Mail in rebates????
Jul 28th 2004, 4:05 pm
#46
BE Forum Addict
Joined: Dec 2003
Location: Waukee, Iowa
Posts: 1,583
I do not believe there is a psuedo-military tax free bubble that exists in the US, and no one has presented any evidence that there is.
This case does not involve British troops on exercise in the US nor does it does involve embassy workers, MI5 or Miss Moneypenny. It is a plain and simple case of a full time civilian contractor working in the US, who should be paying tax somewhere (I believe the US) and will probably get away with not paying any because his setup is difficult for the tax authorities to detect.
This case does not involve British troops on exercise in the US nor does it does involve embassy workers, MI5 or Miss Moneypenny. It is a plain and simple case of a full time civilian contractor working in the US, who should be paying tax somewhere (I believe the US) and will probably get away with not paying any because his setup is difficult for the tax authorities to detect.
Jul 28th 2004, 4:07 pm
#47
BE Forum Addict
Joined: Dec 2003
Location: Waukee, Iowa
Posts: 1,583
Originally posted by effi
That is absolutely correct. Whilst working in Philly for the Brit Military inside a large US manufacturing plant, we had our own set of offices in the 'foreign national' section. No one from the company could come into our office unless invited, we had coded locks on the main door to our area. We were to all intents and purposes on UK soil.
That is absolutely correct. Whilst working in Philly for the Brit Military inside a large US manufacturing plant, we had our own set of offices in the 'foreign national' section. No one from the company could come into our office unless invited, we had coded locks on the main door to our area. We were to all intents and purposes on UK soil.
Jul 28th 2004, 7:30 pm
#48
BE Enthusiast
Joined: Oct 2003
Location: Arizona
Posts: 961
Originally posted by CalgaryAMC
The US does not permit foreign military bases on its territory.
The US does not permit foreign military bases on its territory.
Jul 29th 2004, 12:56 am
#49
Just Joined
Thread Starter
Joined: Jul 2004
Posts: 9
Last edited by Slushpuppy; Aug 1st 2004 at 1:53 am.
Jul 29th 2004, 1:20 am
#50
BE Enthusiast
Joined: Jun 2004
Location: New York
Posts: 475
I work for the British Government here in the US, and I know due to the law against double taxation many employees (not me by the way) receive a tax abated income (those on goverment visas)
Since I am a green card holder and pay taxes like everyone else, I know that these people (although they are not required to file taxes) are certainly not financially gaining from this.
It is a complex law sorted out between governments.
Since I am a green card holder and pay taxes like everyone else, I know that these people (although they are not required to file taxes) are certainly not financially gaining from this.
It is a complex law sorted out between governments.
Jul 29th 2004, 2:20 am
#51
Mr. Grumpy
Joined: Jun 2003
Location: Nashville, TN
Posts: 3,100
slushpuppy - you said specifically 'He has been here for more than one full tax year '
if thats the case then he meets the physical prescence test and is resident for tax purposes
if thats the case then he meets the physical prescence test and is resident for tax purposes
Jul 29th 2004, 1:50 pm
#52
Just Joined
Joined: Feb 2004
Posts: 24
Originally posted by BritGuyTN
slushpuppy - you said specifically 'He has been here for more than one full tax year '
if thats the case then he meets the physical prescence test and is resident for tax purposes
slushpuppy - you said specifically 'He has been here for more than one full tax year '
if thats the case then he meets the physical prescence test and is resident for tax purposes
Precisely - Slushpuppy, these rules are defined so that you are not tax resident in two countries. You are not resident in the UK - where are you resident? You stay for over 12 months - you are tax resident in the USA.
Jul 29th 2004, 2:21 pm
#53
my arm aches
Joined: Jul 2003
Location: the warm waters of Florida
Posts: 2,289
Originally posted by Slushpuppy
Look what Ive started!
Had a look at the IRS guide (thanks for that), page one states that 'Non-resident aliens are taxed only on their income from sources within the united states....'
Look what Ive started!
Had a look at the IRS guide (thanks for that), page one states that 'Non-resident aliens are taxed only on their income from sources within the united states....'
This is obviously a very complex issue which most of us would be unable to be sort through. I would strongly suggest you find a reputable Tax expert to review your situation.
Throughout the PDF document I posted it said that if the person was exempt from paying taxes due to a Tax Treaty with another country, they had to fill out an additional form with their tax return and state why they were exempt. It seems very resonable to me, that if you are exempt from Tax that you tell the IRS that you are, and the reasons why. It seems totally illogical to me, to not pay the tax and not have to declare it. Also, the fact that he has been here for more than one tax year does not mean that everything is OK. The IRS could have a problem with your situation, you just don't know it yet.
Jul 29th 2004, 3:12 pm
#54
Just Joined
Joined: Feb 2004
Posts: 24
I don't think we were saying that as he was here for over a year everything was okay - we were saying just the opposite - that as he was here for over a year he was more than likely resident for tax purposes and therefore should inform the IRS of his earnings.
As you state - you have an obligation to inform the IRS of your earnings, even if you feel your are exempt from tax. State the reasons for your tax exemption on the tax return and then if your exemption is correct you'll have no to pay and will have fulfilled your IRS obligations.
As a number of us have said they need expert tax advice. I don't think they'll take it though or submit a tax retirn - as we all are aware they will probably have to pay tax if they do and they simply want to avoid that!
As you state - you have an obligation to inform the IRS of your earnings, even if you feel your are exempt from tax. State the reasons for your tax exemption on the tax return and then if your exemption is correct you'll have no to pay and will have fulfilled your IRS obligations.
As a number of us have said they need expert tax advice. I don't think they'll take it though or submit a tax retirn - as we all are aware they will probably have to pay tax if they do and they simply want to avoid that!
Last edited by CEO DMF; Jul 29th 2004 at 3:35 pm.
Jul 30th 2004, 12:14 pm
#55
my arm aches
Joined: Jul 2003
Location: the warm waters of Florida
Posts: 2,289
Hi CEO, my last post was aimed at the OP, I agree with you and most people on this thread that they are misinformed.
They are definitely (for Tax purposes) RESIDENT ALIENS and I'm sure a lot of people would love to know where the loop hole is that allows resident aliens to work Tax free.
You're right, they'll probably sit tight and hope for the best. Personally I'm thankful I don't have to worry if the IRS might come after me in the future.
They are definitely (for Tax purposes) RESIDENT ALIENS and I'm sure a lot of people would love to know where the loop hole is that allows resident aliens to work Tax free.
You're right, they'll probably sit tight and hope for the best. Personally I'm thankful I don't have to worry if the IRS might come after me in the future.
