Domicile v. Residency

1. An Individual can have more than one place of residency

2. An Individual can have only a single domicile at one time

3. In Elkins v. Moreno (435 U.S. 647 (1978)) the IRS revoked its prior ruling and held that a non-immigrant alien who entered the United States with a G-4 Visa, formed the intent to remain indefinitely, died 13 years later, was domiciled in the U.S. (Rev. Rul. 80-363, 1980-2 C.B. 249, revoking Rev. Rul. 74-364, 1974-2 C.B. 321)

4. A non-domiciled resident alien:
a. Interest Income from U.S. Bank Accounts subject to U.S. income tax because he is resident (IRC § 871(i)(3))
b. U.S. Bank Account subject to U.S. estate tax (IRC § 2105 (b)(1))
c. Foreign Bank Accounts interest income subject to U.S. income tax but not estate tax (i.e., deposits foreign-situs property for estate tax)


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