Taxation Partner Seth Entin wrote an article for Law360
explaining the potential consequences of the COVID-19 outbreak on the federal income tax process. Many non-U.S. citizens have found themselves forced to remain in the country longer than expected, which means they may qualify as a U.S. income tax resident by meeting the substantial presence test. According to this test, an individual qualifies as a U.S. income tax resident if they meet one of two conditions: 1) they have been present in the U.S. for 183 days during the current calendar year or 2) they have been present in the U.S. for 31 days during the current calendar year and will have been present for 183 days throughout the past three years by the end of the current calendar year, using a weighted formula. There are several exceptions to this test, however, so Mr. Entin advises non-U.S. citizens to review their status and to take the necessary steps to avoid becoming an income tax resident.
READ: Mitigating The Unintended Tax Consequences Of Coronavirus