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Podcast – The Earned Income Tax Credit | LEGAL THOUGHTS

Coleman Jackson, P.C. | Transcript of Legal Thoughts Podcast
Published September 28, 2020.

 

The Earned Income Tax Credit - Podcast - Legal Thoughts

Legal Thoughts is a podcast presentation by Coleman Jackson, P.C., a law firm based in Dallas, Texas serving individuals, businesses, and agencies from around the world in taxation, litigation, and immigration legal matters.

This particular episode of Legal Thoughts is a podcast where the Attorney, Coleman Jackson is being interviewed by Mayra Torres, the Public Relations Associate of Coleman Jackson, P.C.   The topic of discussion is “The Earned Income Tax Credit “. You can listen to this podcast by clicking here:

You can also listen to this episode and subscribe to Coleman Jackson, P.C.’s Legal Thoughts podcast on Apple Podcast, Google Podcast, Spotify, Cashbox or wherever you may listen to your podcast.

 

TRANSCRIPT:

ATTORNEY:  Coleman Jackson
LEGAL THOUGHTS
COLEMAN JACKSON, ATTORNEY & COUNSELOR AT LAW

ATTORNEY:  Coleman Jackson

Welcome to Tax Thoughts

  • My name is Coleman Jackson and I am an attorney at Coleman Jackson, P.C., a taxation, litigation, and immigration law firm based in Dallas, Texas
  • Our topic for today is: “The Earned Income Tax Credit.”
  • Other members of Coleman Jackson, P.C. are Yulissa Molina, Tax Legal Assistant, Leiliane Godeiro, Litigation Legal Assistant, Reyna Munoz, Immigration Legal Assistant and Mayra Torres, Public Relations Associate.
  • On this “Legal Thoughts” podcast our public relations associate, Mayra Torres will be asking the questions and I will be responding to her questions on this important tax topic: “The Earned Income Tax Credit.”

Interviewer:  Mayra Torres, Public Relations Associate

  • Good afternoon everyone. My name is Mayra Torres and I am the public relations associate at Coleman Jackson, P.C.  Coleman Jackson, P.C. is a taxation, litigation and immigration law firm based right here in Dallas, Texas.
  • Attorney many families’ household income during this dreadful Covid-19 pandemic has been terribly cut to the core. I mean folks are struggling financially just to pay their bills, keep a roof over their heads and buy basic food and necessities.  Besides killing way too many people, this virus has destroyed people’s livelihoods.  Folks can hardly make a fraction of the amount of money they were making before this dreadful disease happened.
  • This is a general question and I’m not sure even how to ask this question:
  • Question 1:

I recently heard some families talking about something called earned income tax credit.  What is an earned income tax credit, who qualifies and how do they apply?

Attorney Answers Question 1:

  • Good afternoon Mayra.
  • Internal Revenue Code Section 32 allows an earned income tax credit for certain eligible individuals who work and meet certain criteria established under Section 32. The income tax credit is a refundable tax credit based on earned income that is available to certain low to modest wage earners.  IRC Section 32 applies to individuals not corporations, partnerships, or any other form of business entity.  The earned income credit is designed to offset some of the cost of living expenses for low to modest income taxpayers to ease the economic strain and rigor on them and their families.

Interviewer:  Mayra Torres, Public Relations Associate

Question 2:

  • Other than the work requirement and being an individual, what are the other qualifying criteria for the earned income credit?

Attorney Answers Question 2:

  • In order to qualify the individual taxpayer must meet a number of different requirements. Different sets of rules apply in determining the earned income credit for taxpayers with qualifying children and taxpayers without qualifying children.  If an individual is the qualifying child of more than one taxpayer, only one taxpayer can claim that person as a qualifying child for purposes of the earned income credit.  Internal Revenue Code Section 32 also establishes certain qualifying income levels and provide phase out provisions blocking high income individuals from benefiting from the earned income tax credit.

Interviewer:  Mayra Torres, Public Relations Associate

Question 3:

  • Attorney could you explain in more details the following distinctions:
    1. What are the qualifying criteria for taxpayers with children?
    2. What are the qualifying criteria for the earned income credit for taxpayers without children?

Attorney Answers Question 3:

  • Mayra, that is an excellent idea to hopefully help our listeners to understand this better. Let metake these in the order that you have suggested:
  • First: The Taxpayer who have a qualifying child for the tax year is eligible for the earned income tax credit if she meets the following seven requirements in addition to the earned income criteria –
    1. the taxpayer has taxable income for the tax year;
    2. the taxpayer’s adjusted gross income does not exceed a specified ceiling amount;
    3. the taxpayer does not have more than a specified ceiling amount for investments;
    4. the taxpayer is a United States Citizen or Resident for the entire year and if married, the taxpayer is married to a United States Citizen or Resident or, if taxpayer is married to a nonresident, the taxpayer must file an election for the nonresident to be taxed as a Resident. In this event the nonresident’s worldwide income is subject to U.S. taxation;
    5. the taxpayer must use the filing status of married filing jointly, single, head of household, or widower with children. Taxpayer cannot qualify for the earned income tax credit filing married filing separate;
    6. the taxpayer has a valid social security number; and
    7. the taxpayer does not claim the foreign earned income tax credit or the foreign housing tax credit
  • Second: The Taxpayer who does not have a qualifying Child during the tax year is eligible for the earned income tax credit only if the taxpayer meets all four of the following requirements in addition to the earned income criteria:
    1. The taxpayer and spouse; if any, are between the ages of 25 and 64. Note that the couple can meet this particular requirement if either the taxpayer or the taxpayer’s spouse is within these age requirements;
    2. The taxpayer resided in the United States for more than half the tax year;
    3. The taxpayer was not claimed as a dependent on another taxpayer’s tax return for the tax year; and
    4. The taxpayer is not a qualifying child of another taxpayer for the tax year.

 Interviewer:  Mayra Torres, Public Relations Associate

Question 4:

  • Attorney what is a qualifying child for the purpose of the earned income tax credit?

Attorney Answers Question 4:

  • A qualifying child is defined in Internal Revenue Code Section 32 as someone who meets four tests:
    1. The child must be the taxpayer’s son, daughter, stepchild, adopted child, foster child, or a descendant of such person or the taxpayer’s brother, sister, half brother or sister, stepbrother or stepsister, or a descendant of such person;
    2. The child must be under 19 years of age at the end of the tax year and the child must be younger than the taxpayer or the taxpayer’s spouse if the couple is filing a joint tax return. There are special rules that applies to students and disabled individuals when it comes to the earned income credit age requirements;
    3. The child must live in the taxpayer’s home within the United States for more than six months out of the tax year. There are certain temporary absences rules that applies in calculating the residency requirement under Internal Revenue Regulations Section 1.152-2(a)(2)(ii);
    4. The married child of the taxpayer cannot be a qualifying child of the taxpayer  if the married child of the taxpayer files a tax return with their spouse; except, solely for the purpose of filing a claim for refund and the married child is the taxpayer’s dependent.

