In updated COVID-19 FAQs, the IRS has clarified rules for certain nonresident aliens and foreign corporations.

In general, a 30% tax is imposed on U.S.-source income that isn’t effectively connected with the conduct of a U.S. trade or business (USTB) and is received by a nonresident alien individual or foreign corporation.

Nonresident aliens who perform services in the U.S. or foreign corporations that employ individuals to perform services in the U.S. may be considered engaged in a USTB. According to the FAQs, those that don’t have a USTB due to IRS-provided relief related to COVID-19 travel disruptions won’t be subject to the 30% tax.

Read the FAQs: https://bit.ly/2N8L1Tj