IRS practice unit: Deferred compensation received by nonresident alien individuals
The practice unit discusses payments to nonresident aliens from four types of deferred compensation plans.
Payments to nonresident aliens from four types of deferred compensation plans
The IRS Large Business and International (LB&I) division today publicly released a “practice unit”—part of a series of IRS examiner “job aides” and training materials intended to describe for IRS agents leading practices about tax concepts in general and specific types of transactions.
The title of the “concept unit” (as referred to by the IRS) is: Deferred compensation received by nonresident alien individuals
This practice unit discusses payments to nonresident aliens from four types of deferred compensation plans:
- Salary deferral—unfunded deferred compensation plans under which U.S. taxation is deferred until payment is made
- Distributions from a tax-qualified retirement plan (usually a pension or profit-sharing plan) of a U.S. company
- Payments made by a U.S. company under an unfunded “top hat” retirement plan for key employees
- Income arising under an equity-based compensation plan (employee stock option plan or restricted stock plan)
Read the process unit on the IRS practice unit webpage (posting date of March 31, 2022).
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.