Interviewer:  Mayra Torres, Public Relations Associate

Question 5:

  • That That is a lot to digest! I mean what types of income is included to determine whether the taxpayer meets the earned income criteria in the first place?
  • And what happens if the taxpayer misunderstands these tax rules and claims the earned income tax credit by mistake or something?

Attorney Answers Question 5:

  • For clarity purposes Mayra; let me answer your two questions step by step:
  • First:
  • What types of income is included to determine whether the taxpayer meets the earned incomecriteria in the first place?
  • Earned income typically consists of-
    1. Wages, tips, and other types of employee compensation;
    2. Net earnings from self-employment;
    3. And certain taxable disability payments received by a taxpayer prior to reaching the minimum retirement age;
    4. Extra pay earned by active duty soldiers in a military combat zone pursuant to Internal Revenue Code Section 112;
    5. There might be other types of income, but, these are the basic categories of income that are included in computing the earned income tax credit. I might add that some categories of income are specifically excluded from income for purposes of computing the earned income tax credit, such, investment income, social security income, welfare benefits, unemployment compensation, community property income and any other income exclusions specifically mentioned in Internal Revenue Code Section 32(c)(2)(a)(i).
  • What was your second question Mayra? Could you repeat it again?

Interviewer:  Mayra Torres, Public Relations Associate

Question 6:

  • Oh, sure I would be glad to attorney. My question was-
  • What happens if the taxpayer misunderstands these tax rules and claims the earned income tax credit on their filed tax return by mistake or something?

Attorney Answers Question 6:

  • Taxpayers are responsible for the accuracy of any tax return that they file or someone else files on their behalf with the Internal Revenue Service and there can be civil and criminal consequences for filing inaccurate returns. Detailed Earned Income Computation Worksheets are contained in IRS Publication No. 596.  The taxpayer should read this publication very carefully, especially, if they prepare their own tax return and are contemplating claiming the earned income credit.
  • In the event the taxpayer is using a paid tax return preparer to prepare their return and claim an earned income tax credit, they must perform their due diligence in selecting a qualified tax return preparer. The tax return preparer who is a paid tax return preparer of a tax return claiming the earned income credit must sign the return and complete and sign Form 8867, Paid Preparer’s Earned Income Credit Checklist and attach it to each return filed with the IRS claiming the earned income tax credit.  Form 8867 also applies to returns filing head of household, child tax credit and additional child tax credit.  The taxpayer must make sure Form 8867 is properly completed and filed with their tax return; so that, they can demonstrate that they possibly acted in good faith and reasonable in claiming an earned income credit for the tax year.  This could form the basis for a reasonable cause defense in the event the IRS challenges the earned income tax credit position on the tax return; or these due diligence steps could form the basis for a tax preparer negligence claim.  There is an inflation adjusted preparer penalty of $500 which applies when the tax preparer fails to complete Form 8867.
  • If a taxpayer claims the earned income credit in a previous year though they were not eligible and the IRS determines that the error was due to reckless or intentional disregard of the earned income credit rules, the taxpayer could be prohibited from claiming the credit on subsequent tax returns for two years pursuant to Internal Revenue Code Section 32(k)(1)(B)(ii).

Mayra’s Concluding Remarks

  • Attorney, thank you for very clear responses to all my questions concerning the Earned Income Credit.
  • I understand the earned income tax credit better now than when we first began discussing it this afternoon.
  • Our listeners who want to hear more podcast like this one should subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or wherever they listen to our podcast. Everybody take care!  And come back in about two weeks, for more taxation, litigation and immigration Legal Thoughts from Coleman Jackson, P.C., which is located right here in Dallas, Texas at 6060 North Central Expressway, Dallas, Texas 75206.
  • English callers: 214-599-0431 and Spanish callers:  214-599-0432.

Coleman Jackson, Attorney’s concluding remarks:

 THIS IS THE END OF “LEGAL THOUGHTS” FOR NOW

  • Thanks for giving us the opportunity to inform you about the earned income tax credit. If you want to see or hear more taxation, litigation and immigration LEGAL THOUGHTS from Coleman Jackson, P.C.  Stay tune!  Watch for a new Legal Thoughts podcast in about two weeks.  We are here in Dallas, Texas and want to inform, educate and encourage our communities on topics dealing with taxation, litigation and immigration.  Until next time, take care.

Podcast – Why Foreign Investors Consider the EB-5 Visa? | LEGAL THOUGHTS

Coleman Jackson, P.C. | Transcript of Legal Thoughts Podcast
Published October 23, 2020

Podcast - Why Foreign Investors Consider the EB-5 Visa? | LEGAL THOUGHTS

Legal Thoughts is a podcast presentation by Coleman Jackson, P.C., a law firm based in Dallas, Texas serving individuals, businesses, and agencies from around the world in taxation, litigation, and immigration legal matters.

This particular episode of Legal Thoughts is a podcast where the Attorney, Coleman Jackson is being interviewed by Reyna Munoz, Tax Legal Assistant of Coleman Jackson, P.C.   The topic of discussion is “Why Foreign Investors Consider the EB-5 Visa?” You can listen to this podcast by clicking here:

You can also listen to this episode and subscribe to Coleman Jackson, P.C.’s Legal Thoughts podcast on Apple Podcast, Google Podcast, Spotify, Cashbox or wherever you may listen to your podcast.

TRANSCRIPT:

ATTORNEY:  Coleman Jackson
Legal Thoughts
COLEMAN JACKSON, ATTORNEY & COUNSELOR AT LAW

ATTORNEY:  Coleman Jackson

Welcome to Immigration Thoughts

  • My name is Coleman Jackson, and I am an attorney at Coleman Jackson, P.C., a taxation, litigation, and immigration law firm based in Dallas, Texas.
  • Our topic for today is: “Why Foreign Investors Consider the EB-5 Visa?
  • Other members of Coleman Jackson, P.C. are Yulissa Molina, Tax Legal Assistant, Reyna Munoz, Immigration Legal Assistant, Leiliane Godeiro, Litigation Legal Assistant and Mayra Torres, Public Relations Associate.
  • On this “Legal Thoughts” podcast our law firm’s Public Relations Associate, Mayra Torres will be asking the questions and I will be giving the answers as she and I will be discussing: “Why Foreign Investors Consider the EB-5 Visa?”

