Posts Tagged ‘FDAP’
PROOF: Aliens under I.R.C. 871(a) FDAP incur no tax liability unless they volunteer for a public capacityPUB
INTRODUCTION: The only express liability found in I.R.C. Subtitle A is withholding agents on nonresident aliens who are aliens in 26 U.S.C. 1461. Everyone else is a volunteer. This leads to the question of how they can owe tax on Fixed, Determinable, Annual, and Periodical (FDAP) earnings under 26 U.S.C. 871(a). This series of questions…
Read MoreCopilot: FDAP under 26 U.S.C. 871(a)(1) is a tax on gross receipts and not profit. Does that mean it doesn’t apply to people residing within states of the Union and protected by the Constitution?
EDITORIAL: To summarize the approach to nonresident alien taxation on this website: It seems that the latitude Congress is given in Sixteenth Amendment varies depending on activity or recipient. It could be from: Social Security under 26 U.S.C. 871(a)(3) fits in EITHER 3 or 4 above, depending on where you are from. For a nonresident…
Read MoreDEBATE: Items identified as FDAP on IRS website include private property
EDITORIAL: This debate surrounds what is “included” in FDAP items listed under 26 U.S.C. 871(a)(1). It does so in the context of a recent PGA golf prize winner who is an alien in relation to United States* and whether his golf winnings would be considered FDAP if he filed as a nonresident alien. THEIR STATEMENT:…
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