NRE/NRI and US taxes

[Nikita2Charles 32]

Do you guys pay US taxes on account that you have left back home, or iNRE/NRI accounts from INDIA in particular?

[Charuhans 0]

Do you guys pay US taxes on account that you have left back home, or iNRE/NRI accounts from INDIA in particular?

Is your question, "do you" or "do you have to"? The first may differ from individual to individual (I do), the second, is "Yes" for everyone.

Also, if you have signing authority over any account which has/had a value of USD10,000/- or more anytime during the previous year with a financial institution (brokerage, mutual fund, hedge fund, CD etc.) outside the US, even if jointly with a non-USC, you have to file a form with the US Treasury (any local IRS office accepts the form on behalf of the US Treasury, or you can mail it). You can find the form and the instructions on the IRS website (irs.gov). The form no is TD F 90-22.1 - REPORT OF FOREIGN BANK AND FINANCIAL ACCOUNTS.

Many people whom I informed about this requirement shrugged it off (possibly underestimating the reach and intend of the IRS) and not knowing that India has signed the tax treaty with the US, which means the IRS/US Treasury has access to information from any financial institution registered and/or operating in India.

[CarolynRitesh 0]

Good information Charuhans, we are getting ready to move to the US, and we need to find a good accountant with knowledge of such things... Any ideas? We will be in the Detroit area in the beginning, not sure where we will end up after the job search is over, but we want to sort out financial information as fast as possible!

[Charuhans 0]

Good information Charuhans, we are getting ready to move to the US, and we need to find a good accountant with knowledge of such things... Any ideas? We will be in the Detroit area in the beginning, not sure where we will end up after the job search is over, but we want to sort out financial information as fast as possible!

Congrats! on your successful visa process and best wishes for your new life in the US. Unfortunately, I don't know any accountants, good or bad around the Detroit area since I have always been in Oregon since I moved to the US in May 06. The only reason, I know a bit about taxes is because I studied, took an exam and got licensed as a Tax Consultant (required in Oregon for tax practitioners) and then worked for a Tax Consultancy firm. Around last Christmas, I also passed the exams required to be an IRS Enrolled Agent (courtesy my ex-employer who paid for the exams) where I had to study Federal Taxation in depth. But now, I work for the State Government.

If you have any specific questions about your finances, tax situation etc. you can always PM me and I will try to help. Also, when you look for an accountant don't settle for just a CPA but see that he/she is also an IRS Enrolled Agent because you will have an foreign income/asset angle to your tax situation and unless the CPA firm specializes in those issues you may not get competent advise. And believe me, the IRS has gone to great lengths to complicate things.