USCIS Proposes Rule to Welcome International Entrepreneurs
Anyone here aware of tax implications of the parole status?<p>Usually, &quot;us taxpayer&quot; status is only triggered with a proper visa (H1B, L1, O1, etc.) or permanent resident status (green card). I&#x27;ve never met any mention of tax status on parole.<p>To someone who has any non-trivial financial life outside the US (which I expect to be true for most people who would apply for this), a us taxpayer status is a horrible curse:<p>You might get a call from your bank&#x2F;broker&#x2F;insurer back home, telling you that they have to close all of your accounts except perhaps a checking and 1 simple saving (and perhaps those too). If you accrued any benefits in your pension plan, you have to report them each year _and_ plan to pay yearly and&#x2F;or dearly (because it is a PFIC[0]) for any profit made in that account, even though you cannot touch it for 30 years.<p>Also, if you own another business outside the US -- e.g. you had a previous startup, or operated through some kind of personal LLC providing services -- the &quot;us taxpayer&quot; status means that you have to start filing financial reports to the IRS as if those business were operated in the US (that is, according to US financial standards, regardless of where it operated - and that might mean double taxation despite any treaties in place).<p>Sure, you can just ignore it, and if your startup fails, no one will come after you. But of course, you plan to succeed, so be sure to read on PFICs, FATCAs, FBARs, and consult a US accountant that specializes in international taxation.<p>As a general rule, the US tax system assumes any financial dealings you have outside the US are an attempt to evade taxes, and penalizes that (whether by forms or by actual tax). Once it is assumed you plan to make the US the center of your life (green card, H1B, L1), those assumptions, through the &quot;us taxpayer&quot; status, affect you. If it is assumed you won&#x27;t stay (e.g. F1 visa for studying), they don&#x27;t.<p>So, what taxpayer status will parole put you in?<p>[0] <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Passive_foreign_investment_company" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Passive_foreign_investment_com...</a>