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Nonresident Aliens Can Still Be Subject to US Taxes

The United States government’s reach can extend to non-citizens (including those who have recently expatriated), so it is important that you don’t assume you’re exempt from filing US tax returns just because you are not a US person. Here are five ways that you could find yourself drawing the attention of the government.

Estate Tax

Even as a non-citizen, owning “situs property” in your estate at the time of death could trigger estate tax. Situs property is property either in the United States, or being connected to the United States. Remember that property consists not only of tangible property, but also the stock of an American company, no matter where you keep that stock. In other words, holding a US stock in a Swiss account doesn’t keep the IRS away.

At the time of death, if the estate holds over $60,000 in situs property, estate tax can be triggered. A few treaties between countries do exist that might provide a little relief.

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