Choosing Tax Attorney Irving TX to Help NRIs Comply with U.S. Tax Rules on Overseas Income and Assets

Navigating U.S. tax laws is challenging, especially for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) with income, assets, or investments in India. With both U.S. and Indian authorities tightening cross-border reporting, finding the right tax attorney Irving TX is no longer optional it is critical.

For high-net-worth individuals (HNIs) living in the U.S., non-compliance with FATCA, FBAR, or the IRS’s global taxation system can result in severe penalties. A skilled tax lawyer Irving TX not only ensures compliance but helps preserve your wealth across jurisdictions.

Understanding U.S. Tax Residency and Global Income Reporting

The U.S. tax system requires residents including green card holders, H-1B/L-1 visa holders, and those meeting the Substantial Presence Test to report worldwide income. This includes:

Rental income from Indian property
Capital gains from India-based sales
Interest from NRE/NRO accounts
Mutual funds or Demat accounts in India

A seasoned Irving tax attorney ensures these income streams are disclosed properly under IRS rules.

Key Reporting Requirements Include:

FBAR (FinCEN Form 114): Mandatory if aggregate foreign accounts exceed $10,000 at any time during the year.
Form 8938 (FATCA): Required for reporting broader foreign assets like equity holdings, trusts, or pension plans.

Penalties can go up to $100,000 or 50% of the account value for willful violations. Hiring an expert tax planning lawyer Irving helps prevent such outcomes.

Why NRIs and OCIs Need a Tax Attorney Irving TX

U.S. and Indian tax compliance isn’t just about filing returns it is about strategic legal navigation.

A qualified tax attorney Irving TX can:

Assess Tax Residency using the Green Card or Substantial Presence Test
Leverage the U.S.-India DTAA to avoid double taxation by claiming foreign tax credits
Guide FATCA Self-Declarations to Indian banks
Ensure Form 3520 Filing for inheritance or foreign gifts
Coordinate with Indian CPAs or CAs for synchronised filings
Plan Estate and Wealth Transfer across borders

NRIs often assume income taxed in India doesn’t need to be reported in the U.S. this is incorrect. IRS expects disclosure, even if taxes were already paid abroad.

Recent Legal Updates Affecting NRI Tax Compliance

U.S. Tax Bill 2025:

5% Remittance Tax (Proposed): May apply to large money transfers from the U.S. abroad.
Expanded FATCA/FBAR Enforcement: More aggressive enforcement and audits.
Standard Deduction Boost: NRIs aged 65+ now get an extra $4,000 standard deduction.

India’s Income Tax Bill 2025:

RNOR Clarity: Ensures only Indian income is taxed unless you are a resident.
TDS Reforms: NRIs selling property must ensure the buyer files Form 27Q, not 26QB.
Simplified ITRs: No Indian return needed if TDS is correctly deducted on capital gains.

Landmark Judgments Strengthening NRI Rights

Delhi High Court (May 2025): Ruled in favor of an NRI whose refund was blocked due to a buyer’s TDS error. Reinforced the need for proper tax documentation in property sales.
ITAT Mumbai (March 2025): Allowed tax exemption on a property gifted to a stepbrother, expanding the definition of “relative” under Section 56(2)(vii).

These rulings emphasise why Irving tax attorneys need a deep understanding of both Indian and U.S. legal landscapes to protect NRI interests.

How Tax Planning Lawyers in Irving Help High-Net-Worth NRIs

HNIs often face more complexity:

Dual residency complications
Multiple investments across continents
Indian real estate holdings
Foreign trusts or Indian family offices
Cross-border estate and succession planning

An experienced tax planning lawyer Irving crafts bespoke solutions, combining wealth management, tax optimisation, and compliance strategies under U.S. and Indian laws.

FAQs for NRIs and OCIs

Q1. Do I need to report Indian accounts if I’ve already paid taxes there?

Yes. U.S. law requires you to report foreign accounts and income. Filing FBAR and Form 8938 is mandatory above threshold levels. A tax attorney Irving TX can help you stay compliant.

Q2. What is the Substantial Presence Test?

It determines if you are a U.S. tax resident. It counts all days in the current year, one-third of the prior year, and one-sixth of the year before that. Meeting this test means you must report worldwide income.

Q3. How can I avoid double taxation on Indian capital gains?

Use the U.S.-India DTAA to claim foreign tax credits using Form 1116. A tax lawyer Irving TX ensures correct crediting and prevents overpayment.

Q4. Are NRE/NRO accounts taxable in the U.S.?

Yes. NRO interest is taxable in both India and the U.S., while NRE interest is exempt in India but taxable in the U.S.. You must also report these accounts on FBAR.

Q5. What if I receive inheritance from India?

While inheritances are not taxed in the U.S., they must be reported via Form 3520 if they exceed $100,000. A tax planning lawyer Irving will ensure correct reporting and avoid penalties.

Outlook: A Tightening Global Tax Net

Global tax regimes are evolving toward greater transparency. With India joining CRS (Common Reporting Standard) and U.S. authorities enforcing FATCA/FBAR, tax compliance for NRIs will continue to tighten.

Partnering with an expert tax attorney Irving TX is your best defence and smartest financial move.

Conclusion

NRIs and OCIs must proactively address tax compliance with the help of experienced professionals. From determining your residency status to claiming treaty benefits and avoiding IRS penalties, a tax attorney Irving TX provides the knowledge and strategy needed in a complex, globalised financial environment.

Whether you are dealing with rental income, capital gains, inherited wealth, or undisclosed accounts, the right legal guidance can save you from penalties and optimise your wealth structure across borders.

Why Choose LawCrust

LawCrust Legal Consulting, a subsidiary of LawCrust Global Consulting Ltd., is a trusted legal partner for NRIs and Indians across the globe. Backed by a team of over 70 expert lawyers and more than 25 empanelled law firms, we offer a wide range of legal services both in India and internationally. Our expertise spans across legal finance, litigation management, matrimonial disputes, property matters, estate planning, heirship certificates, RERA, and builder-related legal issues.

In addition to personal legal matters, LawCrust also provides expert support in complex corporate areas such as foreign direct investment (FDI), foreign institutional investment (FII), mergers & acquisitions, and fundraising. We also assist clients with OCI and immigration matters, startup solutions, and hybrid consulting solutions. Consistently ranked among the top legal consulting firms in India, LawCrust proudly delivers customised legal solutions across the UK, USA, Canada, Europe, Australia, APAC, and EMEA, offering culturally informed and cross-border expertise to meet the unique needs of the global Indian community.

Why NRIs Must Choose the Right Tax Attorney in Irving for U.S. Compliance on Overseas Assets and Indian Income