Research Paper on "Taxation International"
Research Paper 3 pages (1146 words) Sources: 3
[EXCERPT] . . . .
Accounting/FinanceTaxation International
citizens are required to file U.S. tax returns and to pay taxes on their international taxable income, regardless of whether they reside inside or outside the United States. The United States also enforces a special tax system on former citizens and former long-term lawful permanent residents whose loss of such status was to avoid paying U.S. taxes. The determination of who is a citizen for tax purposes and when such citizenship is lost is administered by the Immigration and Nationality Act (Income Tax Compliance by U.S. Citizens and U.S. Lawful Permanent Residents Residing outside the United States and Related Issues, 1998).
A non-U.S. citizen normally is taxed in the same manner as a U.S. citizen. If the person is a resident alien then they are also subject to the same filing requirements. A resident alien includes any person who is a lawful permanent resident of the United States at any time during the calendar year. A citizen or resident alien need not file a tax return unless their gross income equals or exceeds certain minimum amounts. Even if a citizen or resident alien is required to file a return, two requirements of the tax code, the foreign earned income exclusion and the foreign tax credit, permit a lot of U.S. citizens or resident aliens who reside abroad to decrease or eliminate their U.S. tax liability (Income Tax Compliance by U.S. Citizens and U.S. Lawful Permanent Residents Residing Outside the United States and Related Issues, 1998).
Citizens living outside the U.S. may be able to eliminate a portion of their foreign source income if they meet certain requirements. "If m
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The foreign tax credit was put into place to relieve a person of the double tax burden when their foreign source income is taxed by both the United States and the foreign country. Normally, if the foreign tax rate is greater than the U.S. rate, there will be no U.S. tax on the foreign income. If the foreign tax rate is less than the U.S. rate, U.S. tax on the foreign income will be restricted to the difference between the rates. The foreign tax credit can only decrease U.S. taxes on foreign source income; it cannot decrease U.S. taxes on U.S. source income. "While no one rule covers all circumstances, it is normally better for one to take a credit for qualified foreign taxes than to deduct them as an itemized deduction. This is because:
1. A credit reduces an individual's actual U.S. income tax on a dollar-for-dollar basis, while a deduction decreases only the income that is subject to tax
2. An individual can choose to take the foreign tax credit even if they do not itemize their deductions. One is allowed to take the standard deduction as well as the foreign tax credit
3. If an individual chooses to take the foreign tax credit, and the taxes paid or accumulated exceed the credit limit for the tax year, they may be able to carry over or carry back the excess to another tax year" (Foreign Tax Credit - Choosing to Take Credit or Deduction, 2011).… READ MORE
Quoted Instructions for "Taxation International" Assignment:
Assignment 1: Source Rules for Income and Deductions
Write a 3 page paper in which you:
1. Analyze the source rules for income and deductions and make three (3) recommendations for improving the rules to make the tax code more equitable for both tax payers and the U.S. Government.
2. Discuss whether or not the rules help or hinder income being expatriated to the U.S.
Your assignment must follow these formatting requirements:
*****¢ Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA format.
*****¢ The reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
*****¢ Analyze the source rules and reach of the U.S. Tax Code in regards to international taxation.
*****¢ Use technology and information resources to research issues in international tax planning and research.
*****¢ Write clearly and concisely about international tax planning and research using proper writing mechanics.
How to Reference "Taxation International" Research Paper in a Bibliography
“Taxation International.” A1-TermPaper.com, 2012, https://www.a1-termpaper.com/topics/essay/accounting-finance-taxation-international/811357. Accessed 4 Oct 2024.
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