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