Agenda for Class - Introduction. Overview of webinar series Syllabus Need access to Code and Regs in class Ask questions Need feedback on format. Goals of the Webinar Series. Understand the special rules and concepts associated with mobile employees
Tax definition of wages:
IRC Sec. 61 Gross Income Defined.
(1) Compensation for services, including fees, commissions, fringe benefits, and similar items.
(a) Taxability of beneficiary of exempt trust. – Except as otherwise provided in this section, any amount actually distributed to any distributee by any employees’ trust described in section 401(a) which is exempt from tax under section 501(a) shall be taxable to the distributee, in the taxable year of the distributee in which distributed.
Withholding required on wages
Subchapter A – Withholding from Wages
IRC Sec. 3401. Definitions.
(a) Wages. – For purposes of this chapter, the term “wages” means all remuneration (other than fees paid to a public official) for services performed by an employee for his employer, including the cash value of all remuneration (including benefits) paid in any medium other than cash; except
(3) Personal services. – Compensation for personal services performed in US; except … shall not be deemed to be income from sources within US if-
(A) the services are performed by NRA temporarily present in US < 90 days during year,
(B) compensation does not exceed $3,000 in aggregate, and
(C) employer not engaged in trade or business in the US
(3) compensation for labor or personal service performed without the US
§1.861 - 4(b)(2)
§1.861 - 4(b)(2)(ii)(D)
§1.861 - 4(b)(2)(ii)(F)
John on assignment in 2006
2006 return extended to 10/15/2007
2006 foreign tax paid January 2008
When does tax equalization have to be paid to fall under §409A exemption?