Posts filed under the Expatriates category.

W-8 Forms for Foreign Aliens and Entities

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A W-8 form for all foreign aliens/entities is needed for all payments. The IRS requires a mailed original ink signed and dated form to be obtained. A faxed copy or emailed copy is not acceptable. There are four types of W-8 forms. The foreign alien/entity will need to determine the type of form that applies to them. If you complete Form W-8 you will not receive Form 1099. However, you may receive Form 1042-S which reports compensation,

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Expatriation Tax under IRC Section 877

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U.S. citizens and permanent residents are subject to US income tax on their worldwide income regardless of where they reside in the world. In order to free oneself from the U.S. income tax, U.S. citizens or permanent residents must expatriate from the U.S. to become nonresident aliens. U.S. expatriates may be subject to the expatriation tax provisions under Internal Revenue Code (IRC) sections 877 and 877A. If you expatriated after June 16, 2008, you may find yourself to subject an immediate mark-to-market tax on your worldwide assets as well as possible tax liabilities if you are a “covered expatriate”.

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