May 8, 2020

COVID-19 – A Case for Action #6 – Pandemic Disrupts Foreign Assignment

This is part of a special Global Mobility Tax client alert series – sharing stories and situations where we have provided practical mobility solutions.

The COVID-19 global pandemic calls for quick action based on government directives in the interest of public health and safety. In this environment, arriving at practical mobility solutions can be challenging. Here’s how Global Mobility Tax has supported mobility programs in recent weeks :

Action #6: Pandemic disrupts foreign assignment affecting tax obligations

Recently departed employees who had planned to use Foreign Income Exclusion or Housing Exclusion to reduce tax obligations are no longer eligible because assignment was cut short due to COVID-19 emergency.

Tax implication – Employee’s income is fully taxable by the U.S.

ACTION:

Take advantage of IRS COVID-19 relief Revenue Procedure 2020-27, including filing of required forms and documentation with the 2020 tax return filing.

IMPACT:

Peace of mind for your global workforce by avoiding unexpected taxes.

SAVINGS:

Reduce or eliminate U.S. tax on compensation that is earned while working abroad.

IRS Revenue Procedure 2020-27 recognizes that the COVID-19 global health emergency interrupted normal conduct of business and have applied special rules for those affected.

We are here to provide you and your program with practical solutions, tax planning and optimization.

Latest Government Updates:

IRS Enhances Get My Payment Tool – IR-2020-82

How can we help you?