U.S. Immigration policies are changing, and businesses need to adjust to stay in compliance. Are you among the many local companies that rely on employment-based immigrant visas to hire foreign workers? Do you understand the proposed changes? And how can you navigate the current environment and still capitalize on opportunities to hire foreign nationals? Shahrzad Allen, an Ohio-based immigration attorney, and Dan Fales, tax shareholder in Clark Schaefer Hackett’s International Business Services group, cover the evolving immigration environment and its impact on businesses in our region. http://www.cshco.com/guides/immigration-webinar-change-impacts-business/

1. U.S. Immigration Environment
And Its Impact on Business
Presented by:
Shahrzad Allen
Dan Fales

2. Today’s Speakers
Shahrzad Allen, Attorney at Law
Shahrzad practices in the area of Immigration and
Naturalization law. She has an in-depth
understanding of the immigration process both
nationally and globally. She keeps abreast of
changes in the law and has deep experience in all
aspects of immigration, including family-based,
employment-based and investment-based immigrant
and non-immigrant visa programs. She has
successfully represented clients from all over the
world before the United States Citizenship and
Immigration Services and various U.S. consulates.
Additionally, Shahrzad has counseled and
represented a diverse corporate client base ranging
from small family owned businesses to multinational
corporations.
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3. Today’s Speakers
Dan Fales, Shareholder, Clark Schaefer Hackett
Dan works with clients on both inbound and outbound
international issues. He has been involved in
transactional matters including international
restructurings, mergers, acquisitions, and financings.
He works with U.S. companies as they make their first
forays into international operations and provides
clients with tax favorable structures for international
expansion. Dan serves as the primary advisor to the
shareholders and owners of various closely-held and
family-owned businesses, providing counsel on their
global and U.S.-based income, estate taxes, and
succession planning. When his clients are
multinational taxpayers, or executives with overseas
assignments, Dan has the specialization to plan
strategies that minimize their potential tax liabilities.
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4. U.S. Immigration Environment
And Its Impact on Business
Presented by:
Shahrzad Allen
Dan Fales

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Shahrzad P. Allen
Attorney at Law
Immigration and Naturalization
OFFICE: 937-813-8091
FAX: 937-813-8526
EMAIL: SPALAW@EARTHLINK.NET
3460 S DIXIE HWY
2ND FLOOR
DAYTON, OH 45439

6. Acronyms And Definitions
DHS: The Department of Homeland Security
USCIS: U.S. Citizenship and Immigration Services
CBP: Customs and Border Protection
DOS: The Department of State
Petitioner: U.S. Entity/ Employer
Beneficiary: Foreign National Employee
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7. U.S. Visa:
Permission to travel to a port of entry and request permission to enter the U.S.
NONIMMIGRANT VISA
Visa Issued to those who intend
on being in the U.S. on a
temporary basis:
• As a tourist
• To receive medical treatments
• For business
• To attend a college or university
• For temporary employment
Limited duration and does not
lead to obtaining permanent
residency in the U.S.
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IMMIGRANT VISA
Visa issued to those who intend to
live in the U.S. permanently and
give up their permanent residence
outside of the U.S.

8. U.S. Visa:
Permission to travel to a port of entry and request permission to enter the U.S.
EMPLOYMENT BASED VISAS
H-1B
L-1
INVESTMENT BASED VISAS
E-2
EB-5
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9. Basic Criteria of the H-1B Visa
Allows U.S. employers to petition for foreign nationals who will
temporarily perform services in a specialty occupation for the
petitioning entity
The “specialty occupation” standard
• The position offered must require a U.S. bachelor’s degree
• The Beneficiary must posses a U.S. degree or its equivalent
• The salary for the position must be at or higher than the “prevailing wage”
Petitioning company must file a Labor Condition Application with the
Department of Labor and obtain its approval before filing an H-1B
petition
Often used by petitioning entities to hire engineers, medical doctors,
professors and scientist
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10. H-1B VISA
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Requirements
• Specialty occupation
• Employee qualifies for the
specialty occupation
• Certified Labor Condition
Application
• Valid employment relationship
Duration
• Initial visa is usually issued for up
to three years
• May be extended for an
additional period of up to three
years
• Maximum validity period of six
years

11. H-1B Cap
There is a congressionally-mandated limit per fiscal year
• 65,000 visas available for bachelor-level positions
• Additional 20,000 for U.S. Master’s degree or higher degree
graduates
• Beneficiaries who will work at institutions of higher education or
affiliated nonprofit entities, nonprofit research organization or
governmental research organizations are exempt from the cap
• Petitions filed for Beneficiaries who are current H-1B workers and
have been counted previously against the cap do not count toward
the mandated cap
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12. Basic Criteria of L-1 Visa
For intracompany transferees, allowing U.S. companies who have
global presence to transfer employees of foreign entities from outside
the U.S. to a U.S. parent, affiliate or subsidiary company for
temporary employment
Unlimited number of visas are available
Petitioning company does not have to obtain an approval from the
Department of Labor
Two types of L-1 status
• L-1A: employees performing managerial or executive assignment in
the U.S.
• L-1B: employees who will perform specialized knowledge assignments
in the U.S.
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13. L-1 VISA
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Requirements
• Qualifying corporate
relationships between the
foreign company and the U.S.
company
• Qualified employment abroad
by the transferee
• Qualified position in the U.S.
Duration
L-1A: Executives or Managers
• Usually issued for three years
• May be extended for additional two year
periods
• Maximum validity period of seven years
L-1B: specialized knowledge
• Usually issued for three years
• May be extended for one additional two
year period
• Maximum validity period of five years

