Serena, a nonresident alien, is employed by GlobalCo, a foreign corporation.Serena works in the United States for 3 days during the year, receiving a gross salary of $2,500 for this period.GlobalCo is not engaged in a U.S.trade or business.Under the "commercial traveler" exception, the $2,500 is not classified as U.S.-source income.

Question

Quizplus · Accepted Answer

The "commercial traveler" exception allows nonresident aliens who are employees of a foreign corporation that is not engaged in a U.S. trade or business to receive compensation for services performed in the U.S. for up to 90 days without the income being classified as U.S.-source income. In this case, Serena worked for only 3 days, so the $2,500 salary is not classified as U.S.-source income. Therefore, the answer is A) True.

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