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TXX5766 FORco, a foreign corporation, opens a sales office in the U.S. and assig

ID: 2593178 • Letter: T

Question

TXX5766

FORco, a foreign corporation, opens a sales office in the U.S. and assigns a nonresident alien to manage the sales office and make sales calls for five months before returning back to her home country.

FORco must file a Form 1120F and the nonresident alien must file a Form1040NR.

FORco does not have to file a Form 1120F and the nonresident alien does not have to file a Form 1040NR.

FORco must file a Form 1120F, but the nonresident alien does not have to file a Form 1040NR.

FORco does not have to file a Form 1120F, but the nonresident alien must file a Form 1040NR.

FORco must file a Form 1120F and the nonresident alien must file a Form1040NR.

FORco does not have to file a Form 1120F and the nonresident alien does not have to file a Form 1040NR.

FORco must file a Form 1120F, but the nonresident alien does not have to file a Form 1040NR.

FORco does not have to file a Form 1120F, but the nonresident alien must file a Form 1040NR.

Explanation / Answer

Solution: FORco must file a Form 1120F and the nonresident alien must file a Form1040NR.

Explanation: Nonresident aliens is required to file and pay any tax due using Form 1040NR. As it got engage in a U.S. trade or business during the year thus have to file a Form 1120F