Reyna Munoz Introduces Herself to the Audience:

  • Hi everyone, I am Reyna. I the Tax Legal Assistant at the tax, litigation and immigration law firm of Coleman Jackson, P.C.  Right here in Dallas, Texas.
  • Hi Attorney; today we will be discussing the EB-5 Foreign Investor’s Visa:
    • Its history;
    • Its application process, procedure, and processing times; and
    • its advantages to the foreign investor in coming to the U.S. to start a business and bring their families to live and work in the United States permanently.

Question 1:

  • Attorney could you give a brief history and description of the EB-5 Investor’s Visa?

Attorney Answers Question 1:

  • Good morning Reyna. Thanks for your question.
  • EB-5 Investor Visa is the fifth employment-based preference visa enacted into U.S. Immigration Law in 1990 and is codified in 8 U.S.C. That is the Immigration and Nationality Act of the United States.   The fundamental purpose of the EB-5 Investor Visa Program stated by Congress when it became law in the 1990s were to grow or spur economic growth within the United States.  The fifth employment-based preference visa is designed to afford wealthy foreign investors the opportunity to live and raise their families in the U.S. in return for building a new commercial for-profit enterprise or invest in an existing U.S. for-profit enterprise employing up to ten additional full-time employees.   Let me repeat, the EB-5 Investor’s Visa category is aimed at qualified wealthy foreigners seeking to obtain permanent legal residence in the United States, investing in a new for-profit commercial enterprise that will benefit the United States economy and create at least 10 full-time jobs in the United States per investor. The program is currently administered by USCIS. The at-risk capital investment required per EB-5 investor is currently $1.8 million, but the at-risk capital investment amount is reduced to $900,000 if the investment is made in a rural community or high unemployment area, known as a Target Employment Area (TEA). These minimum EB-5 Visa investment amounts came into force in 2019. This in a nutshell is the stated Congressional purpose the fifth employment-based preference visa which is commonly known as the EB-5 foreign investors visa and anecdotally known in some circles as the “Gold Visa”.

Interviewer: Reyna Munoz, Tax Legal Assistant

Question 2:

  • What are the qualifications for obtaining the EB-5 Visa and have there been any significant changes these qualification since Congress enacted the Statute?

Attorney: Coleman Jackson

ANSWER 2:

  • Yes, absolutely there are very strident criteria that the foreign investor must meet. The immigration statute sets forth strict guidelines as to:
    1. What constitutes an at-risk investment,
    2. What constitutes a commercial for-profit enterprise,
    3. What constitutes employment of full-time employees,
    4. What constitutes a capital investment to begin with; and
    5. What constitutes a minimum required capital investment.
  • The Immigration Nationality Act (INA) defines all of these terms in excruciating detail. And yes, there have been changes in the implementation of the Statute since it became law in 1990.

Interviewer: Reyna Munoz, Tax Legal Assistant

  • Attorney, that sounds a little complex. I hope you can explain some of those technical terms more fully.
  • Question 3:

But for now, this is my next question:

You mentioned that changes have occurred in the law since 1990.  It might be best to describe those changes first; I mean, when did these changes occur, what were the changes to the EB-5 Visa,  and what impact did these changes have on the EB-5 Visa program?

Attorney Answers Question 3:

  • That is very good. Yes, I can talk about the changes to the EB-5 Program before drilling down on some of these technical terms.
  • On November 21, 2019, the EB-5 Program underwent its first major change since the program began in 1990. In July 2019, the Department of Homeland Security published changes to the EB-5 Investor Visa Program in the Federal Register. The modifications or changes were dubbed the, “EB-5 Modernization Regulations for the Immigrant Investor Program (or the regulations)”. The new regulations increased the minimum investment amount from $1,5 million to $1.8 million and to $900,000 from $500,000 in a TEA designated area.  Moreover, the regulations switched the TEA designation authority or designation decision making process from the individual states and gave it exclusively to the United States Citizenship and Immigration Services, (USCIS).  The policy aim given for making these regulation changes to the EB-5 implementation regulations was to get back to the true Congressional intent for enacting the immigration statute in the first place; that is, the goal was to grow the U.S. economy and create American jobs through foreign investors investing substantial at-risk capital in return for a clear path to U.S. citizenship. Some thought the program had gotten away from its original Congressional goal.

 Interviewer: Reyna Munoz, Tax Legal Assistant

  • QUESTION Attorney can you now circle back and explain these terms that you mentioned earlier:
    1. What constitutes an at-risk investment,
    2. What constitutes a commercial for-profit enterprise,
    3. What constitutes employment of full-time employees,
    4. What constitutes a capital investment to begin with; and
    5. What constitutes a minimum required capital investment.
  • Question 4:

What does these terms mean as they relate to the EB-5 Foreign Investor Visa Program?

Attorney Answers Question 4:

