Switch USA Topic Category:
All 27 Taxes & IRS Guides & Tools
Verified 2026 USCIS, IRS, DMV & Federal compliance rules.
IRS Federal Taxation & Expat Cross-Border Compliance
The Internal Revenue Service (IRS) taxes individuals based on residency status determined by the Substantial Presence Test (SPT) or Green Card test. Nonresident aliens (NRAs) are taxed exclusively on US-source effectively connected income (ECI) and fixed, determinable, annual, or periodical (FDAP) income, filing Form 1040-NR. Resident aliens are taxed on worldwide income and must comply with foreign asset reporting mandates, including the FinCEN Form 114 (FBAR) and IRS Form 8938 (FATCA).
Key 2026 Statutory & Regulatory Checkpoints:
- Substantial Presence Test (SPT) 183-day calculation rules and Form 8840 closer connection exceptions.
- Form W-4 employee withholding setups, Form W-8BEN treaty benefit claims, and ITIN application procedures.
- Foreign Bank Account Report (FBAR) reporting thresholds ($10,000 aggregate balance) and FATCA disclosures.
Frequently Asked Questions: Taxes & IRS
The SPT considers you a US resident for tax purposes if you are physically present in the US for at least 31 days in the current year, and 183 days over a 3-year period using a statutory weighted formula.
You must file an FBAR (FinCEN Form 114) if the aggregate maximum value of all your foreign financial accounts exceeds $10,000 at any point during the calendar year.