Rev. Rul. 71-565

The Internal Revenue Service has been requested to amplify and clarify Revenue Ruling 69-517, C.B. 1969-2, 149, which relates to the classification of the members of families of certain representatives of foreign governments for Federal income tax purposes.

Revenue Ruling 69-517 holds that the members of families of foreign ambassadors and ministers occupy the status of nonresident aliens for Federal income tax purposes. The questions presented are (1) whether Revenue Ruling 69-517 also applies to categories of foreign government representatives and employees (and members of their families) other than ambassadors and ministers, and (2) what particular relationships are contemplated by the phrase "members of families."

Section 41.120(a) of the State Department Regulations, Chapter 1 of 22 CFR, promulgated under the Immigration and Nationality Act, Public Law 414 of June 27, 1952, as amended, provides that nonimmigrant visas, including diplomatic visas, may be issued to nonimmigrants who are in an official or quasi-official status and who are qualified and classifiable under the visa symbols A-1, A-2, A-3, C-2, C-3, G-1, G-2, G-3, G-4, G-5, NATO-1, NATO-2, NATO-3, NATO-4, NATO-5, NATO-6, or NATO-7. The persons to whom such visas are issued are described in section 41.12 of the State Department Regulations as follows:

A-1________ Ambassador, public minister, career diplomatic or consular officer, and members of immediate family.

A-2________ Other foreign-government official or employee, and members of immediate family.

A-3________ Attendant, servant, or personal employee of A-1 and A-2 classes, and members of immediate family.

C-2________ Alien in transit to United Nations Headquarters District under section 11.(3), (4), or (5) or the Headquarters Agreement.

C-3________ Foreign government official, members of immediate family, attendant, servant, or personal employee, in transit.

G-1________ Principal resident representative or [sic] recognized foreign member government to international organization, his staff, and members of immediate family.

G-2________ Other representatives of recognized foreign member government to international organization, and members of immediate family.

G-3________ Representative of nonrecognized or nonmember foreign government to international organization, and members of immediate family.

G-4________ International organization officer or employee, and members of immediate family.

G-5________ Attendant, servant, or personal employee, of G-1, G-2, G-3, and G-4 classes, and members of immediate family.

NATO-1_____ Principal permanent representative of Member State to NATO (including any of its subsidiary bodies) resident in the United States and resident members of his official staff; Secretary General, Deputy Secretary General, Assistant Secretaries General and Executive Secretary of NATO; other permanent NATO officials of similar rank; and members of immediate family.

NATO-2_____ Other representatives of Member States of NATO (including any of its subsidiary bodies) including representatives, advisers and technical experts of delegations, and members of immediate family; dependents of member of a force entering in accordance with the provisions of the NATO Status- of-Forces Agreement or in accordance with the provisions of the Protocol on the Status of International Military Headquarters; members of such a force if issued visas.

NATO-3_____ Official clerical staff accompanying a representative of Member State to NATO (including any of its subsidiary bodies) and members of immediate family.

NATO-4_____ Officials of NATO (other than those classifiable under NATO-1) and members of immediate family.

NATO-5_____ Experts, other than NATO officials classifiable under the symbol NATO-4, employed on missions on behalf of NATO; and their dependents.

NATO-6_____ Members of a civilian component accompanying a force entering in accordance with the provisions of the NATO Status-of-Forces Agreement; members of a civilian component attached to or employed by an Allied Headquarters under the Protocol on the Status of International Military Headquarters set up pursuant to the North Atlantic Treaty; and their dependents.

NATO-7_____ Attendant, servant, or personal employee of NATO-1, NATO-2, NATO-3, NATO-4, NATO-5 and NATO-6 classes, and members of immediate families.

Section 41.1 of the State Department Regulations defines the phrase "immediate family," as used in the classifications listed above, as close relatives who are members of the immediate family by blood, marriage, or adoption, who are not members of some other household, and who will reside regularly in the household of the principal alien (an alien from whom another alien derives a privilege or status under the law or regulations).

The stay in the United States of nonimmigrants is limited to a definite period of time. Section 214 of the Immigration and Nationality Act.

Section 1.871-2(b) of the Income Tax Regulations defines residence for the purpose of section 871 of the Code and provides, in pertinent part, that an alien whose stay in the United States is limited to a definite period by the immigration laws is not a resident of the United States within the meaning of section 871 of the Code, in the absence of exceptional circumstances.

Accordingly, holders of visas described above are nonresident aliens for purposes of section 871 of the Code, in the absence of exceptional circumstances. Furthermore, the relationships contemplated by the phrase "members of families," as used in such descriptions, are those as described in section 41.1 of the State Department Regulations.

Revenue Ruling 69-517 is hereby amplified and clarified.