Tax Refund for Nonresident Aliens Case Study Example | Topics and Well Written Essays - 3000 words

Tax Refund for Nonresident Aliens - field of study Study ExampleVery few argon aware that they are overpaying the evaluatees. Credits and deductions that they are pensionable for either under a bipartite international treaty or under US laws are non being properly utilized. The main reason is their limited understanding regarding US tax laws and secondly, galore(postnominal) of them do not file the stimulates. No filing of the returns means no possibility of every refunds.The feat has been to understand these complexities, which has piled up unclaimed overpaid taxes with IRS. It would be appropriate to note that in view of the vastness of the face effort has been put toward depicting the main issues in a generalized way rather than any specifics to the issue involved. Dates of Co-op Assignment August 30 -December 9, 2010On interaction with many non-resident aliens, I came to go through that many of them were not very clear on the various tax-related matter, on personal inc ome taxes. They belonged to the varied nationalities. They were not aware of some important US tax requirements. At times, they do not file tax returns or filed them incorrectly, which results in a lot of overpaid tax and the substantial amount goes unclaimed in the refund. Those large number who have come under non-resident visa (J, F, Q or M category) in the US they are statutorily required to file a 1040NR Tax Return in physical fashion. These are known as US non-resident income tax return. They cannot file e-return or online returns.H1B visa falls in the category of non-immigrant visa. If H1B visa holder is recognized as Resident alien then he is required to file the tax return like any other US citizen, otherwise, they are required to file 1040NR tax return form only.It has been found that most nonresidents miss to file a return or file it incorrectly. It has been further note that there is a large amount of unclaimed taxes by nonresidents who refrain from filing tax return s.They are under the impression that since the employer has withheld tax amount their obligations are over and they are not aware that they have paid more than what is required by the law.