Registered Tax Return Preparer RTRP Practice Exam

The Substantial Presence Test is a method used by the IRS to determine if an individual should be considered a resident alien for tax purposes based on their physical presence in the United States. The correct condition for meeting the Substantial Presence Test involves a calculation of the number of days an individual has been present in the U.S. over a three-year period.

To satisfy this test, an individual must be physically present in the United States for at least 183 days during the current year or meet a specific formula involving the days present in the previous two years. The formula looks at the days present in the current year, one-third of the days in the previous year, and one-sixth of the days in the year before that. The cumulative result must equal or exceed 183 days.

The other choices do not accurately represent the requirements under the Substantial Presence Test. Simply living in the U.S. for any three-year period, being present for only 90 days, or obtaining a green card do not automatically establish residency status for tax purposes under this specific test. Thus, the position regarding the 183-day criteria correctly captures the essence of the Substantial Presence Test as defined by the IRS.