tax return, they must be prepare to fill out form 8843, if requested by the IRS
If you have any doubts, get in touch with the professionals at Drummond Advisors to help you.
IRS ha anunciado el pasado miércoles (9) la suspensión de más de una docena de cartas adicionales, una de ellas el envío de los avisos de cobro automatizados que normalmente se remiten cuando un contribuyente debe impuesto adicional y el
The IRS announced on Wednesday (9) the suspension of over a dozen notices, one of them sending automated collection notices typically issued when a taxpayer owes additional tax and the IRS has no record of the taxpayer filing a tax
O IRS anunciou na última quarta-feira (9) a suspensão de mais de uma dúzia de cartas adicionais, uma delas o envio de avisos de cobrança automatizados normalmente emitidos quando um contribuinte deve imposto adicional e o IRS não possui registro
The Withholding Income Tax Return (DIRF) is among the first obligations of the Brazilian tax calendar
The Withholding Income Tax Return (DIRF) is among the first obligations of the Brazilian tax calendar according to Normative Instruction no. 1.990 issued by the Federal Revenue Service Department in the Official Federal Gazette on November 18, 2020. It is
One of the greatest opportunities to reduce tax liability that companies established in the U.S. can benefit from is the credit related to investments in research and development, provided for in Section 41 of the Internal Revenue Code. Such benefit
The Internal Revenue Service (IRS) will start the 2022 tax season on 01/24. Warnings have already been issued for taxpayers to prepare for delays, due to the large accumulation of unprocessed statements during the Coronavirus pandemic period. The National Taxpayer
Currently, the Internal Revenue Service (IRS) does not have an internal policy on the taxation of all cryptocurrencies per se, but rather on the so-called virtual currencies, which, according to the definition of IRS itself, are any representation of a
Obtaining American Tax Residence through the physical presence test and the possibility of claiming an exception through the Closer Connection Exception
As a rule, a foreigner will be considered a resident of the USA for fiscal purposes if they fall under the criteria of the Substantial Presence Test, except in the case of obtaining a green card (permanent residence in the
Currently, in addition to the current prospects for Brazilian tax reform, there is also a lot of talk about the possibilities of new changes to the American tax system. President Joe Biden presented a set of proposals that, if approved,
On the 1st of July 2021, the law dealing with the economic and market nexus regarding sales tax (Senate Bill 50 – S.B.50) came into force. The state of Florida was one of the last states to enact a law
Estado da Flórida passa a exigir que vendedores remotos coletem e remetam sales tax nas vendas para o Estado
No dia 1º de julho de 2021 entrou em vigor no Estado da Flórida a lei que trata do nexus econômico e de mercado para fins de sales tax (Senate Bill 50 – S.B.50). O Estado da Flórida foi um
The US tax filing process can raise some common questions early on. “What should I declare?” is one of the most frequently asked questions about the subject. If you have income connected to the United States, be it rental income