B J Kang Law PC
  • HOME
  • PEOPLE
  • SERVICES
    • KIC SV Sample Documents
  • CONTACT
  • PERSPECTIVES
  • Careers

Firm Perspectives

Who is Subject to the New J-1 Visa Exchange Visitor Program Rules?

6/25/2015

 

On October 6, 2014, the Department of State (“DOS”) announced newly enacted amendments to Subpart A of the J-1 visa exchange visitor program rules and regulations. The new rules applicable to J-1 visa exchange visitor programs and program participants require: (1) independent annual audits; (2) annual reports; (3) criminal background checks of responsible officers and alternate responsible officers; (4) increased duties of responsible officers and alternate responsible officers; (5) increased monitoring of exchange visitors; (6) increased notification requirements; (7) increased monitoring of, and requirements pertaining to, third-party service providers; and (8) objective requirements to determine exchange visitors are proficient in English.  Most importantly, effective May 15, 2015, the new rules require increased minimum insurance requirements that specifically mandate that exchange visitors have: (1) medical insurance coverage of at least $100,000 per accident or illness; (2) repatriation of remains coverage in the amount of $25,000; (3) medical evacuation coverage in the amount of $50,000; and (4) a $500 ceiling on deductibles.

Due to the inherent nature of how the J-1 visa program operates, however, a few of these requirements cannot be applicable, from a practical standpoint, if the effective date occurred after an exchange visitor had entered the US and begun participating in a program. For example, the new rules surrounding the English proficiency requirement would likely not apply to current exchange visitors as the previous English proficiency rule required sponsors to make an “english proficiency determination” prior to an exchange visitor's arrival in the US. Accordingly, there has been some unavoidable confusion from the viewpoints of both visa sponsors and exchange visitors. The Department of State has compounded this confusion, in several instances, by providing inconsistent guidance pertaining to the applicability of the rules to exchange visitors who had already begun a J-1 visa exchange visitor program prior to the effective date of the amendments.

The vast majority of the rules and requirements, however, are undoubtedly applicable to both exchange visitors and sponsor programs regardless of whether the exchange visitor entered the U.S. and began a program prior to the date that the rule became effective.

If you have any questions surrounding the new exchange visitor program rules, guidance you received from DOS, or any of the content written in this article, please contact
us at (703)-595-2836 or admin@bjkanglaw.com

Comments are closed.

    Categories

    All
    Business Immigration
    Business Planning And Corporate Transactions
    Federal And State Tax Planning
    International Tax


    Authors


    ​B.J. Kang JD, CPA
    Josh Portman JD, LL.M
    Habeeb Syed JD
    Nora Ji Li LL.M
    Nathaniel S. Johnson

    Archives

    February 2021
    January 2021
    November 2020
    March 2020
    April 2019
    April 2018
    February 2018
    January 2018
    October 2017
    September 2017
    July 2017
    January 2017
    October 2016
    September 2016
    January 2016
    December 2015
    October 2015
    June 2015
    March 2015
    January 2015
    November 2014
    October 2014
    September 2014
    August 2014
    July 2013



    DISCLAIMER:
    The information contained on this web-site is not legal advice. The information may not reflect the most up-to-date legal developments.  Unless otherwise indicated in writing, any US federal tax advice contained in this web-site is not intended to be used, and cannot be used to (i) avoid penalties under the US Internal Revenue Code, or (ii) promote, market or recommend to another party any matter addressed herein.

    RSS Feed

 
3135 Mount Vernon Ave., Alexandria, VA 22305 
3003 N. First St., San Jose, CA 95134 (CA Branch: KIC-SV)
Harvard Sq., 1 Mifflin Pl., STE 400, Cambridge, MA 02138 (MA Branch)
Telephone : 703-595-2836 Fax : 703-722-9168
Copyright © 2021 B.J. Kang Law, PC. All rights reserved.