Nonresidents of the United States frequently don’t file the U.S. tax returns that they should. Just as frequently, there are no tax liabilities involved — indeed, sometimes filing a tax return secures a tax benefit that would otherwise be lost. And if there is a U.S. tax liability, the problem is huge.
Here’s the default rule. It just goes to prove that we pick on foreigners. 🙂 If you are not a U.S. resident, and you are “too late” in filing a tax return in the U.S., you are taxed on your gross income. You do not get to deduct your business expenses from your income.... continue reading