I've got an examination from IRS
. I am a citizen of Russia. I was on J1 visa the full year (2010). I declared myself as a 'non-resident' and took tax
treaty exemption for the whole year. I had salary from US government
grants, working as a researcher,
the whole year. However, a part of year I was paid by one sub-contractor
, who gave me tax treaty automatically, and the second part of the year I moved to the another
sub-contractor, who paid me 'salary' with W2 form
. The source of money was the same, ie US government grants. US-Russia tax treaty directly says I may be eligible for tax treaty, if I am doing research and money are from grants.
However, IRS interpretation seems different. They want me to return
taxes from the second sub-contractor (W2 form) saying 'the source of money was reported as US income
(1) Do I have good chances for appeal even if my money were reported at W2
in this case?
(2) If no, May I change my status to "resident for tax purposes" for year 2010,
AND take tax treaty for a part of the year? After reading of Internet,
I've found it may be possible for the most of tax treaties
Thank you very much,