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good afternoon this is sean golding with golding and golding here to discuss the basics of the substantial presence test what is it who does it apply to and how do you avoid it so basics right in the u.s the u.s files a worldwide income and reporting model which means u.s persons not just citizens are taxed on their worldwide income and have to report their global assets accounts and investments to the us government it doesnt matter if uh if jim lives in country a earns all of his income from country b and has no income in the united states if hes a u.s person he has to report all that income on his u.s tax return theres three main categories of u.s person individuals theres u.s citizens lawful permanent residence and then the third category which is foreign nationals who are not u.s citizens nor legal permanent residents but they meet the substantial presence test excuse me so what is the substantial presence says the substantial presence test is essentially a counting days test i
