Irving's International Ties
Irving is home to people from all over the world and to regional offices of many foreign companies. Its forwarders and logistics firms work with agents in dozens of countries. BOMCAS prepares the U.S. side of these matters, including returns and information forms, and has particular experience with Canada–U.S. tax.
Canada–U.S. and treaty basics are on the Texas cross-border tax page; this page covers Irving's international residents and companies.
Arriving in the U.S.
New arrivals on work visas usually become U.S. residents under the substantial presence test after 183 days in a year, counting a share of days in the two previous years. In the arrival year, they may file a dual-status return, or a married couple may elect to be treated as residents for the whole year, which can lower tax but brings in worldwide income.
Foreign Accounts and Investments
Residents report foreign bank and investment accounts on FBAR when the total exceeds $10,000, and on Form 8938 at higher thresholds. Foreign mutual funds are usually PFICs, which require Form 8621. Rental property abroad is reported in the U.S., with depreciation and a credit for foreign tax.
Foreign-Owned Subsidiaries
Foreign companies with U.S. subsidiaries in Las Colinas file U.S. corporate returns with Form 5472 reporting transactions with related parties, and the Texas franchise tax report. A foreign-owned single-member LLC must file a pro forma Form 1120 with Form 5472 even if it has no income. The penalty for failing to file Form 5472 is $25,000 per year. Intercompany charges for management, IT and loans need transfer pricing support.
Forwarders and Overseas Agents
Forwarders paying commissions and fees to overseas agents need W-8 forms on file. Payments for services performed entirely outside the U.S. are generally not subject to U.S. withholding, but payments for services in the U.S. or certain other income may be.
Canadian Transferees
Canadians moving to Irving for corporate roles become U.S. residents and file a Canadian departure return. RRSPs and RRIFs can keep their tax deferral under the treaty, while TFSAs and RESPs are taxable in the U.S. We coordinate both sides of the move.
Leaving the U.S.
Residents returning home file a final return for the year of departure. Green card holders who give up their status after holding it in at least eight of the last 15 years may face expatriation tax rules. U.S. retirement accounts and property kept after leaving have continuing filing obligations.
Property and Investments in India
Many Irving families own flats or land in India and hold NRO deposits. When property in India is sold, the gain is reported on the U.S. return, with the U.S. basis calculated in dollars at the exchange rates when bought and sold. Indian tax deducted at source can usually be claimed as a foreign tax credit under the treaty. NRO interest is reported each year, even if it stays in India.
Mexican and Latin American Families
Irving also has large communities from Mexico and Central America. Residents report income from property and accounts back home, and those sending money to relatives abroad generally have no U.S. tax on the transfer. Relatives without SSNs who need to file or be included on a return may need ITINs.
Common Filings
- Dual-status returns and Form 1040-NR.
- FBAR, Form 8938 and Form 8621.
- Forms 5472 and pro forma 1120.
- W-8 forms and Form 1042-S.
- Form 3520 and treaty statements.
Irving Cross-Border Tax Questions
When does a new arrival become a U.S. resident for tax?
Usually after meeting the substantial presence test, based on days in the U.S.
Does a foreign-owned LLC with no income file?
Yes, a pro forma Form 1120 with Form 5472.
Do we withhold on fees to overseas agents?
Generally not for services performed entirely outside the U.S., with W-8 forms on file.
When does expatriation tax apply?
Possibly to green card holders who held status in at least eight of the last 15 years.
Talk to BOMCAS About Cross-Border Tax in Irving
International residents file U.S. personal returns, and foreign-owned companies file business returns with U.S. books, payroll and sales tax. Arrivals and departures need planning, and missed forms late filing. Our Texas pages set out the state rules on business returns, personal returns, sales and hotel tax, bookkeeping, payroll, tax planning and catch-up filing, and the Texas overview ties them together.
Whether it is a Las Colinas consultancy, an airport hotel or a family that just arrived, a short message is enough for BOMCAS to suggest where to start and what records a quote needs. Contact us through the contact page or the form below, call 780-667-5250 or email info@bomcas.ca. Each Irving service is linked from the Irving overview. Treat this page as general information rather than advice for your own case.