Tax Attorney Queens Helping Indian Expats Understand U.S. Tax Liabilities & Compliance

Navigating the complexities of U.S. tax laws can be a daunting task, especially for Indian expats, Non-Resident Indians (NRIs), and Overseas Citizens of India (OCIs) living in the United States. With dual financial interests across borders, your unique status brings specific tax liabilities and compliance obligations that differ from U.S. citizens or green card holders. This is why consulting an experienced tax attorney Queens is essential for peace of mind and proper planning.

Many NRIs, particularly high-net-worth individuals (HNIs), find themselves juggling tax filings, foreign asset disclosures, and cross-border investments. These complexities demand legal insight, especially around compliance with FATCA, FBAR, and the U.S.-India Double Tax Avoidance Agreement (DTAA). A skilled Indian tax lawyer in Queens helps streamline this process while ensuring legal protection.

How a Tax Attorney Queens Helps NRIs and OCIs Understand U.S. Tax Residency Rules

U.S. residents, including those who qualify under the Substantial Presence Test, must report worldwide income. This includes rental income from Indian property, capital gains from Indian equity shares, and interest on NRO/NRE accounts. As a tax resident, you are also subject to federal income tax rates, AMT, and potentially the 3.8% Net Investment Income Tax.

Non-resident aliens typically file Form 1040-NR and may have limited deductions. However, under Article 21 of the U.S.-India tax treaty, Indian students and apprentices can claim the standard deduction. Understanding these nuances is vital to avoid IRS penalties.

1. Key Cross-Border Tax Issues Faced by NRIs and OCIs

You may face multiple cross-border tax issues, including:

FATCA (Form 8938): Requires disclosure of foreign assets over certain thresholds.
FBAR (FinCEN Form 114): Mandatory if the total value of foreign accounts exceeds $10,000.
Form 3520/3520-A: For foreign gifts or inheritance.
Foreign Tax Credit (Form 1116): Allows offsetting Indian taxes against U.S. tax liability.
Estate and Gift Tax Planning: U.S. estate tax applies to U.S. assets exceeding $60,000 for non-residents.

Recent IRS enforcement has intensified scrutiny on unreported Indian income and foreign bank accounts. In such cases, you need proactive NRI IRS support from a qualified legal team.

2. Latest Legal Developments Impacting Indian Expats

The Black Money Act, 2015, authorises Indian authorities to pursue undisclosed foreign assets. India’s Finance Act 2021 tightened residency rules, making individuals with significant ties to India more accountable.

In 2023, the Delhi High Court ruled that NRIs with substantial economic ties to India may still qualify as tax residents—even if physically absent—triggering global income taxation in India. This landmark judgment highlights the importance of hiring a knowledgeable tax attorney Queens who understands both jurisdictions.

The proposed New Income Tax Bill, 2025 brings new provisions, including:

Forex Fluctuation Benefit: NRIs (excluding FIIs) can now reduce long-term capital gains taxes on unlisted Indian equity by adjusting for rupee depreciation.
Revised thresholds for RNOR (Resident but Not Ordinarily Resident) classification based on days of stay and Indian income exceeding ₹15 lakhs.

These changes demand constant monitoring and customised tax strategy.

3. Why You Need a Tax Attorney Queens

An experienced tax attorney in Queens helps NRIs and OCIs:

Navigate complex IRS filing procedures (Form 1040-NR, FBAR, FATCA, etc.)
Prevent double taxation under the U.S.-India DTAA
Defend against IRS audits, notices, and penalties
Optimise estate and inheritance tax strategies for cross-border assets
Structure compliant repatriation of funds between India and the U.S.
Resolve past non-compliance through Streamlined Filing Compliance Procedures

Accountants may help you file forms, but only a legal professional can safeguard your rights, offer tax defense, and structure your financial life legally and efficiently.

4. How LawCrust Legal Consulting Supports NRIs and OCIs

At LawCrust, we combine deep U.S.-India tax expertise with a culturally informed approach. Our tax attorneys in Queens offer:

Strategic tax planning
Foreign asset compliance
IRS dispute resolution
Investment structure advisory
Cross-border estate and gift tax planning
NRI IRS support customised to your income portfolio

We’ve advised tech executives, startup founders, business families, and investors—each with unique challenges across continents.

Frequently Asked Questions (FAQs)

1. Do I need to file U.S. taxes if I earn only in India as an NRI?

Yes. If you meet the Substantial Presence Test, the U.S. taxes your worldwide income. However, the U.S.-India DTAA may help offset taxes paid in India.

2. Are Indian bank accounts and mutual funds reportable to the IRS?

Absolutely. If the combined value exceeds $10,000, file FBAR. FATCA (Form 8938) applies for larger thresholds. Consult an Indian tax lawyer in Queens to stay compliant.

3. What is the forex fluctuation benefit for NRIs under India’s new tax bill?

It adjusts taxable capital gains on Indian investments to account for currency depreciation, ensuring you’re taxed fairly in USD, not inflated INR.

4. Does OCI status affect my tax obligations in the U.S. or India?

OCI status doesn’t change your U.S. tax rules, but it may impact Indian tax residency based on your stay and income in India.

5. What exemptions or credits can NRIs claim in the U.S.?

You may claim Foreign Tax Credit, itemised deductions, and treaty benefits like standard deduction for students under Article 21 of the DTAA. A tax attorney in Queens can assess your eligibility.

Outlook

Tax obligations for Indian expats are only growing more intricate. With stricter enforcement, enhanced India-U.S. cooperation, and frequent legislative updates, your best defense is awareness—and expert support. By working with a knowledgeable tax attorney Queens, you reduce risk, protect your assets, and plan ahead with clarity.

Conclusion

Indian expats in the U.S. face a unique set of tax challenges—cross-border income, evolving residency rules, FATCA and FBAR reporting, and estate planning complexities. Whether you’re managing property in Mumbai or responding to an IRS notice in New York, you need more than tax preparation—you need legal strategy.

About 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.

Trusted Tax Attorney Queens for NRIs & OCIs Navigating U.S.-India Compliance