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Tax Disputes

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IRS Audits & Appeals

Residency Disputes

 

Generally, the United States collects income taxes from non-U.S. citizens who earn income in the United States.  The extent to which the foreign citizen is liable for income taxes to the United States is based primarily on that individual’s status as a resident alien or a non-resident alien.  Residency, for U.S. income tax purposes, is measured by the amount of time that individual physically spends in the United States. 

Of course, the IRS collects income tax from U.S. citizens wherever they earn their income.  However, pursuant to the foreign earned income exclusion, a qualified U.S. citizen may exclude a portion of his earned income from taxation if he or she was working abroad and had a "tax home" in a foreign country.   Any U.S. citizen whose tax home is in a foreign country and who meets either the bona fide residence test or the physical presence test qualifies for the foreign earned income exclusion.

In determining a U.S. or a non-U.S. citizen’s residency for federal income tax purposes, the IRS considers a wide range of facts and circumstances.  The determination is critical as it impacts the taxpayer’s tax liability. 

The Thorn Law Group is experienced in helping taxpayers in disputes with the IRS regarding their residency.  For more information on how we can help you resolve your residency dispute with the IRS, please contact Thorn Law Group today.


IRS Residency Guide