Are you in the United States with a G-4 Visa and Work at the World Bank?

Congratulations, you may not be subject to U.S. Federal Income taxes!

Full time employees of the World Bank are considered by the IRS to be Foreign Government-Related Individuals. A foreign government related individual is anyone that (1) works full time at an international organization, (2) has diplomatic immunity, or (3) has consulate status.

The World Bank is considered an international organization, meaning that the President of the United States has issued an Executive Order entitling full time employees of the World Bank to the privilege and immunities of the International Organizations Act.

However, merely working at the World Bank on a G-4 visa is not enough to entitle you to tax-exempt status. You must work full time. This means that if you are a part-time employee or are married to a World Bank employee and have a G4 through your marriage, you may be subject to federal income taxes if you satisfy the ‘substantial presence test.” The substantial presence test states that you will be considered a U.S. resident by the IRS if you were physically present on at least 31 days of the current year and 183 days during the 3-year period (the current year and the two years prior).

If you are considered a U.S. resident you will be responsible for reporting your worldwide income. That means you will not only be responsible for paying for the taxes on the income you earn in the U.S. but you will also have to report any foreign accounts you may own to the IRS. Failure to report foreign accounts could result in civil and/or criminal penalties.