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.
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.
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.