Tax Patterns; Non Resident Individuals Or Foreign Corporation

Richard Lehman, Tax Advisor

As a general rule, nonresident alien individuals and foreign corporations are not subject to tax unless the income is “from a United States source”. There are different rules to determine when income is from a United States source.

Nonresident alien individuals are taxed differently than the United States taxpayers on passive income such as interest and dividends and royalties.

This pattern requires the foreign taxpayer to pay an amount on the gross income that is earned. Insofar as business income earned by the foreign taxpayers, they are taxed the same as United States taxpayers, except they will only be taxed on their United States source income.

Have a question? Contact Richard Lehman. Your comments are always welcome!

Richard S. Lehman is a graduate of Georgetown Law School and obtained his Master’s degree in taxation from New York University. He has served as a law clerk to the Honorable William M. Fay, U.S. Tax Court and as Senior Attorney of the Interpretative Division in the Chief Counsel’s Office of the Internal Revenue Service in Washington D.C., the IRS’s internal law firm.

Mr. Lehman has had extensive experience with all areas of the Internal Revenue code that apply to American taxpayers and nonresident aliens and foreign corporations investing or conducting business in the United States, as well as U.S. citizens and domestic corporations investing abroad.

Mr. Lehman regularly works with law firms, accountants, businesses and individuals struggling to find their way through the complexities of the tax law.

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