Some of your clients may not understand their tax reporting obligations. You should inform them that they need to file a tax return each year, even if they believe they won’t owe any taxes.
Failing to file taxes or withholding income information can affect their immigration cases. For instance, permanent residents seeking U.S. citizenship will be required to show proof of their tax filings.
What they need to report, according to the IRS, is any income effectively connected to a trade or business in the U.S. or income derived from a U.S. source.
When informing your clients of their tax obligations, it may be best go further and recommend them to a local tax professional experienced in working with non-citizens.
Additionally, if any of your clients are leaving the U.S. and don’t fit into one of the exceptions, they must complete a sailing or departure permit, which certifies they’ve complied with the country’s tax laws.
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