20110830_The-term-United States-person-means_U.S.

-Citizens-and-Resident-Aliens

Persons Employed Abroad by a U.S. Person

The term 'United States person' means:

1. A citizen or resident of the United States,

2. A partnership created or organized in the United States or under the law of the United States or of any Sta

3. A corporation created or organized in the United States or under the law of the United States or of any Sta

4. Any estate or trust other than a foreign estate or foreign trust.

See Internal Revenue Code section 7701(a)(31) for the definition of a foreign estate and a foreign trust.

U.S Citizens and Resident Aliens Federal Income Tax Withholding

In general, wages paid to a U.S. citizen or to a resident alien by a U.S. person for services performed outside of t

Certain combat zone compensation of members of the Armed Forces of the United States;

Certain compensation for agricultural labor (see IRS Publication 51, Circular A, Agricultural Employer's

Compensation for domestic service in a private home (unless both the employer and the employee agree t

Compensation for service not in the course of the employer's trade or business performed in any calendar

Compensation for services for an employer (other than the United States or any agency thereof) if, at the

Important Note! A resident alien may not use Form 673 to exempt his wages from withholding of U.S

Compensation for services for an employer (other than the United States or any agency thereof) if, at the

Compensation for services performed by a duly ordained, commissioned, or licensed minister of a church

Compensation for services not in the course of the employer's trade or business, to the extent paid in any

Compensation paid to or on behalf of an employee if (and to the extent that) at the time of the payment of

Payment for any medical care reimbursement made to or for the benefit of an employee under a self-insu
 Any payment made to or for the benefit of an employee if at the time of such payment it is reasonable to

Compensation paid by an affiliate of an American employer if at the time of payment:

o It is reasonable to believe that the employee is entitled to an exclusion from income under

o The employer is required by the law of the foreign country to withhold income tax on such payme

Nonresident Aliens

As a general rule, wages earned by nonresident aliens for services performed outside of the United States for any

References/Related Topics

Federal Income Tax Withholding

Internal Revenue Code Sections 3401, 3402, and 3403

Income Tax Regulations 31.3401(a)-1 et seq; 31.3402(a)-1 et seq; and 31.3403-1.

Internal Revenue Code Section 7701(a)(30) for the definition of a U.S. Person

Revenue Ruling 75-485 on the U.S. and Foreign Payment of a U.S. Citizen-Employee Abroad

Revenue Ruling 92-106 on Withholding / Reporting on Wages for Services Performed Within

Notice 2001-4, Section V(E) on Foreign Source Services Income

Note: This page contains one or more references to the Internal Revenue Code (IRC), Treasury Regulations, cou