  • Okay, very well! I will briefly describe each of these terms:
  • The term commercial for-profit enterprise under the Statute is understood to mean any lawful for-profit business enterprise. The business cannot be a hobby or non-profit enterprise of any kind.  The goal of the enterprise must be to make money!  The legality of the business enterprise will be determined under federal law and not merely state or local law.  For example, some types of business activities could be lawful in a state and unlawful under federal law.  For example, a commercial for-profit marijuana enterprise; which is a lawful business enterprise in some States, is currently unlawful under federal law.
  • The commercial for-profit enterprise is structured under the applicable state law where it organizes in the form of a partnership, or limited liability company, corporation, joint venture; and even, a sole proprietorship. Let me point out here that for tax purposes a corporation owned by none-United States citizens cannot make a Chapter S Corporation election because it’s not permitted under U.S. tax law. But otherwise, the commercial enterprise may be structured under State law in whatever for-profit business structure that suits the foreign investors requirements or goals.
  • Full-time employments as defined in the EB-5 Visa Statute means is the employment by the enterprise of U.S. workers who are U.S. citizens, Green Card Holders, or workers otherwise authorized to work in the United States. The workers cannot be members of the foreign investors family or otherwise related to the foreign investor. The workers must work at least 35 hours per week to be considered full-time employees.  There are certain particulars, such as, temporary, and seasonal workers, and such transient workers that I won’t go into right now.
  • Basically, what I have briefly described is how the term full-time employment has been interpreted by USCIS adjudicators
  • I am going to combine my answer to the terms “at risk investment” and  “capital investment” together since they are both dealing with the foreign investor’s investment and what it means to make an investment  under the EB-5 Visa Statute.
  • The foreign investor must make a capital investment in the minimum amount required by USCIS. USCIS has implemented rules defining a capital investment as the contribution of-
    • cash;
    • plant, property and equipment;
    • inventory;
    • stocks, bonds, and other securities owned by the foreign investor;
    • tangible personal property; and
    • At risk debt to the foreign investor
  • This is what is meant by at-risk capital investment. Intangible property, such as, patents, trademarks,  knowledge and know-how are not considered capital assets for EB-5 investment purposes.
  • Let me turn to the last technical term that I originally mentioned; which is ‘required minimum capital investment’ under the EB-5 Statute. What does it mean?
  • The new regulations that I mentioned before that were implemented by DHS in 2019, increased the minimum investment amount from $1.5 million to $1.8 million and to $900,000 from $500,000 in a TEA designated area. That means each foreign investor must make a minimum at-risk capital investment in these minimum amounts in a new enterprise within the United States which either creates or saves 10 U.S. jobs to qualify for the EB-5 visa.
  • The required minimum investment must be converted into United States Dollars and valuated at fair market value. It must meet the statutory minimum capital investment thresholds in U.S. dollars after any currency valuations and conversions.

Interviewer: Reyna Munoz, Tax Legal Assistant

  • Question 5:

Attorney can the foreign investor execute a letter of intent to contribute the required minimum capital investment contingent upon approval of the EB-5 application?  After all, USCIS might not approve the application.

Attorney: Coleman Jackson

ANSWER 5:

  • I mentioned before the statute requires that the foreign investor invest at-risk capital into the new enterprise. The investor must go beyond a mere expression of intent to invest the required capital.  Actual commitment of the capital is required; for example, indicial needs to be sent to the USCIS that the foreign investor has deposited the monies into a bank account exclusively controlled by the business (this could also be accomplished by putting the money in a trust account on behalf of the business); the foreign investor could also show the USCIS actual commitment of capital to the new business by title transfers of assets into the business for the exclusive use of the business.  The idea is that commitment of the capital to the new enterprise must be legally enforceable and either in the ownership and control of the business or a trustee with instructions to turn the money over to the business.  The at-risk requirement simply means that the investor must be exposed to a possible lost of the committed capital; there can be any guarantees made by the business to return the capital investment in the event the business stumbles and fails.

Interviewer: Reyna Munoz, Tax Legal Assistant

Question 6:

  • What if the USCIS denies the petition? Can the foreign investor insist return of invested capital if the EB-5 petition is denied?

Attorney: Coleman Jackson

ANSWER 6:

  • I mentioned that the capital could be placed in the hands of a trustee. If this approach is used the trustee must be a bank or some form of financial institution that is unrelated to either party to the transaction.  The terms and conditions of that relationship would be governed by the escrow agreement that the parties entered into. The parties to the escrow agreement could agree to return some or all of the committed capital in the event the EB-5 petition is denied by USCIS.  The escrow agreements or other agreements that the investor might execute with other parties in the transaction must all be arms-length and compliant with the EB-5 Statute.  Let me just leave it here for now; the investor must strictly comply with the Statute and be aware of how USCIS field adjudicators are instructed in the USCIS Field Manual when evaluating EB-5 visa applications.

Interviewer: Reyna Munoz, Tax Legal Assistant

Question 7:

  • Well okay Attorney; sounds like it’s very technical and requires a lot of due diligence on the part of the foreign investor and all parties involved in the process.
  • Question 7:

My last question is this!  How does a foreign investor actually request an EB-5 visa?

Attorney: Coleman Jackson

ANSWER 7:

  • The foreign investor files USCIS Form I-526 to request classification under the fifth employment-based preference category. Currently the Form I-526 is filed at the Dallas, Texas USCIS lock box regardless of the actual location of the new commercial enterprise.  The USCIS from time to time changes the actual filing location depending upon workload and other factors.
  • Reyna, thanks for these questions this morning with respect to why foreign investors might want to consider the EB-5 visa. There are many other relevant factors at play with respect to operating a business in the United States that we have not addressed here. In addition to the immigration laws discussed, there are also federal taxation and foreign assets and account laws that might be implicated as well in foreigners immigrating to the United States.
  • I have written numerous blogs on the EB-5 foreign investor’s visa, International Taxation Issues and Foreign Assets and Accounts over the past several years. Anyone interested in knowing more about these topics should visit our blog site

Attorney’s Concluding Remarks:

THIS IS END OF “LEGAL THOUGHTS” FOR NOW

  • Thank you for giving us the opportunity to inform you about “Why Foreign Investors Consider the EB-5 Visa?”
  • We might discuss other aspects of the EB-5 foreign investor’s visa, its requirements, and international tax issues affecting foreign investors in follow up podcasts or blogs in the near future.  If you want to see or hear more taxation, litigation and immigration LEGAL THOUGHTS from Coleman Jackson, P.C.  Subscribe to our podcast and stay tune!  We are here in Dallas, Texas and want to inform, educate, and encourage our communities on topics dealing with taxation, litigation, and immigration.  Until next time, take care.

Podcast – Who is a Resident Alien Under United States Tax Law? | LEGAL THOUGHTS

Published July 9, 2020

Podcast - Who is a Resident Alien Under United States Tax Law? | LEGAL THOUGHTS

Legal Thoughts is a podcast presentation by Coleman Jackson, P.C., a law firm based in Dallas, Texas serving individuals, businesses, and agencies from around the world in taxation, litigation, and immigration legal matters.

This particular episode of Legal Thoughts is a podcast where the Attorney, Coleman Jackson is being interviewed by Mayra Torres, the Public Relations Associate of Coleman Jackson, P.C.   The topic of discussion is “Who is a Resident Alien Under United States Tax Law?” You can listen to this podcast by clicking here:

You can also listen to this episode and subscribe to Coleman Jackson, P.C.’s Legal Thoughts podcast on Apple Podcast, Google Podcast, Spotify, Cashbox or wherever you may listen to your podcast.

