Where can I get Assistance Regarding Tax Treatment of a Resident Alien?
Full Question:
Answer:
The following is an example of tax treatment of an individual in the US with a L-1 visa. I suggest contacting the local office at the link below.:
Mr. Gerard de la Fontaine was a citizen and resident of France just prior to his arrival in the United States. He is an employee of a French corporation affiliated with a U.S. corporation. He arrived in the United States on 04-30-2008 on an L-1 visa to work for the affiliated U.S. corporation in Cleveland. He does not intend to leave the United States until 04-29-2011. Determine his residency starting date.
What kind of federal income tax returns will he file for 2008, 2009, and 2010?
Solution:
Date of entry into United States: 04-30-2008
Nonexempt individual.
Begin counting 183 days at this date: 04-30-2008
Number of nonexempt days in United States during 2008: 246 days
Current year (2008) days in United States (246) X 1 = 246 days
Prior year (2007) days in United States (0) X 1/3 = 0 days
Second Prior year (2006) days in United States (0) x 1/6 = 0 days
Total = 246 days
Gerard passed the substantial presence test on: 10-29-2008. (the 183rd day after 04-29-2008). Gerard's residency starting date under I.R.C. § 7701(b): 04-30-98. (The first day he was present in United States during the calendar year in which he passed the substantial presence test).
What kind of tax returns will Gerard file for 2008, 2009 and 2010?
2008:
Gerard will file a dual-status tax return as a dual-status alien.
2009:
Gerard will file Form 1040/1040A/1040EZ as a resident alien.
2010:
Gerard will file Form 1040/1040A/1040EZ as a resident alien.