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IRS Extends Review Time for Non-Resident Tax Returns

The Internal Revenue Service has extended its hold on certain tax refunds for returns filed by nonresident aliens and other foreign taxpayers on Form 1040NR beyond the usual 180-day limit in order to give extra scrutiny to the refund claims, leaving many undocumented immigrant workers waiting up to 360 days to get the tax refunds they filed this year


The delays may also affect non-resident owners of US rental property where withholding has been applied by their management company or booking agent on rental income received on their behalf. The agents generally provide Form 1042-S to the owner - the form states the amount of rental income received and any withholding applied. This form must then accompany the non-resident tax return to the IRS for processing any refund. The IRS claims that they need additional time to review these credits "due to the complexity of some of these refund claims" and that taxpayers will be notified if additional time is needed.


To minimize any potential delay, provide your management company or booking agent with your ITIN by completing and submitting Form W-8ECI. By completing this form the non-resident owner establishes that they are not a U.S. person, that they are the beneficial owner of the income and that the income is effectively connected with the conduct of a trade or business in the United States. With this form on file your agent is not required to withhold 30% of rental income.


For further information visit our or contact us with your questions...
IRS Warns Against Scammers...
With the tax season opening soon, the IRS warns taxpayers and tax professionals that new phishing scams are making the rounds. These scams may come via email or phone.
The IRS Commissioner issued a statement last year urging taxpayers to be wary of clicking on strange emails and websites, warning "they may be scams to steal your personal information".
Don't be a victim - don't follow any links from emails purporting to be from the IRS - the IRS does not initiate contact by email to request personal or financial information.



To ensure compliance with requirements imposed by the Internal Revenue Service, you are informed that any information contained in this newsletter is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding U.S. tax penalties.





As we prepare for the upcoming tax season, HBI has produced a range of videos to assist our nonresident clients in gathering their information and completing our annual income and expense questionnaire.


Additional videos on completing Forms W-7, W-8ECI and dealing with FIRPTA withholding at the time of sale of property will be coming on line soon. Check our for latest details...




The PATH Act of 2015 includes changes to the FIRPTA withholding applied to nonresident sellers of US properties. The changes include an increase of the current withholding rate of 10% of gross sales price to 15%.



This information is provided by Harding Bell International Inc. For questions relating to domestic and international tax compliance and non-resident ownership of US rental and investment property including US income tax, ITINs, local & state taxes & licensing, capital gains tax or FIRPTA withholding, please contact us...


Phone: (863) 968-1010 | Email: | Web:
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Harding Bell International, Inc. 113 Pontotoc Plaza, Auburndale, Florida 33823 United States (863) 968-1010