Filing Requirements

Question 1

What is the substantial presence test?

Answer 1

Must physically be present on at least:

1. 31 days during current year
2. 183 days during the 3-year period that includes the current year and the 2 years immediately before that
   * current year= all days counted (I.e 120 days)
   * 1st year= 1/3 of days (I.e 1/3 of 120=40)
   * 2nd year= 1/6 of days (I.e 1/6 of 120=20)

Question 2

What is the green card test?

Answer 2

You are a resident, for US federal tax purposes if you are a Lawful Permanent Resident of the US at any time during the calendar year.

Issued an alien registration card, Form I-551

Question 3

Are US residents and resident aliens taxed on their worldwide income?

Answer 3

Yes

Question 4

How are nonresident aliens taxed?

Answer 4

Generally on US sourced income

An exception is if nonresident elects to be treated as a US resident ( in order to file a joint return w spouse who is a citizen)

Question 5

Who must file Form FinCEN Report 114?

Answer 5

Any US citizen, resident, or person doing business in the US who has ownership interest in or signatory authority over a financial account ( or several accounts) in a foreign country with an aggregate value in excess of $10,000 at any time during the calendar year

Question 6

When does Form FinCEN Report 114 be filed?

Answer 6

By April 15 of the subsequent year or the extension due date of October 15

Question 7

What happens if you fail to file Form FinCEN Report 114 “Report of foreign bank and financial accounts” ?

Answer 7

Subject to both civil and criminal penalties

Question 8

What does FBAR stand for?

Answer 8

Foreign Bank and Financial Accounts Report

Question 9

What is Form 8938?

Answer 9

Used to report specified foreign financial assets with an aggregate value greater than $50,000 at the last day of the year or more than $75,000 at any time during the tax year ( doubles for MFJ)

Question 10

If you are not required to file An annual income tax return, do you still hve to file Form 8938?

Answer 10

No

Question 11

Where is the FBAR filed?

Answer 11

With the Department of Treasury by April 15

Question 12

Does filing Form 8938 relieve you from filing the FBAR?

Answer 12

No.. many individuals will be required to file both the Form 8938 nd FBAR to report substantially the same information

Question 13

Is the foreign Financial assets that must be reported on Form 8938 limited to bank and financial accounts?

Answer 13

No

Question 14

What is Form 8379?

Answer 14

Injured spouse reporting form

Requirements:

1. File a joint return
2. Have reported income (such as wages, interest, etc)
3. Hve made and reported tax payments or claimed the Earned Income Credit or other refundable credits
4. Not be required to pay a past due amount

Question 15

What events qualify for innocent spouse relief?

Answer 15

1. An understatement of Tax because the spouse omitted income or claimed false deductions or credits and the innocent spouse was unaware
2. An understatement of Tax and the innocent taxpayer is divorced or otherwise no longer living with the spouse
3. Given all the facts and circumstances it is not fair to hold the innocent taxpayer liable for the tax

Question 16

What credit is allowed on the 1040EZ?

Answer 16

Earned Income Credit

Question 17

Most types of US source income received by a foreign taxpayer are subject to what tax rate?

Answer 17

30%