Treasury Regulations (26 C.F.R.)
26 CFR § 301.7701(b)-5
Coordination with section 877.
# (a) General rule.
An alien individual will be subject to United States income tax in the manner provided by section 877, regardless of whether the individual has a tax avoidance motive, if—
(1) The alien individual is a resident alien of the United States for at least three consecutive calendar years (the initial residency period) beginning after December 31, 1984;
(2) The period of residence for each of the three consecutive calendar years includes at least 183 days;
(3) The alien is once again taxed as a nonresident (including an individual taxed as a nonresident) under § 301.7701(b)-7(a)(1); and
(4) The alien then becomes a resident of the United States before the close of the third calendar year beginning after the individual's residency termination date in the initial residency period.
# (b) Tax imposed.
The tax provided for under paragraph (a) of this section will be imposed for the intervening period of nonresidency only if the amount of tax would exceed the amount of tax that would be imposed under section 871, relating to the taxation of nonresident aliens.
# (c) Example.
The following example illustrates the application of this section.
Example.
B, a citizen of foreign country F, enters the United States on April 1, 1985, as a lawful permanent resident. On August 1, 1987, B ceases to be a lawful permanent resident and returns to country F. B meets the initial residency period requirement because he is a resident of the United States for at least 183 days in each of three consecutive years (1985, 1986 and 1987). B returns to the United States on October 5, 1990, as a lawful permanent resident. Because B became a resident of the United States before the close of the third calendar year (1990) beginning after the close of the initial residency period (August 1, 1987), he is subject to tax under section 877(b) for the intervening period of nonresidency, August 2, 1987 through October 4, 1990, if the amount of the tax imposed under section 877 is more than the tax imposed under section 871.
[T.D. 8411, 57 FR 15250, Apr. 27, 1992]
Source: view the official text
In this part (40 sections)
- 301.7701-5 · Domestic and foreign business entities.
- 301.7701-6 · Definitions; person, fiduciary.
- 301.7701-7 · Trusts—domestic and foreign.
- 301.7701-8 · Military or naval forces and Armed Forces of the United…
- 301.7701-9 · Secretary or his delegate.
- 301.7701-10 · District director.
- 301.7701-11 · Social security number.
- 301.7701-12 · Employer identification number.
- 301.7701-13 · Pre-1970 domestic building and loan association.
- 301.7701-13A · Post-1969 domestic building and loan association.
- 301.7701-14 · Cooperative bank.
- 301.7701-15 · Tax return preparer.
- 301.7701-16 · Other terms.
- 301.7701-17T · Collective-bargaining plans and agreements (temporary).
- 301.7701-18 · Definitions; spouse, husband and wife, husband, wife,…
- 301.7701(b)-0 · Outline of regulation provision for section 7701(b)-1…
- 301.7701(b)-1 · Resident alien.
- 301.7701(b)-2 · Closer connection exception.
- 301.7701(b)-3 · Days of presence in the United States that are excluded…
- 301.7701(b)-4 · Residency time periods.
- 301.7701(b)-5 · Coordination with section 877.
- 301.7701(b)-6 · Taxable year.
- 301.7701(b)-7 · Coordination with income tax treaties.
- 301.7701(b)-8 · Procedural rules.
- 301.7701(b)-9 · Effective/applicability dates of §§ 301.7701(b)-1…
- 301.7701(i)-0 · Outline of taxable mortgage pool provisions.
- 301.7701(i)-1 · Definition of a taxable mortgage pool.
- 301.7701(i)-2 · Special rules for portions of entities.
- 301.7701(i)-3 · Effective dates and duration of taxable mortgage pool…
- 301.7701(i)-4 · Special rules for certain entities.
- 301.7704-2 · Transition provisions.
- 301.7705-1 · Certified professional employer organization.
- 301.7705-2 · CPEO certification process.
- 301.7803-1 · Security bonds covering personnel of the Internal Revenue…
- 301.7805-1 · Rules and regulations.
- 301.7811-1 · Taxpayer assistance orders.
- 301.7803-2 · Internal Revenue Service Independent Office of Appeals…
- 301.7803-3 · Requests for referral to the Internal Revenue Service…
- 301.9000-1 · Definitions when used in §§ 301.9000-1 through 301.9000-6.
- 301.9000-2 · Considerations in responding to a request or demand for…