Tax Relief for Foreign Travelers


          The Internal Revenue Service (IRS) has stated that certain travelers who are stranded in the United States due to Coronavirus restrictions may not be subject to tax requirements. Normally the IRS would subject foreign individuals to file a Tax Return stating their worldwide income, and potentially pay taxes on it, if they met a residency threshold. Considering how much traveling has been impacted by the COVID-19 pandemic, many might be in the US much longer than they planned.
          Nonresident aliens, foreign corporations, or partnerships can choose a 60-day period starting between February 1 and April 1 that will be excluded from consideration by the IRS when it decides if they are engaged in active business in the US. They could have asked all foreign individuals to file tax returns and then make the determination. Even with this bit of good news, business owners still need to be proactive and find out what this means for them and their business. If you have not already done so, you should contact a Qualified Tax Professional in the United States.

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