The Three Types of Alien Statuses
SOURCE: Proof that American Nationals are Nonresident Aliens, Form #09.081, Section 6.1;
https://sedm.org/Forms/09-Procs/ProofAnNRA.pdf
| # | 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) | PROFIT only under Sixteenth Amendment if no “effectively connected”. See 26 U.S.C. §871(a) | 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 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 if taking deductions under 26 U.S.C. §873 | Yes |
| 16 | “Person” under 26 U.S.C. §6671(b)? | No if a “foreign estate” under 26 U.S.C. §7701(a)(31) | Yes if taking deductions under 26 U.S.C. §873 | 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) | Yes if taking deductions under 26 U.S.C. §873 | 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. Withholding on nonresident aliens in 26 U.S.C. §1441 is limited to “nonresident alien INDIVIDUALS” and not to “nonresident aliens” who are “non-persons” or “non-individuals”.
2. 26 U.S.C. §873 identifies the ONLY scenario where an an American national can become an “individual”, which is the taking of deductions that are privileged. If you are an American national and don’t take deductions, then you AREN’T an “individual” who could therefore BE subject to withholding under 26 U.S.C. §1441 since nonresident aliens who are American nationals are not subject to the presence test in are not subject to 26 U.S.C. §7701(b) and only “alien individuals” are. This is consistent with the following holding by the U.S. Supreme Court:
The doctrine declared is that property “becomes clothed with a public interest when used in a manner to make it of public consequence, and affect the community at large;” and from such clothing the right of the legislature is deduced to control the use of the property, and to determine the compensation which the owner may receive for it. When Sir Matthew Hale, and the sages of the law in his day, spoke of property as affected by a public interest, and ceasing from that cause to be juris privati solely, that is, ceasing to be held merely in private right, they referred to property dedicated by the owner to public uses, or to property the use of which was granted by the government, or in connection with which special privileges were conferred. Unless the property was thus dedicated, or some right bestowed by the government was held with the property, either by specific grant or by prescription of so long a time as 140*140 to imply a grant originally, the property was not affected by any public interest so as to be taken out of the category of property held in private right.
[. . .]
It is only where some right or privilege is conferred by the government or municipality upon the owner, which he can use in connection with his property, or by means of which the use of his property is rendered more valuable to him, or he thereby enjoys an advantage over others, that the compensation to be received by him becomes a legitimate matter of regulation [or taxation]. Submission to the regulation of compensation in such cases is an implied condition 147*147 of the grant, and the State, in exercising its power of prescribing the compensation, only determines the conditions upon which its concession shall be enjoyed. When the privilege ends, the power of regulation [and taxation] ceases.
[Munn v. Illinois, 94 U.S. 113, 139-140, 147 (1877);
SOURCE: https://scholar.google.com/scholar_case?case=6419197193322400931]
3. 26 U.S.C. §1441(e) limits “individuals” to Puerto Rico. Therefore no one in a constitutional state can lawfully be an “individual” without consenting to do so by voluntarily pursuing privileged deductions.
4. 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 |
5. The statutory geographical “United States” is a DELIBERATELY VERY misunderstood term.
5.1. It doesn’t include constitutional states EXCEPT in the case of the presence test applying only to aliens.
5.2. HOWEVER, taxes can still be owed on earnings if your PROPERTY has been VOLUNTARILY “effectively connected”, and thus subject to taxation ANYWHERE it is physically found.
5.3. For more on this subject, see:
| Foreign Tax Status Information Group (FTSIG) Opening Page, Section 2 https://ftsig.org |
6. “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”.
7. 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) and you take no deductions as indicated by 26 U.S.C. §873. 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 |
8. Definitions of “person”:
8.1. “Person” for general use is defined in 26 U.S.C. §7701(a)(1).
8.2. “Person” for penalties is defined in 26 U.S.C. §6671(b).
8.3. “Person” for criminal enforcement is defined in 26 U.S.C. §7343.
9. 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 |
10. 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:
10.1. 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/
10.2. Lawfully Avoiding Foreign Person Withholding, Section 7, FTSIG
https://ftsig.org/foreign-person-reporting-and-withholding-summary/
10.3. 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/
10.4. 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/
10.5. 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.
10.6. W-8SUB, Form #04.231, FAQ 1, SEDM
https://sedm.org/Forms/04-Tax/2-Withholding/W-8SUB.pdf
11. If is therefore IMPERATIVE if you wish to challenge withholding as an American national, that you establish that:
11.1. Withholding is limited to “nonresident alien individuals”.
11.2. You only BECOME an “individual” by pursuing privileges under 26 U.S.C. §873.
11.3. You are NOT pursuing such privileges and thus, are not an “individual” subject to such withholding.
12. If you want a way to PROVE you are not in receipt of privileges, see:
How to Reject All Privileges in a Tax Return Filing, FTSIG
https://ftsig.org/how-to-reject-all-privileges-in-a-tax-return-filing/