Tag Archives: Manatee

Tax Residency and the 2017 World Rowing Championships

The Sarasota-Manatee area recently hosted the 2017 World Rowing Championships, bringing nearly a thousand athletes from seventy countries to the world class rowing facilities at Nathan Benderson Park. The tax consequences of such a visit were probably far from the thoughts of the rowers, coaches, support teams, and fans arriving from all over the world. At what point should someone consider how their visits to the United States could create tax problems? Could you owe tax to the United States just by visiting the country for a rowing competition?

The United States taxes the worldwide income of those who are United States citizens and residents. Generally, any person born or naturalized in the United States will be considered a United States citizen. A person will be considered a resident of the United States by receiving U.S. permanent resident status in the way of a green card or by meeting the substantial presence test. Frequent visitors to this country or those who stay in the country for extended periods must be aware of how the substantial presence test could affect their residency status.

The substantial presence test looks at the number of days a person has spent in the United States over the past three years. Seasonal visitors to the United States, those who make frequent trips to the country for business purposes, or those who vacation in the United States may all establish residency by spending too many days on U.S. soil.

Those in the United States competing in sports may have a slight glimmer of good news. Professional athletes receive a partial exception from counting days for the substantial presence test, but only for days where a professional athlete is temporarily in the United States to compete in a charitable sporting event that is organized to benefit a tax-exempt charity, contributes 100 percent of the proceeds to charity, and uses volunteers for substantially all the work needed to run the event.

If the 2017 World Rowing Championships was your first and only trip to the United States then you likely won’t run into residency problems. But those that have fallen in love with the Sarasota-Bradenton area and plan to return for more visits need to be aware of how your stay in the United States could create tax consequences.

Jamie E. Koepsel
(941) 552-2562
jkoepsel@williamsparker.com

Hurricane Irma Tax Deadline Relief

The Internal Revenue Service has announced that tax relief will be available to individuals who live in, and businesses whose principal place of business is located in, 37 different Florida counties affected by Hurricane Irma, including Sarasota and Manatee counties. Taxpayers who live outside the disaster area may also qualify for relief if they have records necessary to meet a deadline located in the disaster area.

The tax relief offered includes additional time to file certain tax returns, additional time to make certain tax payments, and additional time to perform other time-sensitive actions. If an enumerated tax return, tax payment, or other action for which relief has been granted was previously due on or after September 4, 2017 and before January 31, 2018, taxpayers will now have until January 31, 2018 to perform that action without incurring penalties. This relief would apply to businesses with filing extensions until September 15 and individuals with filing extensions until October 16 for their 2016 income tax returns.

Affected taxpayers may also be entitled to claim disaster-related casualty losses and deduct personal property losses not covered by insurance or other reimbursements on either their current year or prior year tax returns. Taxpayers should include the Disaster Designation “Florida, Hurricane Irma” at the top of the relevant 2016 tax form(s).

The Internal Revenue Service will also waive certain fees for tax return copy requests and may consider appropriate relief in the event a tax collection or tax audit matter has been impacted by Hurricane Irma.

A full list of the counties whose residents and businesses may be entitled to tax relief can be accessed here: https://www.irs.gov/newsroom/tax-relief-for-victims-of-hurricane-irma-in-florida.

Nicholas A. Gard
ngard@williamsparker.com
(941) 552-2563