Monika, a nonresident alien, is employed by GlobalCo, a foreign corporation. Monika works in the United States for 32 days during the year, receiving a gross salary of $2,900 for this period. GlobalCo is not engaged in a U.S. trade or business. Under the "commercial traveler" exception, the $2,900 is not classified as U.S.-source income.

Question

Quizplus · Accepted Answer

The "commercial traveler" exception applies to nonresident aliens who come to the United States for a short period of time (not exceeding 90 days) for business purposes but do not engage in a U.S. trade or business. In this case, Monika worked for only 32 days and received a salary for that period, which is not classified as U.S.-source income under the "commercial traveler" exception. Therefore, option A is correct.

Monika, a Nonresident Alien, Is Employed by GlobalCo, a Foreign