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U.S. Tax Residency: Some Black-and-white Rules, Some Gray

By Ian Weinstock
The CPA Journal
March 2018 Edition

When advising taxpayers or preparing returns, brightline rules are generally the easiest to explain and to handle. In contrast, tax outcomes that depend on facts and circumstances are inherently more difficult to evaluate. It is therefore a relief that many federal tax residency rules applicable to individuals are black-and-white, particularly considering how critical an issue residency is, both in terms of what is subject to tax and what returns are required. Unfortunately, there is a large gray area as well.

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