My CPA said IRC 871 governs how I'm taxed as a nonresident alien — what does this section actually cover?
I'm a Japanese citizen running an online marketing agency through a U.S. LLC. I live in Tokyo and have never set foot in the U.S. My CPA said Section 871 of the IRC is the main section that determines how my U.S. income is taxed. She mentioned something about a 30% flat rate on some income and a different rate on 'effectively connected income.' Can someone break down what IRC 871 actually says and which parts apply to a typical foreign LLC owner?
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