United States person

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The term United States person or US person is used in various contexts in US laws and regulations with different meanings.

Contents

Data collection and intelligence

The term "US person" is used in the context of data collection and intelligence by the United States, particularly with respect to the provisions of the Foreign Intelligence Surveillance Act. If information from, about, or to a US person who is not a named terrorist is captured in the course of US foreign intelligence activities, there are strict rules about preserving the anonymity of such a person in any subsequent intelligence report. Only if the US person information is relevant to the report, is it included.

According to the National Security Agency web site, Federal law and executive order define a United States person as any of the following: [1]

Securities market regulation

Regulation S (promulgated under the Securities Act of 1933) in Section 902(k)(1) defines a US person as: [2]

  1. Any natural person resident in the United States;
  2. Any partnership or corporation organized or incorporated under the laws of the United States;
  3. Any estate of which any executor or administrator is a US person;
  4. Any trust of which any trustee is a US person;
  5. Any agency or branch of a foreign entity located in the United States;
  6. Any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a US person;
  7. Any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; and
  8. Any partnership or corporation if:
    1. Organized or incorporated under the laws of any foreign jurisdiction; and
    2. Formed by a US person principally for the purpose of investing in securities not registered under the Act, unless it is organized or incorporated, and owned, by accredited investors (as defined in Rule 501(a)) who are not natural persons, estates or trusts.

Section 902(k)(2) further defines some persons who are explicitly not US persons. [2] Unlike other definitions of US person, the Regulation S definition of US person does not include US citizens not resident in the US.

Taxation

Internal Revenue Code Section 7701(a)(30) defines a US person as: [3]

  1. a citizen or resident of the United States (including a lawful permanent resident residing abroad who has not formally notified United States Citizenship and Immigration Services in order to abandon that status); [4]
  2. a domestic partnership;
  3. a domestic corporation;
  4. any estate (other than a foreign estate, within the meaning of paragraph (31)); and
  5. any trust if—
    1. a court within the United States is able to exercise primary supervision over the administration of the trust, and
    2. one or more United States persons have the authority to control all substantial decisions of the trust.

See also

Related Research Articles

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Trustee

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For households and individuals, gross income is the sum of all wages, salaries, profits, interest payments, rents, and other forms of earnings, before any deductions or taxes. It is opposed to net income, defined as the gross income minus taxes and other deductions.

Income taxes in the United States are imposed by the federal, most states, and many local governments. The income taxes are determined by applying a tax rate, which may increase as income increases, to taxable income, which is the total income less allowable deductions. Income is broadly defined. Individuals and corporations are directly taxable, and estates and trusts may be taxable on undistributed income. Partnerships are not taxed, but their partners are taxed on their shares of partnership income. Residents and citizens are taxed on worldwide income, while nonresidents are taxed only on income within the jurisdiction. Several types of credits reduce tax, and some types of credits may exceed tax before credits. An alternative tax applies at the federal and some state levels.

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Massachusetts business trust

A Massachusetts Business Trust (MBT) is a legal trust set up for the purposes of business, but not necessarily one that is operated in the Commonwealth of Massachusetts. They may also be referred to as an unincorporated business organization or UBO. Business trusts may be established under the laws of other U.S. states.

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Corporate tax in the United States

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Foreign Investment in Real Property Tax Act

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An expatriation tax or emigration tax is a tax on persons who cease to be tax resident in a country. This often takes the form of a capital gains tax against unrealised gain attributable to the period in which the taxpayer was a tax resident of the country in question. In most cases, expatriation tax is assessed upon change of domicile or habitual residence; in the United States, which is one of only three countries to substantively tax its overseas citizens, the tax is applied upon relinquishment of American citizenship, on top of all taxes previously paid.

For United States income tax purposes, a business entity may elect to be treated either as a corporation or as other than a corporation. This entity classification election is made by filing Internal Revenue Service Form 8832. Absent filing the form, a default classification applies. U.S. corporations of the type that can be publicly traded must be treated as corporations. There is a list of specific foreign entities that must be treated as corporations. The election is effective for Federal income tax purposes.

The Quarterly Publication of Individuals Who Have Chosen to Expatriate, also known as the Quarterly Publication of Individuals, Who Have Chosen to Expatriate, as Required by Section 6039G, is a publication of the United States Internal Revenue Service (IRS) in the Federal Register, listing the names of certain individuals with respect to whom the IRS has received information regarding loss of citizenship during the preceding quarter.

An Accidental American is someone whom US law deems to be an American citizen, but who has only a tenuous connection with that country. For example, American nationality law provides that anyone born on US territory is a US citizen, including those who leave as infants or young children, even if neither parent is a US citizen. US law also ascribes American citizenship to some children born abroad to a US citizen parent, even if those children never enter the United States. Since the early 2000s, the term "Accidental American" has been adopted by several activist groups to protest tax treaties and Inter-Governmental Agreements which treat such people as American citizens who are therefore potentially subject to tax and financial reporting requirements – requirements which few other countries impose on their nonresident citizens. Accidental Americans may be unaware of these requirements, or their US citizen status, until they encounter problems accessing bank services in their home countries, for example, or are barred from entering the USA on a non-US passport. Furthermore, the US State Department now charges USD 2350 to renounce citizenship, while tax reporting requirements associated with legal expatriation may pose additional financial burdens.

References

  1. NSA SIGINT FAQs
  2. 1 2 General Rules and Regulations promulgated under the Securities Act of 1933: Rule 902 -- Definitions
  3. TITLE 26 > Subtitle F > CHAPTER 79 > § 7701. DEFINITIONS
  4. "Publication 4588: Basic Tax Guide for Green Card Holders" (PDF). Internal Revenue Service. February 2007. Retrieved April 28, 2018. If you have a U.S. green card, you are a lawful permanent resident of the U.S. even if you live abroad. This means you are treated as a U.S. resident for U.S. income tax purposes and you are subject to U.S. tax on your worldwide income from whatever source derived. Accordingly, you must file a U.S. tax return unless there has been a final administrative or judicial determination that your lawful permanent resident status has been revoked or abandoned, your gross income from worldwide sources less than the amounts that require a tax return to be filed, or your U.S. residence status is affected by an income tax treaty...