GTN Mobility Tax Blog

Important note on streamlined filing compliance procedures -- This article specifically discusses the streamlined foreign procedures, not the domestic procedures. To qualify for the foreign procedures, a taxpayer must meet the IRS’s non-residency requirement. For a US citizen, this means that in one of the past three years for which the original or properly extended US tax return due date has passed, they did not have a US residence and were physically present outside the US for at least 330 full days.

US citizens and permanent residents (green card holders) working outside the United States generally are still required to file annual US tax returns, and the IRS is constantly updating its technology to better locate non-filing taxpayers and bring them into compliance. However, in addition to increasing its enforcement capabilities, the IRS has also taken steps to encourage non-filers to come into compliance by waiving penalties for those taxpayers eligible to take advantage of the streamlined filing compliance procedures (streamlined procedures).

All US citizens and permanent residents must file federal income tax returns if they meet the Internal Revenue Service (IRS) filing threshold. The size of this threshold will vary depending on factors such as age, filing status, and type of income (e.g., income from employment or self-employment). For example, a single individual under the age of 65 would be required to file a 2024 US federal income tax return if their gross income exceeded $14,600. If the earnings came from self-employment, this same person would need to file a US federal tax return if their net earnings exceeded $400.

Ransomware, phishing, hacking, malware, botnet, viruses, spyware, worms... the list goes on. You don’t have to be an IT specialist to understand that in today’s digital world, such data security threats are very real. As personal data has become a vital asset to businesses, discussions of data privacy and security have graduated from the server room to the boardroom. And while both the volume and value of data processed by companies grows, so do the risks associated with that data.

US social security tax is withheld from employees’ wages under the Federal Insurance Contributions Act (FICA), which provides funding for the Social Security and Medicare programs. The goal of the Social Security program is to offer retirement, disability, and survivor’s benefits, whereas Medicare provides health insurance. 

Although many companies believe they have a good process in place to address the withholding of these taxes for their US-based employees that work in the US, it is critical that they review and understand the rules for their internationally mobile population. Through proper review and planning, companies can mitigate risks and may also achieve substantial cost savings.

If your company has a mobility program, then the Worldwide ERC^® Global Workforce Symposium is a must attend event.

It may seem counterintuitive to a US citizen or permanent resident (i.e., a green card holder) who has just taken a new international job, that most will still be required to file US federal income tax returns after relocating. In addition to filing income tax returns, mobile employees may also have other filing obligations including estate or gift tax returns, estimated tax payments, and foreign bank account reports.