Worked in US. Now in India. How do I file?

Posted  719 Views updated 3 years ago
Worked in US. Now in India. How do I file?

People come to the United States from India for various reasons and for similar reasons Indians go back to India.  However, during this transition, we often forget to deal with taxes.   United States Tax is based upon worldwide income.  If you are a green card holder or a citizen or US resident living in India then you are required to pay taxes on your income in India and the United States.  This can be quite complicated.  Common questions asked by our clients are:

  • What income should I report?
  • Should I include my retirement plan income?
  • Should I file taxes in India?
  • Do I need to come to the United States to File the Tax Return?
  • I paid taxes in India, Can I get credit in the United States?
  • What kind of deductions can I claim?
  • I do business in India and the US, what return do I need a file ?
  • What form to file?

Doing business in the two countries can be quite difficult but our office can make your life a bit easier. Our firm specializes in filing taxes for US residents living in India.  You can contact our office for a telephonic appointment or send us the details via the contact us form on our home page.  Recently, Sanjiv Gupta discussed this topic on television.  You can watch that clip here for some answers.

You may be in India on a temporary assignment or moved to India for some other reason but don’t forget to take care of taxes in the United States.  As you know penalties for late filing and late payment are big and the IRS does not accept “I moved to India” as an excuse for not filing or paying on time.   There are many credits and deductions you can take advantage but you must file your return.  Even if you can not come to the United States, our firm can help you file your tax return. You can contact our office at 510-825-7563 or send a message via the contact us form on our home page.

Hiding Income in India is a Crime

IRS considers non-reporting for income from any foreign sources a crime.  IRS has partnered up for foreign tax agencies to make sure US residents can be held accountable.   IRS is actively pursuing those individuals and businesses that hide income or assets in India or other foreign countries to evade taxes.   The goal of the IRS ensures that US residents and citizens are reporting their foreign income and paying the correct tax in the United States.

Consequences for Evading Taxes on Foreign Source Income

There is no mercy for those who knowingly fraud the United States.   Failure to file a proper tax return or failure to report foreign income can result in additional taxes,  substantial penalties, interest, fines, and even imprisonment.

Do you know someone who is hiding Income in India

IRS has launched a whistleblower program and encourages you to report promoters of off-shore tax avoidance schemes.  If your financial advisor or CPA is telling you to hide income in a foreign country then you are talking to a wrong person.  You should report such a person to the IRS.  You can also apply for a reward by filing Form 211 for the reporting of such schemes.