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Physical presence test for Temporary present Exempt individuals

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    Physical presence test for Temporary present Exempt individuals

    IRC 7701(b)(3)(D) says "An individual shall not be treated as being present in the United States on any day if such individual is an Exempt Individual". Exempt Individual includes J, F, M, Q Visa status individuals, etc., but "E-2 (Investment) Visa" or "B-2 (Visitor/Travel) Visa" is not listed anywhere in the code sections.

    Then, does this mean that exempt individuals under those listed-Visas can not meet physical presence test and not be resident aliens,/ but exempt individuals under E or B Visa can meet physical presence test and be resident aliens? This issue affects S corporation shareholder eligibility also.

    #2
    Dear jmc

    That is how I would interpret that rule. Seems to make perfect sense.
    Roland Slugg
    "I do what I can."

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