Angelo Paparelli Published in the New York Law Journal
“Home Away From Home: Permanent Residents Temporarily Abroad”

Angelo Paparelli co-authored the article, “Home Away From Home: Permanent Residents Temporarily Abroad,” which was published in the April 27, 2010 issue of the New York Law Journal.  His article discusses tax obligations for lawful permanent residents on assignments outside the U.S. and how filing incorrectly can affect their residency status under the immigration laws.

According to the article, recommendations made by tax advisers may conflict with the advice given by immigration counsel. The tax laws offer certain benefits to lawful permanent residents living and working abroad, and tax advisers are generally expected by their clients to minimize tax liability to the extent legally possible. Claiming those benefits, however, can result in the denial of an application for naturalization (to U.S. citizenship) or the loss of the claimant's green card. Claiming the foreign income exclusion, nonresident status on a federal income tax return pursuant to an income tax treaty, or nonresident status on a state income tax return are three examples of where immigration advice may conflict with tax advice.

The article notes a number of steps that green card holders may take, in addition to continued physical presence in the U.S., in order to show that their intention and their behavior lead to the conclusion that green card status has been preserved.  Although each case is different, green card holders should maintain a residential address and other property in the United States; maintain U.S. bank accounts, credit cards and drivers licenses; continue to file U.S. tax returns as a resident; if employed abroad, obtain a letter explaining the reasons and anticipated length of time for the temporary foreign assignment; and if possible, obtain reentry permits before departing.