Which of the Following Statements Best Describes the Substantial Presence

question 82

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

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Definitions:

Bill of Exchange

A written, unconditional order by one party directing another party to pay a specified sum of money to a third party on demand or at a set date.

Call for Tenders

A formal invitation to suppliers to bid on supplying goods or services under specified conditions.

Prospective Bidders

Prospective bidders are individuals or entities that may be interested in submitting a bid or offer to acquire goods, services, or assets that are being offered.

Guarantor

A person or entity that agrees to be responsible for another's debt or obligations if the latter fails to fulfill them.