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After His Great Performance for the U

Question 47

Multiple Choice

After his great performance for the U.S.soccer team in the World Cup, Alex, a U.S.citizen, signed a contract to play with the Italian team, Parma, earning over $500,000 per year.While there, he met the great English star, David.Which of the following statements is correct?


A) Assuming that Alex lives in Italy during all of the next year, his Italian income (salary and interest from his Italian bank account) would probably be subject to Italian taxes but he would not be required to report any of his Italian income for U.S.income tax purposes since he lived in Italy.
B) Assuming that Alex lives in Italy only for a few months during all of next year, his income earned in Italy would effectively be taxed twice, i.e., he would pay taxes to the Italian government and taxes to the U.S.government, unless a treaty provided otherwise.
C) Assume David, the English star, comes to the U.S.in the next to play in the U.S.professional soccer league.David would not be required to file a regular income tax return on income earned in the U.S.if he is considered a resident alien.
D) None of the above is correct.

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