Good post, although I don’t think many would willingly choose this option.
Why a non-U.S. citizen may wish to be a U.S. income tax resident (“U.S. person”). Sound like a non-sequitur?
Normally, anyone residing outside the U.S. is far better off if they are NOT a “U.S. income tax resident.” This is for several reasons:
- U.S. individual taxpayers typically have complex tax rules and reporting requirements, even for simple scenarios, such as a nurse or school teacher working in a particular country. They have to know and understand how to file returns and how to file various forms, such as IRS Form 2555: Foreign-Earned Income Exclusion, Housing Exclusion, and Housing Deduction. See, The Foreign Earned Income Exclusion is Only Available If a U.S. Income Tax Return is Filed. Every year, the compliance costs of living outside the U.S. to pay competent professional U.S. tax advisers to avoid penalties will typically be relatively very expensive.
- The Bank Secrecy Act (BSA)…
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