Tax Services for International Organization Employees with Green Cards or US Citizens

As an employee of an international organization, you receive excellent tax benefits! But these benefits can also make your US tax reporting a bit tricky.

For example, if you are a green card holder you may ask:

• Your salary isn’t taxable (depending on which organization you work for), but do you need to file a tax return?
• What if your spouse has an income? Should you file separately or jointly? What are the pros and cons?
• Do you have foreign assets or pensions that have to be reported?

Alternatively, if you are a US citizen you may ask:

• Your salary is taxable. In some ways, it’s treated as self-employment income, and in other ways, it’s not. What can you deduct?
• How do you minimize your self-employment tax?
• Do your employer pension and foreign assets need to be reported?
• Should you file a joint return with a G-4 spouse?

These questions are unique to international organization employees. And the answers depend on your particular circumstances.

We help international organization employees (and retirees) get their taxes right. And we are the “go-to” firm for fixing income tax returns when others have done them wrong.

Guard Against These Common Tax Mistakes

Mistake #1
Not Paying Self-Employment Tax

US citizen employees of international organizations who are working in the US must pay self-employment tax (Social Security tax) since US Social Security taxes are not withheld from your paycheck. The self-employment tax must be calculated on the tax return each year and paid quarterly.

However, paying the required self-employment tax does not mean that technically you are self-employed and can enjoy certain deductions (see mistake #2).

Mistake #2
Claiming Deductions Against International Organization Income

Although US citizen employees must pay self-employment tax for international organization work performed in the US, they are NOT considered self-employed for any other purpose. Therefore, they are NOT allowed to claim self-employment deductions for business expenses or pension contributions against their international organization income.

Mistake #3
Failing to File US Tax Forms Related to Foreign Transactions and/or Financial Assets

US citizen and green card holder employees of international organizations (and G-4 visa holders who have made the proper election to file jointly with their spouse) often have foreign financial assets or receive income from foreign sources.

All foreign assets and foreign income must be reported on a US resident tax return.

You may know that you need to report your foreign bank accounts each year. But, what about other assets? Did you know you must also report:

• Foreign life insurance and mutual funds
• Pensions you expect to receive from foreign employers
• Ownership in foreign companies, partnerships, or trusts
• Ownership of personal retirement accounts (e.g., ISAs) or Superannuation Funds

The IRS requires that you disclose your ownership in a wide array of foreign accounts and assets each year, even if the assets are not taxable. If you don’t, you could face penalties of $10,000, $25,000, or $100,000 per missing, incomplete, or improperly filed form.

Let Us Help You File Your US Tax Returns

The tax rules that apply to employees of international organizations are different from the rules that apply to everyone else. Avoid IRS headaches by getting your taxes done right the first time.

We know the special tax rules and exceptions that apply to employees and retirees of international organizations. And every member of our team works on tax matters for people just like you.

When we prepare your US tax return, we help you:

• Meet your reporting requirements
• Avoid harsh penalties
• Minimize your tax liability
• Reduce your chance of an IRS audit

Have Foreign Assets?

We can help you by evaluating your filing requirements, assessing your US taxability, and properly completing each required form.

Need to “Clean Up” a Tax Situation with the IRS?

Perhaps you did not report ALL of your foreign income or foreign assets on your prior tax returns. Or you just learned the requirements. We can help!

We’ve assisted hundreds of clients with IRS amnesty programs. Helping them pick the best program to correct their situation while minimizing tax and penalties.

And once you have everything in order with the IRS, you won’t have that heavy burden hanging over you.

Have You Received Gifts or Inheritances from a Foreign Person?

Maybe it’s a relative in another country who is transferring wealth to you? If it’s a gift or inheritance of $100,000 or more received from a foreign person, you must report it to the IRS. There is no tax on the gift or inheritance, but failure to report can result in a penalty of up to 25% of the value of the gift or inheritance. Why risk that?

We can prepare the reporting forms as part of your annual tax return. We can also help you take advantage of tax treatments only available in the first year you receive the inheritance.

Giving up US Citizenship/Residency? Beware the US Exit Tax

Did you know that US citizens and long-term green card holders must take certain steps to terminate their tax residency? These steps are in addition to filing immigration paperwork.

The US Exit Tax can be significant, so we work with you on tax planning to reduce or eliminate the tax. We also guide you through the Exit Tax return filing process.

Watch our US Exit Tax videos to learn more.

• Exit Tax Video Part 1
• Exit Tax Video Part 2