The Three Types of “foreign persons”
| # | Name | Nonresident Alien NATIONAL | Non-Resident Alien OR Nonresident Alien ALIEN | Resident Alien |
| 1 | International? | No | Yes | Yes |
| 2 | IRS pub described in | NO IRS publication! They don’t want you to know! | IRS Pub 519 | IRS Pub 519 |
| 3 | Described or defined in | 26 U.S.C. §7701(b)(1)(B) | 26 U.S.C. §864 | 26 U.S.C. §7701(b)(1)(A) |
| 4 | Tax Return type | 1040-NR | 1040-NR | 1040 |
| 5 | “Gross income” is | PROFIT only under Sixteenth Amendment if no “effectively connected”. See 26 U.S.C. §871(a) | GROSS receipts because not protected by Sixteenth Amendment | GROSS receipts because not protected by Sixteenth Amendment |
| 6 | Withholding form | NONE required. NOT the “individual” defined in 26 C.F.R. §1.1441-1(c)(3). | W-8BEN | W-9 |
| 7 | Nationality | 1. “National” under 8 U.S.C. §1101(a)(21) 2. “national of the United States” under common law and NOT 8 U.S.C. §1101(a)(22) | Alien (foreign national) | Alien (foreign national) |
| 8 | Identifying Number | SSN | ITIN | ITIN |
| 9 | Identifying number lawful in constitutional state? | NO. See Form #06.001 | Yes | Yes |
| 10 | Identifying Number Permanent? | Yes | No. Expires in 5 years. | No. Expires in 5 years. |
| 11 | Identifying number mandatory? | No if not engaged in “trade or business” and not effectively connected. 26 C.F.R. §301.6109-1(b) | No if not engaged in “trade or business” and not effectively connected. 26 C.F.R. §301.6109-1(b) | Yes. 26 C.F.R. §301.6109-1(a) |
| 12 | Domiciled in statutory geographical “U.S.” per 26 U.S.C. §7701(a)(9) and (a)(10) | No | No | Yes |
| 13 | Subject to presence test in 26 U.S.C. §7701(b)? | No (only aliens are) | Yes | Yes |
| 14 | Subject to 26 C.F.R. §1.1441-1 “Foreign Person” withholding? | No. Not listed in 26 C.F.R. §1.1441-1(c)(3). NOTE 9 below. | Yes | Yes |
| 15 | “Person” under 26 U.S.C. §7701(a)(1)? | No if a “foreign estate” under 26 U.S.C. §7701(a)(31) | Yes | Yes |
| 16 | “Person” under 26 U.S.C. §6671(b)? | No if a “foreign estate” under 26 U.S.C. §7701(a)(31) | No, if file 1040-NR | Yes, if file 1040. |
| 17 | “Person” under 26 U.S.C. §7343? | No if a “foreign estate” under 26 U.S.C. §7701(a)(31) | No, if file 1040-NR | Yes, if file 1040. |
| 18 | How becomes a “person” | 1. Taking deductions under 26 U.S.C. §873 2. Gross income under 26 U.S.C. §871(a) | Physical presence in statutory geographical “United States” | Physical presence in statutory geographical “United States” |
NOTES ON “FOREIGN PERSONS”
1. The term “effectively connected”, in the case of an American National, is a VOLUNTARY method of DONATING private property to a public use, and thus CONSENSUALLY CONVERTING it from PRIVATE to PUBLIC. See:
| The Truth About “Effectively Connecting”, Form #05.056 https://sedm.org/Forms/05-MemLaw/EffectivelyConnected.pdf |
2. The statutory geographical “United States” is a DELIBERABELY VERY misunderstood term.
2.1. It doesn’t include constitutional states EXCEPT in the case of the presence test applying only to aliens.
2.2. HOWEVER, taxes can still be owed on earnings if your PROPERTY has been VOLUNTARILY “effectively connected”, and thus subject to taxation ANWHERE it is physically found.
2.3. For more on this subject, see:
| Foreign Tax Status Information Group (FTSIG) Opening Page, Section 2 https://ftsig.org |
3. “Foreign person” is described but not defined in 26 C.F.R. §1.1441-1(c)(2) as someone who is NOT a “U.S. person”.
4. You can be a “foreign person” for withholding purposes WITHOUT being an “individual” if you are a “nonresident alien” but not an “alien” (foreign national). See 26 C.F.R. §1.1441-1(c)(2) and 26 C.F.R. §1.1441-1(c)(3). See:
| Non-Resident Non-Person Position, Form #05.020 https://sedm.org/Forms/05-MemLaw/NonresidentNonPersonPosition.pdf |
5. “Person” for general use is defined in 26 U.S.C. §7701(a)(1).
6. “Person” for penalties is defined in 26 U.S.C. §6671(b).
7. “Person” for criminal enforcement is defined in 26 U.S.C. §7343.
8. For proof that the courts and IRS MISUSE and MISAPPLY the term “person” to make AMERICAN NATIONALS the UNLAWFUL TARGET of enforcement in a constitutional state, see:
| Policy Document: IRS Fraud and Deception About the Statutory Word “Person”, Form #08.023 https://sedm.org/Forms/08-PolicyDocs/IRSPerson.pdf |
9. For proof that “individual” in 26 C.F.R. §1.1441-1(c)(3) does not include “nationals of the United States” or American Nationals FOR WITHHOLDING PURPOSES only, see:
9.1. META AI: Is a “NATIONAL OF THE UNITED STATES” A “FOREIGN PERSON” under 26 U.S.C. 1441?, FTSIG
https://ftsig.org/meta-ai-is-a-national-of-the-united-states-a-foreign-person/
9.2. Lawfully Avoiding Foreign Person Withholding, Section 7, FTSIG
https://ftsig.org/foreign-person-reporting-and-withholding-summary/
9.3. Microsoft Copilot: American Nationals are not “individuals” for foreign person withholding purposes, FTSIG
https://ftsig.org/microsoft-copilot-american-nationals-are-not-individuals-for-foreign-person-withholding-purposes/
9.4. PROOF OF FACTS: U.S. Department of the Treasury OFFICIALLY RECOGNIZES “non-resident non-persons” and “nontaxpayers”!, FTSIG
https://ftsig.org/u-s-department-of-the-treasury-officially-recognizes-non-resident-non-persons-and-nontaxpayers/
9.5. The parties subject to withholding must be only aliens, because only through the foreign affairs functions of Congress in Article 1, Section 8, Clause 3 can aliens be reached in a constitutional state. “nationals of the United States” residing in a constitutional state cannot legislatively be reached through this authority.
9.6. W-8SUB, Form #04.231, FAQ 1, SEDM
https://sedm.org/Forms/04-Tax/2-Withholding/W-8SUB.pdf