With a new year comes the same ritual of preparing U.S. tax returns for filing on April 15. If you are a U.S. citizen or lawful permanent resident, your worldwide income will be subject to U.S. income, gift or estate tax, regardless of whether or not you are living in the U.S. Accordingly, you may be required to file a U.S. tax return.
However, if you are currently residing overseas, you are allowed an automatic 2-month extension to file your return until June 15. Nevertheless, any tax due must be paid by April 15 to avoid interest charges. If you are not able to file by June 15, you can request an additional extension to October 15 by filing Form 4868 "Application for Automatic Extension to File U.S. Individual Income Tax Return" before June 15. However, any payments made after June 15 would be subject to both interest charges and penalties for failure to pay.
The IRS Office in Philadelphia provides international tax assistance to individuals who may have questions regarding filing obligations while residing overseas. The Office is available Monday through Friday from 6:00 a.m. to 11:00 p.m. (EST) and can be contacted by phone at: +1 (215) 516-2000 (not toll-free) or by fax at: +1 (215) 516-2555. Assistance is also available at the following embassies and consulates abroad:
IRS Internal Revenue Code Section 877A- Expatriation Rule Furthermore, the form is not filed together with your tax return but must be filed with the Department of Treasury at P.O. Box 32621, Detroit, MI 48232-0621.
The U.S. imposes a worldwide income tax, gift tax and estate tax on its U.S. citizens and green card holders, regardless of where they are residing. Because of this never ending U.S. taxing system, many individuals consider relinquishing their U.S. citizenship or their green card in order to escape the long taxing arm of the U.S. Those who consider such a relinquishment need to be aware of Internal Revenue Code (IRC) Section 877A as added by Section 301 of the Heroes Earning Assistance and Relief Tax (HEART) Act. This went into effect for those who expatriated (relinquished their U.S. citizenship or U.S. green card) after June 17, 2008.
U.S. citizens or long-term residents who expatriate after June 17, 2008 may be subject to the new expatriation law (a mark-to-market regime of section 877A). These expatriates will be treated as having sold all of their property for fair market value on the day before they expatriate and will be subject to tax on the unrealized gain above $600.000. The $600,000 exclusion amount will be annually adjusted for cost of living. In addition, a person who has been a lawful permanent resident (green card holder) in at least 8 of the previous 15 taxable years before surrendering the green card must complete and file Form 8854 "Expatriation Information Statement" before departing the U.S. He or she must also notify the Department of Homeland Security of the termination of residency.
The new mark-to-market regime will only apply if an individual is a "covered expatriate." A covered expatriate is an expatriate that:
Though tax return filing is a date that people always keep in mind, there is another critical filing obligation that should not be overlooked by individuals who live abroad or have international interests. U.S. citizens, permanent residents and tax residents are required to complete the FBAR if they own or assert any control over a foreign financial account, including a bank account, brokerage account, mutual fund or other type of financial account. These individuals must file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR) with the IRS Department of Treasury, if
The FBAR Form must be received by the IRS on or before June 30. However, unlike tax returns, the FBAR is considered filed on the day it is received, not on the date it is postmarked.
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Family-based & Immediate Relatives Immigrant Visa |
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Processing Fee |
US $330.00 per visa applicant |
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Security Surcharge |
US $74.00 per visa applicant |
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Total |
US $404.00 per family-based visa applicant |
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Employment-based Immigrant Visa |
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Processing Fee |
US $720.00 per visa applicant |
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Security Surcharge |
US $74.00 per visa applicant |
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Total |
US $794.00 per employment-based visa applicant |
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Diversity Visa (DV) Applicants |
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Processing Fee |
US $305.00 per visa applicant |
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DV Lottery Surcharge |
US $440.00 per visa applicant |
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Security Surcharge |
US $74.00 per visa applicant |
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Total |
US $819.00 per diversity visa applicant |
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Other Immigrant Visa (SIVs, etc) |
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Processing Fee |
US $305.00 per visa applicant |
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Security Surcharge |
US $74.00 per visa applicant |
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Total |
US $379.00 per visa applicant |
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Returning Resident Status (SB-1) |
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SB-1 Application |
US $380.00 per visa applicant |
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Domestic Review of Affidavit or Support (Applies if application is done by the NVC) |
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Processing Fee |
US $88.00 per Affidavit |
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For petition-based visas applicants pay an application fee of $150. These categories include:
· H visa for temporary workers and trainees
· L visa for intracompany transferees
· O visa for aliens with extraordinary ability
· P visa for athletes, artists and entertainers
· Q visa for international cultural exchange visitors
· R visa for religious occupations
The fee for E visas for treaty-traders and treaty-investors will be $390.
The application fee for K visas for fiancé(e)s of U.S. citizens will be $350.
These nonimmigrant visa application processing fees are non-refundable. For more information, you can check the DOS website or contact us with any questions.
Form I-94W Paper Arrival/Departure Form Eliminated
On May 20, 2010 Department of Homeland Security Secretary Janet Napolitano announced the elimination of the paper arrival/departure Form I-94W for authorized travelers from nations participating in the Visa Waiver Program (VWP). This will streamline secure travel for visitors to the United States by consolidating the collection of traveler information prior to departure.