TRANSCRIPT:

ATTORNEY:  Coleman Jackson
Legal Thoughts
COLEMAN JACKSON, ATTORNEY & COUNSELOR AT LAW

ATTORNEY:  Coleman Jackson

Welcome to Tax Thoughts

  • My name is Coleman Jackson and I am an attorney at Coleman Jackson, P.C., a taxation, litigation, and immigration law firm based in Dallas, Texas.
  • Our topic for today is: “Who is a Resident Alien Under United States Tax Law?”
  • Other members of Coleman Jackson, P.C. are Yulissa Molina, Tax Legal Assistant, Reyna Munoz, Immigration Legal Assistant and Mayra Torres, Public Relations Associate.
  • On this “Legal Thoughts” podcast our public relations associate, Mayra Torres will be asking the questions and I will be responding to her questions on this important tax topic: “Who is a Resident Alien Under U.S. Tax Law?”

Interviewer:  Mayra Torres, Public Relations Associate

Question 1:

Good morning, Coleman. This is Mayra. I do have a couple of questions for you when it comes to umm… a resident alien under U.S. tax law. Who or what is considered a Resident Alien under U.S. Tax Law?

Attorney Answers Question 1:

  • S. tax law defines the term Alien in the following ways:
    1. Nonresident Alien; and
    2. Resident Alien
  • I am going to go into further details on both; but our main focus in this podcast will be on the Resident Alien. Anyone who is interested to learn more about how a nonresident alien is impacted by U.S. tax law can subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or wherever they get their podcasts.
    1. Nonresident Alien is defined in Internal Revenue Code Section 7701(b)(1)(B) as any individual who is not a citizen of the United States and who do not meet either the Green Card Test or the Substantial Presence Test for Resident Alien.
    2. Internal Revenue Code Section 7701(a)(9) includes only the 50 States and the District of Columbia in determining whether an alien is a nonresident alien. The law does not include U.S. possessions, territories, or U.S. airspace. For example, Guam is not included in making the determination as to whether an alien is a nonresident alien.
    3. I am now going to focus this podcast strictly on the question: Who is a Resident Alien in U.S. Tax law?
    4. There are two test or measures used in U.S. tax law to determine whether an alien is a resident alien under U.S. tax laws as follows:
      • Green Card Test: Under this test an individual is a Resident Alien (should be simply U.S. Resident, but as I mentioned the law still says resident alien, nevertheless) Under the Green Card test an individual is a U.S. resident if the individual was a lawful permanent resident of the United States at any time during the calendar year.
      • An individual is a Green Card Holder if they have become a Lawful Permanent Resident under the immigration laws of the United States 8 United States Code.
      • For U.S. tax purposes lawful permanent residence status continues unless the status is rescinded administratively or rescinded by a U.S. federal Court, such as, in a deportation proceeding by an Immigration Court.
      • An LPR can also abandon their Green Card Status by following the appropriate procedures or any Consular Officer or Border Protection Officer possibly could argue that the LPR status has been abandoned under circumstances described in U.S. Immigration Laws. U.S. tax regulations Section 301.7701(b) sets forth the Internal Revenue Codes positions concerning the Green Card test in determining whether an Alien is a Resident of the United States based on the Green Card test.
  • Now let us turn to the second test used by the IRS in determining whether an alien is a Resident Alien of the United States. The second test is known as the Substantial Presence Test. Under the substantial presence test, an individual is a Resident Alien or U.S. Resident if they are physically present within the United States on at least:
    1. 31 days during the current calendar year; and
    2. a total of 183 days during the current year and the two preceding years, counting each day of physical presence in the current year as one whole day, each day of presence in the first preceding year as one-third of a day., and each day of presence in the second preceding year as one-sixth of a day. Fractional days derived from these computations are not counted towards substantial presence.
  • I know this may sound very complicated to non-tax lawyers or Certified Public Accountants; the Substantial Presence Test is explained in excruciating detail in Internal Revenue Regulation Section 301.7701(b)-1(c)(1). And both the Green Card Test and Substantial Presence Test is codified in 26 United States Code Section 7701.

Interviewer:  Mayra Torres, Public Relations Associate

Question No 2:

I am just curious, are there any exceptions to this Substantial Presence Test. I mean, you are always saying the law is complicated and that there are often exceptions to the rules. What about now… are there any folks exempt from the Substantial Presence Test?

Attorney Answers Question 2:

  • The following individuals are exempt from the Substantial Presence Test pursuant to Internal Revenue Code Section 7701:
    1. International Students
    2. Professional Athletes
    3. Diplomats and their immediate family members
    4. Teachers on the J Visa immigration status and their immediate family members.
    5. Full time Employees of international organizations and their families that have been appropriately designate by the Secretary of the Treasury in consultation with the Secretary of State of the United States.
    6. Regular commuters from Mexico and Canada are not generally considered meeting the substantial presence test.
    7. There might be a few other exceptions; but these are the ones I can recall right now. I might add that even within these exceptions there are further particulars that I am just not going to get into right now.
    8. The actual application of the substantial presence test is very complex, and anyone impacted by these issues should consult with qualified tax professionals in their area.

Interviewer:  Mayra Torres, Public Relations Associate

Question 3:

Well alright then. What are some of the United States tax consequences to an individual meeting either the Green Card Test or the Substantial Presence Test?

Attorney Answers Question 3:

  1. S. residents who meet either the Green Card Test or the Substantial Presence Test must comply with all U.S. tax laws (I am using this term for resident aliens because I think it sounds more humane and welcoming).
  2. S. residents are generally taxed in the same manner as U.S. citizens. They are taxed on their worldwide income the same as U.S. citizens.
  3. S. residents must report their income by filing the appropriate federal tax return complying with all the reporting requirements applicable to U.S. citizen taxpayers.
  4. S. residents are allowed exclusions from gross income with respect to certain income earned, such as, certain compensation paid by foreign employers, nontaxable dividends, gains from sale of home and other types of income specifically excluded from gross income for U.S. taxation purposes.

Interviewer:  Mayra Torres, Public Relations Associate

Question No. 4

  • S. residents are taxed just like U.S. Citizens pretty much. I get that. But what about that $600 per week people are receiving under the CARES Act?
  • Can resident aliens (foreigners who satisfy the Green Card Test or Substantial Presence Test) receive that $600 per week too? And what about people who don’t have their papers? How and where do resident aliens apply.

