slee1234
Dec 22, 2008, 10:46 AM
Hi
I'm a bit confused about the instructions given by the IRS on taxation of Dual Status aliens:
Taxation of Dual-Status Aliens (http://www.irs.gov/businesses/small/international/article/0,,id=96433,00.html)
There is a section that says:
"For The Part of The Year You are a Nonresident Alien:
For the part of the year you are a nonresident alien, you are taxed on income from U.S. sources only."
But then later on it says under the section "Effectively and Not Effectively Connected Income":
"..... Income that is not connected with a trade or business in the United States for your period of nonresidence is subject to the flat 30% rate or lower treaty rate."
Isn't this a contradiction of what was said in the earlier section?
Any help would be greatly appreciated
Thanks,
Sam
I'm a bit confused about the instructions given by the IRS on taxation of Dual Status aliens:
Taxation of Dual-Status Aliens (http://www.irs.gov/businesses/small/international/article/0,,id=96433,00.html)
There is a section that says:
"For The Part of The Year You are a Nonresident Alien:
For the part of the year you are a nonresident alien, you are taxed on income from U.S. sources only."
But then later on it says under the section "Effectively and Not Effectively Connected Income":
"..... Income that is not connected with a trade or business in the United States for your period of nonresidence is subject to the flat 30% rate or lower treaty rate."
Isn't this a contradiction of what was said in the earlier section?
Any help would be greatly appreciated
Thanks,
Sam