Which of the Following Statements Best Describes the Substantial Presence

question 26

Multiple Choice

Which of the following statements best describes the substantial presence test as it applies to determining if a non U.S. citizen is a resident alien for U.S. tax purposes?

• A) To be treated as a resident alien, an individual must be physically present in the United States for 183 days equivalent using a formula that includes the current year and the prior two years.
• B) To be treated as a resident alien, an individual must be physically present in the United States for 183 days in the current year and each of the prior two years.
• C) To be treated as a resident alien, an individual must be physically present in the United States for 183 days in the current year.
• D) To be treated as a resident alien, an individual must be physically present in the United States for 183 days equivalent using a formula that includes the current year and the prior year.

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Definitions:

Collect

To gather or accumulate items or amounts, often used in the context of collecting funds, debts, or data.

Accounts Payable Period

The average amount of time it takes for a business to pay off its suppliers after receiving goods or services.

Cash Disbursements

Payments in cash made by a business, including expenses, dividend payments, and investment purchases.

Sales

The total amount of goods or services sold by a company, constituting its main source of revenue.