Attorney Answers Question 4:

  • Yes, individuals who satisfy the Green Card Test or the Substantial Presence Test can qualify to receive the weekly $600 emergency increase in unemployment compensation benefits under the CARES Act because Subtitle B Section 6428.2020(2)(b)(d) says that nonresident alien individuals do not qualify.
  • Remember I spoke earlier about an alien can be either (1) a nonresident alien or (2) a resident alien for U.S. tax purposes. If an alien satisfies the Green Card test or the Substantial Presence Test they are classified as Resident Aliens (I like to use the term U.S. Resident) for tax purposes. And yes, undocumented individuals can satisfy the Substantial Presence Test and be treated as Resident Aliens for tax purposes. They typically should apply for an Individual Tax Identification Number otherwise called an ITIN to comply with U.S. tax laws.
  • There is no mention of Resident Aliens being unqualified to receive the $600 emergency increase in unemployment compensation benefits in the CARES Act. In Texas, these individuals (U.S. Residents) apply for this federal emergency increase of $600 with the Texas Workforce Commission at the same time they file an Unemployment claim based on loss of employment as the result of Covid-19. I think Resident Aliens or U.S. Residents qualifies to receive the weekly $600 under the CARES Act.

Attorney’s Concluding Remarks:

This is the end of Legal Thoughts for now!

  • Thanks for giving us the opportunity to inform you about who is a resident alien of the United States under U. S. tax law. If you want to see or hear more taxation, litigation and immigration LEGAL THOUGHTS from Coleman Jackson, P.C. Subscribe on Apple Podcast, Google Podcast, Spotify or wherever you listen to your podcast. Stay tune! We are here in Dallas, Texas and want to inform, educate, and encourage our communities on topics dealing with taxation, litigation, and immigration. Until next time, take care.

Podcast – Employment Authorizations for Immigrants: Who Qualifies and How to Apply?| LEGAL THOUGHTS

Published August 4, 2020

Podcast - Employment Authorizations for Immigrants: Who Qualifies and How to Apply?| LEGAL THOUGHTS

Legal Thoughts is a podcast presentation by Coleman Jackson, P.C., a law firm based in Dallas, Texas serving individuals, businesses, and agencies from around the world in taxation, litigation, and immigration legal matters.

This particular episode of Legal Thoughts is a podcast where the Attorney, Coleman Jackson is being interviewed by Mayra Torres, the Public Relations Associate of Coleman Jackson, P.C.

The topic of discussion is “Employment Authorizations for Immigrants: Who Qualifies and How to Apply?” You can listen to this podcast by clicking here: 

You can also listen to this episode and subscribe to Coleman Jackson, P.C.’s Legal Thoughts podcast on Apple Podcast, Google Podcast, Spotify, Cashbox or wherever you may listen to your podcast.

TRANSCRIPT:

ATTORNEY:  Coleman Jackson
Legal Thoughts
COLEMAN JACKSON, ATTORNEY & COUNSELOR AT LAW

ATTORNEY:  Coleman Jackson

Welcome to Immigration Thoughts

  • My name is Coleman Jackson and I am an attorney at Coleman Jackson, P.C., a taxation, litigation, and immigration law firm based in Dallas, Texas.
  • Our topic for today is: “Employment Authorizations for Immigrants: Who Qualifies and How to Apply?”
  • Other members of Coleman Jackson, P.C. are Yulissa Molina, Tax Legal Assistant, Reyna Munoz, Immigration Legal Assistant and Mayra Torres, Public Relations Associate.
  • On this “Legal Thoughts” podcast our law firm’s Public Relations Associate, Mayra Torres will be asking the questions and I will be giving the answers as she and I will be discussing: “Employment Authorizations for Immigrants: Who Qualifies and How to Apply?”

Mayra Torres Introduces Herself to the Audience:

  • Hi everyone, I am Mayra. I am the Public Relations Associate at the tax, litigation and immigration law firm of Coleman Jackson, P.C. Right here in Dallas, Texas.
  • Now Attorney: this is a follow up on a podcast that we did a couple of weeks ago where you and I were discussing “Green Cards & Work Permits” during this dread…………full pandemic!
  • Let’s go deeper into immigrants and work authorizations in the U.S. First of all:
  • What are the different types of work permits and who qualifies to work in the United States?

Attorney Answers Question 1:

  • Wow Mayra; that is a gigantic question since there are over 50 or 60 different categories of work authorizations defined in the U.S. Immigration Nationality Act, or INA, 8 United States Code. Each of these categories apply to different categories of immigrants, non immigrants, and their family members. Each category has different qualifying criteria. The duration for each category may also differ depending upon the specific authorizing provision of the INA.
  • We might have to address your question in several separate podcast over the next few weeks or even months. Interested listeners should subscribe to our podcast. For now, I intend to cover maybe 10 categories of work permits in this particular podcast. And for the most part I will merely mention the technical references to the applicable INA Section numbers authorizing the particular work permit category. I will also try to leave out the legal jargon and speak in ordinary language to see if I can explain work authorizations so that normal people can understand the different categories of work permits and their specific qualifying requirements.

Mayra Comments on That Approach

  • Oh exactly attorney. Its best to explain this in simple, easy to understand words;so that, people can follow along and understand what you are saying; you know! I mean …talk in language that regular people can understand.
  • And oh yeah; we can have a series of conversations on this topic in future podcast. Anyone who wants to know more about work permits for immigrants can subscribe to our law firm’s podcasts. Okay let’s go… my first question is this:
  • What are the different types of work permits and who qualifies?

Attorney Continues with Answer of Question1:

  • I am going to start by discussing those classes of immigrants who are authorized to be employed in the United States without restrictions as to location or type of employment:
    1. An immigrant who is a Lawful Permanent Resident (with or without conditions pursuant to INA section 216). These are immigrants issued Form I-551 or Green Card by the Department of Homeland Security.
    2. An immigrant who is a lawful temporary resident of the U.S. pursuant to INA section 245A or section 210 of the Immigration Nationalization Act. These temporary residents of the U.S. have been issued an EAD or Employment Authorization Document.
    3. An immigrant who has been paroled into the U.S. under INA section 207 as refugee.Refugees in the U.S. have been issued an EAD or Employment Authorization Document.
    4. An immigrant who has been granted asylum under INA section 208. Asylum seekers whose applications have been pending for more than 90 days can also be granted a work authorization while their asylum applications are pending decision at the Asylum Office.
    5. An immigrant who has been granted Temporary Protected Status (TPS) under INA section 244 has been issued an Employment Authorization Document (EAD).
    6. Any immigrant who has been granted U-1 crime victims status pursuant to 8 CFR 214.4 are issued a work authorization so long as they are in that status.
    7. Any immigrant who has been granted VAWA status under the Violence Against Women’s Act has the authority to work in the United States as long as they are in that status.
  • All immigrants who are authorized employment incident to their status, must apply to U.S.Citizenship and Immigration Services (USCIS) for a work authorization with the exception of the Green Card holder and the immigrant granted VAWA status; a VAWA self-petitioner can request authorization to work directly on the Form I-360 Petition. And Green Card Holders or Lawful Permanent Residents have the authority to work anywhere.
  • Again, all work permits discussed so far falls into the category where the immigrant can be employed in the United States without restrictions as to location or type of employment. They can work anywhere. Now less turn to the category of work authorization which are restrictive as to location and employer.