14. Basic Criteria of the E-2 Visa
Allows foreign nationals to live and work in the U.S. if they invest
funds in an enterprise in the U.S. and be actively involved in its
operation and development
No set minimum amount that must be invested in the U.S. as long
as the investment is “substantial”
• “substantial”: amount “sufficient to demonstrate the investor’s
commitment to the enterprise”
• “proportionality test”: used to compare the amount of the funds
invested and the total value of the enterprise
• Generally, the lower the cost of the enterprise, the higher the
investment must be to be considered “substantial”
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15. E-2 VISA
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Requirements
• Existence of a treaty of
commerce between the U.S. and
the country of the foreign
national’s nationality
• Enterprise must be a real and
operating commercial enterprise
• Enterprise must be for profit
• Investor must be in a position to
develop and direct the enterprise
• Investment must be at risk
Duration
• May be issued for up to five years
• May be extended as long as the
enterprise is viable and the investor
continues to be actively involved in
operating the enterprise
• No limit on the number of
extensions granted

16. Basic Criteria of the EB-5 Visa
Created to stimulate the U.S. economy through capital investment
and job creation by foreign investors
Investors can live and work in the U.S. if they invest a minimum
amount in a new commercial enterprise which creates new job
opportunities for U.S. workers
This is an immigrant visa, therefore not a visa of limited duration
If all requirements are met, the investor, his / her spouse and
unmarried children under the age of twenty-one will obtain lawful
permanent residency status / Green Card
• The permanent residency will be conditional for the first two years
• A petition to remove the conditions must be filed prior to the expiration of the
two year period and once approved, the investor and qualified family members
will receive their permanent Green Cards
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17. EB-5
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Requirements
• Minimum capital investment of $1,000,000 in a commercial enterprise
• Minimum capital investment may be reduced to $500,000 if the
investment in an enterprise that is located in a “targeted employment
area”
• Required investment can be in the form of cash, inventory, and equipment
• Investment must be at risk
• Investment must result in the creation of ten full-time jobs for U.S. workers
• Investor must be actively engaged in the management of the enterprise,
passive investors do not qualify for this classification
Duration
• Permanent

18. U.S. Tax Implications of Immigration
Presented by:
Dan Fales

19. You Must Determine your U.S.
Tax Status
A “United States person” means a citizen or
resident of the U.S.
- IRC § 7701(a)(30)(A)
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20. Resident Alien vs Nonresident
Alien
An alien individual is a Resident Alien if he/she is
(i) A lawful permanent resident of the U.S. at any time
during the year. IRC § 7701(b)(1)(A)(i)
(ii) Such individual meets the substantial presence test.
IRC § 7701(b)(1)(A)(ii)
Any individual that is not a citizen or a resident alien is a
nonresident alien. IRC § 7701(b)(1)(B)
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21. The Substantial Presence Test
If an individual is present in the U.S. for at least
31 days during the calendar year and the sum
of the number of days present in the U.S. during
the current year and the 2 preceding years
[determined by formula] is 183 or greater then
they meet the substantial presence test.
- IRC § 7701(b)(3)
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22. The Substantial Presence Formula
Days in the U.S.
Current Year
1st Preceding Year
2nd Preceding Year
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Factor
1
1/3
1/6

23. Presence in the United States
With limited exception, an individual shall be
treated as present in the U.S. on any day if
they spent any part of the day in the U.S.
- IRC § 7701(b)(7)
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24. U.S. Income Tax Implications of
Being a United States Person
A United States person is taxed on his/her
worldwide income for the entire period they
are classified as a United States person.
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25. U.S. Tax Regime for Nonresident
Aliens
The U.S. can only tax income of Nonresident
Aliens on income that is connected to U.S.
sources of income.
There must be sufficient nexus of the income
for the U.S. to assert its taxing jurisdiction.
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26. There are 2 Types of Income
Nonresident Aliens Must Know
1. Income connected with U.S. trade or
business also known as “Effectively
Connected Income” or ECI
2. Fixed, Determinable and Periodic
(FDAP) Income
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27. Fixed, Determinable & Periodic
(FDAP) Income
FDAP income is subject to a flat 30% tax,
unless reduced by treaty, on the gross
amount of U.S. sourced income.
- IRC § 871(a)
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28. Effectively Connected Income
(ECI)
ECI is taxed at graduated rates and
deductions are permitted.
- IRC § 871(b)
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29. U.S. Withholding Tax on
Nonresident Aliens
Chapter 3, subchapter A, IRC §§ 1441 to 1446
imposes federal withholding of income tax by
the payor of certain payments to Nonresident
Aliens.
The statutory rate is 30% - IRC § 1441(a). But
this amount is often reduced by U.S. bilateral
income tax treaties.
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30. U.S. Bilateral Tax
Treaties
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31. Questions?

32. Want More Information?
Shahrzad Allen – Attorney at Law
spalaw@earthlink.net
937.813.8091
Dan Fales - Chair, International Business
Services Group
dfales@cshco.com
513.768.7526
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