International Tax Career Guide and Counseling

Question: Where can I find an international tax accountant? I'm moving to Germany to teach English, and I am leasing out my condo here, so I have US rental income. This tax year is going to be very complicated, and I want advice from someone who does personal international taxes... Can someone point me in the right direction?

Answer: Any decent US preparer can handle it. As a US citizen, you are taxed on your worldwide income. If you have to pay taxes in Germany, you get credit on your US return so you don't have pay double taxes. If you live there and stay out of the US for at least 330 days in a 365 period, you can exclude most of the foreign income from US taxes anyway. You might want to get familiar with a good preparer in the US before you go, and deal with them by mail. H&R Block offers online approval so you can mail your docs to the US, have them done by somebody you trust, and approve it and "sign it" online. If that doesn't work for you, Block also has offices all over Europe. Here is Germany's: http://www.hrblock.com/taxes/doing_my_ta…

Question: What is the function of the CRA International Tax Services Office? I have filed a reassessment for 2005 & 2006 with the CRA. They have reassessed 2006 and have forwarded 2005 request to the International Tax Services Office. Do you have any idea why? Today I received a letter saying that I have to Pay $10k immediately. What should I do in this case? Can you clarify why the re-asessment that I filed was forwarded to the ITSO? Would it be helpful to send this letter (which informed me that the reassessment was forwarded to the ITSO) to the tax collection department in order for them to wait the result of the ITSO review?

Answer: If your original 2005 tax return was processed at ITSO, then any subsequent reassessment on that year is handled by them also. They would be involved if: you immigrated or emigrated or were non-resident in 2005, you claimed an overseas employment tax credit in 2005, or you earned income in another country that was reported to the CRA by the foreign power.

Question: How does one get into working in international tax? I have a B.A. in international relations and am thinking about pursuing a master's degree in accounting. I currently work as a customs broker, which is not really related, but I want to know how good my chances would be if I pursued the graduate degree in accounting. I have some tax experience, but it's not extensive.

Answer: Yes you could do a graduate accounting degree focusing on international tax issues, but if you're ambitious, you might consider law school and focusing on international tax through the legal end of it. You'll make 10 times as much money.

Question: International Tax Law: Do I need to include it in income tax? I have a close family member in China who has given me a sum of money to save in America. I've looked up International tax treaties but they've been no help... My question is, Is the interest from the bank account, which technically belongs to my brother, taxable and do i have to pay it? I'm more interested in the law fragments that say whether I have to or not than a simple Yes/No. Thanks!!!!!

Answer: Opening an account with your relative's money under your social security number does not make the income yours or cause the principal to be treated as a gift. However, you may have some explaining to do, and you may not be able to convince the IRS the money is not yours. You should transfer the funds to an account in the name of your relative in China. Your relative should obtain an individual tax identification number (ITIN - information link below) which the bank will require before an account can be opened. You can be given power of attorney or signature power over the account. The bank should be able to advise you how to accomplish this. The bank should collect 10% as withholding tax from the interest it pays on the account. This should be the only tax liability owed to the US on these funds.

Question: What are the tax consequences of investing in a international index fund? So do you pay taxes for America AND to all those foreign countries that the fund invests in? I heard that if your international taxes are over $300 then you'll have to file a complex form with the IRS here in the US. Is that true?

Answer: the 'complex form' is form 1116,, not much to it,, look at the form on irs.gov web site,, you'd use pg 1 & 2 you will have foreign tax paid on your year end 1099 from the fund,, but you'll get at least partial if not full credit fror that tax paid against any tax you owe.

Question: Is there an IRS tax on a gift of money from an international source? My mom is getting an inheritance in South Korea (a house of her father is being sold and proceeds being split among siblings). When she brings that money back to the United States, will there be taxes due to the IRS from essentially an international inheritance (taxes in Korea were already paid)? If instead of keeping it herself she wants to give the money to me or my sister, is there a gift tax due to the IRS (filling out a gift tax form and just using up part of my mom and dad's lifetime gift exemption to me and my sister)? And what is the actual best method of having those international funds transferred to an U. S. account? (wire transfer, actual check, other?) Thanks for the responses below. I called the IRS and they said the same thing. Only other thing they added was that Treasury / Customs form FinCEN-105 (report of international transportation of currency or monetary instruments) had to be filled out within 15 days of that international transfer. Read instructions for form FinCEN-105. Apparently only applies to physical transfer of currency across borders. Don't need to fill out for electronic transfer.

Answer: is your mother a U.S. citizen? The money she inherits is not taxable in U.S. If she gives you more than $12,000. per year she would be liable for gift tax. Your dad can also gift to you $12,000. per year for total of $24,000. They can also do the same with your sister. A check from a foreign country is a nightmare and will cost you a couple hundred to get the money,, wire transfer is the best,, fastest,, safest way. They will no doubt be paying some fee to exchange the money into U.S. dollars. The source is your mother.

Question: What is the international tax liability for an internet based seller of software products? We are an Indian company and we intend to sell our software product over internet in different countries. The product is downloadable from internet only, it is not shipped physically. Do we have to worry about tax laws in these countries.

Answer: You're liable to pay tax primarily in your own country since you're a legal resident there. As long as you don't have physical offices in a foreign country, I doubt if you'd be taxable. It's better if you contact a CA / CPA on this as he/she should be able to give you more insights and any documents you need submit to offshore payment processing firms. I am however aware of some sales tax laws that were recently brought in for online sales in NY city.

Question: What's your idea about an international tax mechanism between countries? I think rich countries should pay tax to poor countires as we have in one country.. what's your idea? if you agree and see it useful ,please advertise this idea! thank you..

Answer: Why would someone advertise an idea like that? That sounds like something the mentally disfuntional might say. My idea is for you to limit expression of inadequate thought.

Question: Are tax paying international students going to get tax rebate checks under the economic stimulus plan? A few of my international friends from various different countries are working and are paying taxes. They have also filed their taxes. Will they also be receiving the tax rebate checks under the economic stimulus plan? I think they should since they are paying U.S. taxes, although they are not U.S. citizens. No rude of ignorant replies please. Series comments only! Thank you.

Answer: You have to be a US citizen or a resident alien with a valid social security number.

Question: How can I get my tax back ? - international student? Hey! I've participated in Work and Travel program in last two years. I did paid federal tax, but exactly I did not have to. ( as a international student I'm not oligated to do it) Now I'd like to get back what I paid.The problem is that I don't know how to do it. My knowledge about US taxation process is not impressive.I stilll have my W2 forms from my employer.Please help me!!!

Answer: Merely because you were a non-resident alien student (F-1 or J-1 visa) attending school in the US does NOT automatically mean that your income is exempt from US taxes. Unless the income you received was explicitly exempt from taxes (and ordinary income is NOT exempt) or unless the income was subject to a tax treaty then it is fully taxable in the US. Here's a link to IRS Pub 519 which should answer any questions: http://www.irs.gov/publications/p519/ind… Here's a link to the master list of tax treaties. If your country has a tax treaty with the US that exempts US based student income from US tax it should all be expalined there: http://www.irs.gov/businesses/internatio… For the most part, the tax treaties do not exempt you from taxation of your US income, they only bar the US from taxing your other world-wide income earned outside the US. If you were a resident alien or a US citizen, that income would be fully taxable. Generally you must file a Form 1040NR to calculate any US tax and claim a refund of any excess taxes withheld. If your income was explicitly exempt from US Social Security and Medicare taxes, you'll have to file the required exemption certifications with the employer and get a refund of those taxes from your employer.