U.S.-Australia Tax Issues for Dual Status Taxpayers: Tax Planning and Compliance Requirements, Treaty Operations

The U.S. and Australia have significant economic and social ties resulting in a constant flow of cross-border business transactions and citizens migrating between the two countries. Tax counsel and advisers must navigate challenges stemming from the interpretation and enforcement of U.S. and Australia tax rules to avoid adverse tax liability from either country.

Among the most critical planning challenges is reconciling the U.S. and Australia rules governing residence and domicile. U.S. and Australia domicile rules have some differences, and even inadvertent failure to meet filing obligations due to a misapplication of domicile rules can be costly. U.S. tax advisers serving clients with a presence in the U.S. and Australia will need to understand the domicile rules to avoid costly tax and penalties.

Another critical planning element is avoiding dual taxation on income and gains. The U.S. and Australia have a comprehensive tax treaty system that addresses most dual taxation concerns, but, as in all international planning, tax advisers must understand the particular provisions to avoid an unpleasant tax bill--or maybe two.

Other areas of concern in U.S.-Australia tax planning include the treatment of passive income and tax considerations of cross-border pension ownership, contributions, and withdrawals, in light of the recent focus on U.S. taxation of Australian Superannuation funds. Hovering over all these concerns are the extensive U.S. tax reporting requirements imposed on taxpayers with U.S. filing obligations.

Listen as our experienced panel provides comprehensive and practical guidance on navigating U.S.-Australia cross-border tax planning and reporting issues.

1. The U.S.-Australia income tax treaty overview and dual tax mitigation provisions
2. Domicile and residency rules
3. Passive and unearned income treatment
4. U.S. tax reporting requirements of Australia-sourced investments
5. U.S. tax of Australian Superannuation funds

The panel will review these and other important topics:

• What are the tax treaty provisions for mitigating dual taxation on ownership of cross-border pass-through entities?
• Limitation of benefits clauses and provisions in the U.S.-Australia income tax treaty
• U.S. tax treatment of Australian Superannuation funds
• Key risks and challenges of passive/unearned income in cross-border situations
• U.S. reporting requirements of Australia-sourced investments

Learning Objectives

After completing this course, you will be able to:

• Recognize U.S. tax reporting requirements for U.S. taxpayers residing in Australia
• Establish the domicile of the taxpayer and whether tax treaty benefits are available based upon the determined domicile
• Distinguish among the various tests used to determine whether a taxpayer is eligible for tax treaty benefits
• Identify opportunities to mitigate dual taxation
• Identify the limitations of benefits in the U.S.-Australia tax treaty

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience at mid-level within the organization, completing complex tax returns and planning documents, supervising other accountants. Specific knowledge of concepts regarding taxation of foreign investments held by U.S. taxpayers; familiarity with tax treaty provisions.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).