It is imortant to understand that the U.S. tax law "treats U.S. persons and foreign persons differently for tax purposes." So, what does the IRS really mean by the term "Foreign Persons"?
Well, the IRS tax code has specifically defined the term "Foreign Person'' as meaning any of the following:
A foreign person includes:
1. Nonresident alien individual
2. Foreign corporation
3. Foreign partnership
4. Foreign trust
5.A foreign estate
6. Any other person that is not a U.S. person
7. Also, the IRS has stated that "the U.S. branch of a foreign corporation or partnership is treated as a foreign person." Click the Link below for a definition of "What the IRS means by the term United States Person?"
What does the IRS mean by the term "United States Person" ?