A major frustration of assignees relocating to the US is that regardless of their solid credit rating in their home country, they effectively "lose" their credit-worthiness on American soil. This makes it difficult to get competitive insurance rates, obtain a loan or e.g. purchase a home.

There is an option however, for those with a foreign personal AMEX card to transfer their credit to a US AMEX card.

For those without an AMEX account, transferees should ask their bank about obtaining a secured credit card.

EG

Presented by Dave Kolb and Claudia Howe with Global Tax Network, this session at the 2006 Northwest International Conference, addressed global taxation issues for international assignees.

ReloBlogger wouldn't do justice to the complexity of this topic by trying to summarize this session into a two paragraph post.  The message was loud and clear however: companies with international assignees face significant tax liabilities and need to develop a Global Tax Equalization Policy.  U.S. companies in particular can't avoid this issue as U.S. citizens - and greencard holders - need to report their worldwide income on their U.S. income tax return.  This applies regardless of where they reside and for how long.

The U.S. is unique in this regard and apparently the only country that "treats" its citizens to such far reaching tax regulations.

RH

The IRS has recently issued a strong statement outlining the use and limitations of the Individual Taxpayer Identification Number (ITIN). There are several important distinctions between Social Security Numbers (SSNs) and ITINs.

• ITINs are not valid for identification purposes. As an example, they are not to be used as proof of identity for obtaining a driving license.
• ITINs are issued solely for tax filing purposes to those individuals who do not qualify for a SSN and have tax filing responsibilities.
• They are not used in the same ways as Social Security Numbers so that they do not entitle an individual to work in the US.

Visit the IRS web site for more detailed information about ITINs.  For the specific statements the IRS made about ITINs and obtaining a driver's license, read this document.

ST