Resident and Non Resident Tax Returns: What will happen if you don’t file?

By Expat News

What will happen I don’t file resident and non resident tax returns? This question was asked by some of our clients who are foreign nationals.

What are the consequences of a failure to file resident and non resident tax returns?

Let’s review several possible scenarios.

 

  •  If you don’t file, you don’t get a refund. The studies have shown that many non-immigrant foreign nationals who don’t file a USA tax return have actually overpaid taxes. The details of the study were mentioned by J.W. Antenucci in “Widespread Noncompliance and Overpayment of Taxes by Foreign Scholars” (Tax Notes, May 13, 1996). Many resident and non resident aliens believe that if an employer has already withheld tax from their wages, they cannot receive a refund. This statement is very far from being correct. Although, the U.S. tax system seems to be complicated, it gives an opportunity to taxpayers to minimize a tax liability by using several deductions. However, resident and non resident aliens have to file a resident and non resident tax return to claim a refund.
  • If you don’t file, you might encounter immigration issues. Resident and non resident aliens who have a U.S. visa must comply with the laws of the United States. It means that you have to file a USA tax return to renew / update your visa, obtain a green card or even to request another permission to enter the United States after you left the country. You will jeopardize your chances of updating your visa status at USCIS and staying permanently in the USA if you would like to do so.
  • If you don’t file and owe taxes, you will pay penalties. If you owe taxes and don’t file a USA tax return, the IRS will find you. Moreover, if you are considered a resident alien for tax purposes, you might face the same penalties as the U.S. citizen. You can read more about US tax return penalties.

Resident and non resident aliens who need help with filing a USA tax return or other US tax issues should contact a US tax return professional that provides international tax services. International tax experts at Artio Partners are here to help you.