Which of the Following Statements Best Describes the Substantial Presence

question 34

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 for 183 days 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 for 183 days using a formula that includes the current year and the prior year.

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Definitions:

Dividends

Payments made by a corporation to its shareholders, usually derived from the company's profits.

Securities and Exchange Commission

A U.S. government agency responsible for enforcing federal securities laws, regulating the securities industry, and ensuring stock market integrity.

Legal Authority

An entity or institution that has the legally granted power to make decisions, and to enforce laws or rules.

Financial Statement

A summary report that comprehensively shows a company's financial performance and position at a specific point in time, including the balance sheet, income statement, and cash flow statement.