A nonresident alien received a severance check after working in the US for less than 18 months. The employer paid him for 22 weeks, of which
18 weeks were for the time he worked in his home country. Only four weeks were attributed to the time he was in the US.
Even though this multi-national company advised the client of the breakdown, it still withheld US and state income taxes, Medicare, FICA, and 401K from the severance pay.
Under Reg. 31.3401(a)(6)-1(b), the income attributed to his service in another coutry is not taxable in the U.S. In reporting a lower wage income than on the W-2, is a Form 8275 required?
Thanks, Gary