We’ve blogged about foreign language translation and interpretation and foreign income and taxes. Regardless of why a foreign national is living and working in the United States – perhaps after being transferred to a U.S. subsidiary by a foreign-based parent company or having been hired directly by a U.S. firm – understanding what exactly is required of them for tax filing purposes is tricky. The first step is to decide under which of three categories the foreign national falls into:
- Non -resident aliens (form 1040NR/1040NR-EZ)
- Resident aliens (form 1040/1040-EZ)
- Dual-status taxpayers filing either form 1040 with a form 1040NR statement upon arrival or form 1040NR with a form 1040 statement upon departure.
Add to this the dozens of special forms and declarations, along with the various tax treaties that exists between countries and the situation can quickly go from bad to worse. And when the filer is a foreign language speaker, tax preparation further requires foreign language translations. Foreign language translations will allow the individual to fully understand the filings and to be able to provide the preparer with all the necessary information – essential in avoiding a malpractice claim. Based on the information gathered from the client, the tax attorney will best be able to know which category the client falls into and what, if any, tax treaties may be applicable.
Up Next: Language Translation, Child Custody and International Borders