(12C) Substantial Presence Test: When the Payee Becomes a Resident Alien

[Eddie W. Shore]

Link to blog entry: https://edspi31415.blogspot.com/2018/10/...-when.html

When a U.S. company or entity pays a foreign entity or a person who is not a U.S. Citizen and it is U.S. source income, IRS law dictates that the payer must determine whether the payee is a resident alien or a non-resident alien.

The following program determines the residency date of an international payee depending on when the payee first came to the United States with several assumptions:

1. We are assuming that none of the exemption rules apply (such as an F-1 student does not count any days towards the substantial presence test for up to five calendar years).

2. The program also assumes the payee does not leave the United States when the payee enters the country. If the payee leaves the U.S. for a time period, this program will not give accurate results.

Please Note: This program is NOT tax advice. Should you have any tax questions, please consult a professional tax prepare. Also, this date is for federal tax purposes only, and has no effect on the payee's immigration status.

The program is assumed to be in U.S. date M.DY format (MM.DDYYYY).

More details are on the blog entry.

Code:

01    36        ENTER
02     36         ENTER
03     44, 0        STO 0
04     1        1
05     26        EEX
06     2        2
07     20        *
08     43, 24        FRAC
09     44, 1        STO 1
10     1        1
11     2        2
12    3        3
13    1        1
14    40        +
15    1        1
16    26        EEX
17    2        2
18    10        ÷
19    43, 26        ΔDYS
20    1        1
21    8        8
22    3        3
23    43, 34        x ≤ y
24    43, 33, 45    GTO 45
25    34         x < > y
26    3        3
27    10        ÷
28    43, 25        INTG
29    30        -
30    45, 1        RCL 1
31    1        1
32    26        EEX
33    4        4
34    16        CHS
35    40        +
36    1        1
37    0        0
38    1        1
39    40        +
40    1        1
41    26        EEX
42    2        2
43    10        ÷
44    43, 33, 46    GTO 46
45    45, 0        RCL 0
46    34        x < > y
47    43, 16        DATE
48    43, 33, 00     GTO 00

Source:

"Substantial Presence Test" Internal Revenue Service https://www.irs.gov/individuals/internat...sence-test