Interviewer:  Mayra Torres, Public Relations Associate

Question 2:

  • You mean some immigrants are restricted as to who they can work for and when!
  • What kind of restrictions are we talking about here? You mean there are immigrants who can’t work for anyone they want and anywhere in the United States … they want?

Attorney Answers Question 2:

  • Yes Mayra; that is exactly right. Some immigrants are issued work permits that restrict who they can work for and where they can work in the United States. I am only going to cover about three in this podcast. These are the most popular types; but again, we might revisit this topic in future podcast. For now, I am going to limit my discussions of immigrants who are restricted by law to work for a specific employer or otherwise restricted to employment authorized in the INA to these three:
  • First: A non immigrant treaty trader in the E-1 category and treaty investor in the E-2 category pursuant to INA section 214.2(e) are restricted to working only for the treaty-qualifying company through which they attained their status. They cannot work for anyone else in the United States.
  • Second: A non immigrant student must have a valid F-1 student status and are restricted pursuant to INA section 214.2(f) to working no more than 20 hours per week when the school is in session or full-time when school is not in session if the student intends to and is eligible to register for the next term or session. Moreover, the INA provides that students can engage in employment in the form of curricular practical training (internships, cooperative training programs, or work-study programs which are part of an established school curriculum) after being enrolled as a full-time student for a full academic year. These employment matters are handled on campus by the Designated School Official at the student’s college or university on Form I-20.
  • Third: An intra-company transferee in the L-1 status pursuant to INA section 214.2(l) is authorized to work only for the employer who filed the petition through whom they obtained the L-1 status.An immigrant on L-1 status cannot work for anyone else in the United States. I might add that the type of work they can perform is also restricted to the representations made by their employer in their petition. They must be high-level managerial or executive level individuals coming to the U.S.to oversee some specified areas or providing expertise in growing the domestic enterprise.

Attorney Interview: By Mayra Torres

QUESTION 3:

  • Wow! Attorney thanks for giving such comprehensive overview of these 10 types of work permit categories.
  • I have so many more questions, such as,
    • What is the duration of each one of these work permits that you have discussed; and
    • Whether the immigrant’s family members, such as, their spouse, children, and parents can work too; and
    • How can an immigrant with a work permit get a Green Card (we might have covered that in our previous podcast on Green Cards, but I can’t remember your answer now)?
  • Maybe we can discuss those questions in future podcast or blogs or something.
  • But a big question right now with this pandemic deals with workers getting sick on their jobs.
  • Question number 3 is this one: Undocumented Immigrants are not authorized to work in the United States; so… what if they catch Covid-19 at work and get sick or …worst…dies…. Are they entitled to receive any money for lost wages or earnings?

Attorney Answers Question 3:

  • That is a very complex question and the law could be in flux because of federal, state, or local rules changes being discussed in many circles. These protections could impact whether employees can recover damages of any kind resulting from injuries allegedly sustained as the result of Covid-19.So, I will limit my answer to Texas law pre-Covid 19.
  • Well established law in Texas says that injured workers and/or contractors are not required to be U.S. citizens nor are they required to possess immigration work authorization permits as a prerequisite to recovering damages for lost earning capacity due to injury on the job. There is case law that goes as far back as 1993 that holds this legal principle.
  • But the law in this area could change as law catch up with legislative and other changes at the federal, state, and local level as it pertains to the response to Covid-19. And let me just say, federal law can be an affirmative defense whenever it conflicts with state or local law. So bottom line; the answer to this question is unclear at this time.

Attorney’s Summary:  Coleman Jackson

  • Mayra thanks for asking some very important questions regarding work permits.
  • I know we did not answer all of the questions you might have on this very important immigration topic. We might revisit it in our future blogs, podcast, or videos on our U-Tube Channel. For now,we have to go.

Attorney’s concluding Remarks:

THIS IS END OF “LEGAL THOUGHTS” FOR NOW

  • Coleman Jackson, Attorney’s concluding remarks:
  • Thanks for giving us the opportunity to inform you about the Immigrant Work Authorizations in the U.S. We might discuss other aspects work permits and their requirements in follow up podcasts or blogs in the near future. If you want to see or hear more taxation, litigation, and immigration LEGAL THOUGHTS from Coleman Jackson, P.C. Subscribe to our podcast and Stay tune! We are here in Dallas, Texas and want to inform, educate, and encourage our communities on topics dealing with taxation, litigation and immigration. Until next time, take care.

Podcast – Did Your Families ITINs Expire In 2019? | LEGAL THOUGHTS

Published July 14, 2020

Did Your Families ITINs Expire In 2019

Legal Thoughts is a podcast presentation by Coleman Jackson, P.C., a law firm based in Dallas, Texas serving individuals, businesses and agencies from around the world in taxation, litigation and immigration legal matters.

This particular episode of Legal Thoughts is a podcast where the Attorney, Coleman Jackson is being interviewed by Mayra Torres, the Public Relations Associate of Coleman Jackson, P.C.

The topic of discussion is “Potentially Over 2 Million ITINs Expired at the End of 2019:  Did your families ITINs expire in 2019.”  You can listen to this podcast here:

You can also listen to this episode and subscribe to Coleman Jackson, P.C.’s Legal Thoughts podcast on Apple Podcast, Google Podcast, Spotify, Cashbox or where ever you may listen to your podcast.

TRANSCRIPT:

ATTORNEY:  Coleman Jackson
Legal Thoughts
COLEMAN JACKSON, ATTORNEY & COUNSELOR AT LAW

ATTORNEY:  Coleman Jackson

Welcome to Tax Thoughts

  • My name is Coleman Jackson and I am an attorney at Coleman Jackson, P.C., a taxation, litigation and immigration law firm based in Dallas, Texas.
  • Our topic for today is: “Potentially Over 2 Million ITINs Expired at the End of 2019: Did your families ITINs expire in 2019.”
  • On this “Legal Thoughts” podcast our public relations associate, Mayra Torres will be asking the questions and I will be responding to her questions on this important tax topic: “Potentially Over 2 Million ITINs Expired at the End of 2019: Did your families ITINs expire?”

