AboutGlenn D Schnabel Expertise I can answer most federal individual income tax questions.
I can not provide legal advise.
Experience I have worked for a CPA firm for over 11 years.
I have worked in private as well as government
I have recently been running a tax preparation office, mainly focusing on
individual income taxes
Organizations I have been affiliated with managing condo associations and as a member of a coalition to educate condo owners as to their rights and responsibilities.
Education/Credentials I have my B.S.B.A in Business Administration . Concentration in Accounting
I have gone to yearly tax seminars and have tried to keep up with the
evolving tax changes
Awards and Honors Over my years I have received local awards for contributions to worthy
organizations.
Past/Present Clients This, of course remains confidential
Expert: Glenn D Schnabel Date: 7/8/2008 Subject: 1040NR submitted by former employer
Question Hi,
I will explain my situation, I came to the US in 2005 on a L-1 visa on company business and was in the US for 8 months that year. My employer took care of all taxes for that year as i gave them power of attorney. I have since left that employer in august 2006 and moved over here on a resident alien visa (green card). I worked 2 weeks in 2006 as a resident alien. I filed my taxes for the year and received nearly it all back as i only had 2 weeks income.
Now in march this year (2008) my former employer filed a 1040NR on behalf of me for 2006 and I now owe the IRS nearly $1500. more than I earned in the US that year. I never entered the United states for my former employer in 2006. Have they made a mistake? Does this sound right?
My former employer paid all taxes due to the IRS on my behalf in 2005 as they garanteed I would not be out of pocket for working over here as I was still being paid in my home country and paying taxes there.
When you enter a country on a resident visa can you be taxed on earnings in another country before the issue date of the visa?
Answer Dean,
Thank you for your question. I'm a little confused here. On one hand you said that you were on a green card in 2006 and you worked two weeks in 2006 and filed your own taxes.
The next paragraph, you say that in 2008 your former employer filed your taxes for 2006 in 2008.
You cannot have two filings in the same year for you. If you feel that your former employer filed an incorrect tax return for you, then all you have to do is obtain a copy of the return he filed (IRS form 4506) and prepare a 1040X correcting the error.
1)When you enter a country on a resident visa can you be taxed on earnings in another country before the issue date of the visa?
If you are considered in a dual-status year, according to the IRS,
" A dual status year is one in which you change status between non resident and resident alien. Before you arrive in the US, you are a non resident alien. After you arrive, you may or may not be a resident , depending on the circumstances."
"Income you receive as a dual status taxpayer from sources outside the US while a resident alien is taxable even if you become a non resident alien after receiving it and before the close of the year. Conversely, income you receive from sources outside the US while a non resident alien is not taxable in most cases even if you became a resident alien
after receiving it and before the close of the tax year. Income from US sources is taxable whether you received it while a non resident alien or a resident alien."
So the question is were you a resident alien or a non resident alien?
were you physically present here?
