Serena, a nonresident alien, is employed by GlobalCo, a non-U.S. 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 applies to nonresident aliens who are present in the United States for less than 90 days during the year and who receive compensation for services performed outside the United States for a foreign employer. In this case, Serena is present in the United States for only 3 days and is receiving compensation for services performed outside the United States for a foreign employer (GlobalCo). Therefore, her income is not classified as U.S.-source income under this exception.

Serena, a Nonresident Alien, Is Employed by GlobalCo, a Non-U