IRS Issues Proposed Regulations Upon Which Taxpayers May Rely Expanding Constructive Presence Days for Bona Fide Resident U.S. Territory Test

The IRS has issued proposed regulations (REG-109813-11) on which taxpayers may rely for new tax years that would allow additional days to count toward establishing bona fide residency for certain taxpayers in a U.S. territory.

Those qualifying as a bona fide resident of the following U.S. territories under IRC §937 are treated differently under a number of tax provisions:

  • Guam
  • American Samoa
  • The Northern Mariana Islands
  • Puerto Rico
  • The Virgin Islands [IRC §937(a)]
Read More