Which of the Following Statements Regarding Income Sourcing Is Not

question 29

Multiple Choice

Which of the following statements regarding income sourcing is not correct?

• A) Concerning the foreign tax credit, most U.S. persons benefit from earning low-tax foreign-source income.
• B) Foreign persons generally benefit from avoiding U.S.-source income classification.
• C) U.S. persons are not concerned with source of income because all their income is subject to U.S. tax under a worldwide system.
• D) Foreign persons may be subject to tax on U.S.-source income without regard to their actual presence in the United States.