03.30.2020

Hidden Coronavirus Danger – Are You An Accidental Tax Resident?

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The fallout from Coronavirus (COVID-19) has the ability to turn someone into a US accidental tax resident.

How?

Non-US persons are considered US residents for tax purposes if they satisfy the “substantial presence test” for the calendar year.

The test is met if you are physically present in the US on at least:

  • 31 days during the current year, and
  • 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:
    • All the days you were present in the current year, and
    • 1/3 of the days you were present in the first year before the current year, and
    • 1/6 of the days you were present in the second year before the current year.

Some airlines have cancelled over 95% of their international flights.

Many people are focused on getting home when they should be focused on simply leaving the US to avoid becoming an accidental tax resident.

A quick flight to Canada, Mexico, or a Caribbean island could save someone thousands (possibly millions) in taxes.

Would you like an expert to help you determine your risk for becoming an accidental tax resident in America?

We’re here to help.

Schedule a Tax Evaluation and speak one-on-one with an international tax consultant.

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