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).

Navigating the complex landscape of US tax regulations can be daunting, especially for individuals who may have inadvertently found themselves delinquent in their tax filings. Many Americans living abroad, including "accidental Americans"—those who hold US citizenship by birth but have never lived or worked in the US—are often unaware of their obligation to file US tax returns. And this lack of awareness can lead to unfiled returns and substantial penalties.

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Managing mobile employees across borders, in locations like Italy, Spain, and the US, can quickly become complex. From navigating tax residency rules to coordinating payroll and social security, there’s a lot to consider to stay compliant and avoid risk. That’s why Mobile Workforce Collaborative (MWC) recently hosted a corporate-only webinar bringing together HR and mobility professionals for an in-depth discussion on how to manage cross-border mobility in Italy, Spain, and the US. 

Whether you're a US citizen or green card holder living abroad—or supporting employees who are—the US tax system presents unique challenges. Unlike most countries, the United States taxes individuals based on citizenship rather than residency. As a result, US citizens and green card holders must file annual US income tax returns and report worldwide income and gains, no matter where they live or work.

Managing mobility tax obligations is rarely straightforward, especially as workforce models grow more flexible and companies support a variety of cross-border employee scenarios.

That’s why GTN and AIRINC teamed up for a three-part webinar series, offering clear, practical guidance on key mobility tax topics. Whether you're focused on day-to-day program management or big-picture planning, these sessions were designed to help HR, mobility, and tax professionals navigate today’s most common mobility challenges with greater confidence.

Tax equalization is a policy widely used by companies with mobile employees. At its core, tax equalization is a mechanism to ensure that an employee is neither better nor worse off financially, from a tax perspective, for having accepted an international assignment. However, there are many misconceptions about what exactly it means to be “tax equalized.” One common misconception is that implementing the policy will automatically result in high company costs and administrative burdens.