DEFINITION of 'IRS Publication 570: Tax Guide For Individuals With Income From U.S. Possessions'

A document published by the Internal Revenue Service (IRS) that provides information for tax filers with investments in U.S.-guided territories and possessions. IRS Publication 570 outlines the requirements for being considered a resident of a U.S. possession and the rules for determining the source of income. Bona fide residents of a possession may be required to fill out a U.S. tax return, a possession tax return or both.


United States possessions include Puerto Rico, American Samoa, the Commonwealth of the Northern Mariana Islands (CNMI), Guam and the U.S. Virgin Islands.

BREAKING DOWN 'IRS Publication 570: Tax Guide For Individuals With Income From U.S. Possessions'

Tax filers looking to receive tax benefits afforded to residents of a U.S. possession must prove that they are a bona fide resident of that possession during for the entire tax year. This can be accomplished by not having a home outside of the possession, by having more of a connection to the possession than to the United States or a foreign country, or by meeting the presence test.

RELATED TERMS
  1. IRS Publication 516 - U.S. Government ...

    A document published by the Internal Revenue Service that details ...
  2. Bona Fide Foreign Resident

    Any resident of a foreign country that meets the IRS criteria ...
  3. Adverse Possession

    A principle of real estate law that allows a person who possesses ...
  4. Debtor In Possession - DIP

    An individual or corporation that has filed for Chapter 11 bankruptcy ...
  5. Consumer Debt

    Debts that are owed as a result of purchasing goods that are ...
  6. Conditional Sales Agreement

    A lease agreement banks can offer to business customers that ...
Related Articles
  1. Taxes

    Tax Rules For Resident And Nonresident Aliens

    This article examines the definition and tax treatment of these types of non-U.S. citizens.
  2. Insights

    Puerto Rico Bankruptcy: How Did it End Up With So Much Debt?

    Learn how heavy bond issuance, economic decline, oppressive social spending and a declining population combined to bring about Puerto Rico's debt crisis, which has now resulted in bankruptcy.
  3. Taxes

    States That Pay The Most Taxes

    These five states may pay through the nose in taxes - but the benefits may just be worth it.
  4. Taxes

    3 Ways Tax Haven Governments Make Money

    If the governments of tax haven countries impose little, or no, income taxes, how exactly do these nations generate revenue?
  5. Managing Wealth

    How To Become A U.S. Citizen

    Depending on their parents, people not born in the U.S. either inherit U.S. citizenship or need to achieve it. Here are the steps to become an American.
  6. Retirement

    5 Reasons Americans Retire in Puerto Rico

    Puerto Rico’s unique status as a U.S. territory can make it particularly attractive to Americans.
  7. Tech

    Countries That Use The U.S. Dollar

    Here are the territories and countries that use the U.S. dollar as their official or quasi official currency.
  8. Taxes

    Tax-Efficient Strategies For International Clients

    In a globalized world, international clients seek to diversify holdings by accessing U.S. markets. Creative strategies will help optimize tax positioning.
  9. Taxes

    Get A Tax Credit For Your Foreign Investments

    The foreign tax credit provides a break on investment income made and taxed in a foreign country.
  10. Taxes

    Six Ways Your Tax Preparer Knows You're Lying

    An experienced tax preparer can sense when a client is lying. Find out what sets off their lie detectors.
Hot Definitions
  1. Money Market

    A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. ...
  2. Block (Bitcoin Block)

    Blocks are files where data pertaining to the Bitcoin network is permanently recorded.
  3. Fintech

    Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century.
  4. Ex-Dividend

    A classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be ...
  5. Debt Security

    Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount ...
  6. Taxable Income

    Taxable income is described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments ...
Trading Center