Interviewer:  Mayra Torres, Public Relations Associate

Question 1:

What is an ITIN and who uses an ITIN?

Attorney Answers Question 1:

  1. Individual Taxpayer Identification Numbers or ITINs are used by people who have federal tax filing or federal tax payment obligations under U.S. federal tax law who are not eligible for a Social Security number.
  2. ITINs are used by many Texans who are not authorized to work in the United States because they do not have work authorizations issued by the Department of Homeland Security; therefore, these workers cannot obtain a Social Security number from the Social Security Administration. I point out that an ITIN cannot be used for work authorization purposes; it is solely to be used for tax compliance purposes.
  3. Many undocumented individuals who live and work in the United States use ITINs which are issued by the United States Treasury for tax purposes. Whole families quite often use ITINs to fulfill their tax obligations and many undocumented children also use ITIN’s so that their parents can take the child tax credit, earned income credit and other benefits offered to taxpayers in the Internal Revenue Code.

Interviewer:  Mayra, Public Relations Associate

Question No. 2

  • Oh, I see; thanks for giving me a full answer to my questions.
  • I have a few more questions…: Are ITINs like a Social Security Number; I mean Social Security Numbers issued by the Social Security Administration are assigned to a person for life, right?  How about the ITIN issued by the U.S. Department of Treasury?  Is an ITIN issued to a person for life too?

Attorney Answers Question No. 2

  • Those are extremely good questions, Mayra.
  • A Social Security Number issued to a person by the Social Security Administration is issued to them for life. That means a person receives only one social security number that they use their entire lives.  Most social security numbers are assigned when U.S. citizens are children.  They keep that number for life.
  • No, the ITIN is not issued for the life of the recipient. The U.S. Congress passed a law called “Protecting Americans from Tax Hikes Act of 2015 (PATH Act) which became law on December 18, 2015.
  • The PATH Act modified U.S. Tax law, 26 U.S.C. Section 6109 as it pertains to ITINs in two major ways:
  • Number 1: ITINs that have not been used on a tax return for 3 tax periods expire.  For example, ITINs not used on a tax return in 2014, 2015, or 2016 expired December 31, 2017.  ITINs not used on a tax return for 2015, 2016 or 2017 expired December 31, 2018.  And ITINs not used on a tax return for 2016, 2017, and 2018 expired on December 31, 2019.
  • WARNING: Filing delinquent tax returns are extremely problematic because household ITINs expire by 3 years of none use automatically.  This is a major development regarding ITINs since the PATH Act became law in the United States.
  • Now, let me discuss the second major change to tax law by enactment of the PATH Act:
  • The PATH Act of 2015 authorized the Internal Revenue Service to develop and implement an annual rolling middle digit expiration schedule for all ITINs in circulation.
  • Under this rolling middle digit expiration schedule, the IRS makes an annual announcement listing the middle digits of ITINs which will expire end of that calendar year. This list of expiring ITINs is usually posted on IRS.gov and possibly in financial newspapers.
  • Since publishing the list of expiring ITINs over the years since the PATH Act, the IRS has announced that the following middle digit ITINs would expire if not properly renewed by the holder of the ITIN:
  • All ITINs with middle digits of 70, 71, 72 or 80 expired on December 31, 2017 if not properly renewed.
  • All ITINs with middle digits of 73, 74, 75, 76, 77, 81, or 82 expired on December 31, 2018.
  • All ITINs with middle digits of 83, 84, 85, 86 or 87 expired on December 31, 2019.
  • Let me just say that the IRS announced on October 10, 2019 that these ITINs can be renewed if the holder files a Form W-7 with the proper paperwork. Moreover, the IRS also said that ITINs with middle digits of 70 through 82 that expired in 2016, 2017 and 2018 can also be renewed if the proper paperwork is filed.  So people should understand that they can renew an expired ITIN.

Interviewer:  Mayra, Public Relations Associate

Question 3:

Wow that is a lot!  It’s good to know that ITIN users can renew their expiring and expired ITINs.  So how are ITINs renewed?  I mean what does an ITIN user have to do to renew their ITIN?

Attorney Answers Question No. 3 

  • Those are good questions, Mayra.
  • The ITIN holder should have received an IRS Notice CP-48 alerting them to the fact that their ITIN was about to expire. This notice would have given them detailed instructions as to how to renew their ITIN.  This Notice however could have been sent to the address where they lived at the time they originally applied for their ITIN.
  • If they did not receive the notice and instructions, they can still renew their ITIN by filing IRS Form W-7 and complying with all the instructions listed in the W-7 Instructions.
  • I might add that ITIN users should check all of the ITINs used by the members of their household and renew all the ITINs in the household even though only one or two of them have expired. The renewal can be filed for all ITINs in a household; and what I mean about household, is mom, dad and minor children who all use ITINs because they are not eligible for social security numbers.

Interviewer:  Mayra, Public Relations Associate

Question No. 4:

  • This has been informative. One last question Attorney:
  • What can happen if an ITIN expires and is not timely renewed?

Attorney Answers Question No. 4:

  • Bad things are all but certain to happen:
  • Tax Refunds could very likely to be delayed
  • The family could be denied the child tax credit with all the potential year-after-year tax difficulties that could arise from falsely claiming the child tax credit
  • The earned income credit could be denied with all the potential long term implications from falsely claiming the earned income credit
  • Accuracy Penalties and interest could be assessed by the IRS for filing inaccurate tax returns.
  • To summarize: A taxpayers failing to renew an ITIN could lead to all kinds of difficulties with the Internal Revenue Service’s Exam Unit and Collections division. Taxpayers who use these ITINs must remain vigilant annually and check to see whether any of the ITINs used in their households are set to expire either because of expiration under the 3 year of none use rule or expiration under the IRS rolling middle digit expiration schedule.

Attorney’s Concluding Remarks:

This is the end of Legal Thoughts for now!

  • Thanks for giving us the opportunity to inform you about expiration of ITINs: It’s time to check Your ITINs because they might be expired or expiring soon.  If you want to see or hear more taxation, litigation and immigration LEGAL THOUGHTS from Coleman Jackson, P.C.  Subscribe on Apple Podcast, Google Podcast, Spotify or wherever you listen to your podcast.  Stay tune!  We are here in Dallas, Texas and want to inform, educate and encourage our communities on topics dealing with taxation, litigation and immigration.  Until next time, take care.