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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15601
Experience:  15years with H & R Block. Divisional leader, Instructor
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My parents are UK citizens who received greencards in 2008

Resolved Question:

My parents are UK citizens who received greencards in 2008 by remained resident in the UK until this year.
They provided a US tax accountant with details of worldwide income for the US filing for 2008. The accountant called the IRS for guidance and said only US income was necessary since they were not resident in the US and filed worldwide income in the UK The IRS website says that is not correct and worldwide income should have been reported. The accountant is adamant that their opinion is correct. Do they need to file an amended US return?
Submitted: 7 years ago.
Category: Tax
Expert:  Robin D. replied 7 years ago.
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Robin D :

Hello and thank you for using Just Answer.
The general rules are that if you have a Green Card you are treated as a resident and required to file and be taxed as a US citizen. There is an exception to this and that is dependent on physical presence. Since your parents were not in the US and could prove that they had a closer relation to the UK for the tax year they were allowed to file as Nonresidents. This is covered by the US-UK tax treaty. As nonresidents only their US income was subject to taxation by the US. This averted any need to file and then claim income exclusions or the foreign tax credit for US purposes on the taxes paid to the UK.
The exceptions make it neccessary for the IRS to use "generally" so many times when you read about the tax rules.
I sincerely XXXXX XXXXX information is helpful,

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