Tax Return Requirements for Nonresidents with U.S. Assets

Individual nonresidents in the U.S. may be subjected to estate taxes under U.S. regulations if the individuals owned U.S. assets. There are several different items that might quality as U.S. assets, such as personal property, securities of companies based in the U.S., and real estate situated in the country. There are some regulations when it comes to stock holdings, as well, even if you help the certificates abroad or maintained those certificate registrations under the name of another person. If the stock holdings are U.S. companies, those assets may also be subject to estate taxes.

There are exceptions to these rules, though. If the securities you hold generate portfolio interest, are received from

insurance proceeds, or are bank accounts linked to businesses or trades not in the United States, the assets are exempted. Executors who are servicing the estate of a deceased nonresident with U.S. assets will need to file an estate tax return with the IRS in the event that the fair market value of the U.S. assets is greater than $60,000.  This is know as form 706NA, and it can still be required if the value of the assets is less than $60,000 on the date of death in some situations.