In a May 21, 2018 statement, the IRS’s Large Business and International Division (LB&I) announced it will be launching campaigns focused on nonresident individuals. These initiatives aim to improve compliance in reporting effectively connected income, tax credits and deductible expenses, and withholding tax.
The complex U.S. international tax rules include denial of benefits and the imposition of draconian penalties for errors and missteps by taxpayers. Read on to learn how each aspect of the LB&I’s new initiatives will impact you, so you can avoid financial pitfalls and position yourself for financial success.
In an effort to demystify deductibility rules, the LB&I is launching a campaign to improve compliance, using methods such as outreach/education and traditional examinations. Currently, many nonresident individuals misunderstand or misinterpret the deductibility rules, both previous rules and new Internal Revenue Code provisions enacted under the 税 Cuts and Jobs Acts of 2017. In some instances, they do not meet the requirements for claiming the deductions and/or do not maintain proper records to substantiate the expenses claimed.
In a separate campaign, the LB&I will address nonresident individuals’ claims of tax credits. “NRAs who either have no qualifying earned income, do not provide substantiation/proper documentation, or do not have qualifying dependents may erroneously claim certain dependent related tax credits. In addition, some NRA taxpayers may also claim education credits (which are only available to U.S. persons) by improperly filing Form 1040 tax returns,” states the announcement.
关于表单3520/3520的重要细节 - 遵守和校园评估处罚
The LB&I will take a multifaceted approach to improving compliance with respect to the timely and accurate filing of informational returns reporting ownership of and transactions with foreign trusts. The department will achieve this through a variety of treatment streams, including focused examinations and penalties assessed by the IRS center when the forms are late or incomplete.
Another campaign targets U.S. payers and withholding agents who make payments of certain U.S.- source income to nonresident individuals. The LB&I will undertake audits and other enforcement approaches to deal with noncompliant or partially compliant payers and withholding agents.
如果您对导航有关非居民个人的税收的拜占庭规则有进一步的疑问，请联系Liz McGrath firstname.lastname@example.org 或者您弗里德曼顾问。