The use of paper I-94W forms will be eliminated at all airports in the United States by the end of the summer for VWP travelers arriving in the U.S. with an approved Electronic System for Travel Authorization (ESTA). Customs and Border Protection will activate automated processing for U.S. airports on a rolling basis over the next several months.
Under the new schedule of fees, applicants will have to pay the following:For all visas that are , including B1/B2 tourist and business visitor visas and all student and exchange visitor (F, M and J) visas, a fee of .For visas applicants pay an application fee of . These categories include:· H visa for temporary workers and trainees· L visa for intracompany transferees· O visa for aliens with extraordinary ability· P visa for athletes, artists and entertainers· Q visa for international cultural exchange visitors· R visa for religious occupations The fee for E visas for treaty-traders and treaty-investors will be .The application fee for K visas for fiancé(e)s of U.S. citizens will be . These nonimmigrant visa application processing fees are non-refundable.On May 20, 2010 Department of Homeland Security Secretary Janet Napolitano announced the elimination of the paper arrival/departure Form I-94W for authorized travelers from nations participating in the Visa Waiver Program (VWP). This will streamline secure travel for visitors to the United States by consolidating the collection of traveler information prior to departure.
Expansion of Biometric Procedures to Green Card Holders - valid for up to two years or until the traveler’s passport expires, whichever comes first; and However, an approved ESTA travel authorization is not a guarantee of admissibility to the United States at a port of entry. ESTA approval only authorizes a traveler to board a carrier for travel to the U.S. under the Visa Waiver Program. Customs and Border Protection (CBP) officers alone make admissibility determinations at ports of entry.
Effective January 18, 2009, with only a few exceptions, all non-U.S. citizens including Lawful Permanent Residents of the U.S., now will be required to provide biometrics upon entry or re-entry to the U.S. This means that LPR's will be subject to 10-print digital fingerprints and a photograph when entering a U.S. port of entry. This is a change from the previous regulation whereby only certain non-U.S. citizens arriving at U.S. air, land and sea ports of entry with nonimmigrant visas or those traveling without a visa as part of the Visa Waiver Program (VWP) were subject to United States Visitor and Immigrant Status Indicator Technology (US-VISIT) Program. Under the new regulations, all non-U.S. citizens, (except Canadians applying for admission to the United States as B-1/B-2 visitors for business or pleasure and those specifically exempted), will experience US-VISIT procedures when entering the country.
Malta Joins Visa Waiver Program
On December 30, 2008, Malta joined the Visa Waiver Program countries. Nationals of Malta who are coming to the U.S. for tourist or business reasons for 90 days or less now may do so without a visa, if they posses a biometric passport and register on-line through the new Electronic System for Travel Authorization.
Reminder about Electronic System for Travel Authorization (ESTA)
As of January 12, 2009, ESTA became mandatory for Visa Waiver travelers to the U.S. Be sure to register your proposed travel at least 3 days beforehand. Travelers without an approved ESTA may be denied boarding, experience delayed processing or be denied admission entry at a U.S. port of entry. You can connect to the ESTA on-line system here: https://esta.cbp.dhs.gov. We are happy to assist you with this application. If you have any questions, please feel free to contact us for more information.
Switzerland joins Schengen Area
As of December 12, 2008, passport controls of passengers from Schengen member states entering Switzerland by land were abolished. In November this year, the EU Council agreed that Switzerland would become part of the Schengen Area. Airport checks of passengers to Switzerland from Schengen countries will end on March 29, 2009.
13 EU Member States fully apply the provisions of the Schengen rules: Austria, Belgium, Denmark, Finland, France, Germany, Italy, Greece, Luxembourg, Netherlands, Portugal, Spain, Sweden, plus the non-EU countries Norway and Iceland. You can find more information on the Schengen area and Schengen agreement on the European Commission website section "Travelling in Europe." For more information regarding Switzerland's implementation of the Schengen rules, check the Swiss Federal Office of Migration website.
Visa Waiver Program Expanded
In November 2008, the Department of Homeland Security (DHS) announced that nationals of the following countries can now travel on the Visa Waiver Program (VWP) to the U.S.:
Czech Republic, Estonia, Hungary, Latvia, Lithuania, Republic of Korea and Slovak Republic
This means that nationals of these countries who are coming to the U.S. for tourist or business reasons for 90 days or less may do so without a visa, if they posses a biometric passport, register on-line through the new Electronic System for Travel Authorization (ESTA - see below), and meet the standard VWP conditions.
To review a helpful reference on the VWP for new member countries, click on this link
For a Visa Waiver Program travel guide, click here
To see if your German passport is valid for travel without a visa, check here
New Electronic System for Travel Authorization (ESTA) established
The Department of Homeland Security (DHS) implemented the Electronic System for Travel Authorization (ESTA), and began to accept voluntary ESTA applications on August 1, 2008. ESTA is a new fully automated, electronic system for screening passengers before they begin travel to the United States under the Visa Waiver Program. ESTA applications may be submitted at any time prior to travel to the United States, and VWP travelers are encouraged to apply for authorization as soon as they begin to plan a trip to the United States. ESTA will become mandatory for current VWP travelers on January 12, 2009. VWP travlers from newly admitted countries are obliged to submit ESTA applications now.
An approved ESTA travel authorization is:
- valid for multiple entries into the U.S.
To connect to the ESTA system and for more information, go to https://esta.cbp.dhs.gov. ESTA is available in 14 languages.