US Congress will be giving the Internal Revenue Service (IRS) $79.6 billion over the next 10 years in an effort to put the agency back on the path to effective and efficient tax administration. The money will find lots of uses, including for the hiring of new personnel and updating the IRS’s antiquated technology.

At a recent American Bar Association Tax Section conference, Audrey Morris from the IRS Office of Chief Counsel (Small Business/Self-Employed Division) publicly stated that tax compliance among foreign nationals living and working in the United States also will be a priority and focus of the IRS’s new funding.

We have reported extensively about the re-funding of the IRS. (See here and here for example.) There are special considerations for non-US citizens who are not in compliance with US tax laws. For example, failing to properly report taxable income could be a bar or impediment to obtaining immigration status in the United States.

Practice Point: If you are a foreign national living in the United States and you may not be in compliance with US tax rules, it is time to consider doing so. The IRS has programs to help, including a voluntary disclosure program by which taxpayers who knowingly have reported their income erroneously or have failed to report income at all can disclose their transgressions and clean up their non-compliance. (See, e.g., here.)

Care should be taken, however, when dealing with the convergence of tax and immigration issues. If you are dealing with these sorts of issues, we strongly suggest speaking frankly with your tax and immigration advisors before doing anything.

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