Sunday, February 8, 2015

CITIZENSHIP STATUS v. TAX STATUS



SUMMARY OF CITIZENSHIP STATUS v. TAX STATUS


Below is a table that maps the various “Citizenship status” options in Title 8 of the U.S. Code to a “Income tax status” found in the Internal Revenue Code, which is Title 26 of the U.S. Code. If a column contains the word “yes”, then the citizenship status row and the corresponding tax status column are equivalent to each other from a legal perspective.


Table 2: “Citizenship status” vs. “Income tax status”


#Citizenship statusPlace of birthDomicileAccepting tax treaty benefits?Defined inTax Status under 26 U.S.C./Internal Revenue Code
“Citizen” (defined in 26 CFR 1.1-1)“Resident alien” (defined in 26 U.S.C. §7701(b)(1)(A), 26 CFR §1.1441-1(c )(3)(i) and 26 CFR §1.1-1(a)(2)(ii))“Nonresident alien INDIVIDUAL” (defined in 26 CFR §1.1441-1(c )(3))“Nonresident alien NON-individual” (defined in 26 U.S.C. §7701(b)(1)(B))
1“U.S. citizen” or “Statutory U.S. citizen”Anywhere in AmericaDistrict of Columbia, Puerto Rico, Guam, Virgin IslandsNA8 U.S.C. §1401 8 U.S.C. §1101(a)(22)(A)Yes (only pay income tax abroad with IRS Forms 1040/2555. See Cook v. Tait, 265 U.S. 47 (1924))NoNoNo
2“U.S. nationalAnywhere in AmericaAmerican Samoa; Swains Island; or abroad to U.S. national parents under 8 U.S.C. §1408(2)NA8 U.S.C. §1408; 8 U.S.C. §1101(a)(22)(B); 8 U.S.C. §1452 No (see 26 U.S.C. §7701(b)(1)(B) )NoYes (see IRS Form 1040NR for proof)No
3.1“national” or “state national” or “Constitutional but not statutory citizen”Anywhere in AmericaState of the UnionNA (ACTA agreement)8 U.S.C. §1101(a)(21); 8 U.S.C. §1452; 14th Amend., Sect. 1NoNoNoYes
3.2“national” or “state national” or “Constitutional but not statutory citizen”Anywhere in AmericaForeign countryYes8 U.S.C. §1101(a)(21); 8 U.S.C. §1452; 14th Amend., Sect. 1NoNoYesNo
3.3“national” or “state national” or “Constitutional but not statutory citizen”Anywhere in AmericaForeign countryNo8 U.S.C. §1101(a)(21); 8 U.S.C. §1452; 14th Amend., Sect. 1NoNoNoYes
4.1“alien” or “Foreign national”Foreign countryPuerto Rico, Guam, Virgin Islands, American Samoa, Commonwealth of Northern Mariana IslandsNA8 U.S.C. §1101(a)(3)NoYesNoNo
4.2“alien” or “Foreign national”Foreign countryState of the UnionYes8 U.S.C. §1101(a)(3)NoNoYesNo
4.3“alien” or “Foreign national”Foreign countryState of the UnionNo8 U.S.C. §1101(a)(3)NoNoNoYes
4.4“alien” or “Foreign national”Foreign countryForeign countryYes8 U.S.C. §1101(a)(3)NoNoYesNo
4.5“alien” or “Foreign national”Foreign countryForeign countryNo8 U.S.C. §1101(a)(3)

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